Once Upon a Farm (OFRM) investor relations material

Executive summary

• Q3 net sales rose 34.9% YoY to $89.1 million on 32% volume growth, with favorable mix contributing to the balance.

• The voluntary Tractor Wheels recall followed quarter-end and is expected to weigh on Q4 and FY 2026 results; the product represented 18% of nine-month sales.

• Early post-recall consumption across the remaining portfolio was at or above normal levels; long-term growth plans remain focused on innovation, distribution and cooler placements.

Financial highlights

• Q3 net sales were $89.1 million versus $66 million YoY; gross profit increased to $32.2 million from $27.8 million, while operating loss was $4.7 million versus $1.1 million.

• Gross margin was 36.1%, down 600 bps YoY; trade investment, mix and cooler costs were partly offset by pricing and favorable customer mix.

• SG&A rose to $36.8 million from $28.8 million, but fell to 41.3% of sales, down 230 bps YoY; Q3 included $2.6 million of incremental cooler investment.

• Net loss narrowed to $3.8 million from $11.3 million; diluted loss per share was $0.09 versus $1.66.

• Nine-month sales rose 40% to $247.2 million; Adjusted EBITDA was a $1.0 million Q3 loss versus $0.9 million income, and a $5.7 million nine-month loss versus $4.6 million.

Outlook and guidance

• FY 2026 guidance was reduced to $290 million-$300 million net sales from $327 million-$335 million, with an Adjusted EBITDA loss of $4.5 million-$7 million versus prior income guidance of $3 million-$4.5 million.

• FY 2026 recall costs could reach $30 million, including returns, retailer chargebacks, legal and other expenses, and work-in-process inventory costs.

• FY 2027 initial framework calls for at least $330 million in sales and at least break-even Adjusted EBITDA; like-for-like growth excluding Tractor Wheels is expected to exceed the 20% long-term algorithm.

• FY 2027 planning assumes potential drag on broader portfolio velocities and a range of Tractor Wheels return timing; formal guidance is expected with Q4 results in March.

• Excluding recall costs, FY 2026 gross margin expectations remain in line with prior guidance; elevated inflation and supply costs are expected to continue in 2026.