Once Upon a Farm, PBC (OFRM) Q3 2026 Earnings Report

The call was fundamentally confident about the strength of Once Upon a Farm's brand, consumer adoption, retail momentum, innovation pipeline and liquidity, with strong third-quarter growth and a favorable initial response in the broader portfolio. However, the Tractor Wheels recall is a significant near-term setback, resulting in reduced fiscal 2026 guidance, up to $30 million of expected recall-related costs, temporary loss of Tractor Wheels sales and uncertainty over the timing and cost of the product's return. Overall sentiment was positive but materially tempered by the recall and related financial uncertainty.

The company now expects fiscal '26 net sales of $290 million to $300 million and an adjusted EBITDA loss of $4.5 million to $7 million, including up to $30 million of costs related to the Tractor Wheels recall; for fiscal 2027, its initial planning framework calls for net sales of at least $330 million and adjusted EBITDA of at least breakeven, with net sales growth excluding Tractor Wheels expected to exceed the stated long-term algorithm of 20% on a like-for-like basis. The company expects initial benefits from supply chain productivity and automation projects in fiscal 2027, with a more substantial contribution beginning in fiscal 2028, and expects to provide formal guidance with Q4 results in March. Its current market-based assumption is low single-digit inflation across the core refrigerated pouch platform, while it is still looking at an under mid-single-digit inflation rate total portfolio-wide going into '27; as it exits fiscal 2027, it expects total company net sales growth at or above the long-term algorithm, assuming Tractor Wheels is back on the shelves, and is driving towards 15% to high teen EBITDA.