BranchOut Food Expects Record Q2 Revenue After Record Production and Major Retail Launches

BranchOut Food Inc. (NASDAQ: BOF), a food technology company specializing in dehydrated fruit and vegetable snacks, has announced record production levels and major customer deliveries that position the company for a record second quarter in 2026. The company achieved record production of approximately 46,000 kg per month in March and April, the highest in its history, driven by preparation for its largest order to date and expanding partnerships.

While first-quarter revenue was below the record Q4 2025 results, the company attributes this to shipment timing, as Q1 served as an inventory build quarter. The company built substantial inventory to support large committed deliveries scheduled for Q2 2026. CEO Eric Healy stated, "We remain extremely bullish on the strength of our sales pipeline and the customer response we are seeing across both our retail and ingredient products."

A key highlight is the nationwide launch of BranchOut's Crunchy Fruit Chips at the nation's second largest warehouse club retailer, covering over 600 locations. Early sales data indicates the product is performing exceptionally well, potentially exceeding the retailer's thresholds for everyday placement. BranchOut estimates an everyday program could represent approximately $15 million in annual recurring revenue.

BranchOut is also in final negotiations for a large-scale tolling partnership with a major household brand. The agreement would involve the customer supplying raw materials while BranchOut provides drying and manufacturing services using its proprietary GentleDry™ process. The program could generate approximately $6–7 million in annual revenue once fully ramped, with higher margins due to minimal raw material costs. Management expects to finalize terms during Q2 2026.

Expansion continues with the nation's largest warehouse club retailer, including additional regional orders for Pineapple Chips, a new Mango Chips launch in the Bay Area, and potential back-to-school multipack programs. The company also conducted a major innovation meeting with the world's largest retailer, showcasing over 35 product concepts across multiple categories, including shelf-stable cheesecake bites and high-protein snacks targeting GLP-1 trends. Strong buyer interest was noted, though launches are expected in early 2027.

The ingredient and bulk supply channel is emerging as a major growth driver, with BranchOut expecting $6–7 million in revenue in 2026, up from nearly $2 million in 2025. Additionally, expansion into the European private label market through a German partner has led to an expected first commercial order of approximately $500,000 this month, with potential for significant growth.

Financially, Kaufman Capital has provided approximately $2.25 million in new capital through non-dilutive working capital loans and warrant exercises, supporting inventory build for major deliveries. The terms include a reduction in interest rate from 12% to 8% and an extension of the convertible note maturity to December 2027. Management believes this reflects strong alignment with the company's growth strategy.

For more information, visit BranchOut Food's website and their newsroom at https://tinyurl.com/bofnewsroom.