Aug 13, 2026, 4:05 PM ETConsumer Defensive

BranchOut Food — Q2 2026 Earnings Summary

BOFBRANCHOUT FOOD INC

Financial Performance

Q2 2026 revenue reached a record approximately $4.5 million, an all-time quarterly high.
Q2 2025 ingredient business revenue was approximately $2 million.
Management expects ingredient business revenue to grow to approximately $6-7 million in 2026 and potentially exceed $10 million in 2027.
Q4 2026 revenue is estimated at approximately $6-7 million based on current booked orders.
Gross margins on initial ingredient shipments were reduced due to raw material costs being nearly twice normal seasonal pricing, but management expects gross margins of approximately 40% on future recurring strawberry programs produced under planned purchasing contracts.
One-time costs incurred in Q2 for production scale-up, expedited freight, marketing support, and in-store demonstrations temporarily pressured margins.
Management anticipates meaningful margin expansion in Q4 driven by doubled factory utilization and improved operating leverage.

Management forecasts Q4 2026 revenue of approximately $6-7 million.
Factory utilization is expected to double by September, increasing monthly production from 35-40 metric tons to 70-80 metric tons.
The Company expects to transition to continuous production with significantly improved manufacturing efficiencies and margins.
Management projects that doubling factory utilization will reduce fixed manufacturing overhead per pound by roughly half and lower unit costs.
The Company believes it is positioned for profitability beginning in the fourth quarter.

Branded Retail:
- The nation's second-largest warehouse club transitioned Crunchy Fruit Chips to an approximately $8 million annual everyday program across 309 clubs, with shipments beginning in September.
- An additional estimated $2 million Tropical Mix order was secured with the same retailer, with shipments beginning in December and potential to become an everyday item.
- A five-product launch (including fruit snacks, vegetable-based, and dairy-based products) with a leading U.S. mass retailer begins in September.
Ingredient Business:
- The segment is accelerating with multiple new commercial wins and growing adoption by large CPG companies.
- The business is expected to become a major driver of production volume and profitability.

BranchOut utilizes proprietary GentleDry™ technology, protected by over 17 patents, which preserves up to 95% of the original nutrition of fresh produce.
The Company operates as a trusted brand, ingredient supplier, and private-label supplier.
The Company is expanding its branded platform into major new retail customers.

Raw material costs were nearly twice normal seasonal pricing during the quarter, impacting initial ingredient shipment margins.
One-time costs associated with first-time production scale-up, expedited freight, marketing support, and in-store demonstrations temporarily pressured profitability.
Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from expectations.

CEO Eric Healy stated the Company is entering the "most exciting period in the Company's history."
Management emphasized that past investments in customer relationships, manufacturing capabilities, and product innovation are translating into higher production volumes, improving margins, and a growing base of recurring business.
The tone is confident regarding the path to sustained profitable growth and long-term shareholder value creation.