Once Upon a Farm maintains 2027 growth plans amid Tractor Wheels recall

The children’s nutrition company’s Q3 business performed above expectations before the voluntary recall of its Tractor Wheels soft baked bars, which the company estimates roughly $30 million in recall-related costs that cut into its 2026 guidance, but management expects steady and strong 2027 growth for the rest of the portfolio as it prepares for new innovations and expanded distribution.

Products affected and public guidance

Once Upon a Farm reported third-quarter net sales of $89.1 million, up 34.9% year over year, driven primarily by 32% volume growth, according to according to the company’s quarterly earnings released Nov.

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The company said Q3 results were in line with internal expectations and remain strong prior to the impact of its recently announced voluntary Tractor Wheels recall.

The company ended the quarter with $106.4 million in cash, no debt and access to an additional $95 million under its current credit line.

Executives said the company has enough liquidity to address recall-related costs and continue financing supply chain investments.

Recall background

The company lowered its fiscal 2026 outlook to reflect anticipated recall-related costs of removing Tractor Wheels from shelves – a high velocity snack that accounted for roughly 18% of year-to-date net sales prior to the recall.

The company now expects fiscal 2026 net sales of $290 million to $300 million, down from its earlier outlook of $327 million to $335 million, and an adjusted EBITDA loss of $4.5 million to $7 million compared to previous guidance for a loss of $3 million to $4.5 million.