Freshpet (FRPT) Q2 2026 earnings summary

Executive summary

• Net sales grew 15.5% year-over-year to $305.6 million in Q2 2026, driven by a 15.7% increase in volume, with adjusted EBITDA up $7.8M to $52.2M.

• Gross margin improved to 42.1% from 40.9% year-over-year, with adjusted gross margin rising to 48.6% from 46.9%.

• Net income increased to $19.5 million from $16.4 million in Q2 2025, aided by a gain on equity investment and higher sales.

• Continued expansion in household penetration (+5%) and MVP household penetration (+11%), supporting buy rate growth.

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

Financial highlights

• Q2 2026 gross profit was $128.7 million (42.1% of net sales), up from $108.2 million (40.9%) in Q2 2025.

• Adjusted gross margin improved by 170 bps to 48.6%; adjusted EBITDA margin rose 30 bps to 17.1%.

• Operating cash flow for the first half of 2026 was $84.8 million, up from $38.7 million year-over-year.

• Free cash flow for the first half of 2026 was $27.4 million, compared to negative $21.2 million in the prior year.

• Cash and cash equivalents stood at $350.8 million as of June 30, 2026, with $398.4 million in debt outstanding.

Outlook and guidance

• FY 2026 net sales growth guidance raised to 10–12% (from 8–11%), with adjusted EBITDA guidance increased to $210–$220M.

• Adjusted gross margin expected to improve 100–150 bps YoY, driven by operational improvements and new bag technology.

• Capital expenditures for 2026 estimated at ~$150M, unchanged from prior guidance.

• 2027 targets include adjusted gross margin >49% and adjusted EBITDA margin of 20–22%.

• Positive free cash flow expected for 2026.