BranchOut Food Shareholder Update: Record Production and Major Customer Deliveries Position Company for Record Q2

Rhea-AI Summary

BranchOut Food (NASDAQ: BOF) reported record production of about 46,000kg per month in March and into Q2 2026, building inventory for major commitments.

The company expects record Q2 2026 revenue, supported by its largest order ever at the nation’s second largest warehouse club, a potential $6–7 million tolling deal, rapid ingredient-channel growth, a new European private-label partnership, and $2.25 million in new, mostly non-dilutive financing.

Positive

• Record production of about 46,000kg per month in March and into Q2
• Management expects Q2 2026 to be a record revenue quarter
• Nation’s second largest warehouse club launch could reach $15 million annual revenue
• Potential tolling partnership estimated at $6–7 million high-margin annual revenue
• Ingredient channel revenue expected at $6–7 million in 2026 vs nearly $2 million 2025
• First European private-label order of 3–4 containers, about $500,000 revenue
• $2.25 million new capital from Kaufman Capital in April and May 2026
• Convertible note maturity extended to 2027 and interest cut from 12% to 8%

Negative

• Q1 2026 revenue was below the company’s record Q4 2025 level
• Multiple key revenue drivers remain potential or under negotiation, not yet finalized
• Additional working capital loans at 8% increase interest expense and leverage
• Expected launches with the world’s largest retailer shifted from late 2026 to early 2027

News Market Reaction – BOF

+20.12% 3.0x vol

14 alerts

+20.12% Session close to close

+11.5% Peak Tracked

-2.3% Trough Tracked

$56.43M Market Cap

3.0x Rel. Volume

In the May 14 session, BOF gained 20.12%, reflecting a significant positive market reaction. Argus tracked a peak move of +11.5% during that session. Argus tracked a trough of -2.3% from its starting point during tracking. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility. Trading volume was very high at 3.0x the daily average, suggesting strong buying interest.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock surged +20.1% in the session following this news. A strong positive reaction aligns with t...

Analysis

The stock surged +20.1% in the session following this news. A strong positive reaction aligns with the article’s emphasis on record production of 46,000 kg per month, major club retail launches, and projected ingredient and tolling revenues of $6–7 million each in 2026. Historically, BOF has sometimes sold off on good news, so a big upside move would have contrasted with prior divergences after record $14M 2025 revenue. Investors would likely watch future capital raises under the existing shelf and execution on large customer programs.

Key Figures

Monthly production: 46,000 kg per month Warehouse club program: $15 million annual revenue Tolling partnership: $6–7 million annual revenue +5 more

8 metrics

Monthly production 46,000 kg per month Record production in March and into Q2 2026

Warehouse club program $15 million annual revenue Potential everyday program at nation’s second largest warehouse club

Tolling partnership $6–7 million annual revenue Estimated once fully ramped in H2 under proposed tolling deal

Ingredient channel 2026 $6–7 million revenue Expected ingredient and bulk supply revenue in 2026

Ingredient channel 2025 Nearly $2 million revenue Ingredient and bulk supply revenue in 2025

European first order Roughly $500,000 revenue 3–4 containers initial European private label order

New capital from Kaufman $2.25 million Non-dilutive loans and warrant exercise in April–May 2026

Warrant exercise 500,000 shares at $1.50 Kaufman Capital April–May 2026 warrant exercise cash to company

Historical Context

4 past events · Latest: Mar 27 (Neutral)

Pattern 4 events

Date	Event	Sentiment	24h Move	Catalyst
Mar 27	Earnings call notice	Neutral	-7.2%	Announced date and details for Q4 and full-year 2025 earnings call.
Mar 16	Conference appearance	Positive	+6.0%	ROTH Conference presentation and 1x1 meetings on growth and technology.
Mar 11	Marketing partnership	Positive	-1.0%	Partnered with Zesty Snackz and YouTubers to launch Fruit Chips.
Jan 28	Record results	Positive	-5.4%	Reported record 2025 revenue and Q4, plus capacity and product expansion.

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

Pattern Detected

Recent history shows BOF often reacting negatively even to seemingly positive growth updates, with only one of the last four news events aligning positively with sentiment.

Recent Company History

Over the past several months, BranchOut Food has highlighted strong growth signals, including record ~$14M 2025 revenue and a record $4.2M Q4, major retail wins, and capacity expansion with a fourth REV line (operational by Mar 1, 2026). It has also announced a creator partnership and investor conference participation. Despite this, three of four prior news events saw negative next‑day price reactions, indicating a pattern where the stock frequently sold off or failed to sustain gains after positive updates.

Key Terms

tolling partnership, working capital financing, working capital loan, warrants, +4 more

8 terms

tolling partnership financial

"potential long-term tolling partnership tied to a recently launched product"

A tolling partnership is an agreement where one company uses another company’s factory or processing service to transform materials into finished goods for a fee, while ownership of the materials often stays with the supplying company. Investors watch these deals because they can boost production capacity and lower capital spending for the user, change where revenue and costs appear on the books, and shift supply-chain and operational risk—like hiring a specialist to do a job instead of buying the workshop.

working capital financing financial

"supporting growth through non dilutive working capital financing to fund inventory"

Working capital financing is short-term funding a company uses to cover everyday needs like paying suppliers, payroll and other bills until incoming revenue arrives. Think of it as a household overdraft or bridge loan that keeps daily operations running; for investors it matters because reliance on this funding signals how easily a business manages cash, affects growth prospects and indicates short-term financial risk if the company repeatedly needs outside cash to operate.

working capital loan financial

"provided an additional $750,000 working capital loan to support production"

A working capital loan is a short-term loan a company uses to cover everyday needs like payroll, inventory purchases or gaps between paying bills and receiving customer payments—think of it as a business credit card for routine cash needs. Investors watch these loans because they reveal how easily a company can keep operations running: occasional use is normal, but heavy or repeated reliance can signal cash stress, higher interest costs and greater risk to earnings.

warrants financial

"exercised warrants for 500,000 shares at $1.50 per share"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

View in glossary

convertible note financial

"amended certain terms of Kaufman Capital's convertible note, extending the maturity"

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.

beneficial ownership limitation regulatory

"implementing a 9.99% beneficial ownership limitation on conversions under the"

A beneficial ownership limitation is a rule that caps the percentage of a company’s shares an investor can be treated as owning or controlling for voting, regulatory or tax purposes. It matters to investors because it can restrict how many shares a person or group can buy or vote, affect takeover chances, and influence share liquidity and value — like a speed limit that prevents any single driver from taking over the whole road.

shelf stable technical

"shelf stable cheesecake bites, which transform fresh cheesecake into a shelf stable"

Products labeled as shelf stable can be stored at normal room temperature without refrigeration and still remain safe and usable for a long period, like canned soup or boxed juice compared with fresh refrigerated items. For investors, shelf stability matters because it lowers shipping and storage costs, reduces spoilage and return risk, and broadens distribution options—similar to choosing a durable suitcase over a fragile one when planning travel logistics.

glp-1 medical

"developed, at their request, specifically around the growing GLP-1 and high protein"

GLP-1 (glucagon-like peptide-1) is a natural hormone in the body that helps regulate blood sugar levels and appetite. Its significance to investors lies in its role as the basis for a class of medications that address conditions like type 2 diabetes and obesity, which are large and growing markets. Advances or investments in GLP-1-based treatments can signal opportunities in healthcare innovation and potentially impact pharmaceutical companies’ growth.

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

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Record Production in March and April Positions Company for Expected Record Revenue Q2 Driven by Major Customer Deliveries.

Key Highlights:

• Record production achieved in March and into Q2 at approximately 46,000kg per month, the highest levels in company history.
• Company expects Q2 2026 to be a record revenue quarter driven by major customer deliveries.
• Largest order in company history launched nationwide in 600+ locations at the nation’s second largest warehouse club retailer, with early sales supporting potential $15 million everyday program opportunity.
• Potential large scale tolling partnership with a major household brand nearing finalization, representing a potential $6–7 million annual revenue opportunity with significantly higher margin profile.
• Continued expansion with the nation’s largest warehouse club retailer through additional regional programs, new Mango Chips launch, and potential back to school multipack expansion.
• Major innovation meeting with the world’s largest retailer showcased 35+ product concepts across multiple categories, generating strong buyer interest and future SKU opportunities.
• Ingredient channel expected to grow to approximately $6–7 million in 2026, compared to nearly $2 million in 2025.
• Kaufman Capital continues supporting growth through non dilutive working capital financing to fund inventory build for major customer deliveries.
  
  

BEND, Ore., May 14, 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 provided a business update on first quarter 2026 operations and ongoing production ramp activities in preparation for record Q2 deliveries and revenue.

While Q1 revenue was below the company’s record Q4 2025 results, this was primarily due to shipment timing, as Q1 served as a production and inventory build quarter ahead of what the company currently expects to be a record revenue Q2. During Q1, the company built substantial inventory to support large committed customer deliveries scheduled for Q2 2026.

To support upcoming deliveries, the company ramped production to record levels of approximately 46,000kg in March and into Q2, marking the highest production months in company history. The increase was driven by preparation for the company’s largest order to date to the nation’s second largest warehouse club retailer, continued industrial ingredient growth, and ongoing shipments to the nation’s largest warehouse club retailer.

“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. As production volumes continue increasing, we are seeing strong improvements in throughput and efficiency, highlighted by record production in March and April. Just as importantly, customer feedback on both our products and innovation pipeline continues to be extremely positive, which we believe positions us well for continued growth.”

Nation’s Second Largest Warehouse Club Retailer Launches Crunchy Fruit Chips Nationwide in Over 600 Locations with Exceptional Early Sales Velocity

BranchOut delivered the largest order in company history during Q2 to the nation’s second largest warehouse club retailer. The product, Crunchy Fruit Chips, a mix of pineapple, strawberry, banana, and apple, is now on shelves nationwide in more than 600 club locations.

The company is extremely encouraged by the initial sales data, which indicates the product is performing exceptionally well and currently 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.

Management also noted that the retailer has been very pleased with the early partnership and is expected to evaluate additional innovative products from BranchOut in future periods.

Potential Large Scale Tolling Partnership with Large Prominent Brand Nearing Finalization

BranchOut is currently in final negotiations with a large scale household name brand regarding a potential long-term tolling partnership tied to a recently launched product utilizing the company’s technology platform. Following successful market validation and strong early consumer response, the customer is now preparing for a full-scale national rollout. Management expects to finalize commercial terms and potentially sign the customer during Q2 2026.

Under the proposed structure, the arrangement would operate primarily as a tolling agreement, whereby the customer supplies the raw materials while BranchOut provides the drying and manufacturing services. The scale of the opportunity is significant and could potentially utilize the company’s newly installed fourth large scale REV line on a nearly continuous 24/7 basis. Management estimates the program could generate approximately $6–7 million in annual revenue once fully ramped in H2. Importantly, because the customer would provide all the raw materials, the program would carry minimal associated cost of raw material relative to traditional retail programs, potentially resulting in substantially higher gross margins, improved facility utilization, and stronger operating cash flow generation.

Continued Expansion with Nation’s Largest Warehouse Club Retailer

BranchOut continues expanding its partnership with the nation’s largest warehouse club retailer through additional regional programs, new product launches, and expansion into new departments within the retailer. During Q2, the retailer placed another large Pineapple Chips order for the Southeast region and has already committed to an even larger follow on order scheduled for Q4. The product continues to deliver exceptional sales velocity while providing members with a unique and healthy snack experience, resulting in continued order growth.

The company also secured its first regional launch of Mango Chips into the Bay Area market during Q2, further expanding its dried fruit snack platform with the retailer. Management believes Mango Chips have the potential to outperform the company’s current top selling Pineapple Chips product, driven by exceptional flavor and crunch.

In addition, BranchOut is seeing significant interest in its new multipack product lines targeted toward moms and the back-to-school season during Q3 and Q4. Management noted that four regions are currently showing high intent to move forward with the program as they finalize second half planning. Importantly, these multipack products would open placement opportunities in an entirely new department within the retailer.

Major Development Program with the World’s Largest Retailer

BranchOut recently conducted a large-scale innovation and tasting meeting in Bentonville, AR with the nation’s largest retailer, showcasing more than 35 product concepts spanning multiple categories and departments. The presentation included the company’s full fruit and vegetable snack platform, crunchy dried cheese products in multiple formats, shelf stable cheesecake bites, chocolate covered fruit products, and cheese and fruit snack mixes developed, at their request, specifically around the growing GLP-1 and high protein/high fiber consumer trends.

The meeting included buyers and merchants from more than six different categories, with management noting strong interest across multiple product lines and several potential SKU opportunities. The company believes this level of engagement from the world’s largest retailer further validates the strength and versatility of BranchOut’s GentleDry™ technology platform and its ability to rapidly innovate across multiple snack categories.

While initial expectations targeted launches beginning in late 2026, management now believes many of these opportunities are more likely to progress into early 2027 as the retailer completes category planning and product commercialization processes.

Among the innovations receiving strong interest were BranchOut’s shelf stable cheesecake bites, which transform fresh cheesecake into a shelf stable snack while maintaining flavor and a distinctive creamy texture. The company believes this product represents a first of its kind innovation within the snack category and further expands BranchOut’s position in dairy based, protein forward, and functional snacks.

Ingredient and Bulk Supply Channel Continues Rapid Expansion

BranchOut’s ingredient and bulk supply channel continues to strengthen and is emerging as a major growth driver for the company. During March 2026, the head of MicroDried, BranchOut’s largest ingredient customer and strategic partner, visited the company’s Peru facility and expressed strong enthusiasm regarding the scale of the operation, operational progress, and long term partnership potential. Following the visit, MicroDried committed to additional orders for the second half of 2026 and communicated its expectation for the partnership to continue growing significantly.

In addition to MicroDried, the company is currently advancing multiple new industrial ingredient customer opportunities that management expects to begin ordering during the second half of 2026. As a result of this momentum, BranchOut now expects its ingredient and bulk supply channel to generate approximately $6–7 million in revenue during 2026, compared to nearly $2 million in 2025.

Expansion into European Private Label Channel

BranchOut is also expanding into the European private label market through a partnership with a prominent German based private label snack company that packages and distributes products to many of the largest retail chains across Europe, including Aldi, Lidl, Tesco, Carrefour, and Edeka.

Management noted that the partner has been actively presenting BranchOut’s dried fruit products across multiple European retail customers and that initial feedback has been extremely positive. The European market appears to strongly value premium positioned, healthy snack products such as BranchOut’s fruit offerings, and customer reception has exceeded expectations thus far.

As a result, the company recently received confirmation that it expects to receive its first commercial order this month consisting of approximately 3–4 containers, representing roughly $500,000 in revenue, with management expecting the opportunity to expand significantly over time.

Kaufman Capital Continues Supporting Growth with Non-Dilutive Working Capital Financing

In support of the company's accelerating growth and expanding order volumes, Kaufman Capital has provided approximately $2.25 million in new capital to the company during April and May 2026 through a combination of non-dilutive working capital loans and early warrant exercise. In April 2026, Kaufman Capital provided an additional $750,000 working capital loan to support production and inventory build associated with major Q2 customer deliveries. In May 2026, Kaufman Capital exercised warrants for 500,000 shares at $1.50 per share, injecting $750,000 of cash directly into the company, and is currently finalizing an additional $750,000 working capital loan to further support the company's expanding order volume and Q2 production requirements.

In connection with the warrant exercise, Kaufman Capital and the company also amended certain terms of Kaufman Capital's convertible note, extending the maturity date from December 31, 2026 to December 31, 2027 and reducing the interest rate from 12% to 8% per annum, effective May 7, 2026. In addition, the parties are implementing a 9.99% beneficial ownership limitation on conversions under the convertible note, so that any future conversions will occur gradually over time.

All working capital loans were provided on favorable terms at 8% interest and are non-dilutive to existing shareholders. Management believes Kaufman Capital's continued willingness to provide capital on these terms reflects strong alignment between the company's largest investor and its growth strategy.

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.

Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/15c42870-07bc-4ace-ac9a-48de85ef495e
https://www.globenewswire.com/NewsRoom/AttachmentNg/a3db0077-9760-461a-b977-4d54bc121974

FAQ

What record production levels did BranchOut Food (NASDAQ: BOF) report for early 2026?

BranchOut Food reported record production of about 46,000kg per month in March and into Q2 2026. According to BranchOut Food, this inventory build supports large committed customer deliveries and is tied to anticipated record revenue in Q2 2026.

Why does BranchOut Food expect record revenue in Q2 2026 (BOF)?

BranchOut Food expects Q2 2026 to be a record revenue quarter driven by major customer deliveries. According to BranchOut Food, contributors include its largest-ever warehouse club order, ingredient-channel growth, European private-label sales, and a potential large tolling partnership ramping in the second half.

What is the revenue potential of BranchOut Food’s new warehouse club launch (BOF)?

BranchOut Food’s Crunchy Fruit Chips launched nationwide in 600+ locations at the nation’s second largest warehouse club. According to BranchOut Food, strong early sales could support an everyday program worth approximately $15 million in annual recurring revenue if approved by the retailer.

What are the details of BranchOut Food’s potential tolling partnership announced in May 2026?

BranchOut Food is finalizing a long-term tolling agreement with a large household brand for a national rollout product. According to BranchOut Food, the program could generate about $6–7 million in annual revenue with higher margins because the customer supplies raw materials.

How fast is BranchOut Food’s ingredient channel expected to grow in 2026 (BOF)?

BranchOut Food expects its ingredient and bulk supply channel to reach about $6–7 million in 2026 revenue. According to BranchOut Food, this compares to nearly $2 million in 2025, supported by MicroDried orders and new industrial ingredient customers starting in the second half.

What financing did Kaufman Capital provide to BranchOut Food in April–May 2026?

Kaufman Capital provided about $2.25 million to BranchOut Food through loans and warrant exercise. According to BranchOut Food, this includes two $750,000 working capital loans at 8% interest and $750,000 from exercising 500,000 warrants at $1.50 per share, plus improved convertible note terms.