Branchout Food Shareholder Update: Record Production And Major Customer Deliveries Position Company For Record Q2

(MENAFN- GlobeNewsWire - Nasdaq) 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 GentleDryTM 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.

Photos accompanying this announcement are available at:

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