Local Bounti Corporation Common Stock (LOCL)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn consistent profits, generate cash, and sell at sensible prices. Local Bounti does not fit that description. It sells fresh greens and has grown revenue: fiscal 2023 revenue was $27.6M, fiscal 2024 was $38.1M, and fiscal 2025 was $48.4M. The latest reported quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue of $13.8M, but net income was -$19.8M, a -143.11% margin. Annual losses remain enormous: -$124.0M in fiscal 2023, -$119.9M in fiscal 2024, and -$94.4M in fiscal 2025. The company has not earned a profit in each of the last four years, so FairStock's Lynch category is none. Free cash flow is -$28.4M trailing twelve months, and FairStock's FCF yield is -117.8% of the $24.1M market cap at the 2026-10-13 close. That means it burns more cash than its entire equity value. The Piotroski F-Score is 2/9 and the Altman Z-Score is -1.96, both signaling financial weakness. ROCE is -8.38%. The stock's beta is 2.81, so it is volatile. There may be a competitive moat? I see little: fresh greens are perishable and competitive. Growth is real, but unprofitable growth can destroy value. Valuation cannot be judged on earnings because the FairStock P/E is -0.46 and P/B is N/A. The price of $1.03 may look low, but with a cash-burning, loss-making business, cheapness is not the same as safety. I would need evidence of positive cash flow and a durable balance sheet before calling this a Graham-style bargain.

In plain English: Local Bounti grows and sells fresh greens such as lettuce, herbs, and berries to grocery stores and food distributors. Sales are growing, but the company loses much more money than it brings in and spends a lot of cash. At $1.03 a share as of 2026-10-13, the price looks very low compared with sales, but because there are no profits, it is hard to call the stock a safe bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer