Once Upon A Farm Reports Q3 2026 Results Amidst Product Recall and Guidance Downgrade

Once Upon A Farm (OFRM) reported third-quarter net sales of $89.1 million, a 34.9% increase year-over-year driven by strong volume growth and product mix. However, the company faced significant headwinds as gross margins fell to 36.1%, a 600 basis point decline caused by trade investments for national club programs and higher cooler placement costs. The company also reported an adjusted EBITDA loss of $1 million. The financial outlook has been significantly impacted by a voluntary recall of the Tractor Wheels product line following safety reports. Consequently, Once Upon A Farm lowered its full-year 2026 net sales guidance to a range of $290 million to $300 million and revised its adjusted EBITDA guidance from a projected profit to an expected loss between $4.5 million and $7 million. Total recall costs are estimated to reach up to $30 million for the fiscal year.

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