BranchOut Food Inc. Reports 142% Revenue Growth but Faces $1.6 Million Net Loss in Latest Quarter

BranchOut Food Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company achieved net revenue of $3.3 million for the three months ended June 30, 2025, a substantial increase of 142% compared to $1.4 million in the same period last year. For the six months, revenue reached $6.5 million, up 129% from $2.8 million in the prior year. Despite this growth, BranchOut recorded a net loss of $1.6 million for the quarter and $2.5 million for the six months, reflecting an increase in losses attributed to scaling production at its new facility in Peru.

The company's cost of goods sold (COGS) also rose significantly, totaling $2.7 million for the quarter and $5.3 million for the six months, marking increases of 122% and 122%, respectively. The gross profit for the quarter was $606,459, yielding a gross margin of 18.4%, up from 10.9% in the previous year. This improvement in gross margin is largely due to the transition of manufacturing operations from third-party suppliers to the company’s own facility, which has enhanced production efficiency and product quality.

BranchOut has made strategic moves to bolster its operations, including the launch of its production facility in Pisco, Peru, which began operations in December 2024. The facility utilizes proprietary GentleDry™ Technology, licensed from EnWave Corporation, to produce a range of plant-based snacks. The company has also expanded its product offerings, which now include various dehydrated fruit and vegetable snacks and industrial ingredients. As of June 30, 2025, BranchOut had 10.7 million shares of common stock outstanding, an increase from 8.4 million shares at the end of 2024, reflecting capital raised through stock offerings.

Operationally, BranchOut reported a positive working capital of $662,217 as of June 30, 2025, a significant improvement from a negative working capital of $3.9 million at the end of 2024. The company’s total liabilities decreased to $9.6 million from $10.5 million, primarily due to the repayment of convertible notes and other debts. However, the company continues to face challenges, including an accumulated deficit of $20.1 million and ongoing losses, raising concerns about its ability to sustain operations without additional capital.

Looking ahead, BranchOut aims to leverage its new facility to increase production capacity and improve operational efficiency. The management is actively pursuing new customers and expanding its product mix to drive revenue growth. However, the company acknowledges the need for additional funding to support its operations and achieve profitability, emphasizing the importance of scaling production and distribution capabilities in the coming months.