BranchOut Food Inc. (NASDAQ: BOF), a food technology company using its proprietary GentleDry™ process, announced record production levels and major customer deliveries that position the company for what it expects to be a record revenue quarter in Q2 2026. The company achieved approximately 46,000kg per month in March and April, the highest production months in its history, driven by preparation for its largest order to date and expanding industrial ingredient growth.
While first-quarter revenue was below the record Q4 2025, the company attributed this to shipment timing, as Q1 served as a production and inventory build quarter. BranchOut built substantial inventory to support large committed customer 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. Q1 was primarily a quarter of inventory build and operational ramp up to support major Q2 deliveries.”
A key driver is the nationwide launch of Crunchy Fruit Chips at the nation’s second largest warehouse club retailer, now in over 600 locations. Early sales data indicate the product is exceeding the retailer’s internal thresholds for potential everyday placement, which BranchOut estimates could represent approximately $15 million in annual recurring revenue. The company noted that the retailer is expected to evaluate additional innovative products in future periods.
Additionally, BranchOut is in final negotiations for a potential long-term 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 its newly installed fourth large-scale REV line on a nearly continuous basis. Management estimates the program could generate approximately $6–7 million in annual revenue once fully ramped, with higher gross margins due to minimal raw material costs.
The company continues to expand its partnership with the nation’s largest warehouse club retailer, securing additional regional orders for Pineapple Chips and launching Mango Chips in the Bay Area. BranchOut also sees significant interest in multipack products targeting the back-to-school season, which could open placement in new departments.
A major innovation meeting with the world’s largest retailer in Bentonville, AR showcased over 35 product concepts, including shelf-stable cheesecake bites and high-protein snacks tailored to GLP-1 consumer trends. While initial launches were expected in late 2026, management now believes many opportunities will progress into early 2027.
The ingredient channel is expected to grow to approximately $6–7 million in 2026, up from nearly $2 million in 2025, driven by increased orders from strategic partner MicroDried and new industrial customer opportunities. BranchOut is also expanding into European private label through a German partner, with an initial order of 3–4 containers worth roughly $500,000 expected soon.
To support growth, Kaufman Capital has provided approximately $2.25 million in new capital through non-dilutive working capital loans and warrant exercises. The company amended terms of its convertible note, extending maturity and reducing the interest rate. Management believes this capital reflects strong alignment with its growth strategy.
These developments underscore BranchOut’s positioning in the healthy snack market, leveraging its GentleDry™ technology to preserve up to 95% of fresh produce nutrition. For more information, visit www.branchoutfood.com.
