Once Upon A Farm (OFRM) Q2 FY26 earnings call: guidance and Q&A

Once Upon A Farm achieved 42.3% year-over-year net sales growth in Q2 FY26, outpacing consumption growth in the low to mid-30% range. This was primarily driven by significant distribution gains, including successful initial shipments of protein-positioned innovation, and favorable cooler slotting. The company remains the fastest-growing brand in baby and toddler snacks by dollar share and continues to gain share in baby and toddler pouches, attracting new incremental consumers and taking share from established competitors.

Household penetration for the brand increased to 6.2% by the end of June, up from 5% a year ago. Despite this significant increase, the buy rate continued to grow. The repeat rate among households with kids improved by 351 basis points to 52.1%, with new families repeating at even higher rates. This indicates successful execution of the strategy to build the brand from baby through kid, widening the consumer funnel and increasing retention and spend per household.

Innovation was a key driver of growth, particularly in the baby business. The newly launched meat and legume protein pouches were highly incremental, contributing 61% to Old Farm and 63% to the total baby category at certain retailers. In the kid business, innovation such as Power Wheels with protein and protein and probiotic pouches, along with packaging refreshes for the dairy-free smoothies line, drove 10% to 15% average velocity increases and contributed to over 15,000 new points of distribution.

Productivity per cooler continues to increase, with one large customer seeing cooler velocity rise by over 30% in the quarter due to new product additions. The company remains on track to reach approximately 5,000 coolers in 2026, 8,000 in 2027, and at least 15,000 over time^⏳. Management noted that second coolers are already being added in some long-standing retailers, and larger coolers are being considered, highlighting the strategic importance of this channel for brand entry and growth.

A national club program executed in May was described as exceptional, meeting high expectations for velocity and volumes. This program successfully exposed the brand to millions of new households, with household penetration in the immunity blend portfolio increasing by over 20% versus April. Another, albeit smaller, national program focusing on toddler snack products is planned for Q3, aiming to drive further consumer purchase activity, deeper household penetration, and increased awareness.

The company is advancing new targeted automation and productivity initiatives with co-manufacturing partners to increase capacity, improve service, and reduce costs, particularly labor. Initial benefits are expected in 2027, with a larger contribution in 2028. These projects involve an estimated capital investment of $25 million to $35 million over the next 2-3 years, with co-manufacturers also investing, and are expected to yield high ROI, strengthening long-term profit confidence.