BranchOut Food Inc., the Bend, Oregon-based producer of plant-based dehydrated fruit and vegetable snack products that operates a 50,000 square foot production facility in Pisco, Peru (the Peru Facility), reported Q2 2026 net revenue of $4.458 million for the three months ended June 30, 2026, up 36.1 percent from $3.275 million in the prior-year quarter, but a net loss of $2.720 million for the quarter, a meaningful year-over-year widening from the $1.603 million net loss in the prior-year quarter. The half-year 2026 picture is similarly bifurcated, with net revenue of $7.065 million for the six months ended June 30, 2026 up 9.6 percent from $6.446 million in the prior-year period, but a net loss of $4.512 million for H1 2026, a meaningful year-over-year widening from the $2.522 million net loss in the prior-year period. The strategic implication is that the company is in the middle of a meaningful gross margin compression that has been the principal drag on the operating results, with the cost of goods sold of $4.361 million in Q2 2026 producing a gross profit of only $96,825, a 2.2 percent gross margin in the quarter that is meaningfully below the 17.8 percent gross margin in the prior-year quarter.
The principal question for the next several quarters is whether the company can navigate the gross margin compression without exhausting the working capital, and whether the company can secure the additional capital that the going-concern qualification flagged. The disclosure cadence that the next twelve months resolve is, in order of importance, the gross margin recovery trajectory, the working capital and going-concern qualification, the Peru Facility utilization and the broader operational execution, and the capital-raise execution.