Freshpet raises 2026 sales outlook as Q3 EPS tops estimates

Freshpet (FRPT) said in its Nov. 4 results release that third-quarter net sales rose 10% to $317.84 million, and it raised its 2026 sales growth forecast.

Diluted earnings per share were 58 cents, topping the 43 cents consensus estimate. Revenue was in line with the $318.28 million consensus estimate.

Shares rose 1.0% in regular trading as of 3:16 p.m. ET, from $69.47 before the filing.

Here's how the company did:

• Net sales: $317.84 million vs. $288.85 million a year earlier
• Diluted EPS: 58 cents per share vs. $1.86 a year earlier, against the 43 cents consensus estimate
• Adjusted EBITDA: $64.5 million, or 20.3% of net sales, vs. $54.6 million a year earlier

Freshpet makes refrigerated fresh food for dogs and cats, sold through its own network of refrigerated fridges in stores.

Net income fell to $29.7 million from $101.7 million a year earlier. The prior-year figure included a $77.9 million deferred income tax benefit from releasing most of the company's valuation allowance.

Margins and costs

Adjusted gross margin rose to 50.0% from 46.0%, while gross margin was 44.5%, compared with 39.5% a year earlier. The company said improved leverage on plant expenses, reduced quality costs and lower input costs drove the gain.

SG&A was 33.4% of net sales, compared with 30.9%. The company said increased logistics costs and a higher variable compensation accrual pushed it up, partly offset by lower media spend as a share of sales.

Chief Executive Officer Billy Cyr said, "Our third quarter results demonstrate the strength and durability of the Freshpet business model."

2026 guidance

Freshpet now expects net sales growth of 12% to 13%, up from 10% to 12%. Adjusted EBITDA is now forecast at $215 million to $220 million, compared with $210 million to $220 million.

Capital expenditures are now expected at $125 million to $150 million, against about $150 million previously. The company also expects positive free cash flow.

Its 2027 targets are unchanged: adjusted gross margin of at least 49%, an adjusted EBITDA margin of 20% to 22%, and net sales growth well in excess of the category growth rate.

Cash and capital returns

Cash and cash equivalents were $345.9 million at Sept. 30, against $399.0 million of debt outstanding. Cash rose $67.9 million from $278.0 million at Dec. 31, 2025.

The company received $100.0 million from the sale of its equity investment. It spent $102.3 million on share repurchases under a program it announced in May, buying back 1.8 million shares by the end of September.

Operating cash flow for the first nine months was $145.5 million, up $40.1 million from a year earlier. Free cash flow for the period was $65.3 million.