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Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5 p.m. ET Vice President of Investor Relations - Brian Holland Chief Executive Officer and Co-Founder - John Foraker President and Chief Financial Officer - Lawrence Waldman Operator: Greetings, and welcome to the Once Upon A Farm's Second Quarter Fiscal 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Brian Holland, Vice President of Investor Relations. Thank you. You may begin. Brian Holland: Thank you, and welcome to the Once Upon A Farm Second Quarter 2026 Earnings Conference Call. With us on the call today are John Foraker, Chief Executive Officer and Co-Founder; and Larry Waldman, President and Chief Financial Officer. By now, everyone should have access to the earnings press release that was issued earlier this afternoon and is available on the Investor Relations section of Once Upon A Farm's website at www.onceuponafarmorganics.com. This call is also being webcast, and a replay will be available shortly after the call concludes. Before we begin, please note certain comments made on this call include forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and beliefs concerning future events and are subject to several risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Please refer to today's press release and other filings with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. We do not undertake any obligation to update any forward-looking statements to reflect events or circumstances after the date of this call, except as required by law. During the call, we will use some non-GAAP financial measures as we describe business performance. The SEC filings as well as the earnings press release provide reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures. And now I will turn the call over to John to begin. John Foraker: Thanks, Brian. Good afternoon, everyone, and thank you for joining us today. We delivered another quarter of high-quality volume-led growth with net sales increasing 42.3% year-over-year. Our portfolio continued to drive category growth for our retail partners, rooted in strong velocities, expanding distribution and stronger assortments in all our key categories from highly incremental innovation. In the second quarter, we also executed a very successful national program at a major retailer. Consumer demand remained resilient across our channels with household penetration, repeat and buy rate all improving year-over-year. Our 100% certified organic portfolio is well positioned against durable health and wellness trends and consumers continue to recognize the differentiated value that our brand and products provide. Our business has significant momentum with consumers and retailers alike in the current economic climate. Based on our second quarter performance and current outlook, we are again raising our full year net sales guidance to $327 million to $335 million or approximately 36% to 39%, while increasing our adjusted EBITDA guidance to a range of $3 million to $4.5 million. Larry will provide more details on this revised outlook shortly. Consumption remained in the low to mid-30% range during the second quarter and trends continue to be strong across our core metrics. We remain the fastest-growing brand in baby and toddler snacks by dollar share, and we continue to gain share in baby and toddler pouches as well by bringing new incremental consumers to the category and by taking share directly from larger established conventional competitors. Our brand is a key driver of growth across the baby category for all our key retailers. The difference between net sales growth of 42.3% and consumption growth in the low to mid-30% range primarily reflects favorable cooler slotting versus Q2 last year and significant distribution gains during the quarter, including the strong initial shipments of our protein position innovation in both baby and kid. Underlying base consumption remained strong throughout the quarter. Our effective and modern marketing as well as our broadening distribution footprint continue to amplify the compelling promise of our mission to drive systemic improvements in childhood nutrition for a healthier, happier and more equitable world. Household penetration grew to 6.2% at the end of June compared to 5% a year ago. And despite that significant increase in households, our buy rate continued to grow. Drilling down, our repeat rate among households with kids increased 351 basis points compared to a year ago to 52.1% and new families are repeating at even higher rates, reflecting the success of our strategy to build the brand from baby through kid. As the brand scales, we continue gaining share across our portfolio in pouches and snacks from baby through kid. This is exactly the kind of high-quality growth we expect to deliver. Our funnel is widening, and we are increasing retention and growing spend per household all at the same time. Looking at second quarter sales in more detail. Growth was again led by our baby business, where net sales increased 73% year-over-year to $41.5 million with pouches and snacks increasing at similar rates. Velocities remain strong. We added over 85,000 points of distribution in baby during Q2 at existing and new retailers. Innovation was a key driver of our baby pouch growth during the quarter. We are very pleased with the performance of our meat and legume protein pouches we launched in March. They have been 61% incremental to Old Farm and 63% incremental to the total baby category at certain retailers, and we are just getting started. Expanded distribution fueled baby snack sales, creating a long tail for growth given baby snacks are a very critical entry point to the brand for new Old Farm consumers. Turning to our kid business. As expected, net sales growth reaccelerated to 22% year-over-year to $43.9 million. Snacks grew at a slightly faster rate, reflecting innovation impacts from both successful launch of Power Wheels with protein in kid bar sets and protein and probiotic pouches into kid dairy sets. This innovation contributed to the addition of over 15,000 new points of distribution during the quarter in our kid portfolio. In kid pouches, growth was driven by the success of a national club program. Packaging refreshes have also proven to be a very key accelerator in kid pouches. The packaging updates we implemented to our dairy-free smoothies line this past spring are driving immediate 10% to 15% average velocity increases on same distribution. We'll continue to drive packaging improvements across our total kid pouch portfolio through the rest of this year as we see excellent opportunities to both increase on-shelf impact and to further sharpen our consumer value proposition. We'll also be introducing a new subline of functional kid pouches with several key customers in the coming weeks. The performance of the National Club Program we ran in May was exceptional, driving velocity and volumes that met our high expectations. This program successfully exposed the brand and these products to millions of new households, which was the primary objective. Household penetration in our immunity blend portfolio is up over 20% versus April, confirming that we brought new incremental consumers into the offering. We'll be adding another national program, albeit somewhat smaller in scope at the same customer during Q3, focusing on our best-selling tractor wheels, toddler snack products. We think this program will drive incremental consumer purchase activity, deeper household penetration and increased awareness, which should accelerate our momentum across all channels. Turning to our baby coolers. Productivity per cooler continues to increase, reflecting broader consumer awareness as well as our expanding assortment. For example, at one of our larger customers, our cooler velocity increased by over 30% in the quarter compared to last quarter, driven by the addition of our new meat and legume protein pouches and our oat bar minis, which we've also begun placing in coolers. Importantly, the majority of this increase was incremental to Old Farm and to the category. We expect cooler productivity to continue trending higher for the foreseeable future. We remain on track for approximately 5,000 coolers in 2026, 8,000 in 2027 and at least 15,000 coolers over time. Our proof of concept is resulting in further and deeper engagement with additional major retailers. During the quarter, we implemented a targeted price increase on selected items effective in late September to offset specific inflationary pressures. Retailers have broadly accepted the increase. We designed the action to preserve our consumer value proposition and based on historical elasticity and current demand trends, we expect a limited impact on units. Before I turn it over to Larry, I want to spend a minute on something we are really excited about for the future of this business. Our growth trajectory is increasing our confidence in the ultimate scale of this platform, and we are building the supply chain required to support that opportunity. Working with our co-manufacturing partners, we are advancing new targeted automation and productivity initiatives across our highest volume platforms. These projects are designed to increase capacity, improve service and reduce costs, particularly labor-related costs. We expect some initial benefits in 2027 and a larger incremental contribution in 2028 as the projects reach their fuller utilization. It's important to point out that our expectation for meaningful profitability expansion in 2027 does not depend on receiving the full benefit of these productivity initiatives. We expect improvement next year to be supported by continued growth, operating leverage and initial supply chain productivity benefits. These productivity initiatives just further strengthen our confidence in our long-term profit path. It's still early, and we don't want to get ahead of ourselves on precise metrics today, but we did want to send a clear signal about the opportunity and the importance of these new initiatives. We look forward to sharing many more details over the coming quarters. With that, I'll turn the call over to Larry to walk through the financial details. Lawrence Waldman: Thank you, John, and good afternoon, everyone. I will now provide you with some additional details on the second quarter financial results, along with an update on our outlook. Net sales in the second quarter increased 42.3% to $85.4 million compared to $60 million a year ago, driven primarily by volume. As we expected, gross margin was 35.9%, down 485 basis points versus prior year period. The primary drivers were trade spend, including the National Club Program, product mix as we grow our snacks business and the impact of fuel and tariff costs, partially offset by pricing and lower cooler slotting. SG&A expenses increased $11.9 million to $36.3 million. As a percentage of net sales, SG&A was 42.5%, up 179 basis points. Marketing was higher primarily due to increased advertising. Labor and employee-related costs were higher due to planned increases in headcount to support our growth. Selling expense was flat and logistics costs were lower, reflecting leverage as we scale. Approximately $3.5 million of SG&A in the second quarter was attributable to stock-based compensation and performance payments related to our IPO. While SG&A increased as a percent of net sales this quarter, we do not view the second quarter rate as representative of our long-term operating model. The infrastructure and capabilities we have added are designed to support a substantially larger revenue base, and we expect increasing leverage as the business continues to scale. Net loss for the second quarter improved to $5 million from a net loss of $9 million a year ago. Adjusted EBITDA loss for the second quarter was $1.7 million compared to adjusted EBITDA of $2 million in the prior year period, primarily reflecting the increase in SG&A dollars. Relative to plan, second quarter adjusted EBITDA benefited from stronger net sales and the timing of around $3 million in marketing that shifted from Q2 to Q3. That spending has not been eliminated and is fully reflected in our updated full year outlook. It was intentionally shifted to align more closely with our important back-to-school promotion and merchandising events, which should drive better program efficiency and continued household penetration growth across our key product lines. Turning to our balance sheet. We ended the quarter with approximately $93.5 million in cash and no debt. Inventory of $51.9 million was up 47.6% versus a year ago, reflected continuing growth across our business. We expect inventory to remain elevated through Q3 as we support back-to-school demand and the added National Club Program before beginning to moderate in Q4. We are also actively managing tariff and sourcing risk through supplier diversification, forward planning and qualifying alternative sources where feasible. Turning to our outlook. As John indicated, we are raising our outlook for both net sales and adjusted EBITDA to reflect our Q2 performance and the strong underlying trends across our customers and consumers. We now expect net sales of $327 million to $335 million for 2026, growth of 36% to 39% versus 2025. This is up from our previous guidance of $313 million to $323 million. We expect net sales growth to be fairly balanced across Q3 and Q4. The revised outlook reflects continued strong underlying consumption, incremental growth from new distribution, the timing of cooler placements and the contribution from the National Club Program. We now expect adjusted EBITDA of $3 million to $4.5 million, up from $2 million to $4 million, reflecting our stronger net sales expectations while preserving flexibility to reinvest selectively over the balance of the year. Turning to gross margin. With the continued strong performance in our snacks business and the incremental National Club Program in Q3, we now anticipate full year 2026 gross margin to be around 40%, which is close to 100 basis points lower than our prior outlook. This assumes fuel costs remain in line with recent levels and tariff rates consistent with those currently in effect. Gross margin continues to be impacted by the faster growth of baby snacks, which currently carry a lower margin profile than pouches as well as the incremental Q3 club program trade investment. These mixed dynamics will also affect adjusted EBITDA in the quarter even as strong velocities, expanded distribution and innovation continue to support household penetration and long-term growth. As John discussed, the supply chain productivity and automation initiatives are expected to benefit both our pouch and snack platforms. Over time, these should improve the margin profile of snacks in particular, and reinforce our confidence in the long-term gross margin and adjusted EBITDA framework. From a cadence standpoint, the Q3 gross margin should be similar to what we reported in Q2. We expect gross margin to improve in the fourth quarter as the club program concludes and the September price action begins to contribute. Looking beyond 2026, our principal gross margin drivers remain intact: scale benefits, price realization, supply chain productivity initiatives and logistics efficiencies. Within SG&A, in the third quarter, we will increase marketing support around the National Club Program and back-to-school to maximize awareness, trial, household penetration and retention. Given the change in our gross margin expectations as well as some shift in the timing of marketing spend, we anticipate our third quarter adjusted EBITDA loss will be slightly below the second quarter. Consistent with the normal seasonality of our business, profitability is weighted in the fourth quarter, which we expect to drive full year adjusted EBITDA within our guided range. We remain confident in our ability to drive profitability improvement over time as the quality of our net sales builds, where trial drives adoption, repeat and ultimately higher buy rate, we expect that to support gross margin improvement, disciplined marketing and trade investment and fixed cost absorption as we scale. Importantly, that expectation does not depend on realizing the full benefits of the larger automation projects. We expect initial benefits in 2027 with more substantial contribution beginning in 2028. That includes our prepared remarks. Operator: Your first question comes from Thomas Palmer with JPMorgan. Thomas Palmer: Maybe just to start off, a little bit of added clarity on the pricing actions that are planned later this year just in terms of the types of products and just how impactful that it might ultimately be as we think about kind of the size and gross margin flow-through? John Foraker: Tom, it's John Foraker here. We focus those on a selective part of our business, more on our snacking business and kind of low single-digit kinds of numbers. Those will go into effect in September, as we mentioned during the opening remarks, and they'll -- we'll begin to get the benefit of them. Obviously, the full benefit will be coming next year. Thomas Palmer: Okay. And then I did just want to ask on the input cost environment. Obviously, you noted some incremental costs there. If I do look at the outbound freight that you guys provide in the Q, it didn't look like it really stepped up very much, especially relative to 1Q. So maybe just an update with kind of what you're seeing on that front and how you're mitigating it beyond the pricing actions? Lawrence Waldman: Yes. So, we -- on the outbound freight, there's a couple of reasons. One, most of our snack business is customer pickup. So, it didn't impact us on freight costs going to the customer. We also have on the refrigerated side, we have contracts in effect where the base cost isn't impacted even though there was a shortage of assets available during the second quarter, which drove up prices. So -- and then we also have negotiated lower surcharges as part of our contracts. So, we are feeling and having some impact on our costs, but the costs that we're experiencing on freight are more on inbound freight of materials coming in versus outbound freight to customers. Operator: Your next question comes from Leah Jordan with Goldman Sachs. Leah Jordan: John and Larry, nice job on the quarter. And obviously, really nice sales beat here. I just had one question on that. Hopefully, it's not too nitpicky, but we did have baby pouches sales come in a little bit lower than we were expecting. So just -- it was a deceleration from the first quarter as well. So just curious, is that a timing factor or any color there, what led to that deceleration? And just trying to square that result with the commentary around, hey, improved cooler productivity and the innovation is working in those comments? John Foraker: Yes, Leah, it would just the timing and the phasing of new coolers into the business. We expect quite a few new coolers coming in, in Q3. It's going to be a really big quarter for new distribution there. The underlying consumer consumption trends on our core baby pouch assortment remain really strong, as we've indicated. And the new innovation has been -- of that -- in that assortment has been highly incremental as well. So business is really healthy and doing well. It's just about the timing of adding the distribution, which is coming in a big way this quarter. Lawrence Waldman: And Leah, if you look at it, Q2 is where most of the resets for the coolers are taking place. And then as we bring in the new products and swap it out with the existing assortment and do some other changes, there's usually an impact during the quarter where you have the resets taking place. It's a short-term impact of resetting the coolers. -- but we're anticipating that the -- you'll see a significant increase in Q3. Leah Jordan: Okay. That's very helpful. We'll look forward to that. And then maybe just kind of going to the competitive environment overall, what are you seeing from smaller players and larger players just in this consumer backdrop? Maybe some more color around the market share trends that sounded really constructive, but just the cadence there? John Foraker: Yes. We're gaining share in pretty much everything that we're doing. The overall competitive environment really hasn't changed materially since last quarter. We're competing against private label and have been for a long time pretty much across our business and have been performing extremely well relative to all those and see no change there either. The premium segment of the baby category is doing well. Pretty much everybody is doing well there, and we're doing extremely well also. So, no real change in the overall competitive environment of note. Operator: Your next question comes from Jon Andersen with William Blair. Jon Andersen: I was wondering if you could talk a little bit more about the cooler deployment, both the productivity that you're seeing as you place more coolers and -- or reset existing coolers with the -- some of the innovation you described. And I don't know how much visibility you have into the phasing of new cooler placements. But if you have any and can talk to that, both in 2026 and how you might see that kind of playing out as you work your way towards 8,000 coolers in 2027, that would be helpful. John Foraker: Okay. Thanks, Jon. Yes. So, we continue to see coolers becoming more productive year-over-year and sequentially quarter-over-quarter. There can be variations in the way that productivity plays out depending on the specific retailers rolling out coolers and the timing of them because there are big differences in productivity between one retailer's cooler and another. But if you look at just the sequential productivity on a retailer-by-retailer basis of our coolers, we have a long track record of knowing that when we put those coolers in, it takes 2 or 3 quarters for it to start to get seasoned and then the productivity just continues to increase. We continue to see that across our business. We mentioned -- the launch of our new innovation last quarter has done really well and is highly incremental. So, we feel really strong about that. Q3 will be a significant cooler quarter. We have a lot of coolers coming online. We still expect to end the year right around 5,000. And obviously, we expect a big step-up in coolers next year, too. Most of those conversations, if not all of them, are very much dialed in. It's a little early for us to call the exact sequencing of the coolers for '27, obviously, a little too early for that. But we do expect -- Q2 and Q3 generally are the biggest cooler quarters in terms of installation. Next year, it might be a little bit heavier in Q1, but that's what I'd be able to say right now. Larry, do you want to add anything to that? Lawrence Waldman: No. John Foraker: Okay. Jon Andersen: Great. That's helpful. Two others. There's been a lot of innovation this year. You talked about kind of the meat and legume pouches. You've talked about some of the innovation in protein and probiotic smoothies with kids. And these -- I guess, if you could kind of give us a sense for just overall, is this a bigger year than you would anticipate? Do you have kind of a similar level of new products that you anticipate launching in 2027? I just want to get a sense for kind of the cadence. And are you evaluating like whole new categories as well? Should we be thinking about that? John Foraker: Yes. We talked about on -- through our IPO process and in all our communications since that you should expect every 12 to 18 months, we'll expand the brand into an incremental new category. All the innovation that we've been doing this year is very focused on our existing categories. and just broadening the assortment, driving for better productivity in our current sets as we reset those with retailers. Next year, you can expect at least one new category. We're not calling out the specific timing of that yet, but that's something that we've been consistently saying for the last couple of quarters, and we're well on track for that. But it's very important for us to keep our assortments fresh. It's very important for us to continue to bring really cool new innovation that we know our consumers are looking for to our existing portfolios in our existing categories. We won't talk about the exact product that is coming. But for example, we have another functional offering in pouches coming that will start showing up here in a few weeks in some retailers. We'll do a release on that in mid-September, so you can find out more about that. But it's very important to keep our assortments fresh and to keep new cool innovation in front of our retailers and our consumers to just build that loyalty and excitement as we grow. Jon Andersen: One more and I'll pass it on. Lawrence Waldman: I was just going to say that if you look at it on the amount of innovation we've done based upon the size of the company, it would be considered a lot of innovation compared to prior years. But based upon the size of the company, it's in line with the amount of innovation that we do on an annual basis and the amount of net sales that we're trying to drive from innovation. But as we grow and as we scale the business, our innovation will probably stay at this level, but we'll continue to grow with the top side of the company. So, as a percent of total sales, it will continue to grow. I mean stay the same, but it would grow as a total number of categories or total number of items that we fill out on an annual basis. So, it will be larger in comparison against prior years, but in line as a percent of sales to what we've done in the past. Operator: Your next question comes from Rupesh Parikh with Oppenheimer. Rupesh Parikh: Just going back to your commentary on back-to-school, are you doing anything differently from a marketing awareness perspective for back-to-school? John Foraker: So, as we've gotten bigger, Rupesh, we've gotten more and more effective in building the size and scale of our merchandising during back-to-school with our retailers because we've broadened our assortment and broadened our categories over time. We're doing more full brand line ads with our big retailers and just broadening the awareness of those. We talked about moving some marketing from Q2 into Q3. we've very intentionally done that to put more top of funnel over the top of that back-to-school period because we've done some marketing mix analysis and analytics that have shown that, that's a very effective way to drive better efficiency on everything that we're doing. And so we're super excited about that. We're expecting this back-to-school season to be in line with what we've done in the past, but probably more effective and bigger. Rupesh Parikh: Great. And then in the club channel, I think you guys typically have rotating assortments of products. Do you see an opportunity longer term maybe to get something more permanent? Or do you just expect rotations continuing? John Foraker: We do have items that are permanent in certain regions. And typically, when we now do a national program, we're really just broadening the distribution for a period of time while that goes national with the belief that if we continue to build velocities on our club business, which is what we've consistently done on a day-to-day velocity basis over the last few years, that we'll continue earning the right to be represented on an ongoing basis in more and more regions. And that's the expectation. These national programs for a brand of ours that's at 6.2 household penetration, most consumers with kids still don't have us in the house. We're just really doing those to really drive awareness, broaden trial. And with the repeat rates that we have on these items, we would expect a number of consumers to stick. They'll come back to the big national retailer if the product is in distribution there. But if they can't find it there, they'll certainly find it in other places that they also shop. Operator: Your next question comes from Yasmine Deswandhy with Bank of America. Yasmine Deswandhy: Just while we're talking about those national club events, I was just wondering whether the consumers that you've acquired through that promotion are engaging with the brand through other product categories or other channels? And as you're executing against another national program in Q3, what are the things that you did well in this Q2 event? Or what are the things that you want to do differently for when you do execute in Q3? John Foraker: Yes. The most important thing in these big national events is to make sure that we can service it in full and service the entire event and make sure the products look great on their pallet. We were able to do that. And as a result, we were able to drive velocity increases in line with our expectations and our retailers' expectations. It's all about just getting the product out there, doing a lot of sampling and getting them the opportunity to repeat. We know that consumers shop that channel and they shop all our other channels as well. And we fully expect that some of those consumers will broaden their consumption into other channels. It does benefit us pretty significantly to have these 2 platforms back to back. So, kid pouch in this event we just ran, and we just mentioned that we're going to be doing this toddler wheels item. That's fantastic for us because those consumers that saw us in pouches will now see us through this program as well, and it just brings them and crosses them over. And we know that when we get consumers that are buying us in multiple categories, we know the size of that basket increases significantly as does the pace of their consumption. So it's just a great thing for us from a brand building standpoint. Yasmine Deswandhy: Okay. Great. That's helpful. And then, Larry, I just had a quick modeling question for you. With the functional kid pouches line that's launching in the coming weeks, how incremental do you expect that to be? And given in the kid pouches segment, the compare is a little bit harder in the third quarter, should -- with this line launching, should growth in the back half be kind of similar across the quarters as this launch would help? Lawrence Waldman: No. I mean it's highly incremental. It's going into very select customers where we can drive it and ensure the incrementality of the product line. And then after we've -- and then after we've done it -- we put it out, then we'll continue to expand distribution of it because we proved out the incrementality of it and that won't be affecting our business. If you look at the kids pouches in total, we're looking at a growth rate of mid-teens for the year. And so, part of that growth rate is adding these new innovation items into the line, but it's also the club promotion that we just went through in Q2, the continued growth in regions that we're in within club, the additional distribution that we're getting in filling out the assortments and the existing customers that we're in. So, it's a combination of multiple factors, but this is one of the key things that's going to be driving this mid-teens growth for the full year. Operator: Your next question comes from Robert Moskow with TD Cowen. Robert Moskow: I was intrigued by the price increase and the -- you have a pretty confident elasticity assumption. I think you said you don't expect any volume impact. So, it sounds great. And I was wondering, is the confidence based on your prior experience raising price and it pretty much passes through without much of a volume impact. And are there any -- what gives you confidence that, that would be the same right now? John Foraker: Yes. Great question. It's all analytically driven. The elasticities on our products are pretty high, especially for the scope of the increase that we are talking about is kind of low single digits, Rob. So, it's not as significant. There will mathematically be some impact on units, but my point in the prepared remarks was basically it will be nominal, and we expect the price increase to flow mostly through. But we've taken price over time, and we've got good analytics on velocity impacts of price and the like, and we feel very comfortable with that comment. Operator: Your next question comes from Andrew Lazar with Barclays. Andrew Lazar: This is probably a little silly just given how early you are in the cooler sort of rollout journey. But maybe in those retailers where you've been with coolers longer and you see the productivity accelerating the way you have and the fact that you now have a greater number of offerings, right, in the refrigerated side with the protein pouches and such, I guess is there any thought being given to maybe in certain retailers, there's a need for like secondary coolers? Or am I just getting so far ahead of myself that's kind of silly? John Foraker: No, you're not getting ahead of yourself at all. It's actually already happening in some retailers that have been around for a long time. They're adding second coolers. Some retailers have been talking to us about adding bigger coolers. Some of the retailers that we're in right now have added some larger coolers in certain stores. So, we would expect that to happen just given the productivity of these items, the incrementality of the refrigerated [ tent ] state to the category and the growth opportunity to be -- to modernize the baby category is pretty significant. And I think a lot of retailers see that. And once they get into coolers for a while and they recognize the potential of them and the compounding impact of that is a super positive thing. And so the question then is how do we broaden -- how do we position ourselves to broaden out the assortment to make sure that we've got enough holding capacity in the cooler to handle the high velocities that we have in some of these retailers, and that those are all considerations that go into that conversation. Andrew Lazar: Got it. And I know you don't want to get obviously into too much of the details yet around some of the supply chain work that you've identified. But maybe just like what are some of the sort of the key core buckets of opportunity? Is it primarily automation, as you talked about? Is it, I don't know, demand planning and forecasting? Like what are some of the key buckets where the -- maybe the richest amount of opportunity might ultimately be? Lawrence Waldman: Well, there's 2 groups of buckets. Some of it is where, as you were talking about, better forecasting allows us to drive fill rate. It allows us to reduce obsolescence. It allows us to really maintain and control our inventory, especially with the growth of the business and really drive that part of the business. We're working on that right now with utilizing statistical modeling and other methods to be able to improve that in those areas. We're -- so there's a lot of things internally that we're doing just to be better and have better ways of being able to grow inventory and ensure that we can support our customers and make sure that we're looking far enough ahead to be able to ensure that we have supply of materials and even driving the materials and how we source them because we're looking -- we're working into vertical integration and other things, contracting directly to farmers to be able to ensure supply and to be able to manage our costs, especially for materials as higher demand and other issues take place that would potentially increase our costs. But where we're really looking at is when we're talking about these productivity projects, it's looking at the manufacturing and processing lines and understanding where we've been and where we're going. So, a lot of the lines that we built were based on a smaller company, a smaller level of production. And although we were able to maintain and control and be able to service the growth of the business, we had to do it in a way that was not always the most efficient way of doing it. So, what we're doing is we're looking at all our manufacturing bases and suppliers and looking at where -- how we're producing it, where we can drive out costs, whether it's improving throughput, through improving usage, reducing cost. But the biggest thing that's really going to be driving these productivity projects is really reducing labor on the line. And so, through that is looking at building lines that are built for bigger production and then also taking people off the line. One of the projects reduces staffing by 75%. So, it's one of those are the things that we're looking at to be able to drive out costs because labor is our largest single cost as part of our cost of goods. Andrew Lazar: Got it. And as part of that, would there be a significant capital investment necessary? Or does the co-man pick up a lot of that? Anyway, just more clarity there. Lawrence Waldman: It depends on the project itself. Most -- there is some capital investment. We've been talking about somewhere between a $25 million to $35 million capital investment over the next [Audio Gap] to be able to drive and buy the equipment to go -- to be able to put this in place. We are also partnering with some of our manufacturers where they are also investing in the line to be able to drive and maintain our capacity and our throughput that they need to do. Also, they're getting benefit of investing in the line and on new equipment. So, it's a combination of both. We're putting out the largest part of the investment, but we are getting the manufacturers to also to invest in these lines to be able to make sure that we have the capacity and we're hitting the throughput that we're looking to do. John Foraker: Andrew, one thing I'd just add to that. We will be talking about that over the next couple of quarters. We do expect that the ROI on those investments will be very high. And we'll be talking about the profile of those investments and the returns over the next 2 or 3 quarters. Operator: Your next question comes from David Palmer with Evercore ISI. David Palmer: I just wanted to ask you about snacks, the very strong results that we're seeing in the [ scan ] there. I'm wondering, you probably have more in-depth views into the repeat levels on new products there than we do. And any sort of things that are convincing you that certain products are better drill sites than others that might be becoming more platform-ish than others? And then I also wanted to ask you about the coolers. Actually, I'll just make that in a follow-up, and I'll let you talk on snacks first. John Foraker: Okay. Yes. Our snack products, particularly our toddler snack products, Tractor Wheels has very high repeat rates. The products are delicious. Consumers tell us that. The price-value relationship is in an extremely good spot, and they're very high velocity everywhere, in every channel at every customer. And so we really do think that is a significant platform that we're going to continue to build out, and we're excited about the future. We'll continue to innovate around the edges of that, too, like we just launched some products that are very similar to that focused to a little older kids with protein. So, we're excited about that platform and think it's a big growth opportunity for us in the future. David Palmer: Just -- I'm just looking at our model and how we have the coolers as a percent of sales. It feels like it's growing 3%, 4%, 5% a year. I could be lowballing you, you can correct me if I'm wrong as to how you're thinking about it. In that respect, it almost seems like it's not the main character in this whole growth algorithm. But in some sense, it might be bigger than that, that it's a great brand representation that might have other benefits. And obviously, it has a good moat to it. You have a physical representation there in a different way. So, I don't know, I just wanted to maybe have you give a thought on my thought there. Lawrence Waldman: Yes. I think that's an interesting observation, and I agree with it. Like the cooler business and our baby pouches in the cooler are not our biggest business right now. They're growing very fast. There's a very long runway for growth on them. They are super important to us and are going to become a bigger and bigger business -- they're super important to us, though, because even now as they're smaller because they are a real entry point into the brand. When a consumer walks down the baby aisle and they run into a fresh baby cooler, it's a very jarring experience. It reframes and reshapes their whole context of the category. And we know that when we bring consumers in through our baby pouch business and also, obviously, our baby snacking business, that there's a very high probability that they're going to repeat on the brand, and they're also going to continue to grow with the brand as we extend the brand up into kids as we've been doing. So strategically very important business for us. But you're right, it's not the biggest part of our business. But I think it's a strategically extremely important one for the reasons I just laid out. John Foraker: Yes. if you look at it, it does look small right now. And even with -- if you look at the growth of it, it's small. But what we're looking at is it's -- we're only having 4,000 doors where we have coolers right now. We're just getting to the point where this year, where we have the right assortment in the coolers and therefore, we're seeing the productivity growth in the coolers themselves. There's a big variance as to retailers as to the level of productivity that you get with -- depends on what the retailer is and where it's going. So, you have anywhere between $8,000 to $50,000 in cooler productivity. So, it varies a lot based upon retailer. And -- but as we grow, it's going to be a significant growth pattern for the company. You're going to see it as we get into the higher numbers on the coolers, as we get into the 8,000 and the 15,000 on the coolers becoming a bigger and bigger part. And the bigger thing that you have to look at is that every cooler represents somewhere between 45 to 50 facings of product. And so, the sheer number of facings, the growth of the business, the getting over to the point where the customer has the expectation that the cooler is in the aisle, the impact of the coolers on the total aisle itself, plus the impact of the cooler on driving baby snacks that are in the aisle also. And then it's just really getting the customer into our brand at a lot earlier stage than they would be if we weren't in the baby aisle. So even though it's small now, it represents a significant amount of growth for the future. And then it just -- it continues that growth because of how it gets the customer into the brand. And as our brand ages and we get into other products and for kids, then that customer will continue the path from baby into kids and into the new products that we're developing right now. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to John Foraker for any closing remarks. John Foraker: Okay. Thank you. In closing, our second quarter results give us even more confidence that the Once Upon a Farm model is working and getting stronger as we scale. We are reaching more families, increasing repeat and buy rate, gaining share and improving retail productivity while building the foundation for meaningful operating leverage and structurally higher margins. We're still in the very early innings of building this highly disruptive baby through kid niche nutrition brand. The opportunity ahead is significant. We remain focused on executing with discipline, staying true to our PBC mission, making our consumers' lives better and building a company that drives substantial long-term value for all involved. I want to thank our incredible team, our retail partners and our shareholders for their continued belief and support. And thank you very much, everyone, for joining. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Once Upon A Farm, Pbc. The Motley Fool has a disclosure policy. Once Upon A Farm (OFRM) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Once Upon A Farm? Here are five stocks we like better. Q2 sales jumped 42.3% to $85.4 million, driven by distribution gains, product innovation and club-program exposure. Baby sales rose 73% and kid sales increased 22%, while household penetration and repeat purchases also improved. Once Upon A Farm raised its fiscal 2026 outlook to $327 million-$335 million in net sales and $3 million-$4.5 million in adjusted EBITDA, despite lowering its full-year gross-margin forecast to approximately 40%. Margins faced pressure from trade spending, snack mix, fuel and tariffs, while the company plans to invest $25 million-$35 million in supply-chain automation. Initial benefits are expected in 2027, with more substantial gains beginning in 2028. MarketBeat Week in Review – 02/09 - 02/13 Once Upon A Farm (NYSE:OFRM) reported second-quarter fiscal 2026 net sales growth of 42.3% as distribution gains, product innovation and a national club program supported volume-led expansion across its baby and kid nutrition portfolios. Net sales rose to $85.4 million from $60 million a year earlier. Chief Executive Officer and Co-founder John Foraker said consumption growth remained in the low- to mid-30% range during the quarter, while the difference from reported sales growth reflected favorable cooler slotting comparisons, distribution gains and initial shipments of new protein-focused products. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Once Upon A Farm: Buy the $1B Growth Story? The company raised its full-year outlook, now projecting fiscal 2026 net sales of $327 million to $335 million, representing growth of approximately 36% to 39%. The prior forecast was $313 million to $323 million. Once Upon a Farm also lifted its adjusted EBITDA guidance to $3 million to $4.5 million from a previous range of $2 million to $4 million. Foraker said the company continued to gain share in baby and toddler snacks and in baby and toddler pouches, including against larger conventional competitors. Household penetration reached 6.2% at the end of June, compared with 5% a year earlier. Repeat purchases among households with children increased 351 basis points year over year to 52.1%. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High “Our funnel is widening,” Foraker said, citing growth in household penetration, retention and spending per household. He said newer families were repeating at higher rates as the company works to build the brand from baby products through kid-focused offerings. Baby business sales increased 73% year over year to $41.5 million, with pouches and snacks growing at similar rates. The company added more than 85,000 baby distribution points during the quarter at existing and new retailers. → No Hangover: Revisiting Microsoft One Week After Earnings Management highlighted the March launch of meat and legume protein pouches, which it said were 61% incremental to Once Upon a Farm and 63% incremental to the total baby category at certain retailers. Kid business sales rose 22% to $43.9 million, with snack growth slightly outpacing the segment overall as protein-focused bar products and protein-and-probiotic pouches entered kid dairy sets. More than 15,000 distribution points were added in the kid portfolio during the quarter. Packaging updates to dairy-free kid smoothies produced average velocity increases of 10% to 15% on the same distribution, according to management. The company plans to introduce a new functional kid-pouch sub-line with selected customers in the coming weeks. Once Upon a Farm said a national club program in May exceeded its expectations for velocity and volume, helping expose its products to millions of additional households. Household penetration in its immunity blend portfolio rose more than 20% compared with April, Foraker said. The company plans to run another, smaller national program with the same club customer in the third quarter, featuring its Tractor Wheels toddler snacks. Management said the programs are intended to support trial, awareness and repeat purchases, including across multiple product categories and retail channels. Baby cooler productivity also increased as the company broadened assortments. At one larger retailer, cooler velocity increased more than 30% sequentially in the quarter, aided by new protein pouches and oat bar minis. Once Upon a Farm continues to target roughly 5,000 coolers by the end of 2026, 8,000 in 2027 and at least 15,000 over time. Foraker said the company expects a significant number of new cooler installations in the third quarter. He added that some established retail partners have begun adding second or larger coolers in certain stores as productivity improves and assortment needs expand. Gross margin was 35.9% in the second quarter, down 485 basis points from a year earlier. President and Chief Financial Officer Larry Waldman attributed the decline to trade spending, including the national club program; a greater sales mix of snacks, which carry lower margins than pouches; and fuel and tariff costs. Pricing and lower cooler slotting costs partly offset those factors. SG&A expense increased $11.9 million to $36.3 million, or 42.5% of net sales. The company cited increased advertising and planned headcount additions, while noting that logistics expenses declined as a percentage of sales. About $3.5 million of SG&A was associated with stock-based compensation and performance payments related to the company’s initial public offering. Net loss improved to $5 million from $9 million a year earlier. Adjusted EBITDA was a loss of $1.7 million, compared with adjusted EBITDA of $2 million in the prior-year period. Waldman said approximately $3 million in marketing spending shifted from the second quarter to the third quarter to align with back-to-school promotions and merchandising activity. The company now expects full-year gross margin of around 40%, about 100 basis points below its prior outlook. Third-quarter gross margin is expected to be similar to the second-quarter level, while the company expects improvement in the fourth quarter as the club program concludes and a September price increase begins contributing. Management said it implemented a targeted low-single-digit price increase on selected, primarily snack-related products, effective in late September, to address specific inflationary pressures. Foraker said retailers broadly accepted the action and the company expects only a nominal impact on unit demand based on historical price elasticity and current consumption trends. Once Upon a Farm ended the quarter with approximately $93.5 million in cash and no debt. Inventory rose 47.6% from a year earlier to $51.9 million as the company prepared for back-to-school demand and an additional national club program. Management expects inventory to remain elevated through the third quarter before moderating in the fourth quarter. The company is pursuing supply chain automation and productivity projects with co-manufacturing partners, focused on improving capacity, service levels and labor-related costs. Waldman said the company expects capital investment of roughly $25 million to $35 million for the initiatives, while some manufacturing partners will also invest in equipment. Management expects initial benefits from the projects in 2027 and a more substantial contribution beginning in 2028. It said its expectation for profitability improvement in 2027 does not depend on realizing the full benefit of the larger automation projects. Once Upon A Farm (NYSE: OFRM) is a U.S.-based producer of refrigerated organic foods for infants, toddlers and young children. The company’s product lineup emphasizes cold-pressed, organic purees, blends and smoothies formulated for early childhood nutrition. Its offerings are positioned around whole-food ingredients, limited processing and claims of no artificial preservatives or added sugars, with packaging designed for convenience and on-the-go feeding. Once Upon A Farm distributes its products through a combination of retail and direct-to-consumer channels, serving customers primarily across the United States. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Once Upon A Farm Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

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., August 06, 2026--(BUSINESS WIRE)--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 EBITDA1 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. (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 DetailThe following table presents disaggregated net sales by product category for the periods indicated (in thousands): View source version on businesswire.com: https://www.businesswire.com/news/home/20260806120317/en/ Contacts Investors: Brian HollandVice President of Investor [email protected] [email protected] Media: Jessica Liddell, ICRKate Schneiderman, [email protected]

For the quarter ended June 2026, Once Upon A Farm (OFRM) reported revenue of $85.39 million, representing no change compared to the same period last year. EPS came in at -$0.12, compared to $0 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $77.35 million, representing a surprise of +10.4%. The company delivered an EPS surprise of +33.33%, with the consensus EPS estimate being -$0.18. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Once Upon A Farm performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Baby: $41.48 million versus the three-analyst average estimate of $34.48 million. Net Sales- Kid: $43.91 million compared to the $40.57 million average estimate based on three analysts. Net Sales- Baby- Pouches: $11.29 million versus the two-analyst average estimate of $12.1 million. Net Sales- Baby- Snacks: $29.64 million versus the two-analyst average estimate of $21.93 million. Net Sales- Baby- Other: $0.55 million compared to the $0.6 million average estimate based on two analysts. Net Sales- Kid- Pouches: $36.27 million compared to the $34.42 million average estimate based on two analysts. Net Sales- Kid- Snacks: $7.64 million compared to the $6.79 million average estimate based on two analysts. View all Key Company Metrics for Once Upon A Farm here>>> Shares of Once Upon A Farm have returned -6.3% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Once Upon a Farm, PBC (OFRM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Over the last 7 days, the United States market has risen by 1.5%, contributing to a remarkable 26% climb over the past year, with earnings forecasted to grow by 17% annually. In this flourishing environment, growth companies with high insider ownership can be particularly appealing as they often indicate strong confidence from those closest to the business and potential for substantial earnings expansion. Click here to see the full list of 185 stocks from our Fast Growing US Companies With High Insider Ownership screener. Let's explore several standout options from the results in the screener. Simply Wall St Growth Rating: ★★★★★☆ Overview: Immix Biopharma, Inc. is a clinical-stage biopharmaceutical company focused on developing chimeric antigen receptor cell therapy for light chain amyloidosis and immune-mediated diseases, with a market cap of $525.88 million. Operations: Revenue Segments (in millions of $): null Insider Ownership: 12.8% Earnings Growth Forecast: 63.4% p.a. Immix Biopharma is a growth-focused company with high insider ownership, currently navigating financial challenges with a reported net loss of US$10.09 million for Q1 2026. Despite this, its revenue is forecasted to grow significantly faster than the US market at 56.6% annually, driven by promising developments like NXC-201 for AL Amyloidosis. The company anticipates profitability within three years, although it has experienced substantial shareholder dilution and share price volatility recently. Get an in-depth perspective on Immix Biopharma's performance by reading our analyst estimates report here. Our valuation report here indicates Immix Biopharma may be overvalued. Simply Wall St Growth Rating: ★★★★★☆ Overview: Rumble Inc. operates a video sharing and cloud services platform across the United States, Canada, and internationally, with a market cap of approximately $2.77 billion. Operations: The company's revenue is generated from its Internet Software & Services segment, amounting to $100.62 million. Insider Ownership: 35.9% Earnings Growth Forecast: 56.8% p.a. Rumble Inc. exhibits high insider ownership and is positioned for substantial growth, with revenue forecasted to expand at 42.5% annually, outpacing the US market. Recent initiatives like the OpenClaw Starter package on Rumble Cloud highlight its innovative approach in AI infrastructure. Despite a history of volatility and financial losses, Rumble's strategic leadership changes and product expansions aim to drive profitability within three years, reflecting its commitment to long-term value creation amidst market challenges. Click to explore a detailed breakdown of our findings in Rumble's earnings growth report. Upon reviewing our latest valuation report, Rumble's share price might be too optimistic. Simply Wall St Growth Rating: ★★★★★☆ Overview: Once Upon A Farm, PBC is a company that produces and sells organic baby food pouches, meals, and snacks for children with a market cap of $643.58 million. Operations: The company's revenue is derived from the production and sale of organic baby food pouches, meals, and snacks for children. Insider Ownership: 13.7% Earnings Growth Forecast: 55.8% p.a. Once Upon A Farm PBC demonstrates significant insider ownership and is poised for growth, with revenue projected to increase at 20.6% annually, surpassing US market averages. The company recently reported a substantial sales increase to US$72.72 million in Q1 2026 from US$50.6 million the previous year, while reducing net losses. Strategic product expansions and the formation of a Public Benefit Corporation Advisory Board underscore its commitment to sustainable growth and impactful business practices amidst evolving market demands. Unlock comprehensive insights into our analysis of Once Upon A Farm PBC stock in this growth report. Our expertly prepared valuation report Once Upon A Farm PBC implies its share price may be too high. Unlock our comprehensive list of 185 Fast Growing US Companies With High Insider Ownership by clicking here. Ready For A Different Approach? These 23 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years. Companies discussed in this article include IMMX RUM and OFRM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Once Upon A Farm? Here are five stocks we like better. Once Upon A Farm raised its 2026 net sales outlook to $313 million to $323 million after first-quarter sales jumped 43.7% to $72.7 million, led by strong demand, expanded distribution and new product introductions. The company’s baby business was the biggest growth driver, with sales up 112% year over year and more than 18,000 new points of distribution added in the quarter. Management said cooler productivity is improving and more distribution gains are expected in the second quarter. Margins improved sharply, with gross margin rising to 40.8% and adjusted EBITDA loss narrowing to $3.1 million. Even so, the company kept full-year adjusted EBITDA guidance unchanged at $2 million to $4 million as it reinvests in growth. MarketBeat Week in Review – 02/09 - 02/13 Once Upon A Farm (NYSE:OFRM) raised its full-year revenue outlook after reporting first-quarter fiscal 2026 sales growth of nearly 44%, driven by higher volumes, expanded distribution and stronger demand across its baby products business. Chief Executive Officer and Co-founder John Foraker said the company was “very pleased” with its first-quarter results, citing 44% year-over-year net sales growth and a gross margin improvement of more than 300 basis points. He said business momentum accelerated during the quarter, with improvement in velocities, household penetration, repeat rates and distribution. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Once Upon A Farm: Buy the $1B Growth Story? “While our IPO in February generated significant brand awareness as expected, the performance we're seeing is being driven by underlying strength in consumer demand and strong retail execution,” Foraker said. President and Chief Financial Officer Larry Waldman said net sales increased 43.7% to $72.7 million from $50.6 million in the prior-year period. Volume rose 21.5%, reflecting expanded distribution and new product introductions. The company also benefited from mix and pricing, including higher kid pouch pricing compared with a year earlier and a shift toward dry baby products. → MercadoLibre Boldly Invests in Growth: Discount Deepens The company’s baby business was the largest driver of growth. Foraker said first-quarter baby net sales increased 112% year over year to $38.6 million, with both pouches and snacks more than doubling. He said snacks had the largest impact on total sales for the quarter, supported by distribution gains at existing retailers. Once Upon a Farm added more than 18,000 new points of distribution across baby products in the quarter. Foraker said another reset at a mass customer in April would further increase baby distribution, making it “materially higher” by the end of the second quarter compared with the end of the first. → MP Materials Is Quietly Building a Rare Earth Powerhouse The kid business grew more modestly, with first-quarter sales up 5.4% to $34.1 million. Foraker said reported kid growth was affected by timing factors, including trade spending and club rotation timing, but underlying consumption remained strong. He said the company expects the kid category to deliver “mid-teens growth or better” for the full year. Gross margin was 40.8% in the first quarter, up 308 basis points from the year-ago period. Waldman said the improvement was driven by lower cooler and slotting expense, partly offset by unfavorable product mix as dry snack growth accelerates. SG&A expenses rose to $45.8 million, up $17.5 million from the prior-year period. Waldman said $10.9 million of the increase was attributable to stock-based compensation, new public company costs and one-time performance payments tied to the company’s February IPO. The company reported a first-quarter net loss of $15.8 million, compared with a net loss of $19.5 million a year earlier. Adjusted EBITDA loss improved to $3.1 million from $7.5 million, helped by higher sales and margin flow-through. Waldman noted that adjusted EBITDA also benefited from the timing of about $2.5 million in marketing and cooler-related costs that shifted from the first quarter to the second. As of March 31, 2026, Once Upon a Farm had nearly $100 million in cash and cash equivalents and no debt. Waldman said IPO proceeds were used in part to repay all outstanding borrowings under the company’s term loan facility. Foraker highlighted improving productivity in the company’s refrigerated baby cooler model. He said Once Upon a Farm ended the quarter with about 3,700 coolers in market and remains on track to reach approximately 5,000 by year-end, with a longer-term expectation of 8,000 or more in 2027. According to Foraker, coolers were 11% more productive on average in the first quarter than in the fourth quarter of last year and 27% more productive than in the year-ago quarter. The company recently launched refrigerated organic meat and bone broth, and legume blend pouches, which Foraker described as its first “protein-forward” cold pressure protected pouches for babies. He said the products began appearing in select retailers in April, with broader rollout planned over the next couple of quarters. In retailers where the new SKUs have been placed, Foraker said Once Upon a Farm is seeing more than 20% increases in cooler productivity shortly after placement, though he cautioned that the early results primarily reflect trial rather than repeat purchasing. The company also began shipping Smoothies with Protein & Probiotics into select dairy sets nationally and launched Power Wheels, an aged-up version of Tractor Wheels for kid bar sets. Foraker said it was too early to comment on velocity performance for those products, but retailer support had been strong. Based on first-quarter performance and recent trends, Once Upon a Farm raised its 2026 net sales outlook to a range of $313 million to $323 million, representing growth of 30% to 34% versus 2025. The previous guidance range was $302 million to $310 million. Despite the higher sales outlook, the company maintained its full-year adjusted EBITDA guidance of $2 million to $4 million. Waldman said Once Upon a Farm plans to reinvest sales upside into top-line growth initiatives, people and infrastructure to support future growth. During the question-and-answer portion of the call, Waldman said the company has built into its model a full-year fuel surcharge impact of about 100 basis points, as well as 100 basis points of tariff cost. He also said the company is accounting for mix pressure from stronger snack sales and club business. Foraker said the company believes this is “a good time to be on offense,” given household penetration of 5.8%, strong repeat metrics and rising consumer engagement. He said the company remains confident in its ability to reach mid-teens adjusted EBITDA margins over the medium term. Foraker said household penetration rose to 5.8% at the end of March from 4.5% a year earlier, while repeat rates among households with kids increased 380 basis points. He said repeat rates are approximately 50% for households with kids and approximately 60% for new families. In response to analyst questions, Foraker said there had been no significant changes in the competitive environment or promotional intensity. He said the company continued to see positive momentum into April and was taking a conservative approach to guidance. Foraker also discussed the club channel, saying velocities have continued to rise as consumers become more aware of the brand. He said a major national kid pouch program is running in May and that club exposure helps convert light buyers into medium buyers, increasing buy rates. “There’s absolutely nothing in our business that shows any kind of deceleration right now,” Foraker said during the call. “In fact, it’s the exact opposite.” Once Upon A Farm (NYSE: OFRM) is a U.S.-based producer of refrigerated organic foods for infants, toddlers and young children. The company’s product lineup emphasizes cold-pressed, organic purees, blends and smoothies formulated for early childhood nutrition. Its offerings are positioned around whole-food ingredients, limited processing and claims of no artificial preservatives or added sugars, with packaging designed for convenience and on-the-go feeding. Once Upon A Farm distributes its products through a combination of retail and direct-to-consumer channels, serving customers primarily across the United States. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Once Upon A Farm Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

For the quarter ended March 2026, Once Upon A Farm (OFRM) reported revenue of $72.72 million, representing no change compared to the same period last year. EPS came in at -$0.35, compared to $0 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $64.49 million, representing a surprise of +12.77%. The company delivered an EPS surprise of +10.26%, with the consensus EPS estimate being -$0.39. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Once Upon A Farm performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Kid: $34.15 million compared to the $37.87 million average estimate based on three analysts. Net Sales- Baby: $38.57 million compared to the $26.13 million average estimate based on three analysts. Net Sales- Kid- Snacks: $4.77 million compared to the $5.96 million average estimate based on two analysts. Net Sales- Baby- Other: $0.33 million compared to the $0.7 million average estimate based on two analysts. Net Sales- Baby- Pouches: $11.47 million versus $9.23 million estimated by two analysts on average. Net Sales- Baby- Snacks: $26.77 million versus $16.07 million estimated by two analysts on average. Net Sales- Kid- Pouches: $29.38 million compared to the $31.84 million average estimate based on two analysts. View all Key Company Metrics for Once Upon A Farm here>>> Shares of Once Upon A Farm have returned -10.5% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Once Upon a Farm, PBC (OFRM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research