BranchOut Food Inc. (NASDAQ: BOF) announced record production levels and major customer deliveries that position the company for a record revenue quarter in Q2 2026. The food technology company, known for its proprietary GentleDry™ process, provided a business update on its operations and production ramp activities.
During Q1 2026, the company focused on building inventory to support large committed deliveries scheduled for Q2. As a result, production ramped to record levels of approximately 46,000 kg per month in March and into Q2, the highest in company history. While Q1 revenue was below the record Q4 2025 results, management attributed this to shipment timing, with the company expecting Q2 to be a record revenue quarter.
BranchOut delivered its largest order ever to the nation's second largest warehouse club retailer, launching Crunchy Fruit Chips nationwide in over 600 locations. 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 could represent approximately $15 million in annual recurring revenue.
The company is also nearing finalization of 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. Management estimates the program could generate approximately $6–7 million in annual revenue once fully ramped, with significantly higher margins due to minimal raw material costs.
BranchOut 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 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.
In a major innovation meeting with the world's largest retailer, BranchOut showcased over 35 product concepts spanning multiple categories, generating strong buyer interest. Products include crunchy dried cheese, shelf-stable cheesecake bites, and chocolate-covered fruit items. While initial expectations targeted launches in late 2026, management now believes many opportunities will progress into early 2027.
The ingredient and bulk supply channel is emerging as a major growth driver. Following a visit from MicroDried's head to BranchOut's Peru facility, the partner committed to additional orders and expects continued growth. BranchOut now expects ingredient revenue of approximately $6–7 million in 2026, compared to nearly $2 million in 2025.
BranchOut is also expanding into the European private label market through a partnership with a German-based private label snack company. The partner has been presenting BranchOut's dried fruit products to major European retailers, and the company expects 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 amended the terms of its convertible note, extending the maturity date to December 31, 2027, and reducing the interest rate to 8%.
CEO Eric Healy expressed optimism: "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."