BranchOut Food forecasts record Q4 revenue of $6M to $7M

BranchOut Food Inc. (NASDAQ: BOF) expects fourth-quarter 2026 revenue to reach a record $6 million to $7 million, representing a year-over-year increase of 50% to 75%. Management stated this forecast implies an annualized run rate of approximately $26 million, which is roughly 80% above the company's expected full-year 2026 revenue of $14 million to $15 million.

The projected surge is attributed to major retail launches and expanded industrial ingredient commitments. BranchOut Food indicated that third-quarter revenue was approximately $1 million, a figure affected by the timing of customer delivery schedules. Approximately $420,000 in warehouse club shipments originally scheduled for late September shifted into early October, contributing to the fourth-quarter total. A key industrial ingredient client also increased its engagement by roughly $3 million, with product delivery set to occur between the fourth quarter of 2026 and the first half of 2027.

The company is transitioning from a reliance on large, one-time orders to a recurring revenue base of approximately $4 million per quarter. This new foundation is driven by an everyday retail program in 309 clubs at the nation's second-largest warehouse club retailer and five branded products at a leading U.S. mass retailer. Industrial ingredient revenue is projected to grow from approximately $2 million in 2025 to $6 million to $7 million in 2026, with expectations of more than $10 million in 2027.

Production levels have increased to support these commitments. BranchOut Food reported a record production output of 55,000 kg in September and is targeting 60,000 to 70,000 kg per month during the fourth quarter. Management estimates monthly cash operating breakeven at approximately 55,000 kg, equating to $21 million in annualized revenue. In-season raw material purchases for strawberry and blueberry programs were well below off-season prices, which are expected to improve gross margins beginning in the fourth quarter.

New programs include an approximately $2 million Tropical Fruit Mix order beginning to ship in December and Dried Cheesecake Snacks at the nation's two largest warehouse club retailers. Crunchy Cheese Sticks are entering a major dollar-channel test with the potential to become an approximately $5 million annual recurring revenue program. Following the anticipated closing of a common stock offering in October 2026, management believes the company has sufficient capital to fund its current operating plan and anticipated growth initiatives.

Eric Healy, Chief Executive Officer of BranchOut Food, stated that while third-quarter revenue was impacted by delivery schedules, the company is building a significantly larger foundation of recurring business. He noted that major recurring orders for blueberries, strawberries, and bananas extend well into 2027. BranchOut Food engaged Hayden IR to lead its investor relations program and will present at Planet MicroCap: Toronto 2026 on October 28.