Freshpet (FRPT) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 increased 15.5% year-over-year to $305.6 million, driven by volume gains and strong omni-channel expansion, with the highest adjusted gross margin since Q1 2020.

• Adjusted EBITDA for Q2 2026 was $52.2 million, up from $44.4 million in the prior year, with margin at 17.1%.

• Net income rose to $19.5 million from $16.4 million year-over-year, aided by a gain on equity investment and higher sales.

• Digital orders grew 41% in Q2, now 16.7% of total business, with strong DTC and e-commerce performance.

• Market share in US dog food and treats reached 4.3%, with growth driven by MVP consumers and generational shifts.

Financial highlights

• Adjusted gross margin improved to 48.6% from 46.9% a year ago, a 170 basis point increase.

• Operating cash flow for Q2 2026 grew 31% to $44.4 million; free cash flow was $14.7 million.

• Cash and cash equivalents as of June 30, 2026, were $350.8 million, up from $278.0 million at year-end 2025.

• SG&A expenses increased to $107.0 million (35.0% of net sales), with adjusted SG&A at 31.4%.

• Net income per diluted share was $0.39 in Q2 2026, up from $0.33 year-over-year.

Outlook and guidance

• 2026 net sales growth guidance raised to 10–12% (from 8–11%).

• Adjusted EBITDA guidance increased to $210–220 million, up 7–12% year-over-year.

• Adjusted gross margin expected to improve by 100–150 basis points in 2026.

• 2027 targets: at least 49% adjusted gross margin and 20–22% adjusted EBITDA margin.

• Capital expenditures projected at $150 million for 2026.