Once Upon a Farm Reports 53% Full-Year Sales Growth and Successful IPO in 2025, Projects Continued Expansion in 2026

Once Upon a Farm Reports Q4 and Full Year 2025 Results: Key Insights for Investors

Highlights from Q4 and Full Year 2025 Financial Results

Q4 Net Sales Surge: Net sales soared 30.1% year-over-year in Q4 2025 to \$64.0 million, demonstrating robust demand and brand momentum.
Full Year Revenue Growth: Full-year net sales reached \$240.7 million, up 53.5% from 2024, fueled by a 42% volume increase, expanded distribution, and new product launches.
Return to Profitability in Q4: Q4 2025 net income was \$22.5 million, a major turnaround from a net loss of \$12.3 million in Q4 2024.
Reduced Full-Year Loss: For 2025, the net loss was \$17.2 million, a significant improvement over the \$23.8 million net loss in 2024.
Improved Adjusted EBITDA: Q4 Adjusted EBITDA jumped to \$6.6 million (from \$2.2 million a year ago); full year Adjusted EBITDA turned positive at \$2.1 million (from a loss of \$3.7 million in 2024).
Gross Margin Dynamics: Q4 gross margin improved to 47.7% (vs. 46.7%); full year gross margin slightly decreased to 42.3% (from 43.6%), pressured by higher trade spend and expansion costs.
SG&A Expense Trends: Q4 SG&A as a percentage of net sales declined to 40.7% (from 43.9%), reflecting scale efficiencies; full year SG&A dropped to 44.7% of sales (from 47.6%).

Key Shareholder-Relevant and Potentially Price-Sensitive Information

Successful IPO and Capital Raise: Once Upon a Farm completed its IPO in February 2026, raising approximately \$139.3 million in net proceeds. The company sold 7.6 million new shares at \$18 each, with underwriters exercising their option for an additional 1.6 million shares. Certain stockholders sold 3.4 million shares. The IPO strengthens the balance sheet and provides capital for growth, with proceeds used to repay debt and for general corporate purposes.
Balance Sheet Update: As of December 31, 2025, cash and equivalents stood at \$10.9 million (pre-IPO), with total debt at \$60.2 million (up from \$24.7 million at end-2024). The increased debt reflects investments in working capital and capex to support expansion.
2026 Outlook: The company projects 2026 net sales of \$302–310 million (25%–29% growth) and Adjusted EBITDA of \$2–4 million, indicating continued top-line expansion but cautious EBITDA expectations as investments in growth persist.
Product and Channel Expansion: Growth is attributed to new product launches (especially in higher-priced categories), expanded retail distribution, and higher household penetration. Trade spending increased due to slotting fees, cooler placements in stores, and dairy category resets.
Change in Fair Value of Derivative Liabilities: Q4 net income benefited significantly from a non-cash gain related to the fair value change in derivative liabilities—a key factor in the swing to profitability. This is a one-off accounting item and not reflective of ongoing operations.
Risk Factors and Forward-Looking Statements: The company notes multiple risks, including supply chain disruptions, consumer trends, execution risks on growth initiatives, competition, and reliance on independent contract manufacturers. Investors should be aware of these ongoing business risks.

Detailed Financial Performance

Fourth Quarter 2025

Net sales: \$64.0 million (up 30.1%)
Gross profit: \$30.6 million (47.7% margin, up 105bps)
SG&A: \$26.0 million (40.7% of sales, down from 43.9%)
Net income: \$22.5 million (vs. \$12.3 million loss in Q4 2024)
Adjusted EBITDA: \$6.6 million (vs. \$2.2 million)

Full Year 2025

Net sales: \$240.7 million (up 53.5%)
Gross profit: \$101.9 million (42.3% margin, down 125bps)
SG&A: \$107.6 million (44.7% of sales, down from 47.6%)
Net loss: \$17.2 million (improved from \$23.8 million loss)
Adjusted EBITDA: \$2.1 million (a turnaround from a \$3.7 million loss)
Cash and equivalents: \$10.9 million (pre-IPO)
Total debt: \$60.2 million (up from \$24.7 million)
Shares outstanding post-IPO: Approximately 41.9 million

Product Category Sales (2025)

Kid Pouches: \$118.6 million
Kid Snacks: \$20.7 million
Baby Pouches: \$31.8 million
Baby Snacks: \$67.4 million
Other: \$2.2 million

CEO Commentary

“Our 30% net sales growth in Q4, driven by broadened distribution, significant increases in household penetration, and top-tier velocity in the categories where we compete, demonstrates the powerful underlying momentum around the brand and the trust consumers place in our mission-driven approach. The IPO was a major milestone, and we are now poised to accelerate growth initiatives and expand our impact in transforming childhood nutrition.” – John Foraker, CEO and Co-founder

Investor Takeaways

The IPO has materially strengthened the company’s liquidity and balance sheet, reducing financial risk and providing fuel for further expansion.
The strong Q4 and full-year revenue growth, alongside operating leverage, point to increasing scale and market share in the organic kids’ food segment.
Investors should note the one-off nature of the Q4 profit due to derivative accounting, and focus on underlying EBITDA and cash flow trends for sustainable performance.
2026 guidance signals continued robust top-line growth, but also continued investment in the business as the company pursues market leadership.
Risks remain, particularly around supply chain, execution, and consumer trends, which should be monitored.

Conference Call Details

Investors can participate in the live earnings call by dialing (877) 269-7751 (U.S.) or (201) 389-0908 (International), or access the webcast via the company’s Investor Relations website.

About Once Upon a Farm

Once Upon a Farm (NYSE: OFRM) is a mission-driven, high-growth leader in organic children’s nutrition, offering a portfolio of organic, non-GMO snacks and meals for babies through big kids, free from added sugar, artificial flavors, colors, and preservatives.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial professionals before making investment decisions. The company’s results and outlook are subject to risks and uncertainties, as described in its SEC filings and forward-looking statements.