Once Upon a Farm Announces Fourth Quarter and Full-Year 2025 Financial Results
Once Upon a Farm, a fast-growing company focused on improving childhood nutrition through organic and minimally processed foods, has announced its financial results for the fourth quarter and full year ended December 31, 2025. The results highlight strong revenue growth, improving profitability metrics, and a major milestone for the company following its recent public listing on the New York Stock Exchange under the ticker symbol OFRM.
The company reported solid performance across several key financial indicators, reflecting expanding retail distribution, strong consumer demand for organic children’s food products, and strategic investments in brand growth. Management also emphasized that its successful initial public offering provides additional resources to accelerate expansion and strengthen its mission of delivering high-quality nutrition for children.
Strong Fourth Quarter Performance
For the fourth quarter of 2025, Once Upon a Farm reported net sales of $64.0 million, representing a 30.1% increase compared with $49.2 million during the same quarter in 2024. The significant year-over-year growth reflects a combination of expanded distribution, increased household penetration, and strong product velocity across categories in which the company competes.
Growth in net sales was driven by relatively balanced contributions from both volume increases and price/mix improvements. Expanded retail placement and a higher average selling price per unit supported revenue growth during the quarter.
Gross profit for the quarter reached $30.6 million, representing 47.7% of net sales, compared with $23.0 million, or 46.7% of net sales, in the prior-year quarter. The 105-basis-point improvement in gross margin was primarily attributed to lower trade spending and higher average selling prices across the company’s product portfolio.
Operating expenses also increased during the quarter as the company continued investing in growth initiatives. Selling, general and administrative (SG&A) expenses totaled $26.0 million, compared with $21.6 million in the same period a year earlier. Despite the increase in absolute dollars, SG&A expenses declined as a percentage of revenue, falling to 40.7% of net sales compared with 43.9% in the prior-year quarter.
The improvement in SG&A efficiency was mainly driven by lower marketing, logistics, and general administrative costs as a proportion of total revenue. These improvements were partially offset by higher selling expenses as the company continued expanding its retail presence.
The company reported net income of $22.5 million for the fourth quarter of 2025, a significant turnaround compared with a net loss of $12.3 million recorded in the same quarter of the previous year. The improvement was largely driven by a non-cash change in the fair value of a derivative liability, combined with higher gross profit from increased sales. However, the benefits were partly offset by higher SG&A expenses.
Adjusted EBITDA—a non-GAAP financial measure used by the company to evaluate operational performance—totaled $6.6 million for the quarter, compared with $2.2 million in the fourth quarter of 2024. The improvement reflects stronger gross profit driven by higher sales volumes and improved pricing dynamics.
Leadership Commentary
According to co-founder and Chief Executive Officer John Foraker, the company’s fourth-quarter performance reflects the strong momentum behind the brand and growing consumer demand for healthier children’s food options.
Foraker highlighted that the company’s 30% sales growth demonstrates the strength of Once Upon a Farm’s mission-driven brand strategy. Expanded distribution, increased consumer adoption, and high product turnover rates across retail channels all contributed to the company’s success during the period.
He also noted that the company’s recent initial public offering marked an important milestone in its development. According to management, becoming a publicly traded company provides the resources and visibility necessary to accelerate innovation, expand retail presence, and broaden the company’s impact in transforming childhood nutrition.
Parents, the company believes, are increasingly focused on providing their children with nutritious, organic foods made with clean ingredients. This consumer trend is expected to continue driving demand for Once Upon a Farm products in the coming years.
Full-Year 2025 Financial Results
For the full year ended December 31, 2025, Once Upon a Farm delivered strong top-line growth, reflecting increased distribution and successful product innovation.
Annual net sales reached $240.7 million, representing a 53.5% increase compared with $156.8 million in 2024. The sharp rise in revenue was driven largely by a 42% increase in volume, supported by wider distribution of existing products and the launch of new items within the company’s portfolio.
Product mix also played a role in the revenue increase, as the introduction of newer premium products helped raise the company’s average selling price per unit.
Gross profit for the full year totaled $101.9 million, equal to 42.3% of net sales, compared with $68.3 million, or 43.6% of net sales, in the previous year. The 125-basis-point decline in gross margin was mainly due to increased trade spending as the company expanded its retail footprint.
Trade spending increased primarily because of:
- Slotting fees associated with entering new retail stores
- Investment in additional refrigeration units placed in retail locations
- Dairy category resets across stores during 2025
While these investments temporarily pressured margins, they were intended to support long-term growth and stronger market positioning.
SG&A expenses for the full year totaled $107.6 million, compared with $74.7 million in 2024. However, SG&A expenses declined as a percentage of revenue, falling to 44.7% of net sales, compared with 47.6% in the previous year.
The improvement in operating efficiency was primarily driven by lower labor, logistics, marketing, and general administrative costs relative to the company’s rapidly expanding sales base.
Despite strong revenue growth, the company still reported a net loss of $17.2 million for 2025. However, this represented a notable improvement compared with the $23.8 million net loss recorded in 2024.
The reduction in net loss was mainly attributed to higher gross profit and favorable changes in the fair value of derivative liabilities. These improvements were partially offset by increased SG&A expenses, one-time costs associated with the company’s initial public offering, and higher interest expenses.
Adjusted EBITDA for the full year reached $2.1 million, compared with an Adjusted EBITDA loss of $3.7 million in 2024. This improvement reflects stronger gross profit and operational scaling as the company continues to expand.
Balance Sheet and Financial Position
As of December 31, 2025, prior to completing its IPO, Once Upon a Farm reported cash and cash equivalents of $10.9 million and total debt of $60.2 million.
This compares with $17.3 million in cash and $24.7 million in total debt as of December 31, 2024.
The decrease in net cash during the year primarily reflected increased investments in working capital and capital expenditures designed to support the company’s rapid growth. These investments included expanding manufacturing capacity, strengthening logistics infrastructure, and increasing retail distribution.
The company partially funded these investments through additional borrowings.
Successful Initial Public Offering
In February 2026, Once Upon a Farm completed its initial public offering, marking a significant milestone in its corporate history. Following the IPO, the company began trading on the New York Stock Exchange under the ticker symbol OFRM.
As part of the offering, the company issued 7.6 million newly created shares of common stock priced at $18 per share. Underwriters also exercised their option to purchase an additional 1.6 million shares at the same price.
In addition, certain existing shareholders sold 3.4 million shares in the offering.
The IPO generated approximately $139.3 million in net proceeds for the company after accounting for underwriting discounts, commissions, and other offering expenses.
Once Upon a Farm used a portion of the proceeds to repay outstanding borrowings under its revolving credit facility. The remaining funds are expected to be used for general corporate purposes, including working capital, operational investments, and continued expansion initiatives.
Following completion of the IPO, the company reported approximately 41.9 million shares of common stock outstanding.
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