Once Upon a Farm Reports Second Quarter 2026 Financial Results

About this update from Once Upon A Farm, Pbc

Once Upon a Farm, PBC (NYSE: OFRM) (or the “Company”), a leading high-growth company driving systemic improvement in childhood nutrition, today announced financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Financial Highlights Compared to Prior Year Period Net sales increased 42.3% to $85.4 million Gross margin of 35.9% compared to 40.7% Net loss of $5.0 million compared to a net loss of $9.0 million Adjusted EBITDA 1 loss of $1.7 million compared to Adjusted EBITDA of $2.0 million “We delivered another quarter of high-quality, volume-led growth, with net sales increasing 42% year over year,” said John Foraker, CEO and co-founder of Once Upon a Farm. “Distribution continues to expand, velocities remain strong across our portfolio, and cooler productivity is increasing as awareness grows, assortments broaden and newer cooler cohorts mature. Our innovation is proving highly incremental to both Once Upon a Farm and the categories in which we compete, bringing new consumers into the brand and increasing engagement among existing households. These results are reflected in strong consumption trends and continued gains in household penetration, repeat and buy rate. Based on our second quarter performance, underlying consumer trends and confidence in our ability to execute, we are raising our full-year outlook for both net sales and Adjusted EBITDA. We believe this combination of expanding household reach, strengthening consumer loyalty and increasing productivity positions Once Upon a Farm to deliver durable growth and meaningful long-term profitability.” Second Quarter 2026 Results Net sales increased $25.4 million, or 42.3%, to $85.4 million for the second quarter of 2026, compared to $60.0 million in the prior year period. The increase in net sales was driven by a 40.3% increase in volume growth reflecting incremental distribution of existing products and new product introductions. Gross profit was $30.6 million, or 35.9% of net sales, for the second quarter of 2026, compared to $24.5 million, or 40.7% of net sales, in the prior year period. The 485 basis point decrease in gross profit as a percentage of net sales was driven by trade spend, including a national program in the club channel, and mix, partially offset by pricing and lower slotting fees related to coolers. Selling, general and administrative (“SG&A”) expenses were $36.3 million for the second quarter of 2026, compared to $24.4 million for the prior year period. Approximately $3.5 million in SG&A expense was attributable to stock-based compensation, as well as performance payments related to our IPO. SG&A expenses as a percentage of net sales increased by 179 basis points to 42.5% in the second quarter of 2026 compared to 40.7% in the prior year period, reflecting stock-based compensation, as well as performance payments related to our IPO along with higher marketing, labor and employee costs as a percentage of net sales, partially offset by lower logistics costs. Net loss was $5.0 million for the second quarter of 2026 compared to a net loss of $9.0 million in the prior year period. The decrease in net loss was primarily driven by the elimination of the non-cash change in fair value of a derivative liability compared to the prior year period, higher gross profit and higher interest income, partially offset by higher SG&A expenses. Adjusted EBITDA 1 loss was $1.7 million for the second quarter of 2026 compared to Adjusted EBITDA of $2.0 million in the prior year period. The decrease in Adjusted EBITDA was primarily driven by the higher SG&A expenses. Balance Sheet As of June 30, 2026, the Company had cash and cash equivalents of $93.5 million and no debt, compared to $10.9 million of cash and cash equivalents and total debt of $60.2 million as of December 31, 2025. The increase in net cash and decrease in total debt reflect the application of proceeds from the Company’s IPO in February 2026. Full Year 2026 Outlook For full year 2026, the Company expects: Net sales of $327 million to $335 million, representing growth of 36% to 39% versus 2025 Adjusted EBITDA of $3 million to $4.5 million Outlook is based on information as of today, August 6, 2026, and may be impacted by factors outside the Company’s control. See “Forward-Looking Statements” below. The Company is unable to provide a reconciliation for forward-looking outlook of Adjusted EBITDA to net income (loss), the most closely comparable GAAP measure without unreasonable effort, because certain material reconciling items, such as depreciation and amortization, interest expense, interest income, and provision for income tax, cannot be estimated due to factors outside of the Company’s control and could have a material impact on the reported results. 1 Adjusted EBITDA is a non-GAAP financial measure. See "Non-GAAP Measures" for how the Company defines this measure and the financial tables that accompany this press release for a reconciliation of this measure to the most closely comparable GAAP measure. Conference Call and Webcast Details To participate in the live earnings call at 5:00 pm Eastern Time today, listeners in the U.S. may dial (844) 826-3033 and international listeners may dial (412) 317-5185. The live audio webcast will be accessible in the “IR Calendar” section of the Company’s Investor Relations website at https://ir.onceuponafarmorganics.com or directly here . About Once Upon a Farm Once Upon a Farm, PBC (NYSE: OFRM) is redefining the organic kids’ food category and shaping the future of food. Guided by its mission to drive systemic improvement in childhood nutrition for a happier, healthier, more equitable world, the Company offers a portfolio of crave-worthy snacks and meals designed for children from babies through big kids. Our Once Upon a Farm products are organic, non-GMO, contain no added processed sugar and are free from artificial flavors and colors – just simple, real, nutritious food kids ask for and parents trust. For more information visit http://www.onceuponafarmorganics.com , follow @onceuponafarm on Instagram, Facebook and TikTok. Non-GAAP Financial Measures Adjusted EBITDA The Company calculates Adjusted EBITDA as net loss, adjusted to exclude: (1) change in fair value of derivative liability; (2) change in fair value of convertible preferred stock warrant liability; (3) stock-based compensation; (4) depreciation and amortization; (5) amortization of certain payments under the Spokesperson Agreement for services received in connection with our IPO; (6) one-time bonuses related to our IPO; (7) interest expense; (8) interest income; and (9) provision for income taxes. The Company believes that Adjusted EBITDA provides meaningful supplemental information regarding its operating performance and facilitates internal comparisons of its historical operating performance on a more consistent basis by excluding certain items that may not be indicative of its business, results of operations, or outlook. In particular, the Company believes that the use of Adjusted EBITDA is helpful to the Company’s investors as it is a measure used by management in assessing the health of its business, determining incentive compensation, and evaluating its operating performance, as well as for internal planning and forecasting purposes. Forward-Looking Statements This press release and the related conference call contain forward-looking statements that reflect the Company’s expectations or beliefs regarding future events. In some cases, forward-looking statements can identified by terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “ongoing,” “positioned,” “plan,” “predict,” “project,” “potential,” “should,” “will,” “would,” or the negative of these terms or other comparable terminology. In particular, statements about the Company’s 2026 outlook, future growth prospects, growth of market share, growth strategy, the markets in which it operates, including the growth of our various markets, statements about potential new products and product innovation, and its expectations, beliefs, plans, strategies, objectives, prospects, assumptions, or future events or performance, are forward-looking statements. These forward-looking statements, including expectations and projections about future matters, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company cautions that such statements involve numerous risks and uncertainties and are subject to variables that could impact the Company’s future performance. These statements are based on management’s views and assumptions at the time they are made and are not guarantees of future performance. Actual future events and performance may differ materially from the expectations reflected in our forward-looking statements. The Company does not undertake any obligation to update forward-looking statements. A variety of factors could materially affect future outcomes, including, but not limited to: adverse public relations, product recalls, and product liability claims; factors outside of the Company’s and its suppliers’ control that disrupt its operations or impact the inputs, commodities, and ingredients used in its business; the failure to manage the supply chain effectively; the availability of natural, plant-rich, and organic ingredients; the failure to increase our cooler count or lack of productivity in our cooler base; the ability to protect personal, proprietary, and confidential information and prevent security incidents; damage to the reputation of the Company, products, management team, or co-founders; adverse weather conditions, natural disasters, pestilence, climate change, and other conditions beyond the Company’s control that could disrupt its operations; the failure to retain and motivate the Company’s management team or other key team members, including our co-founders; the Company’s reliance on a limited number of independent contract manufacturers and suppliers; changing consumer preferences, perceptions, and spending habits; changes in global trade policy, including the imposition of tariffs on certain goods imported into the United States of America, uncertainty regarding the timing and amount of any tariff refund payments, or resultant trade wars that may lead to reduced economic activity, increased costs, reduced demand and changes in retail consumer purchasing behaviors for some or all of our products, or other potentially adverse economic outcomes; the failure to successfully pursue growth or implement the Company’s growth strategy on a timely basis or at all; disruptions in the worldwide economy; the inability to compete successfully in our highly competitive markets; damage or disruption at any facility where finished goods inventory is located; inability to expand existing customer relationships and acquire new customers; inability to implement initiatives to improve productivity and streamline operations to control or reduce costs; inability to achieve or sustain profitability; the ability of our information technology systems, including artificial intelligence technologies, to perform adequately and accurately; changes in tax laws; volatility of the market price of the common stock; and the other factors set forth in the Company’s filings with the Securities and Exchange Commission, including under Part I, Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K and Part II, Item IA. “Risk Factors” in our Quarterly Reports on Form 10-Q. This list is not exhaustive and is intended for illustrative purposes only. Accordingly, all forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Once Upon a Farm, PBC Condensed Consolidated Balance Sheets (In thousands)       June 30,     December 31,       2026     2025   Assets   (Unaudited)         Current assets:             Cash and cash equivalents   $ 93,541     $ 10,860   Accounts receivable, net     36,959       28,783   Inventory     51,887       46,981   Prepaid expenses and other current assets     4,727       15,520   Total current assets     187,114       102,144   Property and equipment, net     9,794       8,903   Intangible assets, net     522       561   Goodwill     4,244       4,244   Other non-current assets     955       567   Total assets   $ 202,629     $ 116,419   Liabilities, Convertible Preferred Stock and Stockholders’ Equity (Deficit)             Current liabilities:             Accounts payable   $ 16,005     $ 19,606   Accrued expenses and other current liabilities     30,675       24,269   Total current liabilities     46,680       43,875   Nonconvertible debt, net     —       43,000   Convertible notes     —       17,214   Derivative liability     —       32,413   Other non-current liabilities     667       2,017   Total liabilities     47,347       138,519   Convertible preferred stock     —       101,967   Stockholders’ equity (deficit):             Common stock     4       1   Additional paid-in capital     311,776       11,669   Accumulated deficit     (156,498 )     (135,737 ) Total stockholders’ equity (deficit)     155,282       (124,067 ) Total liabilities, convertible preferred stock and stockholders’ equity (deficit)   $ 202,629     $ 116,419   Once Upon a Farm, PBC Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share amounts)     Three Months Ended June 30,     Six Months Ended June 30,     2026     2025     2026     2025   Net sales $ 85,392     $ 60,017     $ 158,112     $ 110,620   Cost of goods sold   54,743       35,564       97,785       67,074   Gross profit   30,649       24,453       60,327       43,546   Selling, general and administrative expenses   36,288       24,433       82,116       52,713   Income (loss) from operations   (5,639 )     20       (21,789 )     (9,167 ) Other income (expense):                       Interest expense   (49 )     (660 )     (469 )     (1,183 ) Interest income   835       73       1,334       194   Change in fair value of derivative liability   —       (8,180 )     340       (17,860 ) Other expense, net   (132 )     (528 )     (135 )     (985 ) Total other income (expense)   654       (9,295 )     1,070       (19,834 ) Net loss before income tax provision   (4,985 )     (9,275 )     (20,719 )     (29,001 ) Income tax (provision) benefit   35       237       (42 )     497   Net loss $ (4,950 )   $ (9,038 )   $ (20,761 )   $ (28,504 ) Net loss per share attributable to common stockholders:                       Basic and diluted $ (0.12 )   $ (1.36 )   $ (0.60 )   $ (4.30 ) Weighted-average shares used in computing net loss per share attributable to common stockholders:                       Basic and diluted   41,934,553       6,652,399       34,454,883       6,624,282   Once Upon a Farm, PBC Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)       Six Months Ended June 30,       2026     2025   OPERATING ACTIVITIES             Net loss   $ (20,761 )   $ (28,504 ) Adjustments to reconcile net loss to net cash used in operating activities:             Change in fair value of derivative liability     (340 )     17,860   Change in fair value of convertible preferred stock warrant liability     (13 )     928   Change in fair value of SARs liability     72       9   Stock-based compensation     6,809       1,898   SARs issued to a customer recorded as a reduction to revenue     109       24   Inventory adjustments     1,877       441   Depreciation and amortization     1,049       554   Amortization of debt discounts and deferred financing costs     99       284   Non-cash interest     29       149   Changes in operating assets and liabilities:             Accounts receivable     (8,176 )     (8,414 ) Inventory     (6,783 )     (11,931 ) Prepaid expenses and other assets     (3,093 )     (1,326 ) Accounts payable     (689 )     7,546   Accrued expenses and other liabilities     11,950       3,309   Net cash used in operating activities     (17,861 )     (17,173 ) INVESTING ACTIVITIES             Purchase of property and equipment     (2,429 )     (2,024 ) Net cash used in investing activities     (2,429 )     (2,024 ) FINANCING ACTIVITIES             Proceeds from issuance of common stock     155,366       —   Proceeds from term loan facility     —       14,000   Proceeds from exercise of stock options     246       231   Payment of debt issuance costs     —       (253 ) Repayment of line of credit     (43,000 )     —   Payment of offering costs     (9,641 )     —   Payment of deferred offering costs     —       (1,428 ) Net cash provided by financing activities     102,971       12,550   Net change in cash and cash equivalents     82,681       (6,647 ) Cash and cash equivalents, beginning of period     10,860       17,306   Cash and cash equivalents, end of period   $ 93,541     $ 10,659   Once Upon a Farm, PBC Non-GAAP Financial Measures (Unaudited) (In thousands)     Three Months Ended June 30,     Six Months Ended June 30,     2026     2025     2026     2025   Reconciliation of Net Income (Loss) to Adjusted EBITDA                       Net loss $ (4,950 )   $ (9,038 )   $ (20,761 )   $ (28,504 ) Change in fair value of derivative liability (1)   —       8,180       (340 )     17,860   Change in fair value of convertible preferred stock warrant liability (1)   —       464       (13 )     928   Stock-based compensation   2,471       1,093       8,973       1,898   Depreciation and amortization   574       297       1,049       554   Amortization and acceleration of Spokesperson Agreement expense for services received in connection to the IPO   —       649       5,405       1,298   IPO transaction bonus   1,000       —       1,699       —   Interest expense   49       660       469       1,183   Interest income   (835 )     (73 )     (1,334 )     (194 ) Provision (benefit) for income tax   (35 )     (237 )     42       (497 ) Adjusted EBITDA $ (1,726 )   $ 1,995     $ (4,811 )   $ (5,474 ) (1) Amount reflects the change in fair value of derivative liability related to Convertible Notes and change in fair value of convertible preferred warrant liability related to the Company’s Nonconvertible Debt. Supplemental Information (Unaudited) Supplemental Sales Detail The following table presents disaggregated net sales by product category for the periods indicated (in thousands):   Three Months Ended June 30,       Six Months Ended June 30,     2026     2025       2026       2025   Kid                           Pouches $ 36,271     $ 29,928     $   65,648     $   58,203   Snacks   7,640       6,145         12,412         10,270   Total Kid   43,911       36,073         78,060         68,473   Baby                           Pouches   11,290       6,466         22,763         11,961   Snacks   29,639       16,802         56,411         28,884   Other   552       676         878         1,302   Total Baby   41,481       23,944         80,052         42,147   Total net sales $ 85,392     $ 60,017     $   158,112     $   110,620     View source version on businesswire.com: https://www.businesswire.com/news/home/20260806120317/en/

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