BranchOut Food Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2025. The company achieved net revenue of $3.22 million for the third quarter, marking a 48% increase from $2.18 million in the same period last year. For the nine months ended September 30, 2025, total revenue reached $9.71 million, a substantial 94% increase compared to $5.01 million in the prior year. Despite this growth, BranchOut incurred a net loss of $1.57 million for the quarter and $4.09 million for the nine-month period, reflecting ongoing operational challenges as the company scales its production capabilities.
The increase in revenue was primarily driven by heightened sales to key customers, which also contributed to a rise in the cost of goods sold, which increased to $2.65 million for the quarter, up from $1.85 million a year earlier. The gross profit for the quarter was $569,550, resulting in a gross margin of 17.7%, an improvement from 15.4% in the previous year. This margin enhancement is attributed to the transition of manufacturing operations from third-party suppliers to the company’s own facility in Pisco, Peru, which commenced operations in December 2024.
BranchOut has been actively pursuing strategic initiatives to bolster its market position, including the establishment of its production facility in Peru, which is expected to enhance product quality and reduce manufacturing costs. The company has incurred approximately $6.4 million in costs related to this initiative, including factory start-up expenses and idle capacity costs. As of September 30, 2025, BranchOut reported total assets of $14.66 million, up from $12.86 million at the end of 2024, while total liabilities decreased to $9.54 million from $10.51 million, indicating improved financial management.
Operationally, BranchOut has seen a notable increase in its workforce, with employee headcount rising to support the ramp-up of production at the new facility. The company’s cash position, however, has declined to $812,007 from $2.33 million at the end of 2024, raising concerns about liquidity. Management has acknowledged the need for additional capital to sustain operations and is actively seeking new customers and expanding its product mix to drive revenue growth.
Looking ahead, BranchOut remains focused on leveraging its proprietary GentleDry™ Technology to innovate and expand its product offerings in the plant-based snack market. However, the company faces ongoing challenges related to its accumulated deficit of $21.66 million and the need to achieve profitability. Management has expressed optimism about future revenue growth but has also highlighted the uncertainty surrounding the company’s ability to continue as a going concern if operational losses persist.
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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