Freshpet Raises 2026 Sales and EBITDA Outlook

The Tip Desk · August 5, 2026 · 3 min read

Second-quarter net sales reached $305.6 million as year-over-year growth accelerated to 15.5% from 13.1% in the first quarter.

Freshpet, Inc. (FRPT), the refrigerated pet-food maker, reported second-quarter net sales of $305.6 million, up 15.5% from a year earlier, as growth accelerated from 13.1% in the first quarter and 8.6% in the fourth quarter of 2025.

The increase was driven primarily by volume gains of 15.7%, with unfavorable price/mix of 0.2%. That mix was cleaner than the first quarter, when volume rose 14.6% and price/mix was 1.5% unfavorable.

Gross margin expanded to 42.1% from 40.9% a year earlier, after 40.5% in the first quarter. Gross profit was $128.7 million. The margin gain was primarily due to lower input costs and improved leverage on plant expenses, partially offset by higher quality costs related to the startup of new technology lines.

Adjusted gross margin was 48.6%, compared with 46.9% a year earlier. Adjusted gross profit was $148.4 million.

Selling, general and administrative expenses were $107.0 million, or 35.0% of net sales, versus $90.4 million, or 34.1%, a year earlier. Adjusted SG&A was $96.1 million, or 31.4%. SG&A as a percentage of sales increased primarily due to higher logistics costs and a variable compensation accrual, partially offset by lower media spend as a percentage of net sales.

Net income was $19.5 million, compared with $16.4 million a year earlier. The increase reflected an additional gain on an equity investment from post-closing adjustments on the sale of its non-controlling interest in a privately held company, plus higher sales, partially offset by higher SG&A and income tax expense. Adjusted EBITDA was $52.2 million, or 17.1% of net sales, versus $44.4 million, or 16.8%, a year earlier.

Chief Executive Officer Billy Cyr said the quarter showed the strength of the business model and that Freshpet grew significantly faster than the category, improved margins, and produced strong cash flow.

For the full year 2026, Freshpet now expects net sales growth of 10% to 12%, compared with prior guidance of 8% to 11%, and Adjusted EBITDA of $210 million to $220 million, compared with $205 million to $215 million. Positive free cash flow with capital expenditures of about $150 million was unchanged.

The company also raised its long-term 2027 Adjusted Gross Margin target to at least 49%, from at least 48% previously. It still expects 2027 net sales well in excess of the category growth rate and an Adjusted EBITDA margin of 20% to 22%.

Cash and cash equivalents were $350.8 million as of June 30, 2026, with $398.4 million of debt outstanding, net of $4.1 million of unamortized debt issuance costs. Cash rose $72.8 million from $278.0 million at year-end 2025, primarily from $100.0 million of proceeds from the equity-investment sale and $27.4 million of free cash flow, partially offset by $54.4 million of share repurchases.

For the six months ended June 30, 2026, net sales rose 14.3% to $603.2 million, with volume gains of 15.1% and unfavorable price/mix of 0.8%. Adjusted EBITDA for the six months was $90.1 million, or 14.9% of net sales. Free cash flow for the six months was $27.4 million, versus a $21.2 million outflow a year earlier. Cash from operations was $84.8 million.

The company does not provide guidance for net income and cannot reconcile forecasted Adjusted EBITDA to net income without unreasonable effort.