Delivers ~15% Net Sales Growth
Raises 2026 Net Sales and Adjusted EBITDA Outlook
Updates Long-Term Adjusted Gross Margin Target to >49%
BEDMINSTER, N.J., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Freshpet, Inc. (“Freshpet” or the “Company”) (Nasdaq: FRPT) today reported financial results for its second quarter and six months ended June 30, 2026.
Second Quarter 2026 Financial Highlights Compared to Prior Year Period
- Net sales of $305.6 million, an increase of 15.5%.
- Gross margin of 42.1%, compared to the prior year period of 40.9%.
- Adjusted Gross Margin of 48.6%, compared to the prior year period of 46.9%.1
- Net income of $19.5 million, compared to the prior year period net income of $16.4 million.
- Adjusted EBITDA of $52.2 million, compared to the prior year period of $44.4 million.1
"Our second quarter performance demonstrates the strength and resilience of our business model. It also reinforces our belief that fresh is the future of pet food and that Freshpet is uniquely positioned to win in that segment," commented Billy Cyr, Freshpet’s Chief Executive Officer. "Despite economic headwinds and new competitors, we grew significantly faster than the category, improved margins, and produced strong cash flow. We believe our manufacturing scale and expertise enables us to deliver the highest quality products at the lowest costs, while our expanding omnichannel presence enables us to grow market share and deepen engagement with our most valuable pet parents. This gives us confidence in our ability to fulfill Freshpet's mission to help dogs and cats live longer, happier lives with the people who love them and create long-term value for shareholders."
Second Quarter 2026
Net sales increased 15.5% to $305.6 million for the second quarter of 2026, compared to $264.7 million in the prior year period. The increase in net sales was primarily driven by volume gains of 15.7%, partially offset by unfavorable price/mix of 0.2%.
Gross profit was $128.7 million, or 42.1% as a percentage of net sales, for the second quarter of 2026, compared to $108.2 million, or 40.9% as a percentage of net sales, in the prior year period. Gross profit as a percentage of net sales increased 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. For the second quarter of 2026, Adjusted Gross Profit was $148.4 million, or 48.6% as a percentage of net sales, compared to $124.0 million, or 46.9% as a percentage of net sales, in the prior year period.1
Selling, general and administrative expenses (“SG&A”) were $107.0 million, or 35.0% as a percentage of net sales, for the second quarter of 2026, compared to $90.4 million, or 34.1% as a percentage of net sales, in the prior year period. 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. Adjusted SG&A for the second quarter of 2026 was $96.1 million, or 31.4% as a percentage of net sales, compared to $79.6 million, or 30.1% as a percentage of net sales, in the prior year period.1
Net income was $19.5 million for the second quarter of 2026 compared to $16.4 million in the prior year period. The increase in net income was due to an additional gain on equity investment, as a result of certain post-closing adjustments on the sale of 100% of our non-controlling interest in a privately held company following its acquisition by a third party, and contributions from higher sales, partially offset by the increases in SG&A and income tax expense.
Adjusted EBITDA was $52.2 million for the second quarter of 2026 compared to $44.4 million in the prior year period.1 The increase in Adjusted EBITDA was a result of increased Adjusted Gross Profit, partially offset by higher Adjusted SG&A.
First Six Months of 2026
Net sales increased 14.3% to $603.2 million for the first six months of 2026, compared to $527.9 million in the prior year period. The increase in net sales was primarily driven by volume gains of 15.1%, partially offset by unfavorable price/mix of 0.8%.
Gross profit was $249.4 million, or 41.3% as a percentage of net sales, for the first six months of 2026, compared to $212.0 million, or 40.2% as a percentage of net sales, in the prior year period. Gross profit as a percentage of net sales increased 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. For the first six months of 2026, Adjusted Gross Profit was $288.0 million, or 47.7% as a percentage of net sales, compared to $244.3 million, or 46.3% as a percentage of net sales, in the prior year period.1
SG&A were $223.3 million, or 37.0% as a percentage of net sales, for the first six months of 2026, compared to $205.7 million, or 39.0% as a percentage of net sales, in the prior year period. SG&A as a percentage of net sales decreased primarily due to a decrease in non-recurring charges that occurred in the first half of 2025, partially offset by increased logistics costs and variable compensation accrual. Adjusted SG&A for the first six months of 2026 was $197.8 million, or 32.8% as a percentage of net sales, compared to $164.3 million, or 31.1% as a percentage of net sales, in the prior year period.1
Net income was $68.0 million for the first six months of 2026 compared to $3.7 million in the prior year period. The increase in net income was due to the gain on equity investment as a result of the sale of 100% of our non-controlling interest in a privately held company following its acquisition by a third party, contributions from higher sales, and decreased non-recurring SG&A charges, partially offset by increases in logistics costs, variable compensation accrual and income tax expense.
Adjusted EBITDA was $90.1 million for the first six months of 2026 compared to $79.9 million in the prior year period.1 The increase in Adjusted EBITDA was a result of increased Adjusted Gross Profit, partially offset by higher Adjusted SG&A.
Balance Sheet
As of June 30, 2026, the Company had cash and cash equivalents of $350.8 million with $398.4 million of debt outstanding, net of $4.1 million of unamortized debt issuance costs. Cash and cash equivalents increased $72.8 million compared to $278.0 million as of December 31, 2025, primarily as a result of the $100.0 million of cash proceeds received from the sale of our equity investment and $27.4 million of Free Cash Flow, partially offset by $54.4 million of share repurchases pursuant to the previously announced share repurchase program. For the six months ended June 30, 2026, cash from operations was $84.8 million, an increase of $46.1 million compared to the prior year period.
Outlook
For full year 2026, the Company is updating its guidance and now expects the following:
- Net sales growth in the range of 10% to 12%, compared to growth of 8% to 11% in the previous guidance;
- Adjusted EBITDA in the range of $210 million to $220 million, compared to $205 million to $215 million in the previous guidance; and
- Positive Free Cash Flow with capital expenditures of ~$150 million, unchanged from the previous guidance.
The Company is also updating its long-term guidance. For full year 2027, the Company now expects:
- Net sales well in excess of the category growth rate, unchanged;
- Adjusted Gross Margin of at least 49%, compared to at least 48% previously; and
- Adjusted EBITDA margin in the range of 20% to 22%, unchanged.
The Company does not provide guidance for net income, the U.S. GAAP measure most directly comparable to Adjusted EBITDA, and similarly cannot provide a reconciliation between its forecasted Adjusted EBITDA and net income metrics without unreasonable effort due to the unavailability of reliable estimates for certain components of net income and the respective reconciliations, including the timing of and amount of costs of goods sold and selling, general and administrative expenses. These items are not within the Company's control and may vary greatly between periods and could significantly impact future results.
Conference Call & Earnings Presentation Webcast Information
As previously announced, today, August 5, 2026, the Company will host a conference call beginning at 8:00 a.m. Eastern Time with members of its leadership team. The conference call webcast will be available live over the Internet through the "Investors" section of the Company's website at www.freshpet.com. To participate on the live call, listeners in North America may dial (844) 825-9789 and international listeners may dial (412) 317-5180; the passcode is 10210593.
About Freshpet
Freshpet's mission is to help dogs and cats live longer, happier, healthier lives with the people who love them. Developed by on-staff Veterinary Nutritionists, Veterinarians and Food Scientists, recipes are made from whole ingredients, like fresh meats, vegetables and fruits, and are cooked in small batches at lower temperatures to preserve their natural goodness and made at our Freshpet Kitchens. Freshpet foods and treats are kept refrigerated until they arrive at Freshpet Fridges in local markets or delivered directly to consumers.
Freshpet is available in select grocery, mass, digital, pet specialty, and club retailers across the United States, Canada and Europe, as well as online in the U.S. From the care they take to source their ingredients and make their food, to the moment it reaches your home, Freshpet's commitment to integrity, transparency and social responsibility is a point of pride.
Forward Looking Statements
Certain statements in this press release constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on our current expectations and assumptions. These include statements regarding our belief in the impact of our manufacturing expertise and omnichannel strategy, 2026 guidance and 2027 financial targets, and being uniquely positioned to capture a meaningful share of the category. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements including, but not limited to, those identified in connection with such statements, the implementation of our new technologies in the time frame, at the rate, at the cost, or with anticipated efficiencies and impact on product quality we expect, economic uncertainty, changes in rates of pet acquisition, the launch of competitive products at higher quality or less cost, impact of tariffs, fuel, energy and ingredient pricing, effectiveness of media campaigns, success rate of new chillers, organizational changes, and most prominently, the risks discussed under the heading "Risk Factors" in the Company's latest annual report on Form 10-K and in quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release. Freshpet undertakes no obligation to publicly update or revise any forward-looking statement because of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements.
Non-GAAP Financial Measures
Freshpet uses the following non-GAAP financial measures in its financial communications. These non-GAAP financial measures should be considered as supplements to the U.S. GAAP reported measures, should not be considered replacements for, or superior to, the U.S. GAAP measures and may not be comparable to similarly named measures used by other companies. Such financial measures are not financial measures prepared in accordance with U.S. GAAP.
- Adjusted Gross Profit
- Adjusted Gross Profit as a percentage of net sales (Adjusted Gross Margin)
- Adjusted SG&A Expenses
- Adjusted SG&A Expenses as a percentage of net sales
- EBITDA
- Adjusted EBITDA
- Adjusted EBITDA as a percentage of net sales (Adjusted EBITDA Margin)
- Free Cash Flow
Adjusted Gross Profit: Freshpet defines Adjusted Gross Profit as gross profit before depreciation expense, non-cash share-based compensation and loss on disposal of manufacturing equipment.
Adjusted SG&A Expenses: Freshpet defines Adjusted SG&A as SG&A expenses before depreciation and amortization expense, non-cash share-based compensation, loss on disposal of equipment, distributor transition costs, legal obligation and international business charges.
EBITDA and Adjusted EBITDA: EBITDA represents net income (loss) plus depreciation and amortization expense, interest expense net of interest income and income tax expense, and Adjusted EBITDA represents EBITDA less gain on equity investment, plus non-cash share-based compensation expense, loss on disposal of property, plant and equipment, distributor transition costs, legal obligation, and international business charges.
Free Cash Flow: Freshpet defines Free Cash Flow as net cash flows provided by operating activities less capital expenditures.
Management believes that the non-GAAP financial measures are meaningful to investors because they provide a view of the Company with respect to ongoing operating results. The non-GAAP financial measures are shown as supplemental disclosures in this release because they are widely used by the investment community for analysis and comparative evaluation. They also provide additional metrics to evaluate the Company’s operations and, when considered with both the Company’s GAAP results and the reconciliation to their most directly comparable U.S. GAAP measures, provide a more complete understanding of the Company’s business than could be obtained absent this disclosure. The non-GAAP measures are not and should not be considered an alternative to the most directly comparable U.S. GAAP measures or any other figure calculated in accordance with U.S. GAAP, or as an indicator of operating performance. The Company’s calculation of the non-GAAP financial measures may differ from methods used by other companies. Management believes that the non-GAAP measures are important to an understanding of the Company's overall operating results in the periods presented. The non-GAAP financial measures are not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP measures of performance.
FRESHPET, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except per share data)
June 30,
2026 December 31,
2025ASSETS CURRENT ASSETS: Cash and cash equivalents$350,809 $277,975 Accounts receivable, net of allowance for doubtful accounts 65,383 63,762 Inventories, net 86,734 76,766 Prepaid expenses 7,744 9,807 Other current assets 6,396 7,404 Total Current Assets 517,066 435,714 Property, plant and equipment, net 1,146,325 1,138,671 Operating lease right of use assets 64,786 66,424 Long term investment in equity securities — 33,446 Deferred tax assets, net 47,405 68,893 Other assets 36,833 34,627 Total Assets$1,812,415 $1,777,775 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable$36,817 $42,429 Accrued expenses 44,116 31,610 Current operating lease liabilities 2,189 2,241 Current finance lease liabilities 2,397 2,315 Total Current Liabilities 85,519 78,595 Convertible senior notes 398,443 397,330 Long term operating lease liabilities 64,046 65,023 Long term finance lease liabilities 26,582 28,075 Deferred tax liabilities, net 129 93 Total Liabilities$574,719 $569,116 Commitments and contingencies — — STOCKHOLDERS' EQUITY: Common stock — voting, $0.001 par value, 200,000 shares authorized, 49,671 issued and 48,625 outstanding on June 30, 2026, and 48,985 issued and 48,970 outstanding on December 31, 2025 49 49 Additional paid-in capital 1,367,847 1,351,201 Accumulated deficit (74,673) (142,669)Accumulated other comprehensive (loss) income (706) 334 Treasury stock, at cost, inclusive of excise tax and broker fees — 1,046 shares on June 30, 2026 and 14 shares on December 31, 2025 (54,821) (256)Total Stockholders' Equity 1,237,696 1,208,659 Total Liabilities and Stockholders' Equity$1,812,415 $1,777,775
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited, in thousands, except per share data) For the Three Months Ended
June 30, For the Six Months Ended
June 30, 2026 2025 2026 2025 NET SALES$305,587 $264,689 $603,231 $527,938 COST OF GOODS SOLD 176,893 156,499 353,863 315,960 GROSS PROFIT 128,694 108,190 249,368 211,978 SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES 106,985 90,386 223,328 205,671 INCOME FROM OPERATIONS 21,709 17,804 26,040 6,307 OTHER INCOME (EXPENSES): Interest and Other Income, net 2,830 2,199 5,713 4,592 Interest Expense (3,483) (3,749) (7,069) (7,208)Gain on Equity Investment 4,539 — 66,552 — TOTAL OTHER INCOME (EXPENSE) 3,886 (1,550) 65,196 (2,616)INCOME BEFORE INCOME TAXES 25,595 16,254 91,236 3,691 INCOME TAX EXPENSE (BENEFIT) 6,107 (102) 23,240 32 INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS$19,488 $16,356 $67,996 $3,659 OTHER COMPREHENSIVE (LOSS) INCOME: Change in foreign currency translation$(247) $240 $(1,040) $451 TOTAL OTHER COMPREHENSIVE (LOSS) INCOME (247) 240 (1,040) 451 TOTAL COMPREHENSIVE INCOME$19,241 $16,596 $66,956 $4,110 NET INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS -BASIC$0.40 $0.34 $1.38 $0.08 -DILUTED$0.39 $0.33 $1.29 $0.07 WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING -BASIC 49,197 48,778 49,129 48,755 -DILUTED 55,811 50,198 55,926 50,256
June 30, 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net income$67,996 $3,659 Adjustments to reconcile net income to net cash flows provided by operating activities: Provision for loss on accounts receivable 14 11,452 Loss on disposal of property, plant and equipment 154 1,229 Share-based compensation 15,516 15,037 Depreciation and amortization 49,954 42,436 Amortization of deferred financing costs 1,113 1,074 Change in operating lease right of use asset 1,638 727 Deferred income taxes 21,528 — Gain on equity investment (66,552) — Changes in operating assets and liabilities: Accounts receivable (1,467) (3,208)Inventories (9,991) (9,400)Prepaid expenses and other current assets 2,445 (3,913)Other assets (3,725) (3,060)Accounts payable (5,554) 2,291 Accrued expenses 12,713 (18,958)Operating lease liability (1,028) (673)Net cash flows provided by operating activities 84,754 38,693 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of equity investment 99,998 — Acquisitions of property, plant and equipment, software and deposits on equipment (57,324) (59,932)Net cash flows provided by (used in) investing activities 42,674 (59,932)CASH FLOWS FROM FINANCING ACTIVITIES: Purchase of treasury stock, inclusive of broker fees (54,391) — Proceeds from exercise of options to purchase common stock 5,985 187 Tax withholdings related to net shares settlements of restricted stock units (4,632) (2,860)Principal payments under finance lease obligations (1,556) (1,037)Net cash flows used in financing activities (54,594) (3,710)NET CHANGE IN CASH AND CASH EQUIVALENTS 72,834 (24,949)CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 277,975 268,633 CASH AND CASH EQUIVALENTS, END OF PERIOD$350,809 $243,684
June 30, Six Months Ended
June 30, 2026 2025 2026 2025 (Dollars in thousands)Gross profit$128,694 $108,190 $249,368 $211,978 Depreciation expense 17,858 13,729 35,156 28,909 Non-cash share-based compensation 1,882 1,831 3,469 3,114 Loss on disposal of manufacturing equipment — 260 12 255 Adjusted Gross Profit$148,434 $124,010 $288,005 $244,256 Adjusted Gross Profit as a % of Net Sales 48.6% 46.9% 47.7% 46.3%
RECONCILIATION BETWEEN SG&A EXPENSES AND ADJUSTED SG&A EXPENSES
Three Months Ended
June 30, Six Months Ended
June 30, 2026 2025 2026 2025 (Dollars in thousands)SG&A expenses$106,985 $90,386 $223,328 $205,671 Depreciation and amortization expense 6,394 6,167 13,374 12,104 Non-cash share-based compensation (a) 4,498 4,390 12,047 11,923 Loss on disposal of equipment 28 225 142 391 Distributor transition costs (b) — — — 10,680 Legal obligation (c) — — — 4,987 International business charges (d) — — — 1,273 Adjusted SG&A Expenses$96,065 $79,604 $197,765 $164,313 Adjusted SG&A Expenses as a % of Net Sales 31.4% 30.1% 32.8% 31.1%
RECONCILIATION BETWEEN NET INCOME AND ADJUSTED EBITDA
Three Months Ended
June 30, Six Months Ended
June 30, 2026 2025 2026 2025 (Dollars in thousands)Net income$19,488 $16,356 $67,996 $3,659 Depreciation and amortization 24,252 19,896 48,530 41,013 Interest expense, net of interest income 484 1,546 1,189 2,610 Income tax expense 6,107 (102) 23,240 32 EBITDA 50,331 37,696 140,955 47,314 Non-cash share-based compensation (a) 6,380 6,221 15,516 15,037 Loss on disposal of property, plant and equipment 28 485 154 646 Gain on equity investment (4,539) — (66,552) — Distributor transition costs (b) — — — 10,680 Legal obligation (c) — — — 4,987 International business charges (d) — — — 1,273 Adjusted EBITDA$52,200 $44,402 $90,073 $79,937 Adjusted EBITDA as a % of Net Sales 17.1% 16.8% 14.9% 15.1%
RECONCILIATION BETWEEN NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES AND FREE CASH FLOW
Six Months Ended
June 30, 2026 2025 (Dollars in thousands)Net cash flows provided by operating activities$84,754 $38,693 less: capital expenditures2 (57,324) (59,932)Free Cash Flow$27,430 $(21,239)
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1 Adjusted Gross Margin, Adjusted Gross Profit, Adjusted SG&A, Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. See "Non-GAAP Measures" for how the Company defines these measures and the financial tables that accompany this release for reconciliations of these measures to the closest comparable GAAP measures.
2 Capital expenditures is equivalent to the amount included in "Acquisitions of property, plant and equipment, software and deposits on equipment" on our Consolidated Statements of Cash Flows for the reported period.