Executive Summary

Q3 2025 revenue was approximately $3.20M, with gross margin reported at 17% (management noted margins would be closer to ~30% excluding air freight); the company reached a $16M annualized production run rate and its estimated breakeven production level .
Balance sheet was streamlined: current notes payable fell by over 92% from $6.39M to ~$0.5M, with remaining balance expected to be repaid shortly .
Operational wins included September’s record output (>38,500 kg), a top-10 ranking for the new strawberry item at a leading warehouse club, and commitment to purchase an additional EnWave REV 120kW machine to expand capacity for 2026; the company also secured global exclusive rights to produce dragon fruit via EnWave’s REV technology .
Street consensus (S&P Global) was unavailable for EPS and revenue; actuals reflect continued losses (Q3 EBITDA approximately -$1.27M*) while management highlighted improving efficiencies into 2026 . Values retrieved from S&P Global.
Post-quarter financing: priced a $2.5M institutional offering on Nov 13 at $2.50 per share (proceeds $2.30/share), adding liquidity after record October that reached a $20M annualized revenue run rate .

What Went Well and What Went Wrong

What Went Well

Record operational scale: September was the highest production month (>38,500 kg), achieving a $16M annualized run rate at breakeven production levels; management called Q3 “transformative” and a “true turning point” with most R&D/scale-up investments now behind the company .
Commercial traction: new strawberry item ranked among top-10 best-selling products in its club category, earning national attention at the retailer and validating process optimization at scale .
Balance sheet de-risking: current notes payable reduced by >92% (from $6.39M to ~$0.5M) and ATM program completed, strengthening capital position ahead of capacity expansion .

What Went Wrong

Margin pressure from air freight and scale-up inefficiencies: gross margin was 17% in Q3, but management stated margins would be ~30% excluding air shipments; backlog and speed-to-market required costly logistics, compressing profitability in the near term .
Ongoing losses: Q3 EBITDA approximately -$1.27M* and diluted EPS approximately -$0.14*, reflecting early-stage utilization and one-time scale-up/R&D costs during commercialization ramp . Values retrieved from S&P Global.
Technical challenges at product launch: strawberry scale-up was initially “technically challenging and costly,” requiring process optimization and training for complex technology before achieving consistent production .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD)	$3.19M*	$3.30M*	$3.22M*
Diluted EPS (Continuing Ops)	-$0.105*	-$0.166*	-$0.137*
Gross Profit Margin (%)	17.30%*	18.38%*	12.81%*
EBITDA ($USD)	-$0.53M*	-$1.19M*	-$1.27M*
EBITDA Margin (%)	-16.60%*	-36.15%*	-39.56%*

Values retrieved from S&P Global.*

Management-reported highlights (Q3 2025):

Revenue: approximately $3.2M .
Gross margin: 17% (management), ~30% excluding air freight (management) .
YTD revenue: approximately $9.7M, up 93% YoY .
September output: >38,500 kg; $16M annualized run rate, breakeven production level .

Segment reporting: Not applicable (no segments disclosed) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Gross Margin	Q4 2025 onward	Not specified	17% reported in Q3; would be ~30% excluding air freight (move to ocean freight)	Raised (normalized margin expectation)
Contribution Margin (above breakeven)	As output exceeds 38,500 kg	Not specified	Approximately 50% contribution margin for volumes above breakeven	New disclosure (positive)
Production Capacity	Early 2026	Not specified	Committed to purchase EnWave REV 120kW machine to significantly expand capacity	New capacity addition
Balance Sheet (Notes Payable)	Near-term	$6.39M (prior)	~$0.5M current; remaining expected to be repaid shortly	Lowered materially
Product Rights	2026 pipeline	Not specified	Secured global exclusive rights to produce dragon fruit via EnWave’s REV technology	New strategic asset

Earnings Call Themes & Trends

No Q3 earnings call transcript found in the document catalog; themes inferred from company press releases.

Topic	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Supply chain/logistics	Air freight used to meet deadlines; margin impact; inventory turning <60 days	Transition from air to ocean freight expected to lift margins to ~30%	Improving margin outlook as logistics normalize
R&D execution/scale-up	Heavy R&D/scale-up; June throughput +50% m/m	“Transformative quarter”; scale-up largely complete; operations positioned for efficiency	R&D behind; operational efficiency improving
Product performance	Strawberry Halves scaling; early inefficiencies	Strawberry ranked top-10 at warehouse club; process optimized	Stronger sell-through; process stabilized
Macro/tariffs	Tariffs on Chinese imports cited as tailwind	Continued demand across channels; expanding retail dialogues	Demand runway supports 2026 scale-up
Capacity investment	None	Additional REV 120kW machine committed for early 2026	Capacity expansion underway
Balance sheet/liquidity	Current liability debt cut to $2.16M in Q2	Notes payable cut to ~$0.5M; ATM completed; subsequent $2.5M offering priced at $2.50	Deleveraging and incremental capital

Management Commentary

“This has been a transformative quarter… With most of our R&D and scale-up investments now behind us, operations are positioned for greater efficiency and improved cost performance as we continue to scale.” — Eric Healy, CEO .
“Our third quarter marks a true turning point… Any new orders that lift output beyond 38,500 kilograms will be above breakeven and add approximately 50% contribution margin.” — Eric Healy, CEO .
“With a cleaner balance sheet, record output, and rising demand across multiple channels, we’re entering 2026 with the foundation built and the engine ready.” — Eric Healy, CEO .

Q&A Highlights

No Q3 earnings call transcript was available; no Q&A to report from primary documents [ListDocuments returned none for earnings-call-transcript].

Estimates Context

Wall Street consensus (S&P Global) was unavailable for EPS and revenue for Q3 2025 (no consensus fields returned). Values retrieved from S&P Global.
Actuals: Revenue approximately $3.22M* and EBITDA approximately -$1.27M* (S&P Global). With management indicating normalized margins (~30%) as air freight rolls off and efficiency improves, future estimate revisions will likely focus on margin trajectory and capacity ramp timing rather than top-line resets . Values retrieved from S&P Global.

Key Takeaways for Investors

Operational scale milestone: September output (>38,500 kg) hit breakeven production level and a $16M annualized run rate; incremental volumes expected to carry ~50% contribution margins .
Margin normalization in sight: gross margin reported at 17% in Q3, with management asserting ~30% margin excluding air freight as logistics shift to ocean freight .
Deleveraging supports growth: current notes payable reduced by >92% to ~$0.5M, with remaining balance expected to be repaid shortly; ATM completed, followed by a $2.5M institutional offering at $2.50 per share to strengthen liquidity .
Capacity expansion and product pipeline: committed purchase of an additional REV 120kW machine and global exclusive rights to produce dragon fruit via EnWave’s technology broaden 2026 capacity and category optionality .
Commercial validation: strawberry item ranked top-10 at a leading warehouse club; expanded retailer discussions and ingredient demand bolster visibility for 2026 .
Monitoring points: track transition from air to ocean freight (margin unlock), ramp of new capacity, retail program scale-up, and continued debt reduction .
Risk factors: near-term margins remain sensitive to logistics mix and utilization; early-stage scale-up can incur one-time costs; quarterly losses persisted in Q3 (EBITDA -$1.27M*) as efficiencies are still maturing . Values retrieved from S&P Global.

Appendix: Prior Quarter Reference (Q2 2025)

June monthly performance: ~$1.7M revenue at 27% gross margin; inventory turning <60 days; throughput +50% m/m; approaching breakeven EBITDA (adjusted for one-time costs) .
Context on scale-up: heavy R&D and training to operate complex technology across products; early inefficiencies expected to abate as production SOPs are optimized .
Q2 balance sheet: current liability debt reduced to $2.16M from $6.39M .

Source Documents

Q3 2025 8-K 2.02 and Exhibit 99.1: “BranchOut Food Reports Record Q3; Achieves $16M Annualized Production Run Rate, Current Notes Payable Cut by 92%” .
Q2 2025 8-K 2.02 and Exhibit 99.1: “Record $1.7M Monthly Revenue in June; Record 27% Gross Margin; Approaches Breakeven EBITDA” .
Post-quarter financing 8-K and pricing details: Underwriting Agreement; $2.50 offering price; $2.30 proceeds per share ; related press release with $20M run-rate in October .

Notes: No Q3 earnings call transcript was available in the catalog. S&P Global consensus was unavailable for Q3 revenue and EPS; financial actuals marked with asterisks are Values retrieved from S&P Global.

BranchOut Food Inc. (BOF)·Q3 2025 Earnings Summary