BranchOut Food Inc. (NASDAQ: BOF), a food technology company specializing in natural fruit and vegetable snacks, announced on May 14, 2026 that it expects record revenue in the second quarter of fiscal 2026, driven by record production levels and major customer deliveries. The company reported achieving its highest-ever monthly production of approximately 46,000 kg in March and April, positioning it to fulfill large committed orders scheduled for Q2.
While first-quarter revenue fell below the record set in Q4 2025, the company attributed the decline to shipment timing, as Q1 served as a production and inventory build quarter. BranchOut built substantial inventory to support upcoming deliveries, including its largest order in company history: a nationwide launch of Crunchy Fruit Chips at the nation’s second largest warehouse club retailer, now available in over 600 locations. Early sales data indicates the product is performing exceptionally well, exceeding the retailer’s thresholds for potential everyday placement. BranchOut estimates that an everyday program for this item could represent approximately $15 million in annual recurring revenue.
In addition to the retail launch, BranchOut is in final negotiations with a major household brand for a potential long-term tolling partnership. 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 $6–7 million in annual revenue once fully ramped in the second half of 2026, with significantly higher gross margins due to minimal raw material costs.
BranchOut continues to expand its partnership with the nation’s largest warehouse club retailer, securing additional regional programs, a new Mango Chips launch in the Bay Area, and potential back-to-school multipack expansion. The company also conducted a major innovation meeting with the world’s largest retailer in Bentonville, AR, showcasing over 35 product concepts across multiple categories, including shelf-stable cheesecake bites and high-protein snacks targeting the GLP-1 trend. While initial expectations targeted late 2026 launches, management now expects many opportunities to progress into early 2027.
The ingredient and bulk supply channel is emerging as a major growth driver. BranchOut expects this channel to generate $6–7 million in 2026, up from nearly $2 million in 2025, driven by strong demand from strategic partner MicroDried and multiple new industrial ingredient customers. Additionally, the company is expanding into the European private label market through a partnership with a German-based snack company, with first commercial orders expected to represent approximately $500,000 in revenue.
To support its accelerating growth, Kaufman Capital has provided approximately $2.25 million in new capital through non-dilutive working capital loans and warrant exercises. In April and May 2026, Kaufman provided $1.5 million in working capital loans and exercised warrants for 500,000 shares at $1.50 per share, injecting $750,000 in cash. The parties also amended the convertible note, extending maturity to December 31, 2027 and reducing the interest rate from 12% to 8%. Kaufman Capital’s continued support on favorable, non-dilutive terms reflects strong alignment with the company’s growth strategy, according to management.
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." He noted that record production in March and April demonstrates improving throughput and efficiency, positioning the company for continued growth.
