Once Upon a Farm (OFRM) Q3 2026: Recall Erases a Year of Sales Guidance

Once Upon a Farm delivered $89.1 million in Q3 2026 revenue, meeting expectations, with revenue rising 34.9% year over year on stronger volume in the Baby Snacks and Kid Pouches categories.

The company reported a GAAP loss of $0.09 per share, missing expectations, as gross margin contracted 600 basis points to 36.1% on trade investment tied to a national club program, product mix shifts, and cooler placement costs.

The quarter's defining event was a voluntary recall of its Tractor Wheels toddler snack bars, which management flagged as a choking hazard. The recall sent the stock lower and forced a sharp cut to full-year 2026 guidance, with net sales now expected at $290 million to $300 million, below the prior range, and adjusted EBITDA guidance swinging from a projected profit to a projected loss.

CEO John Foraker addressed the recall directly, saying: "When faced with a difficult decision, our organization can and will act quickly, decisively, and in the best interests of our consumers." He added that his conviction in the company's long-term opportunity had not changed, pointing to increasing household penetration and strong consumer loyalty as durable strengths.

The revised guidance effectively wipes out the revenue progress Once Upon a Farm had built over the year, compressing the anticipated full-year range by roughly $35 million at the midpoint. With the recall's fourth-quarter impact still unfolding and adjusted EBITDA now expected to land in negative territory, the path back to the original profit guidance will be the central question heading into Q4 results.