BranchOut Food Inc. (NASDAQ: BOF), a food technology company specializing in natural fruit and vegetable snacks, provided a business update on May 14, 2026, highlighting record production levels and major customer deliveries that position the company for what it expects to be a record revenue quarter in Q2 2026. The company achieved record production of approximately 46,000 kg per month in March and April, the highest in its history, driven by preparation for its largest order to date and continued growth in its ingredient and retail channels.
While Q1 revenue was below the record Q4 2025 results, the company attributed this to shipment timing, as Q1 served as a production and inventory build quarter. BranchOut built substantial inventory to support large committed deliveries scheduled for Q2 2026. 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.'
The largest order in company history was delivered during Q2 to the nation's second largest warehouse club retailer, with Crunchy Fruit Chips launching nationwide in over 600 locations. Early sales data indicates the product is performing exceptionally well, potentially exceeding the retailer's internal thresholds for everyday placement. BranchOut estimates that an everyday program for this item 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 arrangement would involve the customer supplying 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, with higher gross margins due to minimal raw material costs. The company expects to finalize commercial terms and potentially sign the customer during Q2 2026.
Expansion with the nation's largest warehouse club retailer continues 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. BranchOut also secured its first regional launch of Mango Chips into the Bay Area market. 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 large-scale innovation meeting with the world's largest retailer in Bentonville, AR, showcasing over 35 product concepts across multiple categories. The meeting included buyers from more than six categories, with strong interest in products such as shelf-stable cheesecake bites and products targeting GLP-1 and high-protein/high-fiber trends. While initial expectations targeted launches in late 2026, management now believes many opportunities are more likely to progress into early 2027.
The ingredient and bulk supply channel continues to expand rapidly. BranchOut expects this channel to generate approximately $6–7 million in revenue during 2026, compared to nearly $2 million in 2025, driven by growth with MicroDried and multiple new industrial ingredient customer opportunities. The company is also expanding into the European private label market through a partnership with a German-based private label snack company, with a first commercial order of approximately $500,000 expected this month.
Kaufman Capital continues to support growth with non-dilutive working capital financing, providing approximately $2.25 million in new capital during April and May 2026 through loans and warrant exercise. The company's largest investor also amended terms of its convertible note, extending the maturity date and reducing the interest rate. Management believes this reflects strong alignment with the company's growth strategy.
