BranchOut Food Inc.

What they do

BranchOut manufactures and sells clean-label, plant-based dried fruit and vegetable snacks and ingredients. Products are sold under the BranchOut brand, as private-label items for major North American retailers, and as industrial ingredients for food manufacturers. All production occurs at a 50,000 square foot facility in Pisco, Peru, using GentleDry technology licensed exclusively from EnWave Corporation.

Revenue drivers

• BranchOut branded snacks — Includes Pineapple Chips, Crunchy Strawberry Halves, Chewy Banana Slices, Bell Pepper Crisps, and Carrot Sticks, sold through grocery, club, online, and direct-to-consumer channels.
• Private-label products — Manufactures dehydrated products like prunes, carrots, brussels sprouts, and raisins for major North American retailers, distributed under retailer brands.
• Industrial ingredients — Supplies dehydrated fruit and vegetable pieces, fragments, powders, and inclusions (banana, mango, blueberry, pineapple, cherry tomato, avocado) to food manufacturers for use in cereals, bars, baked goods, and ready-to-eat meals.

Recent performance

Q2 2026 revenue was a record $4.5 million, up from $3.2 million in Q1 2026 and $2.6 million in Q4 2025. Full-year 2025 revenue was $13.7 million with a net loss of $6.1 million. Operating cash flow was negative $7.0 million in 2025. As of June 30, 2026, the company had $17.3 million in total assets, $12.8 million in liabilities, and $0 cash on hand.

Strategy

BranchOut is transitioning from third-party manufacturing to in-house production at the Peru facility, with the build-out substantially complete. Management is focused on scaling factory utilization, expanding distribution across retail and club channels, and developing new products, including high-protein dehydrated cheese items. The company aims to leverage recurring customer programs to improve margins through operating leverage, while pursuing both branded and ingredient growth opportunities.

Risks

• Going concern uncertainty — Audited financial statements include substantial doubt about the company's ability to continue as a going concern, which may hinder capital raising and partner negotiations.
• History of losses — BranchOut has incurred net losses every year since inception, including $6.1 million in 2025, and may not achieve profitability.
• Customer concentration — A significant portion of revenue depends on a small number of large retail customers, including a warehouse club program worth approximately $8 million annually, creating vulnerability to order cancellations or renegotiations.
• Operational and input cost risks in Peru — Production is concentrated in a single Peru facility, exposing the company to political, economic, currency, tariff, labor, and supply chain risks, as well as raw material price volatility (e.g., strawberry costs were nearly double normal seasonal pricing).

Outlook

Management estimates Q4 2026 revenue of approximately $6-7 million based on booked orders. Production is expected to nearly double to 70-80 metric tons per month as major customer programs ramp. The company expects factory utilization to double by September, leading to meaningful margin expansion.