BranchOut Food Inc. (NASDAQ:BOF)

BranchOut Food Inc. (NASDAQ:BOF) ($3.13; $41.9M market cap) announced Q4 2025 and full year preliminary sales:

• Q4 sales of $4.2 million vs. $1.5 million in the prior year
• Full-year 2025 sales of ~$14 million vs. $6.5 million in the prior year
• Nearly $2 million order from a new warehouse club customer; potential to scale to $15 million annually. (First order from second largest club warehouse operator in the U.S., which would be Sam’s Club, which is owned by Walmart)
• Development program with world’s largest retailer for up to nine SKUs, targeted for 2H 2026 launch; potential $10 million in annual revenue. (This would be Walmart and expands their current relationship)
• Launching shelf-stable dehydrated cheesecake using GentleDry™ tech.
• Installing fourth REV drying line (operational by March 1, 2026) to support dairy/high-protein product expansion.
• Ingredient and bulk channel to generate $5–6 million in 2026, with new $1.8 million CPG customer order expected.
• 2025 gross margin was ~16%, impacted by air freight (8% of COGS) and 5% tariffs; normalized margin estimated at ~25%.
• Gross margin expected to expand significantly in 2026 from reduced freight, zeroed tariffs, operational efficiency, and high contribution margins (~50%) from incremental revenue.
• Secured $1.5 million working capital loan from Kaufman Capital; $500,000 of convertible note voluntarily converted to equity.
• ATM program to raise up to $1.5 million additional working capital to meet demand.

Our Quick Take:

The company has had multiple small ATM vehicles in place since we started covering the stock. While we are not a big fan of ATMs, it’s somewhat comforting that their biggest backer (who we highly respect) outside the ATMs (Kaufman Capital) continues to back the company. 

It is also worth noting that the Company is expanding its relationship with the world's largest retailer, Walmart, and that it appears they have secured their first order with the second largest warehouse club customer, Sam’s Club. 

Even though gross margins were down significantly, the company expects them to expand significantly in 2026, something we will monitor closely. 

Taking this all in conjunction with the fact that the company is expanding its relationship with the nation's largest warehouse club operator, Costco, shows it is building a nice customer portfolio. 

Obviously, the key is for the company to reach profitability while dealing with cost pressures on gross margins and potentially some of the nuances that come with having large customers who have been known to be stingy on pricing. 

BranchOut Food Inc. produces and sells plant-based dehydrated fruit and vegetable snacks, powders, and ingredients for retail, private label, and industrial customers.