BranchOut Food Inc. (NASDAQ: BOF), a food technology company specializing in dehydrated fruit and vegetable snacks, today provided a business update highlighting record production in March and April, which positions the company for what it expects to be a record revenue quarter in Q2 2026. The company achieved production levels of approximately 46,000 kg per month, the highest in its history, driven by preparation for the largest order in company history and continued growth in its ingredient channel.
While Q1 2026 revenue was below the record set in Q4 2025, management attributed the decline to shipment timing, as Q1 served as a production and inventory build quarter. The company built substantial inventory to support large committed customer deliveries scheduled for Q2. CEO Eric Healy stated, 'Q1 was primarily a quarter of inventory build and operational ramp up to support major Q2 deliveries. As production volumes continue increasing, we are seeing strong improvements in throughput and efficiency, highlighted by record production in March and April.'
A key driver of expected Q2 revenue is the launch of Crunchy Fruit Chips nationwide in over 600 locations of the nation's second largest warehouse club retailer. This represents the largest order in company history. Early sales data indicate the product is performing exceptionally well, 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 is expected to evaluate additional innovative products from BranchOut in future periods.
Additionally, BranchOut is in final negotiations for a potential 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 nearly continuous 24/7 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 gross margins due to minimal raw material costs.
The company 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. BranchOut also secured its first regional launch of Mango Chips into the Bay Area market, which management believes has the potential to outperform the current top-selling Pineapple Chips product. Furthermore, the company is seeing significant interest in new multipack product lines targeted toward the back-to-school season, which would open placement opportunities in an entirely new department within the retailer.
BranchOut recently conducted a large-scale innovation meeting with the world's largest retailer in Bentonville, AR, showcasing more than 35 product concepts spanning multiple categories. The presentation included fruit and vegetable snacks, crunchy dried cheese products, shelf stable cheesecake bites, chocolate covered fruit, and cheese and fruit snack mixes tailored to GLP-1 and high protein/high fiber trends. Buyers from more than six categories expressed strong interest, and while initial expectations targeted launches in late 2026, management now believes many opportunities may progress into early 2027 as the retailer completes category planning.
The ingredient and bulk supply channel continues to expand rapidly. BranchOut now expects this channel to generate approximately $6–7 million in revenue during 2026, up from nearly $2 million in 2025. This growth is supported by increased orders from MicroDried, BranchOut's largest ingredient customer, and multiple new industrial ingredient customer opportunities expected to begin ordering in the second half of 2026.
BranchOut is also expanding into the European private label market through a partnership with a prominent German-based private label snack company that distributes to retailers such as Aldi, Lidl, Tesco, Carrefour, and Edeka. The company expects to receive its first commercial order this month for approximately 3–4 containers, representing roughly $500,000 in revenue, with potential for significant expansion over time.
To support its accelerating growth, Kaufman Capital has provided approximately $2.25 million in new capital during April and May 2026 through a combination of non-dilutive working capital loans and early warrant exercise. The capital is being used to fund inventory build for major customer deliveries. Management believes Kaufman Capital's continued support reflects strong alignment with the company's growth strategy.
More information is available in the company's newsroom at https://tinyurl.com/bofnewsroom.
