Executive Summary

Revenue rose 142% year over year to $3.30M, with gross margin expanding to 18.4% (from 10.9%) as Peru facility insourcing improved efficiency; however, net loss widened to $1.60M and EPS to -$0.17 as interest expense and scale-up costs weighed on results .
June was a notable inflection: ~$1.7M monthly revenue at a record 27% gross margin, 50% higher factory throughput vs prior months, and EBITDA “approached breakeven” for June on normalizing freight/one-time items .
Liquidity actions continued: current liability debt reduced 67% in Q2 (to $2.16M), warrant exercises added $1.135M, and an ATM program was upsized/renewed (additional $3M capacity on Jul 29) to bolster working capital .
Street estimates: S&P Global consensus for Q2 2025 EPS and revenue was not available for BOF this quarter; comparisons are versus actuals and company filings (see “Estimates Context”) [Values retrieved from S&P Global].
Key catalysts ahead: continued utilization ramp, switch from air to ocean freight (management expects ~3–4% margin lift), and warehouse club/ingredient channel momentum (MicroDried partnership), partially offset by going-concern risks and customer concentration .

What Went Well and What Went Wrong

What Went Well

Margin and scale execution: Gross margin expanded 740 bps YoY to 18.4% as production shifted in-house at the Peru facility; June reached 27% GM, showing line-of-sight to further improvement as utilization increases .
Operations inflecting: June throughput rose 50% vs prior months; inventory turning in under 60 days; backlog being addressed as scale and SOPs mature (supports improved conversion in H2) .
Deleveraging and liquidity: Current liability debt fell from $6.39M to $2.16M in Q2; Kaufman warrant exercise ($1.0M) and note amendments extended maturities; additional ATM capacity secured (up to $3M on Jul 29) .

What Went Wrong

Losses widened despite higher sales: Net loss increased to $1.60M from $0.94M in Q2’24 on idle capacity, air freight, and higher interest expense; operating loss also increased sequentially to $1.35M from $0.68M in Q1’25 .
Freight drag and scale-up inefficiencies: To meet lead times, BOF used air freight that depressed margins; management expects ~3–4% GM improvement by switching to ocean freight as backlog normalizes .
Concentration and going concern: Top-three customers accounted for 97.1% of H1 revenue and 97.6% of A/R; management disclosed substantial doubt about going concern, citing need for additional capital despite progress .

Financial Results

Sequential trend (Q1 2025 → Q2 2025)

Metric	Q1 2025	Q2 2025
Revenue ($)	$3,193,522	$3,299,738
Gross Margin %	17.0%	18.4%
Operating Loss ($)	$(682,540)	$(1,346,021)
Net Loss ($)	$(918,382)	$(1,603,156)
Diluted EPS ($)	$(0.11)	$(0.17)

Year-over-year (Q2 2024 → Q2 2025)

Metric	Q2 2024	Q2 2025	YoY Commentary
Revenue ($)	$1,362,986	$3,299,738	+142% YoY on largest customer strength
Gross Margin %	10.9%	18.4%	+740 bps via Peru insourcing
Net Loss ($)	$(942,554)	$(1,603,156)	Loss increased $661K (+70%) on scale-up and interest
Diluted EPS ($)	$(0.22)	$(0.17)	Shares outstanding rose; per-share loss narrowed despite higher net loss

Segment and mix (H1 2025 vs H1 2024)

Metric	H1 2025	H1 2024
U.S. Operations Sales ($)	$6,493,260	$2,830,002
U.S. Operating Expenses ($)	$2,147,320	$1,344,404
U.S. Segment EBITDA ($)	$4,345,940	$(912,057)
LATAM COGS ($)	$5,028,726	—
LATAM Operating Expenses ($)	$959,118	$142,567
LATAM Segment EBITDA ($)	$(5,987,844)	$(142,567)
Consolidated EBITDA ($)	$(1,641,904)	$(1,054,624)

KPIs and operating metrics (Q2 period focus)

KPI	Q2 2025 Detail
June Monthly Revenue	~$1.7M (record)
June Gross Margin	27% (record)
Throughput	+50% vs prior months in June
Inventory Turns	<60 days
Current Liability Debt	Reduced from $6.39M → $2.16M in Q2
H1 2025 Revenue YoY	+129% YoY
H1 2025 EBITDA	$(1.6)M; one-time scale-up and freight noted

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (quantitative)	FY/Q3	None provided	None provided	—
Gross Margin (quantitative)	FY/Q3	None provided	None provided	—
Operational commentary	H2 2025	Not applicable	Margin expected to improve ~3–4% as air freight replaced with ocean; further lift from utilization gains	Raised qualitative outlook
Liquidity/Capital	Ongoing	ATM capacity previously in place	New $3M ATM (Jul 29) to support working capital	Added capacity

No formal numerical revenue/EPS guidance was provided in filings; management framed directional improvement drivers instead .

Earnings Call Themes & Trends

Note: No earnings call transcript was available for Q2 2025; themes synthesized from Q1 and Q2 filings and the Q2 press release.

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Peru facility ramp/utilization	Facility commenced Dec-2024; margins expected to improve as in-house production scales	June throughput +50%; record 27% GM; continued ramp expected in Q3+	Improving
Freight/Logistics	Higher shipping costs noted; transition period	Air freight used to meet deadlines; ~3–4% GM lift expected switching to ocean	Favorable as backlog normalizes
Customer concentration	Two customers 92% of Q1 sales	Three customers 97.1% of H1 sales; 97.6% A/R	Elevated risk persists
Liquidity/Capital	ATM expanded to $5M (Feb 18)	$1.0M warrant exercise; 67% reduction in current liability debt; new $3M ATM (Jul 29)	Strengthening liquidity
Legal/Regulatory	No material legal in Q1	Former CFO wrongful termination suit disclosed; not expected to be material	New disclosure
Macro/Tariffs	—	Tariffs on Chinese imports viewed as tailwind	Positive

Management Commentary

“Our June results mark the first month since opening our Peru facility earlier this year that we’ve started to see real gains from our ongoing R&D and scale-up efforts — increasing throughput by 50% over prior months and showing that our model works at scale” — Eric Healy, CEO .
Management expects gross margins to improve by ~3–4% as air freight is eliminated and additional gains from higher utilization and maturing SOPs .
“BranchOut reduced its current liability debt by 67% in Q2, from $6.39 million to $2.16 million…” .
Going concern remains a focus even as working capital turned positive ($662k) by quarter-end and liquidity tools are in place (ATM) .

Q&A Highlights

No Q2 2025 earnings call transcript was available; the company did not furnish a conference call Q&A in filings or public transcripts. Key clarifications came via MD&A and the press release regarding margin levers (freight, utilization), backlog status, and liquidity actions .

Estimates Context

S&P Global consensus estimates for Q2 2025 were not available for BOF (neither EPS nor revenue had coverage); therefore, no beat/miss versus Street can be reported this quarter. Values retrieved from S&P Global.

Where available, actuals used for context: Revenue $3.30M and EPS -$0.17 from company filings .

Key Takeaways for Investors

Execution is improving: June’s record month and 27% GM validate insourcing economics; near-term freight normalization and utilization should support further gross margin gains .
Despite top-line momentum (+142% YoY), losses widened due to scale-up and interest; watch sequential operating leverage as utilization rises in H2 .
Liquidity runway is better: debt profile improved (current liability debt down 67%), plus incremental ATM capacity; still, management flags going-concern risk until sustained profitability is achieved .
Concentration risk is high (top-three customers ~97% of H1 revenue); diversification of channels (e.g., MicroDried ingredients, additional SKUs) is key to de-risk the model .
Tactical watch items for Q3: reduction of air freight, backlog normalization, repeat orders’ efficiency, and continued debt/working capital management .
Medium term: if margin structure stabilizes near June levels and scale efficiencies continue, EBITDA inflection is plausible, but funding and customer concentration remain gating risks .

Notes and sources: All figures and commentary are from BranchOut Food’s Q2 2025 Form 10-Q and accompanying Q2 period 8-K press release, plus financing-related 8-Ks. Specific citations are included inline: (Q2 2025 10-Q), (Aug 13, 2025 8-K press release), (June 1, 2025 warrant exercise/amendments), (Jul 29, 2025 ATM agreement). Where marked with an asterisk (“*”), values were retrieved from S&P Global.

BranchOut Food Inc. (BOF)·Q2 2025 Earnings Summary