Once Upon a Farm, PBC (OFRM) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

in as part of our original model, we built in inflation. We built in as part of that and we're coming in the end in line with what the inflation that we built in. We did build in tariffs. We built in 100 basis point of tariff cost for the full year. And that was in the original model that we put in. So the major increment and then one thing that we are also taking into account is really as we see our our actual sales and how the mix is taking place as we're mixing heavier into snacks versus pouches. And our club business, we're building in any impact into margin associated with that change in mix. We are expecting higher top line sales, as we said in our guidance, as we carry that down and we still anticipate carrying it down into our EBITDA. number. We're looking to reinvest that into marketing spend, being able to drive and infrastructure spend to be able to drive the rest of 26 and really prepare us for 27 to make sure that we're ready for 27 as we go forward. And Leah, just to build on that, this is John. We really feel like it's a good time to be on offense with this brand. Our household penetration is still at a modest number of 5.8%. We see strong repeat. We see all these strong metrics for consumers connecting with the brand, which were outlined in the earlier comments. And it's the perfect time for us to take advantage of the broader awareness to just build the size of the growth opportunity for this business in 27 and 28 and beyond. So that said, we're going to be disciplined. We're going to hold to the guidance that we've given. Hopefully we can do better than that through the year. And then in the, you know, in the mid-term here, we feel very confident in the margin structure in this business, delivering mid-teens, kind of adjusted EBITDA numbers, and fee...