BranchOut Food Q1 2026 Earnings Report

BranchOut Food EPS Results

• Actual EPS: -$0.12
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

BranchOut Food Revenue Results

• Actual Revenue: $2.61 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

BranchOut Food Announcement Details

• Quarter: Q1 2026
• Date: 5/14/2026
• Time: After Market Closes
• Conference Call Date: Thursday, May 14, 2026
• Conference Call Time: 4:30PM ET

BranchOut Food (NASDAQ:BOF) develops, markets, sells, and distributes plant-based dehydrated fruit and vegetable snacks, and powders in the United States. The company offers dehydrated fruit and vegetable-based snacks, including avocado chips, chewy banana bites, pineapple chips, brussels sprout crisps, and bell pepper crisps; avocado, banana, and blueberry powders; and industrial ingredients, such as bulk avocado powder, dried avocado pieces, and other fruit powders/pieces. It also provides chocolate covered fruit items and private label products for retailers. The company was formerly known as AvoLov, LLC and changed its name to BranchOut Food Inc. in November 2021. BranchOut Food Inc. was incorporated in 2017 and is headquartered in Bend, Oregon.

BranchOut Food Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Management said the company’s strategy is shifting toward diversifying customers and channels to fill capacity and improve factory utilization, with new opportunities in club, retail, industrial ingredients, tolling, and Europe.
• Positive Sentiment: Sam’s Club is off to a strong start, with the new Crunchy Fruit Chips reportedly selling through faster than expected and running above the retailer’s threshold for a successful everyday item.
• Positive Sentiment: Costco continues to provide repeat business, including a new Mango Chips rollout, continued pineapple reorders, and multiple multi-pack opportunities that could add several million dollars in sales.
• Positive Sentiment: Management highlighted several additional growth drivers, including a new tolling arrangement, expected placements at Target, a new grocery broker network, and early traction in Europe and other specialty channels.
• Neutral Sentiment: The company said Q1 was a buildup quarter that increased inventory, while revenue is expected to be much stronger in Q2 and the full year outlook remains weighted to the second half; management also said liquidity appears sufficient through year-end unless a very large order materializes.

Presentation

[Operator]

Please also note today's event is being recorded. At this time, I'd like to turn the floor over to John Dalfonsi, CFO. Sir, you may begin.

[John Dalfonsi, CFO at BranchOut Food]

Thank you all for joining our first quarter 2026 earnings call. Before we start, bear with me. I gotta read the forward-looking statement disclaimer. During this call, we may make forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, comments regarding our future operating performance, financial outlook, business strategy, market opportunities, planned investments, and other expectations regarding future events. Forward-looking statements are based on current assumptions, expectations, and information available to management and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in these statements. These risks and uncertainties include, among others, changes in market conditions, customer demand, competitive dynamics, regulatory developments, supply chain disruptions, economic conditions, other risks detailed in our filings with the Securities and Exchange Commission.

[John Dalfonsi, CFO at BranchOut Food]

We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Lastly, additionally, during this call, we may discuss certain non-GAAP financial measures. Reconciliations of these measures to the most direct comparable GAAP measures are available in our filings. You know, with that out of the way, we're gonna go through an outline today. We're gonna start, Eric Healy is gonna talk about the following. He's gonna talk about the strategy, then our customer progress, new progress and capacity, he'll hand it over to me, in which I'll talk about, you know, the, you know, quarter, and, you know, guidance, et cetera, all the financial aspects.

[John Dalfonsi, CFO at BranchOut Food]

Lastly, we put out a press release. This is our shareholder update today, and then our 10-Q was filed at 4:00 P.M. Eastern. With that, I wanna hand it over to Eric Healy.

[Eric Healy, CEO at BranchOut Food]

Yeah. Thank you everyone for joining today. Excited to go through everything here. I'm gonna start with the overall sales strategy of the company. We're still following the same strategy that we talked about at the end of the year. Essentially, we are trying to fill out our capacity, increase factory utilization as much as possible. To do that, we're being very opportunistic and diverse with our reach and where we're going with our sales and marketing team, and really exploring the bounds of what all REV, this REV technology can really do. As we dive into it, you know, we're finding more and more opportunities. It's pretty exciting that, you know we'll get into that.

[Eric Healy, CEO at BranchOut Food]

We have installed our 4th production line that is now coming online this month, and it was primarily intended to be able to focus on a whole another subset of REV products, including dried dairy products, dried cheeses and cheesecakes and things like that. That's coming online, and we'll talk about kind of the opportunities and early interest we have with that already. We're, you know, we're still going down the path of club that we'll get into, Costco and now Sam's Club is our newest customer there. A lot of exciting updates there. The industrial ingredient channel continues to grow, so very diverse channel there from kind of the retail side of the business.

[Eric Healy, CEO at BranchOut Food]

It gives us a lot of synergies within the plants where we can utilize product that isn't high enough quality for retail, but sort of a waste stream from that production line that we can go sell into the, into that channel. There's that, of course, private label has always been a big strategy of ours, we have some updates there. We have had some great meetings recently with Walmart among others. There's kind of a new sales channel that we'll get into as well, the tolling opportunity that we're working on. The strategy, you know, last year we were pretty concentrated in mainly Costco and club and some private label.

[Eric Healy, CEO at BranchOut Food]

I think this year what, you know, hopefully the takeaway will be is diversification and just adding new customers. You know, we're really excited about how the year is shaping up so far. As we outlined in our press release this morning, you know, we ended the year very strong. We, you know, Q1 was really about a buildup. We had a lot of orders that are hitting now that are being delivered in Q2. The timing of such kind of just aligned itself to where Q1 was really a big, you know, drawdown of cash production and increase in inventory, as you will probably see in our filing. All that inventory has a home, and we'll get into where it's going.

[Eric Healy, CEO at BranchOut Food]

We're very, you know, excited about Q2 and kind of what's coming. With that, I can get into more specific customer updates. We, you know, continue to have success in Costco. We'll start with that one. This coming June here, we're delivering our first Mango Chips product into the Bay Area region, so that's a brand-new product that we're very excited about, we think it could be number one. It could knock Pineapple out of our number one spot and take that spot. That product we just scaled up in March and April, so it's a new one for us at scale, but it went really well. You know, we're hopeful that that'll do well. We have that.

[Eric Healy, CEO at BranchOut Food]

We have the Pineapple continues to be repurchased in Costco. It's going into the Southeast region in June as well. That's, you know, I don't know, four or five or six reoccurring orders there the last couple years. That buyer, that region actually just placed another even larger order for the Pineapple for Q4. That continues to do well. You know, as I've spoke before, our strategy in Costco is to diversify into other departments. We have these multi-pack products that we've developed. We have those in front of about four or five different regions for the back to school timeframe right now, and we're waiting for, you know, waiting for commitments. They're scheduling and kind of working on that timeframe right now.

[Eric Healy, CEO at BranchOut Food]

you know, we have probably $3 million-$4 million in Costco opportunities that we're just waiting, you know, waiting to come in. Can't guarantee we'll get all of them, you know, it's still progressing very nicely there. With that, the other sort of club opportunity or big club update is, of course, Sam's Club. We just delivered the Crunchy Fruit Chips. It's a mix of our four different fruits in one bag. It's in nationwide in Sam's Club right now, if you have a membership, go in and buy it and we would appreciate that. What's very exciting about that is we've been on the floor there for two weeks. We're going on our third week right now, and the product is selling out.

[Eric Healy, CEO at BranchOut Food]

We have achieved, I think the first two weeks we've been over the kind of the high end of what their threshold is for considering, you know, an everyday successful item. They like to see between $400-$600 per club per week in revenue. We're consistently hitting about $600 now for first two weeks. We're actually seeing the inventory draw down pretty quick and it's actually selling through quicker than we thought. We're very hopeful that that'll turn into something much larger, an everyday placement. We think kind of the worst case downside is, you know, it's successful and they repeat order it rotationally and test other items as well. You know, we have that new customer and they're, you know, it's going very well.

[Eric Healy, CEO at BranchOut Food]

We've been a good supplier to them so far, and we expect that to continue in some capacity. The upside is very, you know, very big there with a potential $15 million business with that one SKU every day. Excited about that. We just got back a few weeks ago from a meeting with Walmart. This is where we, you know, we are proud of ourselves for kind of punching above our weight. I mean, we're a young, small company still, we, you know, we had a meeting with kind of the top, you know, four to six different category managers, the snack category, the dried fruit category, a number of others.

[Eric Healy, CEO at BranchOut Food]

We did a tasting with kind of a whole spread of all of the REV possibilities that we can do with this technology. We had 35+ products. We had our whole dried fruit line, our whole dried veggie line, our new dried cheeses, crunchy cheeses, our cheesecake line, chocolate covered fruit, and everyone kind of came in and tasted and asked questions, and we got face time with all of these key decision makers. They were very impressed. We were originally hoping this was gonna be, you know, launching some products at the end of this year, but I think we're probably looking at beginning of 2027. There's a lot of interest there now, and we're just going back and forth with their different requests and interests.

[Eric Healy, CEO at BranchOut Food]

You know, very, very big potential there with Walmart, with all of these different product concepts. You know, I mentioned industrial, I think we did about $2 million last year in the industrial side of the business. We had the head of MicroDried, our strategic partner in that channel, come down to our factory a month or two ago, he was very impressed with the progress and kind of the commitment we've made and the job we've done delivering to them last year or so, committed to more orders for the rest of the year. You know, with that, we've also diversified that a bit, we have some other customers in that kind of category as well.

[Eric Healy, CEO at BranchOut Food]

One of them is a big company that is looking to supply some products into Trader Joe's. Long story short there on that channel, you know, we think we'll be probably $6 million-$7 million with that channel this year. It's growing nicely. It's, you know, it's compelling and helps us kind of diversify further. The new channel that we mentioned in the press release as well is this tolling arrangement.

[Eric Healy, CEO at BranchOut Food]

We have a large scale brand that has come to us with. They have a REV-based product that they kind of market tested at a little bit smaller scale, and it turned out to, you know, it's doing very, very well, so they're scaling up and want us to potentially toll dry for them, which means they deliver the raw material, and we just provide the drying service. For us, you know, and it's pretty large volume. It'd be probably $6 million-$7 million as well. For us, it's great because it'll really help the margins and the cash flow.

[Eric Healy, CEO at BranchOut Food]

It's, you know, for us it's basically just the service, there's no real new overhead. It's, you know, no raw materials that we're purchasing, we're really just providing a service and collecting revenue for that. We are hopeful that that will land by Q3 and really ramp up in Q4. Yeah, you know, that one's exciting. Haven't announced this yet, we do expect some placements with our branded SKUs in Target. They have verbally told us that they love the products. They're looking at probably four to six SKUs for second half of the year, they're making their final decisions this month. Very prominent, obviously, retailer that we haven't been in yet.

[Eric Healy, CEO at BranchOut Food]

I don't expect They're not a huge revenue gain, but it's a great sales story and, you know, a foot in the door there that could really turn into something big. That's, that's really exciting, and that will sort of lead into a great branded sales story for our new efforts that we've talked about before, but We just kicked off recently actually a new sales broker with 200 sales reps plus that will be getting our branded multi-pack items in front of the general grocery channels. That's, you know, that's really where we try to build everyday reoccurring business. It'll be, you know, a bit of a slower build.

[Eric Healy, CEO at BranchOut Food]

It'll take a few years, but we believe, you know, it's probably a $20 million-$30 million opportunity there that we can disrupt with, you know, with a better product and better price point that we bring. Excited about that as well. You know, we're diversifying globally as well. We have a new partner in Europe that has a private label manufacturing facility in Europe, and they bring in product and sell into all the big European grocery stores. They've been sampling our dried fruits. They've been getting it in front of Aldi and Lidl and all the kind of big chains in Europe, and the feedback has been fantastic.

[Eric Healy, CEO at BranchOut Food]

In fact, we heard earlier this week that we're expecting our first order, and it should grow from there. Pretty substantial orders. In Europe, they're primarily more aimed at private label, and they, with that, they can scale up pretty quick. We're expecting, you know, our new European side of the business to grow well. We have couple other kind of brands that want some products. We have a chocolate company that is likely gonna order in July, and that's probably about a $1 million order that, you know, we've been working with them for a while, and they're enrobing our fruit with chocolate and have some different opportunities for that.

[Eric Healy, CEO at BranchOut Food]

Then just, kind of further down the road, but as I said, we have this new line that will be doing our dairy products. We started showing samples to various, large-scale cheese companies and other opportunities, and we're getting a lot of great feedback and opportunities there as well. I didn't mention, so one of the strategic ideas we've had is mixing this dried cheese with our dried fruit. Actually it came out of a Walmart request because they are looking for, GLP-1 focused products. With our dried fruit, you get the fiber call-out. With the dried cheese, you get the protein call-out, and it's really well-positioned, for that trend that we're really seeing just starting.

[Eric Healy, CEO at BranchOut Food]

A lot of opportunities with the new dried cheese platform that we have there. I think that's kind of everything on the sales updates side. I would say the plant is continually doing better. I think March, April, and now into May, we're starting to hit that 45 ton a month production level that we believe should get us into the profitability standpoint. With the new line coming on, we should be able to get well above that. We, with the Sam's Club order, there were some new products in there, so there was a little bit of development effort in February that we had to do.

[Eric Healy, CEO at BranchOut Food]

We have all that, you know, most of that behind us now and, yeah, very excited about what we have coming. With that, I think, John, you can take it from here and talk about finances, right?

[John Dalfonsi, CFO at BranchOut Food]

Thanks. Yeah, I wanna go over the topics on the finance side I wanna go over. The rest can be asked in Q&A is, you know, wanna talk about our 10-Q. I always like to point out the things that I feel are important to review, you know, having done this, you know, been an investment banker for 25 years, what I feel the key parts of the 10-Q are. Then talk about, you know, the revenue for the first quarter, the record we're expecting the second quarter. You know, talk a little about the balance sheet and then, you know, give some guidance and then, you know, talk about, you know, liquidity in terms of, you know, we've took some money in this first, you know, between the beginning of the year now and credit facility.

[John Dalfonsi, CFO at BranchOut Food]

If you look at our balance sheet, you know, kind of the things that should stand out is, you know, we had $2.385 million in inventory in December, and we're at $4 million at the end of the, at the end of March, and it's higher now. You got to remember, our inventory turns within the quarter. I think our inventory turn is, you know, 56 days. You know, we're still making things as fast as we can. If you think about the money we've raised, we did an ATM, and we sold 500,000 shares at an average of $3 in January. Then, you know, we've had about $1 million in warrant exercises, and then we took, as you know, $2.25 million from Kaufman Capital Partners, and we announced we're going to take $750,000 more.

[John Dalfonsi, CFO at BranchOut Food]

That's all gone into inventory and, you know, some money to finish the build-out of our factory and the machine. If you think about where has this money gone, it's outside of what we've used for the machine. It really goes into recyclable capital. When you have, you know, a first quarter of, you know, 2.6 and a second quarter that's gonna be record, you know, we're making a lot of product that's being delivered as we speak. If you think of the last part of that, the cash collection cycle. We'll collect about $5 million in cash, you know, come June, July. We're gonna have plenty of money till the end of the year, unless something transformational happens.

[John Dalfonsi, CFO at BranchOut Food]

When I say something transformational, it's a, you know, $15-plus million dollar order, or, you know, or such. If you look at the balance sheet on the liability side, you know, you see a current liability of $8.84 million, but if you look at $2.874 million of that's the Kaufman convertible note that's been extended to the end of 2027. That's gonna come off. That drops the current liability to, you know, about $6 million. The AP went up from $1.2 million-$2.4 million, but that's all in inventory. Our AP is 95% inventory. You know, high percentage inventory. Lastly, the note payable related party, that's once again, that's Kaufman Capital.

[John Dalfonsi, CFO at BranchOut Food]

He'll extend the note as long as we need. If you look at our current liabilities, it's in my opinion about $4.5 million on the high that are truly our current liabilities. With $7.7 in current assets and $4.5 in current liabilities, we have a pretty good balance sheet. The next thing I wanted to talk about is guidance. Like we said in the last call, we expect something with a two in front of it. 40% in kind of the first half, 60% in the last half.

[John Dalfonsi, CFO at BranchOut Food]

It may be 35% in the first half, 65% in the second half, 'cause second half could be strong, you know, looks to be stronger than we expect. We kinda hold at that number. Lastly, you know, talk about, you know, got questions about the credit facility. We're using Kaufman Capital. You know, the reason we're using him, he's giving us 8% money. It's very flexible. He's been a great shareholder. You know, if you look in the future, you know, our expectation is to work with a major commercial bank on a revolving credit facility where we can get a LIBOR-based rate and have a single-digit capital. You know, we're not there yet. You know, they wanna see a little more performance, understandably.

[John Dalfonsi, CFO at BranchOut Food]

Secondly, they wanna see, You know, we only need maybe a $4 million or $5 million revolver at this point. Anyway, that's the financial part of this. Now we wanna turn to Q&A.

[Company Representative at BranchOut Food]

Sure.

[Operator]

Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star and then one on your telephone keypads. A confirmation tone will indicate that your line is in the question queue. You may press star and two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, in order to ask a question, please press star and then one. And again, if you would like to ask a question, please press star and one. And at this time, in showing no questions, I would like to turn the floor back over to management for any closing comments.

[John Dalfonsi, CFO at BranchOut Food]

Thank you for joining our call. We feel it's gonna be an exciting rest of the year, and look forward to talking to you in the second quarter. Take care.

[Operator]

Ladies and gentlemen, that does conclude today's conference call. We thank you for your participation. You may disconnect your lines at this time. Have a wonderful day.

Participants

Executives

• Eric Healy, CEO
• John Dalfonsi, CFO
• Company Representative