Once Upon a Farm (OFRM) Q4 2025 earnings summary

Executive summary

• Achieved 30.1% net sales growth in Q4 2025 to $64M, with full-year net sales up 53.5% to $240.7M, driven by balanced volume and price mix growth.

• Transitioned to a public company, completed IPO in February 2026, raising $139.3M in net proceeds.

• Q4 net income was $22.5M, reversing a net loss of $12.3M YoY; full-year net loss narrowed to $17.2M from $23.8M.

• Strong brand momentum with household penetration up 42% to 5.1% and repeat purchase rates exceeding 50%.

• Mission-driven approach as a Public Benefit Corporation, focusing on systemic improvements in childhood nutrition.

Financial highlights

• Q4 gross margin improved to 47.7% from 46.7% YoY; full-year gross margin was 42.3% (down from 43.6%) due to higher trade spend and slotting fees.

• Adjusted EBITDA for Q4 was $6.6M, up from $2.2M YoY; full-year Adjusted EBITDA was $2.1M, up from a $3.7M loss.

• SG&A as a percent of net sales improved by 318 bps in Q4 and 291 bps for the year; Q4 SG&A was $26M and $107.6M for the year.

• Ended 2025 with $10.9M cash and $60.2M debt; post-IPO, cash rose to $102M with no debt.

Outlook and guidance

• 2026 net sales expected to grow 25%-29% to $302M-$310M, driven by innovation, expanded distribution, and retail/channel development.

• Adjusted EBITDA guidance for 2026 is $2M-$4M, just above breakeven, reflecting continued investment in talent and infrastructure.

• Targeting mid-teens Adjusted EBITDA margin over the medium term.

• Cooler expansion to 5,000 units in 2026, with potential acceleration depending on retailer demand.