Q2 2026 Local Bounti Corp Earnings Call
Operator 2: Good morning, and welcome to Local Bounti's Q2 2026 earnings conference call. All participants will be in a listen-only mode. Please also note today's event is being recorded. At this time, I'd like to turn the conference call over to Jeff Sonnek, investor relations at ICR. Jeff, please go ahead.
Operator: Good morning, and welcome to Local Bounti's Q2 2026 Earnings Conference Call. All participants will be in a listen-only mode. Please also note today's event is being recorded. At this time, I'd like to turn the conference call over to Jeff Sonnek, Investor Relations at ICR. Jeff, please go ahead.
Speaker #1: At this time, I'd like to turn the conference call over to Jeff Sonnek, Investor Relations at ICR. Jeff, please go ahead.
Speaker #2: Thank you, and good morning. Today's presentation will be hosted by Local Bounti's President and Chief Executive Officer, Kathleen Valiasek, and Interim Chief Financial Officer and Chief Accounting Officer, Tony Hughes.
Jeff Sonnek: Thank you and good morning. Today's presentation will be hosted by Local Bounti's President and Chief Executive Officer, Kathleen Valiasek, and Interim Chief Financial Officer and Chief Accounting Officer, Anthony Hughes. Comments made during today's call contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are considered forward-looking statements. These statements are based on management's current expectations and beliefs as well as a number of assumptions concerning future events. Such forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the results discussed in the forward-looking statements. Some of these risks and uncertainties are identified and discussed in the company's filings with the SEC. We will also refer to certain non-GAAP financial measures today.
Jeff Sonnek: Thank you and good morning. Today's presentation will be hosted by Local Bounti's President and Chief Executive Officer, Kathleen Valiasek, and Interim Chief Financial Officer and Chief Accounting Officer, Tony Hughes. Comments made during today's call contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are considered forward-looking statements. These statements are based on management's current expectations and beliefs as well as a number of assumptions concerning future events. Such forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the results discussed in the forward-looking statements. Some of these risks and uncertainties are identified and discussed in the company's filings with the SEC. We will also refer to certain non-GAAP financial measures today.
Speaker #2: Comments made during today's call contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Speaker #2: All statements other than statements of historical facts are considered forward-looking statements. These statements are based on management's current expectations and beliefs as well as a number of assumptions concerning future events.
Speaker #2: Such forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the results discussed in the forward-looking statements.
Speaker #2: Some of these risks and uncertainties are identified and discussed in the company's filings with the SEC. We'll also refer to certain non-GAAP financial measures today.
Speaker #2: Please refer to the press release, which can be found on our investor relations website, investors.localbounty.com, for reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures.
Jeff Sonnek: Please refer to the press release, which can be found on our investor relations website, investors.localbounti.com, for reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures. With that, I would now like to turn the call over to Kathy.
Jeff Sonnek: Please refer to the press release, which can be found on our investor relations website, investors.localbounti.com, for reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures. With that, I would now like to turn the call over to Kathy.
Speaker #2: And with that, I'd now like to turn the call over to Kathy.
Speaker #3: Thank you, Jeff. And good morning, everyone. I want to start by recognizing the work our team put in to achieve the results we're sharing today.
Kathleen Valiasek: Thank you, Jeff, and good morning, everyone. I want to start by recognizing the work our team put in to achieve the results we are sharing today. Q2 continued the trajectory we have been building with disciplined execution across every part of the organization, and I want to walk you through that today. Revenue grew 14% year over year to $13.9 million and grew again sequentially from Q1. Adjusted EBITDA loss improved 17% year over year to -$5.8 million, and adjusted G&A came down 17% year over year as well, all supporting our primary goal of achieving positive adjusted EBITDA. We have talked for a while now about our ongoing strategic partnership discussions across the retail landscape, but I would say in light of recent events in our industry, those conversations have never felt more relevant than they do right now.
Kathleen Valiasek: Thank you, Jeff, and good morning, everyone. I want to start by recognizing the work our team put in to achieve the results we are sharing today. Q2 continued the trajectory we have been building with disciplined execution across every part of the organization, and I want to walk you through that today. Revenue grew 14% year over year to $13.9 million and grew again sequentially from Q1. Adjusted EBITDA loss improved 17% year over year to -$5.8 million, and adjusted G&A came down 17% year over year as well, all supporting our primary goal of achieving positive adjusted EBITDA. We have talked for a while now about our ongoing strategic partnership discussions across the retail landscape, but I would say in light of recent events in our industry, those conversations have never felt more relevant than they do right now.
Speaker #3: The second quarter continued the trajectory we've been building with disciplined execution across every part of the organization, and I want to walk you through that today.
Speaker #3: Revenue grew 14% year over year to $13.9 million, and grew again sequentially from the first quarter. Adjusted EBITDA loss improved 17% year over year to $5.8 million, and adjusted G&A came down 17% year over year as well, all supporting our primary goal of achieving positive adjusted EBITDA.
Speaker #3: We've talked for a while now about our ongoing strategic partnership discussions across the retail landscape, but I'd say, in light of recent events in our industry, those conversations have never felt more relevant than they do right now.
Speaker #3: Food safety has become a genuinely mainstream conversation for consumers over the last several weeks, and that's translating directly into how retailers think about where and how they source their produce.
Kathleen Valiasek: Food safety has become a genuinely mainstream conversation for consumers over the last several weeks, and that is translating directly into how retailers think about where and how they source their produce. Conversations that used to center on cost and availability now also focus on traceability, water sourcing, food safety, and environmental control, all questions that our CEA model was specifically built to solve for. We are seeing that shift show up almost daily across our retail network, including with prospects who are not even our customers yet. Retailers want to understand how our water is sourced, treated, and monitored in a closed loop, and why growing indoors under controlled conditions is structurally safer than open field agriculture, which is exposed to unpredictable outside conditions like runoff, wildlife, and weather. Our model also collapses much of the traditional supply chain.
Kathleen Valiasek: Food safety has become a genuinely mainstream conversation for consumers over the last several weeks, and that is translating directly into how retailers think about where and how they source their produce. Conversations that used to center on cost and availability now also focus on traceability, water sourcing, food safety, and environmental control, all questions that our CEA model was specifically built to solve for. We are seeing that shift show up almost daily across our retail network, including with prospects who are not even our customers yet. Retailers want to understand how our water is sourced, treated, and monitored in a closed loop, and why growing indoors under controlled conditions is structurally safer than open field agriculture, which is exposed to unpredictable outside conditions like runoff, wildlife, and weather. Our model also collapses much of the traditional supply chain.
Speaker #3: Conversations that used to center on cost and availability now also focus on traceability, water sourcing, food safety, and environmental control. All questions that our CEA model was specifically built to solve for.
Speaker #3: We're seeing that shift show up almost daily across our retail network, including with prospects who aren't even our customers yet. Retailers want to understand how our water is sourced, treated, and monitored in a closed loop, and why growing indoors under controlled conditions is structurally safer than open field agriculture, which is exposed to unpredictable outside conditions like runoffs, wildlife, and weather.
Speaker #3: Our model also collapses much of the traditional supply chain. We take a plant from seed to finished package in a captive environment, which is a meaningful advantage when a retailer needs to understand and trace a product's journey quickly.
Kathleen Valiasek: We take a plant from seed to finished package in a captive environment, which is a meaningful advantage when a retailer needs to understand and trace a product's journey quickly. To be clear, no system eliminates risk 100%, but growing indoors removes several of the specific pathways, like contaminated irrigation water and wildlife exposure, that drive these outbreaks in the first place. Conventional produce supply chains built around open fields and exposed to uncontrollable environmental impacts have a hard time addressing those difficult conversations with confidence. That shift does not create demand overnight, but we expect it to be a significant driver of long-term growth as retailers, and ultimately consumers, increasingly choose product based on where and how it is grown and the brand behind it.
Kathleen Valiasek: We take a plant from seed to finished package in a captive environment, which is a meaningful advantage when a retailer needs to understand and trace a product's journey quickly. To be clear, no system eliminates risk 100%, but growing indoors removes several of the specific pathways, like contaminated irrigation water and wildlife exposure, that drive these outbreaks in the first place. Conventional produce supply chains built around open fields and exposed to uncontrollable environmental impacts have a hard time addressing those difficult conversations with confidence. That shift does not create demand overnight, but we expect it to be a significant driver of long-term growth as retailers, and ultimately consumers, increasingly choose product based on where and how it is grown and the brand behind it.
Speaker #3: To be clear, no system eliminates risk 100%, but growing indoors removes several of the specific pathways, like contaminated irrigation water and wildlife exposure, that drive these outbreaks in the first place.
Speaker #3: Conventional produce supply chains built around open fields and exposed to uncontrollable environmental impacts have a hard time addressing those difficult conversations with confidence. That shift doesn't create demand overnight, but we expect it to be a significant driver of long-term growth as retailers and ultimately consumers increasingly choose product based on where and how it is grown and the brand behind it.
Speaker #3: The strategic conversations we've been having across our network for a while now carry more weight and move with more urgency than they did even a quarter ago.
Kathleen Valiasek: The strategic conversations we have been having across our network for a while now carry more weight and move with more urgency than they did even a quarter ago. Turning to the commercial side, following discussions with a major retailer, we are relaunching our single-serve salad kit line and agreed with that retailer to a pilot launch throughout the Mid-Atlantic region in approximately 400 stores this fall. It is an encouraging step in building this product line that our commercial team is genuinely excited about, and we expect can be a driver of continued growth for this product line in the future. We will have more to share as that develops. The rest of our commercial base continued to perform well across our approximately 13,000 doors and continues to build on our base of blue-chip retail relationships.
Kathleen Valiasek: The strategic conversations we have been having across our network for a while now carry more weight and move with more urgency than they did even a quarter ago. Turning to the commercial side, following discussions with a major retailer, we are relaunching our single-serve salad kit line and agreed with that retailer to a pilot launch throughout the Mid-Atlantic region in approximately 400 stores this fall. It is an encouraging step in building this product line that our commercial team is genuinely excited about, and we expect can be a driver of continued growth for this product line in the future. We will have more to share as that develops. The rest of our commercial base continued to perform well across our approximately 13,000 doors and continues to build on our base of blue-chip retail relationships.
Speaker #3: So turning to the commercial side, following discussions with a major retailer, we are relaunching our single-serve salad kit line and agreed with that retailer to a pilot launch throughout the Mid-Atlantic region in approximately 400 stores this fall.
Speaker #3: It's an encouraging step in building this product line that our commercial team is genuinely excited about, and we expect it can be a driver of continued growth for this product line in the future.
Speaker #3: We'll have more to share as that develops. So the rest of our commercial base continue to perform well across our approximately 13,000 doors, and continues to build on our base of blue-chip retail relationships.
Speaker #3: The two accounts we discussed last quarter—a six-SKU rollout covering more than 250 Harris Teeter stores and a large regional retailer operating 160 stores—are both now fully launched and tracking in line with expectations.
Kathleen Valiasek: The two accounts we discussed last quarter, a six SKU rollout covering more than 250 Harris Teeter stores and a large regional retailer operating 160 stores, are both now fully launched and tracking in line with expectations. In July, we also launched a new retail partner in the Mid-South region, featuring five SKUs across approximately 66 stores, and in early August, launched a new retail partner in the Rocky Mountain region featuring four SKUs across approximately 110 stores. Between the first and second quarter, we were also awarded bids extending supply agreements with multiple national retail accounts. These relationships span key product lines, including baby leaf lettuce and organic Butter Lettuce. These wins are a good measure of how our existing retail partners actually view us. Our Romano Caesar Crunch salad kit also continues to perform well.
Kathleen Valiasek: The two accounts we discussed last quarter, a six SKU rollout covering more than 250 Harris Teeter stores and a large regional retailer operating 160 stores, are both now fully launched and tracking in line with expectations. In July, we also launched a new retail partner in the Mid-South region, featuring five SKUs across approximately 66 stores, and in early August, launched a new retail partner in the Rocky Mountain region featuring four SKUs across approximately 110 stores. Between the first and second quarter, we were also awarded bids extending supply agreements with multiple national retail accounts. These relationships span key product lines, including baby leaf lettuce and organic Butter Lettuce. These wins are a good measure of how our existing retail partners actually view us. Our Romano Caesar Crunch salad kit also continues to perform well.
Speaker #3: In July, we also launched a new retail partner in the Mid-South region, featuring five SKUs across approximately 66 stores, and in early August, launched a new retail partner in the Rocky Mountain region, featuring four SKUs across approximately 110 stores.
Speaker #3: Between the first and second quarter, we were also awarded bids extending supply agreements with multiple national retail accounts. These relationships spanned key product lines including baby leaf lettuce, an organic butter lettuce.
Speaker #3: These wins are a good measure of how our existing retail partners actually view us. Our Caesar Romano salad kit also continues to perform well.
Speaker #3: The additional distribution center we picked up in the first quarter launched in May and is tracking in line with the strong velocity we saw last year.
Kathleen Valiasek: The additional distribution center we picked up in the Q1 launched in May and is tracking in line with the strong velocity we saw last year. We continue to see real opportunity in Arugula, where the conventional supply chain has struggled to keep up with demand. Our greenhouse-grown approach is a natural fit there, and it is a conversation we are actively continuing with retail partners. Collectively, these wins reflect the strength of our relationships with blue-chip retailers and their continued confidence in us to deliver consistent, high-quality products over the long term. Turning to operations. The tower upgrades we completed across Georgia, Texas, and Washington last year continue to deliver, running at roughly 10% higher yield capacity than before those upgrades, and our yields remain at the highest levels in the company's history.
Kathleen Valiasek: The additional distribution center we picked up in the Q1 launched in May and is tracking in line with the strong velocity we saw last year. We continue to see real opportunity in Arugula, where the conventional supply chain has struggled to keep up with demand. Our greenhouse-grown approach is a natural fit there, and it is a conversation we are actively continuing with retail partners. Collectively, these wins reflect the strength of our relationships with blue-chip retailers and their continued confidence in us to deliver consistent, high-quality products over the long term. Turning to operations. The tower upgrades we completed across Georgia, Texas, and Washington last year continue to deliver, running at roughly 10% higher yield capacity than before those upgrades, and our yields remain at the highest levels in the company's history.
Speaker #3: And we continue to see real opportunity in arugula, as the conventional supply chain has struggled to keep up with demand. Our greenhouse-grown approach is a natural fit there, and it's a conversation we're actively continuing with retail partners.
Speaker #3: Collectively, these wins reflect the strength of our relationships with blue-chip retailers and their continued confidence in us to deliver consistent, high-quality products over the long term.
Speaker #3: Turning to operations, the tower upgrades we completed across Georgia, Texas, and Washington last year continue to deliver. We're running at roughly 10% higher yield capacity than before those upgrades, and our yields remain at the highest levels in the company's history.
Speaker #3: Looking at our California facilities, the selective investments we've talked about before are on track, aimed at improving efficiency in those legacy assets and strengthening our position in living butterhead lettuce and we still believe they can improve yield by as much as 20% as those projects progress through the year.
Kathleen Valiasek: Looking at our California facilities, the selective investments we have talked about before are on track, aimed at improving efficiency in those legacy assets and strengthening our position in Living Butter Lettuce, and we still believe they can improve yield by as much as 20% as those projects progress through the year. In fact, our initial investments at one of our California facilities is already driving an approximate 10% increase in total production versus the prior year period. It is not limited to California either. Across all of our facilities, we continue to make tangible progress on the cost side of the business. For example, more efficient seeding practices have lowered our seed costs by approximately 20% year over year, and we expect to continue garnering cost savings across procurement, maintenance, labor efficiency, and freight management across the network. With that, I will turn it over to Tony for the financial review.
Kathleen Valiasek: Looking at our California facilities, the selective investments we have talked about before are on track, aimed at improving efficiency in those legacy assets and strengthening our position in Living Butter Lettuce, and we still believe they can improve yield by as much as 20% as those projects progress through the year. In fact, our initial investments at one of our California facilities is already driving an approximate 10% increase in total production versus the prior year period. It is not limited to California either. Across all of our facilities, we continue to make tangible progress on the cost side of the business. For example, more efficient seeding practices have lowered our seed costs by approximately 20% year over year, and we expect to continue garnering cost savings across procurement, maintenance, labor efficiency, and freight management across the network. With that, I will turn it over to Tony for the financial review.
Speaker #3: In fact, our initial investments at one of our California facilities is already driving an approximate 10% increase in total production versus the prior year period.
Speaker #3: It isn't limited to California either. Across all of our facilities, we continue to make tangible progress on the cost side of the business. For example, more efficient seeding practices have lowered our seed cost by approximately 20% year-over-year, and we expect to continue garnering cost savings across procurement, maintenance, labor efficiency, and freight management across the network.
Speaker #3: With that, I'll turn it over to Tony for the financial review.
Speaker #2: Thank you, Kathy. And good morning, everyone. Turning to our results, second quarter revenue grew 14% to $13.9 million, compared to $12.1 million in the second quarter of last year, and grew approximately 4% sequentially from $13.3 million in the first quarter.
Anthony Hughes: Thank you, Kathy, and good morning, everyone. Turning to our results. Q2 revenue grew 14% to $13.9 million compared to $12.1 million in the Q2 of last year and grew approximately 4% sequentially from $13.3 million in the Q1. The increase was driven by increased production and growth in sales from our Texas, Georgia, and Washington facilities. Adjusted gross margin for the Q2 was 27%, excluding depreciation, stock-based compensation, and other non-core items, compared to 30% in the prior year period and approximately 29% in the Q1. The sequential and year-over-year decline is a function of our strategy to diversify our channel mix at our Georgia facility and resulted in temporary packing inefficiencies, which have since been refined and implemented.
Tony Hughes: Thank you, Kathy, and good morning, everyone. Turning to our results. Q2 revenue grew 14% to $13.9 million compared to $12.1 million in the Q2 of last year and grew approximately 4% sequentially from $13.3 million in the Q1. The increase was driven by increased production and growth in sales from our Texas, Georgia, and Washington facilities. Adjusted gross margin for the Q2 was 27%, excluding depreciation, stock-based compensation, and other non-core items, compared to 30% in the prior year period and approximately 29% in the Q1. The sequential and year-over-year decline is a function of our strategy to diversify our channel mix at our Georgia facility and resulted in temporary packing inefficiencies, which have since been refined and implemented.
Speaker #2: The increase was driven by increased production and growth in sales from our Texas-Georgia and Washington facilities. Adjusted gross margin for the second quarter was $27%, excluding depreciation stock-based compensation and other non-core items, compared to 30% in the prior year period and approximately 29% in the first quarter.
Speaker #2: The sequential and year-over-year decline is a function of our strategy to diversify our channel mix at our Georgia facility and resulted in temporary packing inefficiencies, which have since been refined and implemented. As we look longer term, we expect that our increased penetration of the retail channel, in combination with our broader efforts to lower input costs, will support enhanced margins over time.
Anthony Hughes: As we look longer term, we expect that our increased penetration of the retail channel, in combination with our broader efforts to lower input costs, will support enhanced margins over time. Adjusted G&A expense for the Q2 was $4.1 million, down from $5 million in the Q2 of last year, a reduction of approximately 17% year over year and essentially in line with the $4.1 million we reported in the Q1. GAAP net loss for the Q2 was $19.8 million, compared to $21.6 million in the Q2 of last year and $12.7 million in the Q1 of 2026. The year-over-year improvement was primarily driven by a $1.5 million improvement in loss from operations, reflecting lower operating expenses along with a modest reduction in net interest expense. The sequential increase in GAAP net loss for the Q1 was almost entirely explained by non-cash items.
Tony Hughes: As we look longer term, we expect that our increased penetration of the retail channel, in combination with our broader efforts to lower input costs, will support enhanced margins over time. Adjusted G&A expense for the Q2 was $4.1 million, down from $5 million in the Q2 of last year, a reduction of approximately 17% year over year and essentially in line with the $4.1 million we reported in the Q1. GAAP net loss for the Q2 was $19.8 million, compared to $21.6 million in the Q2 of last year and $12.7 million in the Q1 of 2026. The year-over-year improvement was primarily driven by a $1.5 million improvement in loss from operations, reflecting lower operating expenses along with a modest reduction in net interest expense. The sequential increase in GAAP net loss for the Q1 was almost entirely explained by non-cash items.
Speaker #2: Adjusted G&A expense for the second quarter was $4.1 million, down from $5 million in the second quarter of last year, a reduction of approximately 17% year over year and essentially in line with the 4.1 million we reported in the first quarter.
Speaker #2: Gap net loss for the second quarter was $19.8 million, compared to $21.6 million in the second quarter of last year, and $12.7 million in the first quarter of 2026.
Speaker #2: The year-over-year improvement was primarily driven by a $1.5 million improvement in loss from operations, reflecting lower operating expenses along with a modest reduction in net interest expense.
Speaker #2: The sequential increase in gap net loss for the first quarter was almost entirely explained by non-cash items. The change in fair value of our warrant liabilities swung from a $5.2 million gain in the first quarter to a $1.4 million loss in the second quarter, driven by changes in our stock price during the period.
Anthony Hughes: The change in fair value of our warrant liabilities swung from a $5.2 million gain in Q1 to a $1.4 million loss in Q2, driven by changes in our stock price during the period. Adjusted EBITDA loss for Q2 was $5.8 million, compared to a loss of $7.1 million in Q2 of last year, a 17% year-over-year improvement. Relative to Q1, the loss was stable, and we still expect the pattern of continued improvement to hold in H2 as our network continues to mature and scale alongside our retail customers. Looking at our trending for H1 of the year, revenue is up 15% to $27.2 million, and adjusted EBITDA loss has improved approximately 24% to $11.5 million, compared to $15.3 million in H1 of last year.
Tony Hughes: The change in fair value of our warrant liabilities swung from a $5.2 million gain in Q1 to a $1.4 million loss in Q2, driven by changes in our stock price during the period. Adjusted EBITDA loss for Q2 was $5.8 million, compared to a loss of $7.1 million in Q2 of last year, a 17% year-over-year improvement. Relative to Q1, the loss was stable, and we still expect the pattern of continued improvement to hold in H2 as our network continues to mature and scale alongside our retail customers. Looking at our trending for H1 of the year, revenue is up 15% to $27.2 million, and adjusted EBITDA loss has improved approximately 24% to $11.5 million, compared to $15.3 million in H1 of last year.
Speaker #2: Adjusted EBITDA loss for the second quarter was $5.8 million, compared to a loss of $7.1 million in the second quarter of last year—a 17% year-over-year improvement. Relative to the first quarter, the loss was stable, and we still expect the pattern of continued improvement to hold in the second half as our network continues to mature and scale alongside our retail customers.
Speaker #2: Looking at our trending for the first half of the year, revenue is up 15% to $27.2 million, and adjusted EBITDA loss has improved approximately 24% to $11.5 million, compared to $15.3 million in the first half of last year.
Speaker #2: These results reinforce that we are on the right path. With respect to the balance sheet, we ended the quarter with cash, cash equivalents, and restricted cash of $10.1 million down from $18.8 million at the end of the first quarter, reflecting cash used in operations during the quarter.
Anthony Hughes: These results reinforce that we are on the right path. With respect to the balance sheet, we ended the quarter with cash equivalents, and restricted cash of $10.1 million, down from $18.8 million at the end of Q1, reflecting cash used in operations during the quarter. Subsequent to quarter end and prior to today's call, we received an additional $12.5 million investment from an existing strategic investor, which is not reflected in that $10.1 million balance. Combined with the $15 million investment we received in March and the transactions we executed in 2025, these commitments continue to give us the financial flexibility to be strategic about growth and partnership decisions as we advance towards profitability. In terms of our outlook, we expect the trajectory of improvement we've demonstrated over the past several quarters to continue.
Tony Hughes: These results reinforce that we are on the right path. With respect to the balance sheet, we ended the quarter with cash equivalents, and restricted cash of $10.1 million, down from $18.8 million at the end of Q1, reflecting cash used in operations during the quarter. Subsequent to quarter end and prior to today's call, we received an additional $12.5 million investment from an existing strategic investor, which is not reflected in that $10.1 million balance. Combined with the $15 million investment we received in March and the transactions we executed in 2025, these commitments continue to give us the financial flexibility to be strategic about growth and partnership decisions as we advance towards profitability. In terms of our outlook, we expect the trajectory of improvement we've demonstrated over the past several quarters to continue.
Speaker #2: Subsequent to quarter-end and prior to today's call, we received an additional $12.5 million investment from an existing strategic investor $10.1 million balance. Combined with the $15 million investment we received in March and the transactions we executed in 2025, these commitments continue to give us the financial flexibility to be strategic about growth and partnership decisions as we advance towards profitability.
Speaker #2: In terms of our outlook, we expect the trajectory of improvement we've demonstrated over the past several quarters to continue. Revenue growth and continued cost discipline remain the two biggest levers we have toward our goal of positive adjusted EBITDA.
Anthony Hughes: Revenue growth and continued cost discipline remain the two biggest levers we have towards our goal of positive adjusted EBITDA. With that, I'll turn it back to Kathy for closing remarks.
Tony Hughes: Revenue growth and continued cost discipline remain the two biggest levers we have towards our goal of positive adjusted EBITDA. With that, I'll turn it back to Kathy for closing remarks.
Speaker #2: With that, I'll turn it back to Kathy for closing remarks.
Speaker #3: Thank you, Tony. To close, I'd say this was a quarter that moved us forward on every front that matters: the commercial pipeline turning into real placements, our operational discipline continuing to compound, and our strategic investor, who knows the business well, choosing to back it with more capital.
Kathleen Valiasek: Thank you, Tony. To close, I'd say this was a quarter that moved us forward on every front that matters. The commercial pipeline turning into real placements, our operational discipline continuing to compound, and our strategic investor who knows the business well, choosing to back it with more capital. All of it against a backdrop where the case for how we grow food has genuinely never been more relevant. There's more work ahead of us before we get to positive adjusted EBITDA, but every quarter like this one narrows that gap. I'm grateful to the entire Local Bounti team for their execution and to our investors and partners for their continued confidence. That concludes our prepared remarks. Thank you again for joining us today and for your continued interest in Local Bounti.
Kathleen Valiasek: Thank you, Tony. To close, I'd say this was a quarter that moved us forward on every front that matters. The commercial pipeline turning into real placements, our operational discipline continuing to compound, and our strategic investor who knows the business well, choosing to back it with more capital. All of it against a backdrop where the case for how we grow food has genuinely never been more relevant. There's more work ahead of us before we get to positive adjusted EBITDA, but every quarter like this one narrows that gap. I'm grateful to the entire Local Bounti team for their execution and to our investors and partners for their continued confidence. That concludes our prepared remarks. Thank you again for joining us today and for your continued interest in Local Bounti.
Speaker #3: And all of it against a backdrop where the case for how we grow food has genuinely never been more relevant. There's more work ahead of us before we get to positive adjusted EBITDA, but every quarter like this one narrows that gap.
Speaker #3: I'm grateful to the entire local bounty team for the execution, and to our investors and partners for their continued confidence. That concludes our prepared remarks.
Speaker #3: Thank you again for joining us today, and for your continued interest in local bounty.
Speaker #1: Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.
Operator 2: Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.
Operator: Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.
