BranchOut Food (BOF) Q1 2026 earnings summary

Executive summary

• Focused on expanding sales channels, increasing factory utilization, and diversifying the customer base, including new club, retail, industrial, and tolling opportunities.

• Achieved record production in March and April 2026, reaching 46,000kg per month, the highest in company history.

• Q2 2026 is expected to deliver record revenue, driven by major customer deliveries, including the largest order in company history to a top U.S. warehouse club retailer.

• Early sales of Crunchy Fruit Chips at 600+ locations are exceeding retailer thresholds, supporting a potential $15 million annual program.

• Net revenue for Q1 2026 was $2.6 million, down 18% year-over-year due to planned facility maintenance and timing of a major customer order, with production recovering by March 2026.

Financial highlights

• Q1 2026 revenue was $2.6 million, with a record Q2 expected as large orders are delivered.

• Inventory increased from $2.385 million in December to $4 million at March-end, reflecting production ramp-up.

• Gross profit was $0.4 million (15.4% margin), down from $0.5 million (16.7% margin) year-over-year, reflecting lower sales and a less favorable product mix.

• Ingredient and bulk supply channel projected to grow to $6–7 million in 2026, up from nearly $2 million in 2025.

• Cash at quarter-end was $0.9 million, with total liabilities of $11.2 million and an accumulated deficit of $25.5 million.

Outlook and guidance

• Management expects Q2 2026 to be a record revenue quarter.

• Guidance maintained for a year with “a two in front of it,” indicating at least $20 million in revenue.

• Ingredient channel and tolling partnership expected to drive significant revenue and margin growth in 2026.

• Anticipates further expansion with major U.S. and European retailers and new product launches in late 2026 and early 2027.

• Existing cash and cash from operations are not expected to be sufficient for the next twelve months; additional financing will be required.