BranchOut Food Inc. (NASDAQ: BOF), a food technology company specializing in dehydrated fruit and vegetable snacks, announced a business update indicating record production in March and April, reaching approximately 46,000 kg per month. The company expects Q2 2026 to be a record revenue quarter, driven by major customer deliveries and expanding partnerships.
While Q1 revenue was below the record Q4 2025 results, this was primarily due to shipment timing, as the company built substantial inventory for large committed deliveries in Q2. Production ramped to record levels to support these orders, including the largest order in company history to the nation's second largest warehouse club retailer. The product, Crunchy Fruit Chips, is now available in over 600 locations nationwide, with early sales exceeding internal thresholds for potential everyday placement. BranchOut estimates this could represent approximately $15 million in annual recurring revenue.
In addition, the company is nearing finalization of a large-scale tolling partnership with a major household brand. This agreement would involve the customer supplying raw materials while BranchOut provides drying and manufacturing services, potentially generating $6–7 million in annual revenue with higher margins. The partnership could utilize the newly installed fourth large scale REV line on a near-continuous basis.
BranchOut continues to expand with the nation's largest warehouse club retailer, securing additional regional programs for Pineapple Chips and launching Mango Chips in the Bay Area. The multipack product line is generating interest for back-to-school season, potentially opening a new department within the retailer. Furthermore, a recent innovation meeting with the world's largest retailer showcased over 35 product concepts, including shelf-stable cheesecake bites, which received strong buyer interest.
The ingredient channel is also growing rapidly, with BranchOut expecting approximately $6–7 million in revenue for 2026, up from nearly $2 million in 2025. This growth is supported by MicroDried, a key customer, and multiple new industrial ingredient opportunities. Additionally, BranchOut is expanding into the European private label market through a German partner, with an initial commercial order of $500,000 expected soon.
Financially, Kaufman Capital has provided $2.25 million in new capital through non-dilutive working capital loans and warrant exercises, supporting inventory build for major deliveries. The company's convertible note was amended to extend maturity and reduce interest, reflecting strong alignment between the investor and growth strategy.
CEO Eric Healy expressed optimism about the sales pipeline and customer response, noting that production efficiency improvements and strong customer feedback position the company for continued growth. For more information, visit www.branchoutfood.com.
