Second quarter net sales increased 42% year-over-year to $85 million
Raising 2026 net sales outlook to $327 million to $335 million
Raising 2026 Adjusted EBITDA outlook to $3 million to $4.5 million
BERKELEY, Calif.--(BUSINESS WIRE)--August 06, 2026--
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 EBITDA1 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 Six Months Ended June
30, 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 Six Months Ended
Ended June 30, 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 Six Months Ended
Ended June 30, 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
====== ====== ======= =======
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CONTACT: Investors:
Brian Holland
Vice President of Investor Relations
brian.holland@uponafarm.com
OFARMIR@icrinc.com
Media:
Jessica Liddell, ICR
Kate Schneiderman, ICR
OFARMPR@icrinc.com