BranchOut Food 2025 Q1 Earnings Narrowed Losses and 118% Revenue Growth

BranchOut Food (BOF) reported its fiscal 2025 Q1 earnings on May 15th, 2025. BranchOut Food saw significant growth in Q1 2025, with a 118% increase in revenue year-over-year, reaching $3.2 million. The company's earnings per share improved, narrowing losses from $0.26 to $0.11 per share. This strong performance exceeded market expectations and reflects the successful operational ramp-up at its Peru facility. The company maintained its guidance, anticipating further improvements in efficiency and gross margins starting in Q2.

Revenue
BranchOut Food reported a total revenue of $3.19 million for Q1 2025, representing a substantial increase of 117.7% compared to the same quarter in 2024. The company's net revenue for the quarter also amounted to $3.19 million, highlighting the consistent growth across its revenue streams.

Earnings/Net Income
BranchOut Food narrowed its losses, reporting a loss of $0.11 per share in Q1 2025, a significant improvement from the $0.26 loss per share in Q1 2024. The company's net loss also decreased by 12.6% to $918,382 compared to the previous year's $1.05 million loss. Despite these longstanding challenges, the improvement in EPS indicates positive progress.

Price Action
The stock price of BranchOut Food increased by 1.30% during the latest trading day and surged by 17.68% over the last trading week, with a 20.10% rise month-to-date.

Post-Earnings Price Action Review
BranchOut Food has demonstrated impressive performance in recent years, with a strategic focus on purchasing shares following a revenue drop and holding them for 30 days. This approach has consistently yielded an average annual return of 26.51% over the past five years, outperforming the market by 11.39% annually. The compounding effect saw a $100 investment grow to $315.10, showcasing the potential for substantial gains. While this short-term strategy has proven effective, long-term investors might explore alternative methods to capture longer-term growth opportunities. Overall, the strategy of buying BranchOut Food shares post-revenue drop and holding for a month has shown robust performance, but investors should carefully consider their risk tolerance and investment goals before adopting this approach.

CEO Commentary
“We spent 2024 investing heavily in building out the factory. Now that it’s fully operational, Q1 shows what’s possible,” said Eric Healy, CEO of BranchOut Food. He highlighted the significant growth, with Q1 revenue reaching $3.2 million, a 118% increase year-over-year, attributing this success to the operational ramp-up of their Peru facility. He emphasized the importance of control over product quality and supply chain efficiency. Looking ahead, Healy expressed optimism about continuous improvement in operational efficiency and sales momentum as the team settles into the new facility.

Guidance
BranchOut Food anticipates meaningful improvements in efficiency and gross margins starting in Q2 2025. The company aims to reach debt-free status by the end of 2025. They project annual production capacity exceeding $40 million from the Peru facility and expect to generate $5–6 million in annual ingredient sales from their partnership with MicroDried.

Additional News
In recent weeks, BranchOut Food has made significant strides in expanding its market presence and strategic partnerships. The company appointed Jesse Thomas as Chief Brand Officer to enhance its direct-to-consumer and brand strategy efforts, focusing on launching new channels and driving growth. Additionally, BranchOut Food secured a $600K+ order from the Midwest region of the nation's largest warehouse club, further expanding its Bell Pepper Crisps product line across multiple regions. BranchOut Food also signed a definitive agreement with MicroDried, projecting $5-6 million in annual revenue, marking a substantial move into the $36 billion dried ingredient market. These developments reflect the company's strategic positioning and commitment to long-term growth.