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 and strong brand momentum.

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

• Transitioned to a public company, completed IPO in February 2026, raising $139M in net proceeds.

• Mission-driven approach as a Public Benefit Corporation, focusing on systemic improvements in childhood nutrition and building strong consumer loyalty.

• Expanded distribution to over 25,000 doors nationwide, with 69% ACV and significant growth in household penetration and repeat purchase rates.

Financial highlights

• Q4 2025 net sales: $64M (+30.1% YoY); full-year 2025 net sales: $240.7M (+53.5% YoY).

• Q4 gross margin: 47.7% (+105 bps YoY); full-year gross margin: 42.3% (-125 bps YoY, impacted by planned trade spend and slotting fees).

• Q4 net income: $22.5M (vs. $12.3M loss prior year), driven by $30M derivative liability fair value change and higher gross profit.

• Q4 Adjusted EBITDA: $6.6M (vs. $2.2M prior year); full-year Adjusted EBITDA: $2.1M (vs. $3.7M loss prior year).

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

Outlook and guidance

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

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

• Medium-term target: mid-teens Adjusted EBITDA margin as scale and productivity improve.

• Gross margin expected to decline ~120 bps in 2026 due to higher cooler slotting and tariffs.