BranchOut Food Inc. (NASDAQ: BOF), a food technology company specializing in natural fruit and vegetable snacks through its proprietary GentleDry™ process, provided a business update on first quarter 2026 operations and production ramp activities. While Q1 revenue was below the company's record Q4 2025 results due to shipment timing, Q1 served as a production and inventory build quarter ahead of what the company expects to be a record revenue Q2.
The company ramped production to record levels of approximately 46,000 kg in March and into Q2, marking the highest production months in company history. This increase was driven by preparation for the company's largest order to date to the nation's second largest warehouse club retailer, continued industrial ingredient growth, and ongoing shipments to the nation's largest warehouse club retailer.
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. Q1 was primarily a quarter of inventory build and operational ramp up to support major Q2 deliveries."
BranchOut delivered the largest order in company history during Q2 to the nation's second largest warehouse club retailer. The product, Crunchy Fruit Chips, is now on shelves nationwide in more than 600 club locations. The company is encouraged by initial sales data, which indicates the product is performing exceptionally well and currently 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 company is also in final negotiations with a large household name brand regarding a potential long-term tolling partnership. Under the proposed structure, the customer would supply raw materials while BranchOut provides drying and manufacturing services. Management estimates the program could generate approximately $6–7 million in annual revenue once fully ramped in H2, with higher gross margins due to the customer providing raw materials.
BranchOut continues expanding 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 has committed to a larger follow-on order for Q4. The company also secured its first regional launch of Mango Chips into the Bay Area market.
Additionally, BranchOut conducted a large-scale innovation meeting with the world's largest retailer, showcasing more than 35 product concepts across multiple categories. The presentation included fruit and vegetable snacks, crunchy dried cheese products, shelf-stable cheesecake bites, and cheese and fruit snack mixes developed around GLP-1 and high-protein/high-fiber consumer trends. Management noted strong interest across multiple product lines.
The ingredient and bulk supply channel continues to strengthen. BranchOut expects this channel to generate approximately $6–7 million in revenue during 2026, compared to nearly $2 million in 2025. The company is also expanding into the European private label market through a partnership with a German-based private label snack company, with an initial commercial order expected this month for approximately $500,000 in revenue.
Kaufman Capital has provided approximately $2.25 million in new capital during April and May 2026 through non-dilutive working capital loans and early warrant exercise. Management believes this reflects strong alignment between the company's largest investor and its growth strategy.
