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 adjusted EBITDA up to $52.2 million.

• Adjusted gross margin reached 48.6%, the highest since Q1 2020, and net income rose to $19.5 million, aided by a gain on equity investment.

• Growth was driven by increased buying rate among MVP consumers, who account for 71% of sales, and household penetration rose 5%.

• Market share in US dog food and treats reached 4.3%, with a growing total addressable market fueled by generational shifts.

• For the first six months of 2026, net sales were $603.2 million, with net income at $68.0 million, largely due to a $66.6 million gain on the sale of a non-controlling equity investment.

Financial highlights

• Adjusted gross margin improved to 48.6% from 46.9% a year ago; adjusted EBITDA margin rose to 17.1%.

• Net income for Q2 2026 was $19.5 million, up from $16.4 million in the prior year period.

• Operating cash flow for the first half of 2026 was $84.8 million, with free cash flow at $27.4 million.

• SG&A expenses increased to $107.0 million (35.0% of net sales) in Q2 2026; adjusted SG&A was 31.4%.

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

Outlook and guidance

• Full-year 2026 net sales growth expected at 10–12%, up from prior guidance of 8–11%.

• Adjusted EBITDA guidance raised to $210–220 million, with margin expected at 17.1% for 2026.

• Adjusted gross margin expected to improve by 100–150 basis points in 2026; 2027 target raised to at least 49%.

• Adjusted EBITDA margin for 2027 expected in the 20–22% range.

• Capital expenditures for 2026 projected at ~$150 million, focused on capacity expansion and operational efficiency.