Once Upon a Farm (OFRM) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 rose 42.3% year-over-year to $85.4 million, driven by volume growth, innovation, and expanded distribution.

• Gross margin declined to 35.9% from 40.7% due to increased trade spend, product mix, and higher cost of goods sold.

• Net loss narrowed to $5.0 million from $9.0 million prior year, reflecting higher gross profit and interest income, offset by increased SG&A.

• Adjusted EBITDA loss was $1.7 million, down from a $2.0 million gain prior year, mainly due to higher SG&A.

• Completed IPO in February 2026, raising $138.5 million in net proceeds and repaid all outstanding debt.

Financial highlights

• Q2 2026 net sales: $85.4 million (up 42% YoY); six-month net sales: $158.1 million (up 43% YoY).

• Gross profit: $30.6 million (35.9% margin) vs. $24.5 million (40.7% margin) year-over-year.

• SG&A expenses: $36.3 million (42.5% of sales), up from $24.4 million (40.7%), reflecting higher marketing, headcount, and IPO-related costs.

• Net loss: $5.0 million vs. $9.0 million prior year; adjusted EBITDA loss: $1.7 million vs. $2.0 million gain prior year.

• Cash and cash equivalents at June 30, 2026: $93.5 million; no debt outstanding.

Outlook and guidance

• Full-year 2026 net sales guidance raised to $327–$335 million (36%–39% growth); adjusted EBITDA to $3–$4.5 million.

• Gross margin for 2026 expected around 40%, about 100 bps lower than prior outlook due to mix and club program investment.

• Q3 gross margin to be similar to Q2; improvement expected in Q4 as club program ends and price increases take effect.

• Management expects continued sales growth through expanded retail distribution, new product innovation, and increased brand awareness.

• Existing cash and credit facilities expected to support operations for at least the next 12 months.