BranchOut Food reports record June revenue amid operational improvements

BEND, Ore. - BranchOut Food Inc. (NASDAQ:BOF) achieved its highest-ever monthly revenue of approximately $1.7 million in June with a 27% gross margin, according to a press release issued Monday. The company, currently valued at $21 million in market capitalization, has shown impressive year-over-year revenue growth of 96% in the last twelve months, though InvestingPro analysis indicates challenges with sustained profitability.

The food technology company, which specializes in dehydrated snacks and ingredients using its patented GentleDry technology, reported a 129% revenue growth for the first six months of 2025 compared to the same period in 2024. While the growth is notable, InvestingPro data reveals the company’s overall financial health score remains weak, with particular concerns about cash flow management. Subscribers to InvestingPro can access 8 additional key insights about BOF’s financial position.

June marked significant operational progress for the company, with factory throughput increasing 50% compared to previous months. BranchOut also reduced its current liability debt by 67% in the second quarter, from $6.39 million to $2.16 million. Despite this improvement, the company’s current ratio stands at 0.68, indicating potential liquidity challenges, according to InvestingPro metrics.

The company indicated that inventory is currently turning in less than 60 days as it works to meet strong demand. Since opening its Peru facility earlier this year, BranchOut has operated with a backlog of orders and has relied on air freight to meet customer timelines, temporarily impacting margins.

"Our June results mark the first month since opening our Peru facility earlier this year that we’ve started to see real gains from our ongoing R&D and scale-up efforts," said Eric Healy, CEO of BranchOut Food.

The company expects gross margins to improve by approximately 3-4% as operations catch up with order backlogs and allow sufficient lead time for ocean freight instead of air shipping.

For the first half of 2025, BranchOut reported an EBITDA loss of $1.6 million, which it attributed largely to one-time scale-up costs, including R&D, legal expenses, air freight, and low facility utilization.

The company anticipates continued growth supported by product distribution in warehouse clubs and national retailers, as well as ingredient sales through its MicroDried partnership.

In other recent news, BranchOut Food Inc. has secured over $2.8 million in new orders from a major warehouse club, as noted in a company press release. The orders include reorders for Pineapple Chips in the Southeast and Midwest regions and expanded distribution of Organic Chewy Banana Bites after a successful launch in Los Angeles. Additionally, BranchOut Food’s Cinnamon Churro Banana Chips have been selected for inclusion in the U.S. Army’s field test of the Close Combat Assault Ration (CCAR) for 2025. This test aims to evaluate lightweight and shelf-stable food options for soldiers.

Furthermore, BranchOut Food has entered a strategic agreement with Kaufman Kapital LLC, resulting in a $1 million cash infusion through the early exercise of warrants. This agreement includes key amendments to existing financing terms, such as extending the maturity date of a $3.4 million Senior Secured Convertible Promissory Note to December 31, 2026. The expiration date of a separate warrant to purchase 500,000 shares has also been extended to December 31, 2026. These recent developments reflect BranchOut Food’s ongoing efforts to strengthen its financial position and expand its market presence.

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