Once Upon a Farm Posts 44% Revenue Growth but Deepens Losses

Event summary

Net sales rose 43.7% year-over-year to $72.7 million in Q1 2026.
Gross margin expanded by 308 basis points to 40.8% due to lower slotting fees.
Net loss narrowed to $15.8 million from $19.5 million in the prior-year period.
Adjusted EBITDA loss improved to $3.1 million from a $7.5 million loss.
Company raised full-year net sales outlook to $313 million to $323 million.

The big picture

Once Upon a Farm's strong revenue growth and margin expansion reflect successful distribution and product innovation in the organic kids' food category. The company's ability to sustain profitability amid rising operational costs will be critical as it competes in a highly competitive market. The strategic focus on cooler placements and expanding distribution highlights its growth strategy, but investors will be watching closely to see if these initiatives translate into long-term profitability.

What we're watching

Scaling Efficiency: How the company's cooler model will affect productivity and margins as it scales.
Consumer Trends: Whether household penetration and repeat rates will sustain growth momentum.
Operational Costs: The pace at which SG&A expenses will increase relative to revenue growth.