Once Upon a Farm, PBC: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 2 November 2026: call transcript. The quarter’s numbers.

Key takeaways

FDA reported three choking reports: On Thursday afternoon Pacific Time the FDA told the company it had received three choking reports. Two were submitted directly to the FDA and had not previously reached the company. Source
No root cause linked yet: Management said the investigation had not identified a root cause that could be linked directly to the reports. Ingredient inputs and specifications were reviewed. Source
Line about 18% of net sales: Tractor Wheels as a set of products accounted for approximately 18% of company net sales year to date, which management gave to frame the revenue effect. Source
Recall costs still being assessed: The company is assessing the financial impact of the recall, covering product, retailer and recall-related costs. Source
Cash and no debt at quarter end: The company finished the quarter with $106.4 million in cash and no debt. Source
Insurance recovery uncertain: The company is evaluating potential recoveries under its recall insurance and coordinating with its manufacturing partner. It cannot yet say whether or when any recovery will be obtained. Source
Trust named as core asset: Management said the steps were taken because trust is its number one asset as a childhood nutrition brand, and that consumer safety comes first. Source

“We are confident this decision is the right one for our business.”
John Foraker, Chief Executive Officer, Co-Founder and Chair

Guidance

Area	Period	Figure	Against last quarter
Net sales	full year 2026	$327 million to $335 million
Adjusted EBITDA	full year 2026	$3 million to $4.5 million

What changed from last quarter

New: Voluntary recall of all Tractor Wheels flavors and SKUs, announced in a press release on Friday evening. Source

Recall background and decision

Single parent complaint started review: The company received one parent complaint about a choking incident and reported no known injuries. It requested lot codes and began reviewing complaint files. Source
FDA reported three choking reports: On Thursday afternoon Pacific Time the FDA told the company it had received three choking reports. Two were submitted directly to the FDA and had not previously reached the company. Source
No root cause linked yet: Management said the investigation had not identified a root cause that could be linked directly to the reports. Ingredient inputs and specifications were reviewed. Source
Lot ambiguity drove full-line recall: Management cited the additional FDA information and the unclear flavors and lots involved as reasons for recalling the entire Tractor Wheels line. Source
FDA aware and working alongside: The company said the FDA is aware of the decision and that it is working closely with the agency to make sure affected products are removed. Source

Consumer and retailer response

Consumers largely supportive: Management said many consumers responded with understanding and support. The company used social media, email and its e-commerce site to reach consumers. Source
Consumer Relations staffing added: Temporary staff were added to Consumer Relations to answer inquiries promptly and personally. A website question-and-answer link covers common questions. Source
Retailers acted on pulls and holds: Retailers and distributors acted on store pulls, distribution center holds and online listing removals. The company sent email, in-store notices, call scripts and a hotline number. Source
Retailers want product back: Management said retail partners look forward to seeing Tractor Wheels return to shelves once the matter is resolved in the appropriate manner. Source

“I sincerely believe that we will emerge as a stronger company, and as a stronger brand.”
John Foraker, Chief Executive Officer, Co-Founder and Chair

Sales exposure from the recall

Line about 18% of net sales: Tractor Wheels as a set of products accounted for approximately 18% of company net sales year to date, which management gave to frame the revenue effect. Source
Products described as top sellers: Management described the products as top sellers and highly productive SKUs that are beloved by consumers. Source
Sales absent until shipments resume: The company said that while the products are off the market, their absence will affect sales until shipments resume. Source

Costs, cash and insurance

Recall costs still being assessed: The company is assessing the financial impact of the recall, covering product, retailer and recall-related costs. Source
Cash and no debt at quarter end: The company finished the quarter with $106.4 million in cash and no debt. Source
Extra borrowing capacity available: Up to $95 million more is available to borrow under existing credit facilities, subject to their terms. Source
Insurance recovery uncertain: The company is evaluating potential recoveries under its recall insurance and coordinating with its manufacturing partner. It cannot yet say whether or when any recovery will be obtained. Source

“We will continue to take the steps needed to address the recall and earn the trust families place in us.”
John Foraker, Chief Executive Officer, Co-Founder and Chair

Return-to-market plans

Third party assessing products: The company engaged a third party to assess its products and will evaluate its options based on those findings. Source
Inventory disposition in progress: Operations is working with Sales and retail partners to coordinate disposition of all affected inventory. Source
Production plans prepared for return: Production plans are being prepared to support a return to shelf as soon as possible, after the review and any validated changes. Source
Distribution to rebuild quickly: Management said it is confident it can rebuild distribution quickly once it is ready to reenter the market. Source

Stated position and call scope

Trust named as core asset: Management said the steps were taken because trust is its number one asset as a childhood nutrition brand, and that consumer safety comes first. Source
Challenging period acknowledged: Management said it understands the period will be challenging and that the company will manage through it. Source
Internal alignment and outside work: Management said the company is aligned internally and working with customers and outside experts to do the right thing for consumers. Source
No questions taken on the call: The company said it cannot comment beyond its press release and the call remarks, so questions were not taken on this call. Source

Coming up, as management said on 2 November 2026

Q3 results on November 12: The company will report third-quarter results on Thursday, November 12 after market close and provide any updates it has then. Source
Cost and insurance update to come: The company will provide an update on total costs and insurance recovery as soon as practical. Source

Risks management discussed

Regulatory: The company is working with the FDA on removal of affected products and on information for families. Source
Financial: Total recall costs and insurance recovery are not yet quantified. Source
Demand: The line is off the market, which reduces sales until shipments resume, with the timing of return tied to resolution. Source
Demand: Management named consumer trust as its central asset, so the recall bears on brand trust with families. Source

Earlier plans management reported on

Not stated: Management said it acted quickly and decisively in line with its commitment to the quality and safety of its products. Source
Not stated: Management said the information requested from the consumer followed the company's standard process for safety complaints. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Once Upon a Farm, PBC

Conference Call Transcript

Event Date/Time: November 2, 2026 / 8:30 a.m. ET

Corporate Participants:

John M. Foraker, Once Upon a Farm - Chief Executive Officer, Co-Founder and Chair

Operator

Greetings, and welcome to Once Upon a Farm's Business Update Conference Call. At this time, all participants are in listen-only mode. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Brian Holland, Vice President of Investor Relations. Thank you. You may begin.

Brian Holland, VP of Investor Relations

Thank you and welcome to the Once Upon a Farm Business Update Conference Call. With us on the call today is John Foraker, Chief Executive Officer.

By now, everyone should have access to the Tractor Wheels Recall press release that hit the wire on Friday evening last week and is available on the Investor Relations section of Once Upon a Farm's website at www.onceuponafarmorganics.com. This call is also being webcast and a replay will be available shortly after the call concludes.

Before we begin, some of our comments today regarding the recall, including our plans, expectations and anticipated next steps, are forward-looking statements based on information currently available to us. Actual developments and results may differ materially from these expectations. For additional information about the risks and uncertainties that could affect these statements, please refer to the risk factors discussed in our most recent SEC filings, including our Form 8-K filed this morning, and our recall announcement.

And now, I will turn the call over to John to begin.

John Foraker, CEO

Thank you, Brian. Good morning, everyone and thank you for joining us today.

Following the press release we issued Friday evening announcing a voluntary recall of our Tractor Wheels product line, which you can find on our website, we scheduled this call to provide color on what happened, share as much information as we can at this point, and because we want to be as transparent as possible with all our stakeholders.

We will provide background on the situation and outline our plans to manage through it, on to an eventual recovery in this important part of our business.

Recently, we received a single complaint from a parent concerning a choking incident related to the Tractor Wheels product. Fortunately, we are not aware of any reported injuries, but as would be expected, this was a scary event for both the parent and the child. We immediately followed up upon receipt of the complaint to obtain more information about the product and incident, including requesting the lot code, flavor, and any other identifying information, all of which are consistent with our standard process for safety complaints.

While waiting to receive this information from the consumer, we began an intensive review of our complaint files to determine if we received other similar reports of potential choking incidents associated with these products and also reached out to third party experts to explore having a physical hazard assessment conducted. When we obtained the lot codes from the consumer last week, we started a deep-dive, including looping in our manufacturer to investigate potential production or supplier non-conformities.

On Thursday afternoon Pacific Time, the FDA informed us that it had received three reports of choking incidents: one was the parent’s report I just described, and the other two were submitted directly to the FDA, neither of which we had previously received. With this new information, our food safety and quality teams expanded their investigation and evaluated production records, product retains, and other available information to determine a potential root cause. We were looking to understand how the product could manifest as a choking hazard in the manner described in the complaints, when we did not receive any complaints of this kind prior to this year. During the 24 hours between receiving this information from the FDA and our decision to recall the product, our teams reviewed the factors most likely to account for a complaint of this kind, including ingredient inputs and adherence to our manufacturing and quality specifications.

Our investigation has not yet identified a root cause that we can directly link to these reports. However, given the additional information the FDA provided to us and the lack of clarity around which flavors and lots were involved, we decided to voluntarily recall all Tractor Wheels flavors and SKUs. This decision is consistent with our high standards for safety and as a trusted childhood nutrition brand. The consumer is our number one priority. The FDA is aware of this decision, and we are working closely with them to make sure affected products are removed, and families have the information they need.

As soon as our press release crossed the wire Friday night, we immediately began engaging with stakeholders. We moved quickly across our consumer channels, including social media, email, a dedicated section on our e-commerce site, and leveraged our marketing and retail partners for additional support. Many consumers have responded with understanding and support for our decision to voluntarily recall the entire Tractor Wheels line. We are grateful for that acknowledgement and will continue to put consumers first by making information and next steps easy to understand and execute. We are adding temporary staff to our Consumer Relations team so that we can respond to inquiries promptly and personally, and we will adapt based on the needs of those affected. We have also added a question-and-answer link on our website to address the most common questions we’ve received from consumers and will add to that as needed.

We promptly connected with retailers and distributors to ensure they acted swiftly on store pulls, distribution center holds, and online listing removals; that work continued through the weekend. We delivered email communications, in-store notifications, call scripts, and a hotline number for inquiries. Our customer relationships have always been built on trust and transparency, and we acted quickly and decisively, in line with our commitment to the quality and safety of our products. We are humbled and appreciative of the support we’ve received from our retail partners, who have told us they look forward to seeing Tractor Wheels back on their shelves as soon as this is all resolved in the appropriate manner. These products are top sellers, highly productive SKU’s, and beloved by consumers. As soon as we are ready to reenter the market, we are confident in our ability to rebuild distribution quickly.

Our Operations team is working with Sales and our retail partners to coordinate the disposition of all affected inventory. We have engaged a third party to assess our products; we will evaluate our options based on those findings. In parallel, we are preparing production plans to support a return to shelf as soon as possible, once the review is complete and any necessary changes that assure the product meets our high standards for safety have been implemented and validated.

We are currently assessing the financial impact of the recall, including product, retailer, and recall-related costs. It is still too early to offer a reliable estimate of the total costs we expect to incur, or the insurance recovery; we will provide an update as soon as practical. To help you frame the revenue impact of the recall, Tractor Wheels as a set of products has accounted for approximately 18% of total company net sales year-to-date. While they are off the market, their absence will affect sales until we resume shipments.

We believe our financial position gives us the flexibility to manage through this period. We finished Q3 with $106.4 million in cash and no debt. In addition, we have up to $95 million more available to borrow through existing credit facilities, subject to their terms. We are evaluating potential recoveries under our recall insurance coverage and coordinating with our manufacturing partner regarding any applicable coverage. We cannot yet predict whether or when any recovery will be obtained.

We have taken the steps I outlined because as a leading childhood nutrition brand, trust is our number one asset, and we will always place consumer safety first. We are confident this decision is the right one for our business. We understand this will be a challenging period; we also know that we will manage through it. We are aligned internally, while working diligently with our customers and outside experts to do the right thing for consumers.

I want to thank our entire organization and external partners for their incredible effort over the past few days. I’m proud of the care and commitment they have shown in supporting consumers and customers through this difficult situation. Our mission: to drive systemic change in childhood nutrition for a happier, healthier, and more equitable world - and our responsibility to consumers comes first. We will continue to take the steps needed to address the recall and earn the trust families place in us. I sincerely believe that we will emerge as a stronger company, and as a stronger brand.

At this time, we cannot comment beyond our press release and the remarks I have made this morning; so, we will not be taking questions today. We will report our third quarter results on Thursday, November 12 after market close, at which time we will be sure to provide any updates we have. Thank you for joining me for the call.

Operator

That concludes the call. You may now disconnect.

Contacts
Brian Holland, Once Upon a Farm - Vice President of Investor Relations