Once Upon a Farm Stock Price Declines as 2026 Fiscal Year Revenue Outlook Disappoints

LootboxPhobia · 2026-03-12T20:58:57+00:00

Once Upon a Farm announced fourth quarter results with revenue of $64 million, up 30.1% year-over-year, but 2026 fiscal year revenue guidance fell short of expectations, causing the stock to decline 9.2%. Full-year revenue grew 53.5% compared to the prior year. The CEO expressed pride in the company's performance.

LootboxPhobia

2026-03-12 20:58:57

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Investing.com – Once Upon a Farm, PBC (NYSE:OFRM) reported Q4 earnings that exceeded last year’s levels, but the stock plummeted 9.2% in after-hours trading due to the company’s FY2026 revenue guidance falling short of investor expectations.

The organic children’s food company announced Q4 revenue of $64 million, up 30.1% from $49.2 million a year earlier. Adjusted earnings per share were $0.11, compared to a loss of $1.88 in the same period last year. Revenue growth was driven by expanded distribution channels, increased household penetration, and higher average selling prices. For FY2026, Once Upon a Farm issued a revenue guidance of $302 million to $310 million, representing a 25% to 29% year-over-year increase. The midpoint of $306 million appeared disappointing to investors, triggering a significant after-hours decline.

Full-year revenue for FY2025 reached $240.7 million, a 53.5% increase from $156.8 million in FY2024, driven by expanded distribution channels and a 42% sales increase from new product launches. The company narrowed net loss from $23.8 million to $17.2 million.

CEO and Co-Founder John Foraker stated, “We are proud of our strong Q4 performance, which is our first earnings report as a newly public company. We achieved a 30% net sales growth, driven by expanded distribution, significant increases in household penetration, and top-tier turnover in our category, all demonstrating the strong intrinsic growth momentum of our brand.”

Gross margin for Q4 increased from 46.7% last year to 47.7%, benefiting from reduced trade expenses and higher average selling prices. Adjusted EBITDA for the quarter was $6.6 million, up from $2.2 million in the same period last year.

The company completed its IPO in February, raising approximately $139.3 million in net proceeds. Some of the funds were used to repay outstanding borrowings under its revolving credit facility. For FY2026, Once Upon a Farm expects adjusted EBITDA of $2 million to $4 million.

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