BranchOut Food Inc. reported significant financial growth in its latest 10-K filing for the fiscal year ending December 31, 2025. The company achieved net revenue of $13.7 million, a substantial increase of 113% from $6.4 million in 2024. This growth was primarily driven by increased sales volumes to existing customers and the introduction of new products. Gross profit also rose to $2.0 million, with a gross margin improvement to 14.8% from 12.2% in the previous year, reflecting enhanced internal manufacturing efficiencies and a favorable product mix.
Despite the revenue growth, BranchOut continued to face challenges, reporting a net loss of $6.1 million, up from $4.8 million in 2024. The increase in losses was attributed to higher operating expenses, which rose to $7.4 million from $4.7 million, largely due to expanded commercial activities and costs associated with scaling production at its manufacturing facility in Pisco, Peru. The company noted that its operations were still below normalized utilization levels, contributing to ongoing financial pressures.
Strategically, BranchOut has focused on transitioning from third-party manufacturing to in-house production at its Peru facility, which commenced operations in December 2024. This shift required significant investment, totaling approximately $6.7 million, to enhance manufacturing capabilities. The company has also expanded its distribution channels, securing relationships with major retailers such as Costco and Walmart, and is actively developing new product lines to meet evolving consumer preferences for clean-label, plant-based snacks.
Operationally, BranchOut reported a total employee headcount of approximately 314, with 98% based in Peru. The company continues to monitor macroeconomic conditions, including agricultural sourcing and logistics, which are critical to its supply chain. As of December 31, 2025, BranchOut had negative working capital of $584,240, an improvement from the previous year's deficit of $3.9 million, indicating progress in liquidity management. However, the company acknowledged that it may require additional capital to fund operations and growth initiatives in the near future.
Looking ahead, BranchOut's management remains focused on increasing production volumes, improving manufacturing efficiency, and expanding its customer base. The company is also pursuing additional financing options to support its growth strategy, as it anticipates continued net losses and negative operating cash flows in the near term. The outlook emphasizes the importance of scaling operations effectively to achieve profitability while navigating the complexities of the consumer packaged foods industry.
About BranchOut Food Inc.
BranchOut Food Inc. develops, markets, and distributes plant-based, dehydrated fruit and vegetable snacks and powders using proprietary GentleDry™ technology. Its product lines include branded snacks like avocado chips and banana bites, private-label offerings, and industrial ingredients. Serving primarily the U.S. grocery and retail markets, BranchOut leverages exclusive dehydration technology licenses and South American supply chains to deliver nutritious, flavorful, minimally processed snacks with superior taste, texture, and color.
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