Freshpet (FRPT) Q1 2026 earnings summary

Executive summary

• Net sales grew 13.1% year-over-year to $297.6 million in Q1 2026, driven by volume gains, manufacturing scale, product diversity, and omnichannel reach.

• Net income reached $48.5 million, reversing a net loss of $12.7 million in the prior year, aided by a $62.0 million gain on the sale of an equity investment and higher sales.

• Adjusted EBITDA was $37.9 million, up $2.4 million year-over-year; margin was 12.7% versus 13.5% last year.

• Continued to gain market share in the fresh pet food category, leveraging new technologies, operational effectiveness, and expanding household penetration.

• Focused on operational effectiveness, capital efficiency, and new technology to support long-term growth.

Financial highlights

• Gross profit was $120.7 million (40.5% of net sales), up from $103.8 million (39.4%) year-over-year.

• Adjusted gross margin improved to 46.9% from 45.7% year-over-year.

• Adjusted EBITDA margin was 12.7% (down from 13.5% last year).

• Free cash flow was $12.7 million, a $34.4 million increase year-over-year.

• Cash and cash equivalents rose to $381.4 million, mainly from the equity investment sale.

Outlook and guidance

• Raised 2026 net sales growth guidance to 8%–11% (from 7%–10%).

• Adjusted EBITDA guidance remains at $205–$215 million, with sequential improvement expected.

• Capital expenditures projected at ~$150 million, with flexibility for technology or distribution expansion.

• Anticipates being free cash flow positive in 2026.

• 2027 targets: net sales growth above category, at least 48% adjusted gross margin, and 20%–22% adjusted EBITDA margin.