Once Upon a Farm Sets $330 Million Fiscal 2027 Sales Floor

Once Upon a Farm expects fiscal 2027 net sales of at least $330 million and adjusted EBITDA at break-even or better, while costs tied to its Tractor Wheels recall could reach $30 million.

For fiscal 2026, management’s outlook calls for net sales of $290 million to $300 million and an adjusted EBITDA loss of $4.5 million to $7 million. The recall is voluntary, and management says related costs could total as much as $30 million.

CEO John Foraker said, “We took decisive action to address a potential safety concern on the Tractor Wheels product lines.”

Management expects to regain a significant majority of distribution for the products, but is still evaluating when they could return. The company is also assessing possible reformulation and design changes with outside experts. Its fiscal 2027 outlook depends partly on the product’s return and sales velocities across the broader portfolio.

For the third quarter of fiscal 2026, management reported net sales growth of 34.9% and a 32% increase in channel-wide consumption. Household penetration reached 6.5%, while the repeat rate among households with children was 52.1%. Management said the recall had not affected the rest of the portfolio so far, though broader portfolio sales velocities could face some drag.

Prior estimates put the fiscal 2028 adjusted EBITDA loss at $35.5 million, following projected losses of $1.2 million in fiscal 2026 and $16.2 million in fiscal 2027. The recall could also bring refunds, retailer removal fees and additional quality-control costs, alongside lost sales and profit.

BofA’s two-level rating cut reflected concerns that the risks could extend beyond lost sales, including possible effects on parental trust and retailer support.