Free cash flow remains deeply negative, with margins reaching -125.1% in 2025Q1, as capital expenditures continue to outpace revenue generation capabilities.
| Cash from Operations | -26.85M | -30.34M | -27.06M | -33.16M | -48.81M | -20.11M | -3.84M | -1.12M |
| Operating CF Margin % | - | -62.72% | -70.96% | -120.32% | -250.63% | -3151.72% | -4680.49% | - |
| Operating CF Growth % | -388.18% | -12.1% | 18.39% | 32.07% | -142.73% | -423.92% | -242.98% | - |
| Net Income | -69.42M | -94.38M | -119.9M | -124.02M | -111.07M | -56.09M | -8.41M | -3.41M |
| Depreciation & Amortization | 19.64M | 19.89M | 18.87M | 13.13M | 10.43M | 684K | 287K | 0 |
| Stock-Based Compensation | 4.6M | 5.19M | 3.35M | 16.27M | 39.17M | 17.89M | 3.29M | 1.94M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 942K | -4.28M | 0 |
| Other Non-Cash Items | 11.46M | 38.7M | 61.83M | 56.35M | 7.23M | 6.97M | 4.28M | 147K |
| Working Capital Changes | 6.87M | 255K | 8.79M | 5.11M | 5.44M | 9.49M | 989K | 198K |
| Change in Receivables | -297K | 62K | 899K | -392K | -643K | 193K | -333K | 0 |
| Change in Inventory | 174K | -593K | -3.1M | -678K | -88K | -652K | -243K | 0 |
| Change in Payables | 4.37M | 1.54M | 6.64M | -66K | 2.12M | 1.74M | 29K | 0 |
| Cash from Investing | -7.73M | -11.59M | -82.45M | -162.26M | -172.38M | -29.67M | -3.42M | -3.74M |
| Capital Expenditures | -7.73M | -11.59M | -82.45M | -162.26M | -81.83M | -29.67M | -3.42M | -3.74M |
| CapEx % of Revenue | 15.43% | 23.96% | 216.2% | 588.83% | 420.22% | 4649.84% | 4173.17% | - |
| Acquisitions | 0 | 0 | 0 | 0 | -90.55M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 24.94M | 45.18M | 100.09M | 187.38M | 145.05M | 150.81M | 5.17M | 7M |
| Debt Issued (Net) | 26.78M | 21.91M | 100.09M | 152.61M | 124.65M | 42.14M | 5.25M | 2.5M |
| Equity Issued (Net) | -519K | 24.48M | 0 | -3K | 23.3M | 137.53M | -80K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -27.32M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -3K | 0 | 0 | -80K | 0 |
| Other Financing | -1.31M | -1.22M | 0 | 34.77M | -2.9M | -1.54M | 0 | 4.5M |
| Net Change in Cash | -9.64M | 3.25M | -9.43M | -8.04M | -76.14M | 101.03M | -2.09M | 2.14M |
| Free Cash Flow | -34.59M | -41.92M | -109.52M | -195.42M | -130.64M | -49.77M | -7.26M | -4.86M |
| FCF Margin % | -69.04% | -86.68% | -287.15% | -709.16% | -670.85% | -7801.57% | -8853.66% | - |
| FCF Growth % | 57.8% | 61.72% | 43.96% | -49.59% | -162.47% | -585.59% | -49.32% | - |
| FCF per Share | -1.43 | -1.79 | -12.91 | -24.60 | -16.38 | -7.49 | -1.90 | -6.30 |
| FCF Conversion (FCF/Net Income) | 0.50x | 0.32x | 0.23x | 0.27x | 0.44x | 0.36x | 0.46x | 0.33x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity shortfall
As reported in financial statements, Local Bounti consistently exhibits a wide gap between net losses and operating cash flow, with the OCF/NI ratio fluctuating significantly, reaching a low of 0.11 in 2023Q4, which suggests that accounting losses are not being fully mitigated by non-cash adjustments.
The persistent divergence between net income and operating cash flow indicates that the company's reported losses are fundamentally tied to cash-consuming operations rather than just non-cash depreciation. Investors should monitor whether the reliance on non-cash adjustments like stock-based compensation is masking the true extent of the cash burn required to maintain current production levels.
Based on quarterly filings, Local Bounti's free cash flow remains deeply negative, with margins reaching as low as -125.1% in 2025Q1, highlighting a structural inability to generate internal funding for its capital-intensive operations despite ongoing efforts to scale the Stack & Flow cultivation architecture.
The consistent negative FCF trajectory suggests that the company is trapped in a cycle of high capital intensity without the corresponding revenue growth to achieve self-sustainability. This trend implies that the business model may require significant external capital injections to survive, as current operations are not yet capable of covering their own maintenance or growth requirements.
According to recent SEC filings, Local Bounti's capital expenditure as a percentage of revenue reached an extreme of 125.0% in 2024Q3, underscoring the heavy financial burden of building out climate-controlled facilities that have yet to demonstrate a clear path to unit-level profitability.
The high ratio of CAPEX to revenue suggests that the company is prioritizing rapid infrastructure expansion over the optimization of existing assets. This strategy appears to be a primary driver of the current liquidity strain, as the capital required to build out new capacity is not being recouped through efficient, high-margin production.
Data from quarterly reports indicates that working capital changes have been highly erratic, swinging from a $7.2 million inflow in 2026Q1 to a $4.7 million outflow in 2025Q3, which suggests potential instability in inventory management and the timing of collections from retail partners.
The volatility in working capital movements may indicate challenges in balancing inventory levels with the perishable nature of the company's produce. Such fluctuations complicate cash flow forecasting and suggest that the company's operational efficiency is highly sensitive to the timing of retail orders and supply chain logistics.
As disclosed in financial filings, the company's reliance on stock-based compensation and significant depreciation charges obscures the underlying cash burn, with SBC reaching $2.6 million in 2023Q4, effectively masking the true cost of talent and asset maintenance required to sustain the current business model.
The cash flow statement may provide a misleading picture of operational health by emphasizing non-cash adjustments that do not reflect the actual cash requirements of the business. Investors should be wary of these adjustments, as they may be used to soften the appearance of a deteriorating cash position that is increasingly reliant on external financing.
Quick answers to the most common questions about buying LOCL stock.
Local Bounti Corporation (LOCL) generated $-30.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Local Bounti Corporation (LOCL) reported negative free cash flow of $41.9M in 2025, indicating capital requirements exceeded cash from operations.
Local Bounti Corporation (LOCL) spent $11.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.