BranchOut Food 2025 Q2 Earnings Mixed Results with Revenue Surge and Widening Net Loss

BranchOut Food reported its fiscal 2025 Q2 earnings on August 13, 2025. The company delivered a strong revenue performance but continued to face significant net income challenges. Despite the substantial revenue increase, the net loss expanded, signaling ongoing operational difficulties.

BranchOut Food's total revenue surged by 142.1% to $3.30 million in 2025 Q2, compared to $1.36 million in the same period of the previous year. This robust growth reflects the company's recent operational initiatives and scaling efforts.

While the revenue performance was impressive, BranchOut Food’s earnings picture remained bleak. The company narrowed its loss per share to $0.17 from $0.22 in the prior year, representing a 22.7% improvement. However, its net loss widened to $1.60 million in 2025 Q2, a 70.1% increase from $942,554 in 2024 Q2. This trend underscores persistent financial challenges, with the company recording losses for the fourth consecutive year in this quarter.

The stock price of BranchOut Food continued to struggle, with a 0.46% decline on the latest trading day, a 3.54% drop over the past week, and a steep 19.56% decline month-to-date.

A post-earnings price action review revealed underwhelming performance. The strategy of purchasing BranchOut Food shares following the Q2 earnings report and holding for 30 days led to a -53.59% return over the past three years. This significantly underperformed the benchmark return of 42.88%, with a Sharpe ratio of -0.20, indicating poor risk-adjusted returns and high volatility.

CEO Eric Healy highlighted a turning point in June, where the company achieved $1.7 million in revenue, a 27% gross margin, and near breakeven EBITDA after adjustments. He attributed these gains to the recent opening of the Peru facility, which increased factory throughput by 50%. The CEO expressed optimism about the scalable platform model and anticipated further efficiency gains as utilization rises.

BranchOut Food expects continued improvements in the coming quarters. The company is forecasting gross margin gains of 3–4% as it transitions from air to ocean freight and scales production. Management also anticipates moving beyond initial R&D and scale-up costs, with idle capacity decreasing as utilization increases. However, no specific revenue or EBITDA guidance was provided for future periods.

Additional News
Despite the earnings report, there were no major earnings-related announcements or developments within the three-week period following August 13, 2025. The news section primarily featured updates from Nigeria and related business developments, with no notable M&A activity, C-level changes, or dividend/buyback news directly related to BranchOut Food.