BranchOut Food Inc. (NASDAQ: BOF), a food technology company specializing in natural fruit and vegetable snacks, today provided a business update highlighting record production in March and April, positioning 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 major customer deliveries.
During the first quarter of 2026, BranchOut focused on building inventory to support large committed deliveries scheduled for Q2. While Q1 revenue was below the record Q4 2025 results, management attributed this to shipment timing and emphasized that the quarter served as a production ramp-up period. The company's largest order to date, a nationwide launch of Crunchy Fruit Chips at the nation's second largest warehouse club retailer, is now on shelves in over 600 locations. Early sales data indicates the product is performing exceptionally well and exceeding the retailer's internal thresholds for potential everyday placement, which could represent approximately $15 million in annual recurring revenue.
BranchOut is also nearing finalization of a large-scale tolling partnership with a major household brand. The proposed agreement would involve the customer supplying 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 $6–7 million in annual revenue once fully ramped in the second half of 2026, with higher gross margins due to minimal raw material costs. This partnership is expected to be finalized during Q2 2026.
Expansion continues with the nation's largest warehouse club retailer through additional regional programs and new product launches. During Q2, the retailer placed another large Pineapple Chips order for the Southeast region and committed to an even larger follow-on order for Q4. The company also secured its first regional launch of Mango Chips into the Bay Area market. Management believes Mango Chips have the potential to outperform the current top-selling Pineapple Chips product. Additionally, the company is seeing significant interest in multipack product lines for the back-to-school season, which could open placement opportunities in a new department within the retailer.
BranchOut recently conducted a major innovation meeting with the world's largest retailer in Bentonville, Arkansas, showcasing more than 35 product concepts across multiple categories. The presentation included crunchy dried cheese products, shelf-stable cheesecake bites, chocolate-covered fruit, and cheese and fruit snack mixes targeting GLP-1 and high-protein/high-fiber consumer trends. Buyers from more than six categories expressed strong interest, leading to several potential SKU opportunities. While initial expectations targeted launches in late 2026, management now believes many opportunities will progress into early 2027 due to the retailer's planning processes.
The ingredient and bulk supply channel is emerging as a major growth driver. BranchOut's largest ingredient customer, MicroDried, committed to additional orders for the second half of 2026 after a visit to the company's Peru facility. The company now expects the ingredient channel to generate $6–7 million in revenue in 2026, up from nearly $2 million in 2025. BranchOut is also expanding into the European private label market through a partnership with a German-based snack company, with an initial commercial order of approximately $500,000 expected in May 2026.
To support growth, Kaufman Capital has provided approximately $2.25 million in new capital through non-dilutive working capital loans and early warrant exercise. The company amended terms of a convertible note, extending the maturity date to December 31, 2027, and reducing the interest rate from 12% to 8%. Management believes the continued support from Kaufman Capital reflects strong alignment with the company's growth strategy. For more information, visit the company's newsroom at https://tinyurl.com/bofnewsroom.
