Once Upon a Farm (OFRM) Q1 2026 earnings summary

Executive summary

• Net sales grew 44% year-over-year to $72.7 million in Q1 2026, driven by volume growth, new product launches, and strong baby segment performance.

• IPO in February 2026 raised $138.8 million in net proceeds, increased brand awareness, and eliminated all debt through repayment and conversion of preferred stock and convertible notes.

• Net loss narrowed to $15.8 million from $19.5 million in Q1 2025, reflecting higher gross profit and improved margin, offset by increased SG&A and IPO-related expenses.

• Adjusted EBITDA loss improved to $3.1 million from $7.5 million, benefiting from timing of marketing and cooler costs.

• Significant investments in marketing, stock-based compensation, and headcount supported growth and IPO activities.

Financial highlights

• Gross margin improved to 41% (up 308 basis points year-over-year), with gross profit at $29.7 million.

• SG&A expenses rose to $45.8 million, up $17.5 million, mainly due to IPO-related one-time costs and stock-based compensation.

• Contribution margin increased to 36% from 31% year-over-year.

• Net loss per share improved to $(0.59) from $(2.95) in Q1 2025.

• Operating cash outflow was $12.8 million, mainly due to net loss and working capital investments.

Outlook and guidance

• Raised 2026 net sales outlook to $313–$323 million, up 30–34% year-over-year.

• Maintaining full-year adjusted EBITDA guidance of $2–$4 million, with continued investment in growth initiatives and infrastructure.

• Management expects continued investment in marketing, innovation, and retail expansion to drive growth.

• Q2 revenue to benefit from a major club promotion; Q3 expected to be peak due to back-to-school, with Q4 flat sequentially.

• Sufficient liquidity to support operations and growth initiatives for at least the next 12 months.