BranchOut Food Inc. Reports 118% Revenue Growth to $3.19 Million in Latest Quarter

BranchOut Food Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company achieved net revenue of $3.19 million, a substantial increase of 118% compared to $1.47 million in the same period last year. This growth was primarily driven by increased sales to its two largest customers, which accounted for 92% of net revenue during the quarter. Despite the revenue increase, the cost of goods sold also rose sharply to $2.64 million, leading to a gross profit of $552,515 and a gross margin of 17%, slightly down from 19% in the previous year.

The company’s operating expenses totaled $1.24 million, a decrease from $1.31 million in the prior year, largely due to reduced salaries and professional fees. Notably, salaries and wages dropped by 47% to $314,242, reflecting a significant reduction in stock-based compensation from the previous year. As a result, BranchOut reported an operating loss of $682,540, an improvement from the loss of $1.03 million in the same quarter of 2024. The net loss for the quarter was $918,382, down from $1.05 million a year earlier.

BranchOut has made strategic moves to enhance its operational capabilities, including the launch of its new production facility in Pisco, Peru, which began operations in December 2024. This facility is expected to improve production efficiency and reduce reliance on third-party manufacturers. The company has also entered into a ten-year lease for the facility, which includes a buy-out option. As of March 31, 2025, BranchOut reported total assets of $14.11 million, up from $12.86 million at the end of 2024, while total liabilities decreased to $10.23 million from $10.51 million.

In terms of cash flow, BranchOut experienced a net cash outflow of $1.93 million from operating activities, compared to $503,578 in the previous year. However, the company generated $2.46 million from financing activities, primarily from the sale of common stock under its At-The-Market (ATM) program, which raised $2.41 million. The company ended the quarter with a cash balance of $2.39 million, reflecting a slight increase from $2.33 million at the end of 2024.

Looking ahead, BranchOut acknowledges the challenges it faces, including a working capital deficit of $2.74 million and an accumulated deficit of $18.48 million. The company is actively seeking additional capital to fund operations and is optimistic about improving its financial performance as it ramps up production at its new facility. However, management has expressed concerns about the company's ability to continue as a going concern if it cannot generate sufficient revenue to cover its operating losses.