BranchOut Food Inc. (NASDAQ: BOF) announced on May 14, 2026, that it expects record revenue for the second quarter of 2026, driven by a surge in production and major customer deliveries. The company achieved record production levels of approximately 46,000 kg per month in March and April, the highest in its history, positioning it for what it expects to be a record revenue quarter.
The company's largest order to date launched nationwide in over 600 locations at the nation's second largest warehouse club retailer. 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 for this item could represent approximately $15 million in annual recurring revenue.
BranchOut is also in final negotiations for a potential long-term tolling partnership with a major household brand. Under the proposed structure, the customer would supply raw materials while BranchOut provides drying and manufacturing services using its proprietary GentleDry™ process. The program could generate approximately $6–7 million in annual revenue once fully ramped in the second half of 2026, with higher gross margins due to the customer providing raw materials.
The company 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 a larger follow-on order for Q4. BranchOut also secured its first regional launch of Mango Chips into the Bay Area market, which management believes could outperform the current top-selling Pineapple Chips.
In a major development, BranchOut conducted a large-scale innovation meeting with the world's largest retailer in Bentonville, Arkansas, 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 items targeting GLP-1 and high protein/high fiber trends. Buyers from more than six categories showed strong interest, potentially leading to several new SKU opportunities in early 2027.
The ingredient and bulk supply channel is also growing rapidly. BranchOut's largest ingredient customer, MicroDried, committed to additional orders for the second half of 2026 after visiting the company's Peru facility. BranchOut now expects ingredient channel revenue to reach approximately $6–7 million in 2026, up from nearly $2 million in 2025.
Additionally, BranchOut is expanding into the European private label market through a partnership with a German-based snack company that supplies major European retailers including Aldi, Lidl, Tesco, Carrefour, and Edeka. The company expects its first commercial order of approximately 3–4 containers, representing roughly $500,000 in revenue, this month.
To support growth, Kaufman Capital provided approximately $2.25 million in new capital during April and May 2026 through non-dilutive working capital loans and early warrant exercise. The loans carry favorable terms at 8% interest, and the convertible note's maturity was extended to December 31, 2027, with a reduced interest rate.
“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,” said Eric Healy, CEO of BranchOut Food. “Q1 was primarily a quarter of inventory build and operational ramp up to support major Q2 deliveries.”
For more information, visit the company's newsroom at https://tinyurl.com/bofnewsroom.
