BranchOut Food (BOF) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $4.5 million in Q2 2026, up 36% year-over-year, driven by branded retail, ingredient business growth, and new product launches at major retailers.

• Secured major recurring customer programs, including an $8 million annual deal with a leading warehouse club and a $2 million Tropical Mix order.

• Five new branded products launching with a leading U.S. mass retailer in September, expanding market reach.

• Gross margin declined to 2.2% from 17.8% year-over-year due to higher raw material costs and unfavorable sales mix.

• The company continues to operate at a net loss and negative working capital, with substantial doubt about its ability to continue as a going concern.

Financial highlights

• Q2 2026 net revenue: $4.5 million (+36% YoY), a new quarterly record; six months ended June 30, 2026: $7.1 million (+10% YoY).

• Q2 2026 gross margin: 2.2% (GAAP), 8.3% (adjusted); six months: 7.0% (GAAP), 12.9% (adjusted).

• Q2 2026 operating loss: $2.6 million; net loss: $2.7 million (net margin -61%).

• Cash at June 30, 2026: $0.21 million; total liabilities: $12.8 million; accumulated deficit: $28.2 million.

• Ingredient business projected to exceed $10 million in revenue by 2027.

Outlook and guidance

• Q4 revenue guidance raised to $6–$7 million, with expectations to sustain this level going forward.

• Full-year revenue expected to approach $20 million, though some deliveries may slip into January, potentially resulting in $18 million recognized for the year.

• Production expected to nearly double to 70–80 metric tons per month in the second half of 2026, driving margin expansion and improved operating leverage.

• Management anticipates sustained profitable growth and long-term value creation as recurring programs ramp.

• The company is pursuing additional capital and revenue growth initiatives but expects continued net losses and negative cash flows in the near term.