OFRM · Once Upon A Farm Pbc

Once Upon a Farm delivered strong Q1 2026 results with net sales surging 43.7% to $72.7 million, fueled by 21.5% volume growth from expanded distribution, new products, and accelerating velocities. Gross profit rose to $29.7 million or 40.8% of sales, up 310 basis points year-over-year, primarily due to reduced slotting fees tied to cooler placements that boosted dollar productivity by 11% versus the prior quarter. CEO John Foraker highlighted momentum across the business, strong consumption trends, household penetration, and repeat rates, affirming the cooler model's scalability. SG&A expenses climbed 62% to $45.8 million or 63.0% of sales, driven by $10.9 million in stock-based compensation and one-time IPO performance payments, alongside higher labor costs, though partially offset by lower logistics and selling expenses as a percentage of sales. This led to a narrower GAAP net loss of $15.8 million (vs. $19.5 million prior year) and improved Adjusted EBITDA loss of $3.1 million (vs. $7.5 million). The balance sheet strengthened significantly post-February 2026 IPO, with cash and equivalents at $99.9 million and no debt, compared to $10.9 million cash and $60.2 million debt at December 31, 2025. Reflecting confidence in durable growth, management raised full-year 2026 net sales guidance to $313-323 million (30-34% growth vs. 2025) and projects Adjusted EBITDA of $2-4 million, signaling a path toward profitability.