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 May 14, 2026, highlighting record production and major customer deliveries that are expected to drive a record revenue quarter for Q2 2026.
The company achieved record production levels in March and April, reaching approximately 46,000 kg per month, the highest in its history. This ramp-up was driven by preparation for the largest order in company history, which launched nationwide at the nation's second largest warehouse club retailer in over 600 locations. Early sales data indicates the product is performing exceptionally well, potentially exceeding the retailer's thresholds for everyday placement, which could represent approximately $15 million in annual recurring revenue.
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.'
In addition to retail expansion, BranchOut is nearing finalization of a large-scale tolling partnership with a major household brand. This agreement could generate approximately $6–7 million in annual revenue, with higher margin profiles due to the customer supplying raw materials. The company expects to finalize commercial terms during Q2 2026.
BranchOut's partnership with the nation's largest warehouse club retailer continues to grow, with 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, showcasing over 35 product concepts across multiple categories, including shelf-stable cheesecake bites and high-protein snacks targeting GLP-1 trends.
The ingredient channel is emerging as a significant growth driver, with expectations to reach approximately $6–7 million in revenue in 2026, up from nearly $2 million in 2025. MicroDried, BranchOut's largest ingredient customer, committed to additional orders for the second half of 2026. Furthermore, the company is expanding into the European private label market through a German partner, with a first commercial order of approximately $500,000 expected soon.
To support this growth, Kaufman Capital has provided approximately $2.25 million in new capital through non-dilutive working capital loans and warrant exercises. The company also amended terms of Kaufman Capital's convertible note, extending the maturity date to December 31, 2027, and reducing the interest rate to 8%.
For more information, visit www.branchoutfood.com.
