Once Upon a Farm — Q3 2026 Business Update Summary

Financial Performance:

• Tractor Wheels product line accounted for approximately 18% of total company net sales year-to-date prior to the recall.
• The company finished Q3 with $106.4 million in cash.
• The company reported having no debt.
• The company has up to $95 million available to borrow through existing credit facilities, subject to terms.
• Financial impact of the recall, including product, retailer, and recall-related costs, is currently being assessed; no reliable estimate of total costs or insurance recovery is available at this time.

Guidance and Future Outlook:

• Third quarter results are scheduled to be reported on Thursday, November 12 after market close, at which time updates regarding the recall will be provided.
• The company plans to prepare production plans to support a return to shelf as soon as possible once the review is complete and necessary safety changes are implemented and validated.
• Management is confident in the ability to rebuild distribution quickly once products are ready to reenter the market.

Business Segments and Product Lines:

• A voluntary recall has been issued for the entire Tractor Wheels product line, encompassing all flavors and SKUs.
• The recall was initiated following a single consumer complaint regarding a choking incident and three total reports of choking incidents received from the FDA.
• No root cause has been identified that can be directly linked to the reports; the decision to recall all SKUs was made due to a lack of clarity regarding which specific flavors and lots were involved.
• Tractor Wheels are described as top sellers, highly productive SKUs, and beloved by consumers.
• The company is engaging a third party to assess affected products to evaluate disposition options.

Market and Competitive Landscape:

• Retail partners have expressed support for the recall decision and look forward to seeing Tractor Wheels back on shelves once resolved.
• The company has engaged with retailers and distributors to ensure swift store pulls, distribution center holds, and online listing removals.

Risks and Challenges:

• The recall presents a significant revenue impact as the affected products are currently off the market.
• The company faces uncertainty regarding the timing of insurance recoveries and the total financial cost of the recall.
• The investigation into the root cause of the choking incidents remains ongoing.

Management Commentary and Tone:

• CEO John Foraker emphasized that consumer safety is the number one priority and that trust is the company's most important asset.
• Management described the decision to recall as consistent with high safety standards and necessary to maintain the brand's reputation as a trusted childhood nutrition company.
• The tone was confident that the company will manage through the challenging period and emerge as a stronger brand.
• Management declined to answer questions during this call, stating they could not comment beyond the press release and remarks made.

Other Key Points:

• The company added temporary staff to the Consumer Relations team to handle inquiries promptly.
• A dedicated section on the e-commerce site, social media, email communications, and a hotline number were established to support consumers and stakeholders.
• The company is evaluating potential recoveries under recall insurance coverage and coordinating with the manufacturing partner regarding applicable coverage.
• This call was a business update regarding the recall; no formal earnings figures (revenue, profit, etc.) were disclosed during this specific event.