Freshpet, Inc. Reports Third Quarter 2026 Financial Results
Freshpet, Inc. (FRPT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Freshpet, Inc. Reports Third Quarter 2026 Financial Results Delivers 10% Net Sales Growth Achieves Gross Margin of 45% and Adjusted Gross Margin of 50% Raises and Narrows 2026 Outlook Bedminster, N.J. – November 4, 2026 – Freshpet, Inc. (“Freshpet” or the “Company”)
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance provide a fresh catalyst for short‑term price moves and may influence sector peers.
Market read
The release offers a new data point for traders targeting consumer discretionary and pet‑food stocks.
What to watch
Increased SG&A and logistics costs could pressure profitability if sales growth slows.
Freshpet Reports Third Quarter 2026 Financial Results, Delivers 10% Net Sales Growth, Achieves Gross Margin of 45% and Adjusted Gross Margin of 50%, and Raises and Narrows 2026 Outlook
Third-quarter net sales increased 10.0%, gross margin expanded to 44.5%, Adjusted EBITDA increased to $64.5 million, and the Company raised its full-year net sales growth outlook. Reported net income declined because the prior-year period included a $77.9 million tax benefit.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third Quarter 2026 net salesGAAP | $317.8M | – | 10.0% |
| Third Quarter 2026 volume gainsother | 10.0% | – | – |
| Third Quarter 2026 gross profitGAAP | $141.3M | – | – |
| Third Quarter 2026 gross marginGAAP | 44.5% | – | – |
| Third Quarter 2026 Adjusted Gross Profitnon-GAAP | $158.8M | – | – |
| Third Quarter 2026 Adjusted Gross Marginnon-GAAP | 50.0% | – | – |
| Third Quarter 2026 SG&A expensesGAAP | $106.2M | – | – |
| Third Quarter 2026 SG&A expenses as a percentage of net salesGAAP | 33.4% | – | – |
| Third Quarter 2026 Adjusted SG&A Expensesnon-GAAP | $94.2M | – | – |
| Third Quarter 2026 Adjusted SG&A Expenses as a percentage of net salesnon-GAAP | 29.6% | – | – |
| Third Quarter 2026 income from operationsGAAP | $35.1M | – | – |
| Third Quarter 2026 net incomeGAAP | $29.7M | – | – |
| Third Quarter 2026 basic net income per share attributable to common stockholdersGAAP | $0.61 | – | – |
| Third Quarter 2026 diluted net income per share attributable to common stockholdersGAAP | $0.58 | – | – |
| Third Quarter 2026 Adjusted EBITDAnon-GAAP | $64.5M | – | – |
| Third Quarter 2026 Adjusted EBITDA Marginnon-GAAP | 20.3% | – | – |
| First Nine Months of 2026 net salesGAAP | $921.1M | – | 12.8% |
| First Nine Months of 2026 volume gainsother | 13.3% | – | – |
| First Nine Months of 2026 price/mixother | unfavorable price/mix of 0.5% | – | – |
| First Nine Months of 2026 gross profitGAAP | $390.7M | – | – |
| First Nine Months of 2026 gross marginGAAP | 42.4% | – | – |
| First Nine Months of 2026 Adjusted Gross Profitnon-GAAP | $446.8M | – | – |
| First Nine Months of 2026 Adjusted Gross Marginnon-GAAP | 48.5% | – | – |
| First Nine Months of 2026 SG&A expensesGAAP | $329.5M | – | – |
| First Nine Months of 2026 SG&A expenses as a percentage of net salesGAAP | 35.8% | – | – |
| First Nine Months of 2026 Adjusted SG&A Expensesnon-GAAP | $291.9M | – | – |
| First Nine Months of 2026 Adjusted SG&A Expenses as a percentage of net salesnon-GAAP | 31.7% | – | – |
| First Nine Months of 2026 income from operationsGAAP | $61.2M | – | – |
| First Nine Months of 2026 gain on equity investmentGAAP | $66.6M | – | – |
| First Nine Months of 2026 net incomeGAAP | $97.7M | – | – |
| First Nine Months of 2026 diluted net income per share attributable to common stockholdersGAAP | $1.88 | – | – |
| First Nine Months of 2026 Adjusted EBITDAnon-GAAP | $154.6M | – | – |
| First Nine Months of 2026 Adjusted EBITDA Marginnon-GAAP | 16.8% | – | – |
| First Nine Months of 2026 cash from operationsGAAP | $145.5M | – | an increase of $40.1 million |
| First Nine Months of 2026 capital expendituresother | $80.3M | – | – |
| First Nine Months of 2026 Free Cash Flownon-GAAP | $65.3M | – | – |
| First Nine Months of 2026 Free Cash Flow as a percentage of net salesnon-GAAP | 7.1% | – | – |
Full year 2026 and full year 2027 outlook
- RevenueFull year 2026 net sales growth in the range of 12% to 13%
- Gross marginFull year 2027 Adjusted Gross Margin of at least 49%, unchanged
- NoteFull year 2026 Adjusted EBITDA in the range of $215 million to $220 million
- NoteFull year 2026 positive Free Cash Flow with capital expenditures between $125 to $150 million
- NoteFull year 2027 net sales well in excess of the category growth rate, unchanged
- NoteFull year 2027 Adjusted EBITDA margin in the range of 20% to 22%, unchanged
Capital returns
- $102.3 million of share repurchases pursuant to the previously announced share repurchase program
- Purchase of treasury stock, inclusive of broker fees of $102.3 million for the nine months ended September 30, 2026
What drove it
- Third-quarter net sales growth was primarily driven by volume gains of 10.0%.
- Third-quarter gross margin increased primarily due to improved leverage on plant expenses, reduced quality costs and lower input costs.
- Third-quarter SG&A as a percentage of net sales increased primarily due to increased logistics costs and variable compensation accrual, partially offset by decreased media spend as a percentage of net sales.
- For the first nine months of 2026, net sales growth was primarily driven by volume gains of 13.3%, partially offset by unfavorable price/mix of 0.5%.
- Nine-month gross margin increased primarily due to improved leverage on plant expenses and lower input costs.
- Nine-month net income included a $66.6 million gain on equity investment.
Concerns
- Third-quarter net income was $29.7 million compared to $101.7 million in the prior-year period, which included a discrete $77.9 million tax benefit.
- Third-quarter SG&A expenses as a percentage of net sales were 33.4%, compared to 30.9% in the prior-year period.
- Adjusted SG&A Expenses as a percentage of net sales were 29.6% in the third quarter and 31.7% in the first nine months, compared to 27.1% and 29.7%, respectively, in the prior-year periods.
- The Company cited economic uncertainty, competition, tariffs, fuel, energy and ingredient pricing, media effectiveness, and new-chiller execution among forward-looking risks.
What to watch
- Delivery against full-year 2026 net sales growth guidance of 12% to 13%.
- Delivery against full-year 2026 Adjusted EBITDA guidance of $215 million to $220 million.
- Capital expenditures between $125 to $150 million and positive Free Cash Flow for full-year 2026.
- The effect of logistics costs, variable compensation accrual, media spend, input costs and plant-expense leverage on margins.
- Progress toward the full-year 2027 targets of Adjusted Gross Margin of at least 49% and Adjusted EBITDA margin of 20% to 22%.
Balance sheet and cash flow
- Cash and cash equivalents of $345.9 million as of September 30, 2026, compared to $278.0 million as of December 31, 2025
- $399.0 million of debt outstanding, net of $3.5 million of unamortized debt issuance costs, as of September 30, 2026
- Cash and cash equivalents increased $67.9 million, primarily as a result of $100.0 million of cash proceeds from the sale of the equity investment and $65.3 million of Free Cash Flow, partially offset by $102.3 million of share repurchases
- Proceeds from sale of equity investment were $100.0 million for the nine months ended September 30, 2026
- Net cash flows provided by operating activities were $145.5 million for the nine months ended September 30, 2026, compared to $105.5 million in the prior-year period
- Net cash flows used in financing activities were $97.4 million for the nine months ended September 30, 2026
Analysis
Freshpet delivered third-quarter net sales of $317.8 million, up 10.0% from $288.8 million, with growth primarily driven by volume gains of 10.0%. For the first nine months of 2026, net sales increased 12.8% to $921.1 million. Nine-month volume gains of 13.3% were partially offset by unfavorable price/mix of 0.5%, making volume the reported principal contributor to growth.
Margin performance improved materially. Third-quarter gross margin was 44.5%, compared with 39.5% in the prior-year period, while Adjusted Gross Margin was 50.0%, compared with 46.0%. The Company attributed the GAAP gross-margin improvement to improved leverage on plant expenses, reduced quality costs and lower input costs. Third-quarter Adjusted EBITDA was $64.5 million, or 20.3% of net sales, compared with $54.6 million, or 18.9% of net sales.
Reported earnings were affected by items that did not recur in the same form. Third-quarter net income was $29.7 million, versus $101.7 million in the prior-year period, when the Company recognized a $77.9 million deferred income tax benefit. For the first nine months, net income was $97.7 million versus $105.3 million, with current-year results including a $66.6 million gain on equity investment. SG&A was $106.2 million, or 33.4% of net sales, in the third quarter, with higher logistics costs and variable compensation accrual identified as pressures.
Cash generation and capital allocation were significant in the nine-month period. Cash from operations was $145.5 million, Free Cash Flow was $65.3 million, and capital expenditures were $80.3 million. Cash and cash equivalents were $345.9 million at September 30, 2026, while debt outstanding was $399.0 million, net of $3.5 million of unamortized debt issuance costs. The Company repurchased $102.3 million of shares and received $100.0 million of proceeds from the sale of its equity investment.
The Company raised and narrowed its full-year 2026 net sales growth outlook to 12% to 13% from 10% to 12%, while narrowing the Adjusted EBITDA range to $215 million to $220 million from $210 million to $220 million. It also expects positive Free Cash Flow with capital expenditures between $125 to $150 million, compared with approximately $150 million previously. Freshpet reiterated its 2027 targets, including Adjusted Gross Margin of at least 49% and Adjusted EBITDA margin of 20% to 22%.
Management, verbatim
Our third quarter results demonstrate the strength and durability of the Freshpet business model. In a challenging consumer and intense competitive environment, we delivered double-digit net sales growth, expanded margins and achieved our strongest Adjusted Gross Margin in more than seven years, while continuing to grow market share.
Billy Cyr, Chief Executive Officer
Not in the filing
stated, not guessed- No reportable revenue segments were provided.
- No prior-quarter comparisons were provided for the reported metrics.
- No quarterly operating cash flow or quarterly Free Cash Flow was provided.
- No effective income tax rate was provided.
- No GAAP net-income, operating-expense, gross-margin, or tax-rate guidance was provided.
- No separately supplied previous outlook section was provided for a formal actual-versus-prior-guidance comparison.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Freshpet filed a Form 8‑K with Q3 2026 financial results and updated its full‑year outlook.
Ticker impact
Freshpet reported Q3 2026 results with 10% sales growth and raised guidance for full‑year net sales and adjusted EBITDA.
likely upward pressure as the market prices in the raised guidance
Revenue and margin expansion beat prior year, and the company updated guidance to higher sales and EBITDA ranges, indicating stronger growth trajectory.
Market effects
Pet food sector may see broader optimism as Freshpet's growth suggests rising demand for fresh pet nutrition.
U.S. consumer discretionary sentiment could improve modestly.
Limited to niche consumer segment; minimal global macro effect.
Counterpoint
Higher guidance may already be priced in; investors should watch for execution risk on margin expansion.
Key entities
- companyFreshpet, Inc.
Pet food manufacturer reporting Q3 results and updated guidance.
