BranchOut Food Inc. (NASDAQ: BOF), a food technology company specializing in dehydrated fruit and vegetable snacks, expects record revenue in the second quarter of 2026 after achieving record production levels in March and April. The company reported production of approximately 46,000 kilograms per month, the highest in its history, driven by preparation for major customer deliveries.
During the first quarter, BranchOut built substantial inventory to support large committed orders scheduled for Q2, including its largest order ever to the nation’s second largest warehouse club retailer. The product, Crunchy Fruit Chips, launched nationwide in over 600 locations, and early sales data indicates it 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.
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.”
BranchOut is also in final negotiations for 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 using its proprietary GentleDry™ technology. The program could generate approximately $6–7 million in annual revenue once fully ramped, with higher margins due to minimal raw material costs.
Expansion continues with the nation’s largest warehouse club retailer through additional regional programs and new product launches, including Mango Chips in the Bay Area. The company also sees potential for multipack products aimed at the back-to-school season, which could open placement in a new department.
In a major innovation meeting with the world’s largest retailer, BranchOut showcased over 35 product concepts across multiple categories, including crunchy dried cheese, shelf-stable cheesecake bites, and chocolate-covered fruit. The company believes these opportunities may progress into early 2027 as the retailer completes planning.
The ingredient and bulk supply channel is also expanding rapidly. BranchOut expects this channel to generate approximately $6–7 million in 2026, up from nearly $2 million in 2025, driven by increased orders from MicroDried and new industrial customers. Additionally, a European private label partnership is expected to yield its first commercial order of approximately $500,000 this month.
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 also amended terms of its convertible note, extending maturity to December 2027 and reducing the interest rate to 8%.
For more information, visit www.branchoutfood.com. The latest news and updates relating to $BOF are available in the company’s newsroom at https://tinyurl.com/bofnewsroom.
