Once Upon A Farm Q2 Earnings Call Highlights

Once Upon A Farm NYSE: OFRM reported second-quarter fiscal 2026 net sales growth of 42.3% as distribution gains, product innovation and a national club program supported volume-led expansion across its baby and kid nutrition portfolios. Net sales rose to $85.4 million from $60 million a year earlier. Chief Executive Officer and Co-founder John Foraker said consumption growth remained in the low- to mid-30% range during the quarter, while the difference from reported sales growth reflected favorable cooler slotting comparisons, distribution gains and initial shipments of new protein-focused products. The company raised its full-year outlook, now projecting fiscal 2026 net sales of $327 million to $335 million, representing growth of approximately 36% to 39%. The prior forecast was $313 million to $323 million. Once Upon a Farm also lifted its adjusted EBITDA guidance to $3 million to $4.5 million from a previous range of $2 million to $4 million. Foraker said the company continued to gain share in baby and toddler snacks and in baby and toddler pouches, including against larger conventional competitors. Household penetration reached 6.2% at the end of June, compared with 5% a year earlier. Repeat purchases among households with children increased 351 basis points year over year to 52.1%. “Our funnel is widening,” Foraker said, citing growth in household penetration, retention and spending per household. He said newer families were repeating at higher rates as the company works to build the brand from baby products through kid-focused offerings. Baby business sales increased 73% year over year to $41.5 million, with pouches and snacks growing at similar rates. The company added more than 85,000 baby distribution points during the quarter at existing and new retailers. Management highlighted the March launch of meat and legume protein pouches, which it said were 61% incremental to Once Upon a Farm and 63% incremental to the total baby category at certain retailers. Kid business sales rose 22% to $43.9 million, with snack growth slightly outpacing the segment overall as protein-focused bar products and protein-and-probiotic pouches entered kid dairy sets. More than 15,000 distribution points were added in the kid portfolio during the quarter. Packaging updates to dairy-free kid smoothies produced average velocity increases of 10% to 15% on the same distribution, according to management. The company plans to introduce a new functional kid-pouch sub-line with selected customers in the coming weeks. Once Upon a Farm said a national club program in May exceeded its expectations for velocity and volume, helping expose its products to millions of additional households. Household penetration in its immunity blend portfolio rose more than 20% compared with April, Foraker said.