BranchOut Food Inc. (NASDAQ: BOF), a food technology company specializing in dehydrated fruit and vegetable snacks, announced on May 14, 2026, that it expects record revenue in the second quarter of 2026, driven by record production levels and major customer deliveries. The company reported record production of approximately 46,000 kg per month in March and April, the highest in its history, as it built inventory to fulfill large orders scheduled for Q2.
While Q1 2026 revenue was below the record set in Q4 2025, the company attributed this to shipment timing, noting that Q1 served as a production and inventory build quarter. Eric Healy, CEO of BranchOut Food, 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." He emphasized that production ramp-up has improved throughput and efficiency, positioning the company for continued growth.
A key milestone was the nationwide launch of Crunchy Fruit Chips in over 600 locations of the nation's second largest warehouse club retailer, representing the largest order in company history. Early sales data indicates 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.
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 newly installed fourth large scale REV line. Management estimates the program could generate approximately $6–7 million in annual revenue once fully ramped in the second half of 2026. Importantly, because the customer provides raw materials, the program would carry minimal raw material costs, potentially resulting in substantially higher gross margins and improved operating cash flow.
The company continues to expand its partnership 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 has 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 could outperform the current top-selling Pineapple Chips. Additionally, the company is seeing significant interest in multipack product lines targeted 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, AR, showcasing over 35 product concepts spanning multiple categories, including crunchy dried cheese products, shelf-stable cheesecake bites, and chocolate-covered fruit products. The meeting involved buyers from more than six different categories, with strong interest across multiple product lines. Management noted that while initial expectations targeted launches in late 2026, many opportunities are now likely to progress into early 2027 as the retailer completes category planning.
The ingredient and bulk supply channel is emerging as a major growth driver. BranchOut now expects this channel to generate approximately $6–7 million in revenue during 2026, compared to nearly $2 million in 2025, driven by increased orders from MicroDried 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 retail chains including Aldi, Lidl, Tesco, Carrefour, and Edeka. The company expects its first commercial order of 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. This includes a $750,000 working capital loan in April, a $750,000 cash injection from warrant exercises, and an additional $750,000 working capital loan currently being finalized. Kaufman Capital also amended terms of its convertible note, extending the maturity date and reducing the interest rate. Management believes Kaufman Capital's continued support reflects strong alignment with the company's growth strategy.
