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

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

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