BranchOut Food Delivers Record ~$14M Net Revenue, 113% YoY growth, Secures Major Retail Wins, Expands Capacity & Product Offering

Rhea-AI Summary

BranchOut Food (NASDAQ: BOF) reported record 2025 net revenue of approximately $14 million, up 113% YoY, and a company‑record Q4 of $4.2 million. The company expanded capacity with a fourth REV line (operational by March 1, 2026), secured major retail and club orders, launched new product platforms, and expects margin improvement in 2026.

Management cited reduced air freight and tariffs, stronger ingredient channel demand, and operational efficiencies as drivers of anticipated gross margin expansion.

Positive

• Revenue +113% YoY to approximately $14M in 2025
• Q4 $4.2M—highest quarter in company history
• Initial $2M warehouse club order with $15M ARR potential
• Development program for up to 9 SKUs with largest retailer (~$10M)
• Fourth REV line operational by March 1, 2026 expanding capabilities
• $5–6M expected ingredient channel revenue from MicroDried in 2026

Negative

• 2025 gross margin depressed to ~16% due to air freight and tariffs
• Air freight accounted for 8% of COGS in 2025
• Company secured a $1.5M loan, signaling near-term working capital needs
• 2025 production lines operated below optimal efficiency

News Market Reaction – BOF

-5.43%

5 alerts

-5.43% Session close to close

-24.0% Trough in 11 min

$41.88M Market Cap

0.3x Rel. Volume

In the Jan 28 session, BOF declined 5.43%, reflecting a notable negative market reaction. Argus tracked a trough of -24.0% from its starting point during tracking. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -5.4% in the session following this news. A negative reaction despite record fundame...

Analysis

The stock moved -5.4% in the session following this news. A negative reaction despite record fundamentals would contrast with prior generally aligned responses to good news. The update highlighted ~$14M in 2025 revenue, 113% YoY growth, and multiple large retail opportunities, yet the stock sometimes pulled back on positive announcements historically. Investors would need to weigh concerns about low 2025 gross margin of ~16%, ongoing capital needs, and execution risk on new capacity against the strong growth trajectory.

Key Figures

2025 net revenue: ~$14 million 2025 YoY growth: 113% Q4 2025 net revenue: $4.2 million +5 more

8 metrics

2025 net revenue ~$14 million Full-year 2025 net revenue, 113% YoY growth

2025 YoY growth 113% Net revenue growth versus prior year

Q4 2025 net revenue $4.2 million Record quarterly revenue, up over 178% YoY

New club initial order near $2 million Initial mixed fruit snack order from second-largest warehouse club

Potential club recurring revenue up to $15 million Estimated annual recurring revenue if program becomes year-round

Retailer dev. program revenue $10 million Estimated incremental annualized revenue from up to nine new SKUs

2025 gross margin ~16% Reported gross margin, depressed by air freight and tariffs

New working capital loan $1.5 million Loan from Kaufman Capital at approximately 8% interest

Historical Context

5 past events · Latest: Nov 13 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Nov 13	Equity financing & update	Positive	+2.6%	Raised $2.5M institutional equity after record October and $20M run rate.
Oct 21	Record Q3 results	Positive	+33.6%	Reported record Q3 revenue, $16M annualized run rate and major debt reduction.
Sep 30	New product launch	Positive	-3.3%	Announced Crunchy Fruit Multipack launch for warehouse clubs to expand reach.
Sep 03	Reorders & de-levering	Positive	+2.8%	Secured $1.17M club reorders and fully repaid key secured loans.
Aug 11	Record revenue & margin	Positive	+1.8%	Posted record $1.7M June revenue, 27% gross margin and improving EBITDA.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Positive operational and financing news has usually been met with positive price reactions, with one divergence on a product launch.

Recent Company History

Over the last six months, BranchOut has repeatedly highlighted scaling milestones and balance sheet actions. In Aug 2025, it reported record monthly revenue and a 27% gross margin while reducing debt. Subsequent updates in Sep and Oct 2025 detailed new warehouse club wins, record Q3 revenue of about $3.2M, and a shift toward breakeven operations. A $2.5M equity financing in Nov 2025 funded a fourth production line. Today’s record ~$14M 2025 revenue and capacity expansion continue this scaling narrative.

Key Terms

gentledry™, cogs, gross margin, ebitda, +2 more

6 terms

gentledry™ technical

"a food technology company pioneering the next generation of natural fruit and vegetable snacks through its proprietary GentleDry™ process"

A gentledry™ process is a branded, low‑heat drying method used in manufacturing to remove moisture from fragile materials—like drugs, biologics, or chemicals—without damaging their structure or activity. For investors, this matters because such a technique can improve product stability, yield and shelf life while lowering waste and regulatory risk, making production more reliable and potentially reducing cost and time to market; think of it like drying delicate clothes on a gentle cycle to avoid shrinking or fading.

cogs financial

"Air Freight accounted for 8% of the Cost of Goods Sold (COGS) and was necessary"

Cost of goods sold (COGS) is the direct cost a company incurs to produce or purchase the products it sells, including raw materials, production labor, and factory overhead tied to making the items. Investors track COGS because it directly affects gross profit and shows how efficiently a business converts inputs into saleable products — like how much a baker spends to make a loaf versus the price it sells for; rising COGS without higher selling prices can squeeze profit margins and valuation.

View in glossary

gross margin financial

"The 2025 gross margin of ~16% was severely depressed by two key factors"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

View in glossary

ebitda financial

"As the company nears and passes breakeven, incremental revenue is expected to carry contribution margins over 50%. This will increasingly flow through, adding further upside to the overall gross margin as higher-margin volumes scale."

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

convertible note financial

"Kaufman Capital has voluntarily elected to convert $500,000 of its existing convertible note into equity"

A convertible note is a type of loan that a company gets from investors, which can later be turned into company shares instead of being paid back in cash. It matters because it helps startups raise money quickly without setting a fixed value for the company right away, making it easier to grow and attract investors.

at-the-market (atm) program financial

"the Company is utilizing its existing at-the-market (ATM) program to raise up to $1.5 million"

An at-the-market (ATM) program is a way for a company to sell newly issued shares directly into the open market at the current trading price over time, rather than all at once. For investors it matters because it provides a flexible, ongoing source of capital but can dilute existing ownership and put steady selling pressure on a stock’s price—similar to a store quietly adding more items for sale at the posted price.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Record Q4 Net Revenue of $4.2M Marks Best Quarter in Company History, Up Over 178% YoY

Key Highlights:

• Record 2025 revenue of ~$14 million, representing 113% YoY growth, capped by $4.2M in Q4, the highest quarterly revenue to date.
• Advanced private label development with the world’s largest retailer for up to nine new SKUs targeted for second-half 2026 launch, representing an estimated $10 million in potential annualized revenue.
• Introduced a first-of-its-kind shelf-stable dehydrated cheesecake enabled by GentleDry™ technology, creating a new dairy-based snack category, launching in nation’s largest retailer.
• Secured a new warehouse club customer with an initial order near $2 million and potential to scale into a year-round program estimated at up to $15 million in annual recurring revenue.
• Installing fourth large-scale REV drying line, scheduled to be operational by March 1, 2026, expanding capacity and enabling dairy-based and high-protein products
  

BEND, Ore., Jan. 28, 2026 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a food technology company pioneering the next generation of natural fruit and vegetable snacks through its proprietary GentleDry™ process, today announced record performance, achieving ~$14 million in revenue in 2025, representing 113% YoY growth.

This milestone was achieved while the company simultaneously built and commissioned its manufacturing facility in Peru, scaled production across its product portfolio, and advanced multiple new product developments throughout 2025. With those foundational efforts now complete and the facility fully operational, the company is positioned to focus entirely on executing the core business and scaling growth. The company anticipates continuing its rapid growth rate into 2026 and beyond.

New Club Retailer Places Nearly $2 Million Order and Signals Interest in Future Opportunities

BranchOut also announced a major new order from the nation’s second-largest warehouse club retailer, marking a new customer relationship for the company and its second large Club customer. The retailer has committed to an initial order valued near $2 million for a mixed fruit snack product launching in May 2026, with final volumes currently being finalized. Importantly, the retailer has expressed strong interest in evaluating additional BranchOut products in subsequent quarters. If performance thresholds are met, any one of these products could secure year-round, everyday placement, which the company estimates could represent up to $15 million in annual recurring revenue.

Major Development Program with the World’s Largest Retailer

BranchOut is working with the nation's largest retailer on a significant development program for up to nine new SKUs. These collaborative efforts, focused on fruit, vegetable, and dairy-based innovations, are being developed at the retailer's request. These products, which are targeted for a launch in the second half of 2026 and are estimated to generate $10 million in incremental annualized revenue.

Among these initiatives is BranchOut’s shelf-stable dehydrated cheesecake, a true product innovation and a first-of-its-kind offering in the snack category. Using BranchOut’s proprietary GentleDry™ technology, fresh cheesecake is transformed into a shelf-stable snack that preserves flavor while delivering a distinctive creamy, soft bite.

This innovation highlights the versatility of BranchOut’s technology platform and enables the creation of an entirely new category of dairy based, high protein snacks. The company is now advancing this product through commercial development, including private label programs with major retailers, as part of its broader expansion into dairy based, protein forward and functional snack offerings.

Ingredient and Bulk Supply Channel Positioned for Long-Term Growth

The ingredient and bulk supply channel continues to strengthen, and management believes this channel will remain a critical driver of utilization, scale, and profitability as the company moves into 2026 and beyond. MicroDried remains BranchOut’s core strategic partner in this channel, with revenue from this relationship expected to be approximately $5–6 million in 2026. In addition, BranchOut is onboarding a new large international CPG customer that will sell BranchOut products enrobed in chocolate to multiple customers across Europe and North America. The company expects an initial order of approximately $1.8 million in the first half of the year, with the potential for significantly larger-scale, ongoing business to follow.

Nation’s Largest Warehouse Club Channel Continues to Scale

Within the nation’s largest warehouse club channel, momentum continues to build. December deliveries included Organic Chewy Banana in the Bay Area and Pineapple Chips in the Southeast. Looking ahead, Organic Cinnamon Churro Chewy Banana is scheduled to launch in the Los Angeles region in March, followed by a new Mango Chip product launching in the Bay Area, along with additional pineapple programs in the Southeast. Several new items, including multipacks and apple-based products, are currently under review as the company approaches the 2026 ordering cycle.

New Branded Retail Platforms Launching in 2026

BranchOut is preparing to launch two new branded retail product platforms in 2026. The first is a five-count snack pack, including Crunchy Banana, Pineapple, Mango, Apple, and Strawberry. This line is designed specifically for produce departments and will launch in Q2, with a direct-to-retailer go-to-market strategy supported by regional distribution partners and a national produce broker.

Fourth Large-Scale REV Line Installation Enables High-Protein, Dairy-Based Products and First Shelf-Stable Cheesecake

BranchOut is currently installing its fourth large-scale REV drying line, which is scheduled to be fully operational by March. The line is housed in a newly constructed, dedicated building adjacent to the company’s existing facility and was designed with capacity to support additional future REV lines.

The new building is fully segregated from BranchOut’s allergen-free production areas, enabling the safe processing of allergen-containing products while maintaining strict food safety and quality controls. This expansion extends BranchOut’s processing capabilities beyond fruits and vegetables into dairy-based and high-protein products, including cheese snacks, shelf-stable dried cheesecake, and other protein-forward innovative products. These new capabilities materially expand the company’s addressable market and directly respond to ongoing demand from large retail and ingredient customers.

Together, these initiatives reflect BranchOut’s transition from a foundational build year into a more disciplined scaling phase. With expanded capacity, broader technical capabilities, deepening retailer relationships, and a growing innovation pipeline, the company is well positioned for continued growth and improving financial performance in 2026 and beyond.

Significant Gross Margin Expansion Anticipated for 2026, Driven by Several Key Factors

A significant expansion in gross margin is anticipated for 2026. The 2025 gross margin of ~16% was severely depressed by two key factors: Air Freight and Tariffs. Air Freight accounted for 8% of the Cost of Goods Sold (COGS) and was necessary to fulfill customer orders despite production delays. A 5% tariff further impacted the margin. Excluding these two factors, the 2025 gross margin would have been around 25%. Air freight costs are expected to be substantially reduced in 2026, as production stabilizes and catches up with the order pipeline, thereby recapturing this lost margin. Furthermore, tariffs on most products, including all tropical fruit, have been reduced to zero, providing a durable cost structure improvement.

Further margin expansion will come from operational efficiencies. In 2025, production lines operated below optimal efficiency as products were simultaneously being developed and refined. In 2026, management is focused on continuous improvement to increase equipment effectiveness, throughput, and yield, alongside material efficiency projects. The installation of a fourth large-scale line will also boost throughput and improve unit economics.

As the company nears and passes breakeven, incremental revenue is expected to carry contribution margins over 50%. This will increasingly flow through, adding further upside to the overall gross margin as higher-margin volumes scale.

New $1.5 Million Loan For Working Capital Supports Growth and Order Fulfillment

In support of the company’s accelerating growth and expanding order volume, BranchOut has secured a new $1.5 million loan from Kaufman Capital. The loan is intended to fund production and inventory, as needed, associated with large customer orders, particularly given the company’s international manufacturing footprint and ocean freight logistics, which can result in extended cash conversion cycles of up to four months from production through shipment and customer payment.

The loan is offered on favorable terms, bearing interest at approximately 8%, and provides BranchOut with flexible, non-dilutive capital to support working capital needs as volumes scale. In addition, Kaufman Capital has voluntarily elected to convert $500,000 of its existing convertible note into equity, reflecting continued confidence in the company’s strategy, growth trajectory, and long-term value creation.

In parallel with this financing, the Company is utilizing its existing at-the-market (ATM) program to raise up to $1.5 million of additional working capital to support accelerating order volume, inventory build, and logistics requirements associated with recent customer wins. Prior financing was primarily used to retire debt and fund the buildout of new production capacity. As multiple large-scale sales programs accelerate faster than initially modeled, management believes incremental working capital will be required to support increased production, inventory, and logistics as the company scales.

About BranchOut Food Inc.
BranchOut Food is a leading international food technology company, specializing in the production of high-quality dehydrated fruit and vegetable-based products through its proprietary GentleDry Technology. This next-generation dehydration method preserves up to 95% of the original nutrition of fresh produce, offering superior quality and taste. Protected by over 17 patents, BranchOut’s technology enables it to stand out as a trusted brand, ingredient and a private-label supplier. For more information, visit www.branchoutfood.com or follow us on social media here.

For more information:
ir@branchoutfood.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified using words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate", "plan," “position”, "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements with respect to the operations of BranchOut Food, Inc., (the Company) strategies, prospects and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the Company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

FAQ

How much revenue did BranchOut Food (BOF) report for 2025 and Q4 2025?

BranchOut reported approximately $14 million revenue for 2025 and $4.2 million in Q4. According to the company, 2025 revenue rose 113% YoY, with Q4 as the highest quarterly result in company history.

What are the details of the warehouse club order and its impact on BOF revenue?

The new warehouse club placed an initial order near $2 million with potential to scale to $15 million annual recurring revenue. According to the company, year‑round placement depends on meeting retailer performance thresholds.

What is the scope and expected revenue from the retailer development program for BOF?

BranchOut is developing up to nine SKUs with the nation’s largest retailer, targeting a second‑half 2026 launch and an estimated $10 million incremental annualized revenue. According to the company, projects include fruit, vegetable, and dairy innovations.

When will BranchOut’s fourth REV drying line be operational and what does it enable?

The fourth large‑scale REV line is scheduled to be operational by March 1, 2026, enabling dairy‑based and high‑protein products including shelf‑stable cheesecake. According to the company, the line expands capacity and addressable market.

How will BranchOut improve gross margins in 2026 and what depressed 2025 margins?

BranchOut expects significant margin expansion in 2026 by reducing air freight and tariff impacts and improving operations. According to the company, 2025 gross margin was ~16%, depressed by 8% COGS from air freight and a 5% tariff.