BranchOut Food Inc. (NASDAQ: BOF), a food technology company known for its GentleDry™ process, announced record production levels and major customer deliveries that position the company for what it expects to be a record revenue second quarter of 2026. The company achieved production of approximately 46,000 kg per month in March and into April, the highest in its history, to support large committed deliveries.
While first quarter revenue fell below the record fourth quarter of 2025, the company attributed this to shipment timing, as Q1 served as a production and inventory build quarter. The company built substantial inventory to support deliveries scheduled for Q2, including its largest order ever to the nation’s second largest warehouse club retailer. That order, for Crunchy Fruit Chips, launched nationwide in over 600 locations, and early sales data indicate the product is exceeding the retailer’s internal thresholds for potential everyday placement. BranchOut estimates that an everyday program for this item could represent approximately $15 million in annual recurring revenue. The retailer has expressed satisfaction with the partnership and is expected to evaluate additional innovative products from BranchOut in future periods.
In addition to retail growth, BranchOut is nearing finalization of a large-scale tolling partnership with a major household brand. Under the proposed structure, the customer would supply raw materials while BranchOut provides drying and manufacturing services, potentially utilizing the company’s newly installed fourth large-scale REV line on a near-continuous basis. Management estimates the program could generate approximately $6–7 million in annual revenue once fully ramped in the second half of 2026, with significantly higher margins due to minimal raw material costs.
BranchOut continues to expand its partnership with the nation’s largest warehouse club retailer through additional regional programs, new product launches, and expansion into new departments. During Q2, the retailer placed another large Pineapple Chips order for the Southeast region and committed to a larger follow-on order for Q4. The company also secured its first regional launch of Mango Chips into the Bay Area market, which management believes has the potential to outperform its current top-selling Pineapple Chips product. Additionally, the company is seeing strong interest in multipack products aimed at the back-to-school season, which would open placement opportunities in a new department within the retailer.
BranchOut recently conducted a large-scale innovation meeting with the world’s largest retailer in Bentonville, Arkansas, showcasing more than 35 product concepts across multiple categories, including crunchy dried cheese products, shelf-stable cheesecake bites, and chocolate-covered fruit items. The meeting included buyers from more than six categories, with strong interest noted across several product lines. While initial expectations targeted launches in late 2026, management now believes many opportunities are more likely to progress into early 2027 as the retailer completes category planning.
The ingredient and bulk supply channel continues to expand rapidly. Following a visit from MicroDried, BranchOut’s largest ingredient customer, the partner committed to additional orders for the second half of 2026 and expects the partnership to continue growing. BranchOut now expects its ingredient channel to generate approximately $6–7 million in revenue during 2026, compared to nearly $2 million in 2025. The company is also expanding into the European private label market through a partnership with a German-based private label snack company that distributes to major retail chains such as Aldi, Lidl, Tesco, Carrefour, and Edeka. The company expects its first commercial order of approximately 3–4 containers, representing roughly $500,000 in revenue, this month.
To support its growth, Kaufman Capital has provided approximately $2.25 million in new capital during April and May 2026 through non-dilutive working capital loans and early warrant exercise. The company received a $750,000 working capital loan in April, and in May, Kaufman Capital exercised warrants for 500,000 shares at $1.50 per share, injecting $750,000 of cash. An additional $750,000 working capital loan is being finalized. The convertible note terms were also amended, extending the maturity date to December 31, 2027 and reducing the interest rate from 12% to 8%.
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. As production volumes continue increasing, we are seeing strong improvements in throughput and efficiency, highlighted by record production in March and April.”
