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BranchOut Food Reports Record Q3; Achieves $16M Annualized Production Run Rate, Current Notes Payable Cut by 92%
Globenewswire· 2025-10-21 10:30
Core Insights - BranchOut Food Inc. reported record operational and financial results for Q3 2025, with a revenue of approximately $3.2 million, bringing year-to-date revenue to $9.7 million, representing a 93% increase year-over-year [2][7][8] - The company achieved a significant production milestone with over 38,500 kilograms of finished product in September, establishing a $16 million annualized run rate and reaching breakeven production levels [3][7] - BranchOut is positioned for growth in 2026, with a focus on expanding production capacity and improving profitability through operational efficiencies and reduced R&D investments [6][9] Financial Performance - Q3 revenue reached approximately $3.2 million, contributing to a year-to-date total of about $9.7 million, reflecting strong growth compared to the previous year [8] - The company successfully completed its At-The-Market (ATM) equity program, which strengthened the balance sheet and reduced current notes payable from $6.39 million to approximately $0.5 million, a decrease of over 92% [7][8] - The gross margin for the quarter was 17%, with potential margins closer to 30% when excluding air shipments and transitioning to ocean freight [6] Production and Capacity Expansion - September marked the highest production month in BranchOut's history, achieving a breakeven production level and supporting multiple large warehouse club programs [3][7] - The company is committed to purchasing an additional EnWave REV™ 120kW machine to significantly increase production capacity in early 2026, responding to strong demand [9] - BranchOut has secured global exclusive rights to produce dragon fruit using EnWave's technology, tapping into emerging trends in the healthy snack market [9] Product Development and Market Position - The company successfully scaled up production of its strawberry product for a large warehouse club order, which ranked among the top 10 best-selling items in its category [4][7] - BranchOut's CEO highlighted the transformative nature of the quarter, emphasizing the completion of extensive scale-up and R&D efforts across the product portfolio [5][6] - The company is in advanced discussions with several major retailers, setting the stage for exceptional growth in 2026 [10] Leadership and Strategic Initiatives - BranchOut announced the hiring of Jesse Thomas as Chief Marketing Officer, who will focus on expanding e-commerce initiatives and retail brand strategy [11][13] - The appointment includes a stock option grant to Mr. Thomas, aligning his interests with the company's growth objectives [12]