Freshpet, Inc. Reports Second Quarter 2026 Financial Results

Delivers ~15% Net Sales Growth
Raises 2026 Net Sales and Adjusted EBITDA Outlook
Updates Long-Term Adjusted Gross Margin Target to >49%

BEDMINSTER, N.J., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Freshpet, Inc. (“Freshpet” or the “Company”) (Nasdaq: FRPT) today reported financial results for its second quarter and six months ended June 30, 2026.

Second Quarter 2026 Financial Highlights Compared to Prior Year Period

Net sales of $305.6 million, an increase of 15.5%.
Gross margin of 42.1%, compared to the prior year period of 40.9%.
Adjusted Gross Margin of 48.6%, compared to the prior year period of 46.9%.¹
Net income of $19.5 million, compared to the prior year period net income of $16.4 million.
Adjusted EBITDA of $52.2 million, compared to the prior year period of $44.4 million.¹

"Our second quarter performance demonstrates the strength and resilience of our business model. It also reinforces our belief that fresh is the future of pet food and that Freshpet is uniquely positioned to win in that segment," commented Billy Cyr, Freshpet’s Chief Executive Officer. "Despite economic headwinds and new competitors, we grew significantly faster than the category, improved margins, and produced strong cash flow. We believe our manufacturing scale and expertise enables us to deliver the highest quality products at the lowest costs, while our expanding omnichannel presence enables us to grow market share and deepen engagement with our most valuable pet parents. This gives us confidence in our ability to fulfill Freshpet's mission to help dogs and cats live longer, happier lives with the people who love them and create long-term value for shareholders."

Second Quarter 2026

Net sales increased 15.5% to $305.6 million for the second quarter of 2026, compared to $264.7 million in the prior year period. The increase in net sales was primarily driven by volume gains of 15.7%, partially offset by unfavorable price/mix of 0.2%.

Gross profit was $128.7 million, or 42.1% as a percentage of net sales, for the second quarter of 2026, compared to $108.2 million, or 40.9% as a percentage of net sales, in the prior year period. Gross profit as a percentage of net sales increased primarily due to lower input costs and improved leverage on plant expenses, partially offset by higher quality costs related to the startup of new technology lines. For the second quarter of 2026, Adjusted Gross Profit was $148.4 million, or 48.6% as a percentage of net sales, compared to $124.0 million, or 46.9% as a percentage of net sales, in the prior year period.¹

Selling, general and administrative expenses (“SG&A”) were $107.0 million, or 35.0% as a percentage of net sales, for the second quarter of 2026, compared to $90.4 million, or 34.1% as a percentage of net sales, in the prior year period. SG&A as a percentage of net sales increased primarily due to increased logistics costs and variable compensation accrual, partially offset by decreased media spend as a percentage of net sales. Adjusted SG&A for the second quarter of 2026 was $96.1 million, or 31.4% as a percentage of net sales, compared to $79.6 million, or 30.1% as a percentage of net sales, in the prior year period.¹

Net income was $19.5 million for the second quarter of 2026 compared to $16.4 million in the prior year period. The increase in net income was due to an additional gain on equity investment, as a result of certain post-closing adjustments on the sale of 100% of our non-controlling interest in a privately held company following its acquisition by a third party, and contributions from higher sales, partially offset by the increases in SG&A and income tax expense.

Adjusted EBITDA was $52.2 million for the second quarter of 2026 compared to $44.4 million in the prior year period.¹ The increase in Adjusted EBITDA was a result of increased Adjusted Gross Profit, partially offset by higher Adjusted SG&A.

First Six Months of 2026

Net sales increased 14.3% to $603.2 million for the first six months of 2026, compared to $527.9 million in the prior year period. The increase in net sales was primarily driven by volume gains of 15.1%, partially offset by unfavorable price/mix of 0.8%.

Gross profit was $249.4 million, or 41.3% as a percentage of net sales, for the first six months of 2026, compared to $212.0 million, or 40.2% as a percentage of net sales, in the prior year period. Gross profit as a percentage of net sales increased primarily due to lower input costs and improved leverage on plant expenses, partially offset by higher quality costs related to the startup of new technology lines. For the first six months of 2026, Adjusted Gross Profit was $288.0 million, or 47.7% as a percentage of net sales, compared to $244.3 million, or 46.3% as a percentage of net sales, in the prior year period.¹

SG&A were $223.3 million, or 37.0% as a percentage of net sales, for the first six months of 2026, compared to $205.7 million, or 39.0% as a percentage of net sales, in the prior year period. SG&A as a percentage of net sales decreased primarily due to a decrease in non-recurring charges that occurred in the first half of 2025, partially offset by increased logistics costs and variable compensation accrual. Adjusted SG&A for the first six months of 2026 was $197.8 million, or 32.8% as a percentage of net sales, compared to $164.3 million, or 31.1% as a percentage of net sales, in the prior year period.¹

Net income was $68.0 million for the first six months of 2026 compared to $3.7 million in the prior year period. The increase in net income was due to the gain on equity investment as a result of the sale of 100% of our non-controlling interest in a privately held company following its acquisition by a third party, contributions from higher sales, and decreased non-recurring SG&A charges, partially offset by increases in logistics costs, variable compensation accrual and income tax expense.

Adjusted EBITDA was $90.1 million for the first six months of 2026 compared to $79.9 million in the prior year period.¹ The increase in Adjusted EBITDA was a result of increased Adjusted Gross Profit, partially offset by higher Adjusted SG&A.

Balance Sheet

As of June 30, 2026, the Company had cash and cash equivalents of $350.8 million with $398.4 million of debt outstanding, net of $4.1 million of unamortized debt issuance costs. Cash and cash equivalents increased $72.8 million compared to $278.0 million as of December 31, 2025, primarily as a result of the $100.0 million of cash proceeds received from the sale of our equity investment and $27.4 million of Free Cash Flow, partially offset by $54.4 million of share repurchases pursuant to the previously announced share repurchase program. For the six months ended June 30, 2026, cash from operations was $84.8 million, an increase of $46.1 million compared to the prior year period.

Outlook

For full year 2026, the Company is updating its guidance and now expects the following:

Net sales growth in the range of 10% to 12%, compared to growth of 8% to 11% in the previous guidance;
Adjusted EBITDA in the range of $210 million to $220 million, compared to $205 million to $215 million in the previous guidance; and
Positive Free Cash Flow with capital expenditures of ~$150 million, unchanged from the previous guidance.

The Company is also updating its long-term guidance. For full year 2027, the Company now expects:

Net sales well in excess of the category growth rate, unchanged;
Adjusted Gross Margin of at least 49%, compared to at least 48% previously; and
Adjusted EBITDA margin in the range of 20% to 22%, unchanged.

The Company does not provide guidance for net income, the U.S. GAAP measure most directly comparable to Adjusted EBITDA, and similarly cannot provide a reconciliation between its forecasted Adjusted EBITDA and net income metrics without unreasonable effort due to the unavailability of reliable estimates for certain components of net income and the respective reconciliations, including the timing of and amount of costs of goods sold and selling, general and administrative expenses. These items are not within the Company's control and may vary greatly between periods and could significantly impact future results.

Conference Call & Earnings Presentation Webcast Information
As previously announced, today, August 5, 2026, the Company will host a conference call beginning at 8:00 a.m. Eastern Time with members of its leadership team. The conference call webcast will be available live over the Internet through the "Investors" section of the Company's website at www.freshpet.com. To participate on the live call, listeners in North America may dial (844) 825-9789 and international listeners may dial (412) 317-5180; the passcode is 10210593.

About Freshpet
Freshpet's mission is to help dogs and cats live longer, happier, healthier lives with the people who love them. Developed by on-staff Veterinary Nutritionists, Veterinarians and Food Scientists, recipes are made from whole ingredients, like fresh meats, vegetables and fruits, and are cooked in small batches at lower temperatures to preserve their natural goodness and made at our Freshpet Kitchens. Freshpet foods and treats are kept refrigerated until they arrive at Freshpet Fridges in local markets or delivered directly to consumers.

Freshpet is available in select grocery, mass, digital, pet specialty, and club retailers across the United States, Canada and Europe, as well as online in the U.S. From the care they take to source their ingredients and make their food, to the moment it reaches your home, Freshpet's commitment to integrity, transparency and social responsibility is a point of pride.

Forward Looking Statements
Certain statements in this press release constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on our current expectations and assumptions. These include statements regarding our belief in the impact of our manufacturing expertise and omnichannel strategy, 2026 guidance and 2027 financial targets, and being uniquely positioned to capture a meaningful share of the category. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements including, but not limited to, those identified in connection with such statements, the implementation of our new technologies in the time frame, at the rate, at the cost, or with anticipated efficiencies and impact on product quality we expect, economic uncertainty, changes in rates of pet acquisition, the launch of competitive products at higher quality or less cost, impact of tariffs, fuel, energy and ingredient pricing, effectiveness of media campaigns, success rate of new chillers, organizational changes, and most prominently, the risks discussed under the heading "Risk Factors" in the Company's latest annual report on Form 10-K and in quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release. Freshpet undertakes no obligation to publicly update or revise any forward-looking statement because of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements.

Non-GAAP Financial Measures

Freshpet uses the following non-GAAP financial measures in its financial communications. These non-GAAP financial measures should be considered as supplements to the U.S. GAAP reported measures, should not be considered replacements for, or superior to, the U.S. GAAP measures and may not be comparable to similarly named measures used by other companies. Such financial measures are not financial measures prepared in accordance with U.S. GAAP.

Adjusted Gross Profit
Adjusted Gross Profit as a percentage of net sales (Adjusted Gross Margin)
Adjusted SG&A Expenses
Adjusted SG&A Expenses as a percentage of net sales
EBITDA
Adjusted EBITDA
Adjusted EBITDA as a percentage of net sales (Adjusted EBITDA Margin)
Free Cash Flow

Adjusted Gross Profit: Freshpet defines Adjusted Gross Profit as gross profit before depreciation expense, non-cash share-based compensation and loss on disposal of manufacturing equipment.

Adjusted SG&A Expenses: Freshpet defines Adjusted SG&A as SG&A expenses before depreciation and amortization expense, non-cash share-based compensation, loss on disposal of equipment, distributor transition costs, legal obligation and international business charges.

EBITDA and Adjusted EBITDA: EBITDA represents net income (loss) plus depreciation and amortization expense, interest expense net of interest income and income tax expense, and Adjusted EBITDA represents EBITDA less gain on equity investment, plus non-cash share-based compensation expense, loss on disposal of property, plant and equipment, distributor transition costs, legal obligation, and international business charges.

Free Cash Flow: Freshpet defines Free Cash Flow as net cash flows provided by operating activities less capital expenditures.

Management believes that the non-GAAP financial measures are meaningful to investors because they provide a view of the Company with respect to ongoing operating results. The non-GAAP financial measures are shown as supplemental disclosures in this release because they are widely used by the investment community for analysis and comparative evaluation. They also provide additional metrics to evaluate the Company’s operations and, when considered with both the Company’s GAAP results and the reconciliation to their most directly comparable U.S. GAAP measures, provide a more complete understanding of the Company’s business than could be obtained absent this disclosure. The non-GAAP measures are not and should not be considered an alternative to the most directly comparable U.S. GAAP measures or any other figure calculated in accordance with U.S. GAAP, or as an indicator of operating performance. The Company’s calculation of the non-GAAP financial measures may differ from methods used by other companies. Management believes that the non-GAAP measures are important to an understanding of the Company's overall operating results in the periods presented. The non-GAAP financial measures are not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP measures of performance.

FRESHPET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except per share data)

	June 30, 2026			December 31, 2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	350,809		$	277,975
Accounts receivable, net of allowance for doubtful accounts		65,383			63,762
Inventories, net		86,734			76,766
Prepaid expenses		7,744			9,807
Other current assets		6,396			7,404
Total Current Assets		517,066			435,714
Property, plant and equipment, net		1,146,325			1,138,671
Operating lease right of use assets		64,786			66,424
Long term investment in equity securities		—			33,446
Deferred tax assets, net		47,405			68,893
Other assets		36,833			34,627
Total Assets	$	1,812,415		$	1,777,775
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	36,817		$	42,429
Accrued expenses		44,116			31,610
Current operating lease liabilities		2,189			2,241
Current finance lease liabilities		2,397			2,315
Total Current Liabilities		85,519			78,595
Convertible senior notes		398,443			397,330
Long term operating lease liabilities		64,046			65,023
Long term finance lease liabilities		26,582			28,075
Deferred tax liabilities, net		129			93
Total Liabilities	$	574,719		$	569,116
Commitments and contingencies		—			—
STOCKHOLDERS' EQUITY:
Common stock — voting, $0.001 par value, 200,000 shares authorized, 49,671 issued and 48,625 outstanding on June 30, 2026, and 48,985 issued and 48,970 outstanding on December 31, 2025		49			49
Additional paid-in capital		1,367,847			1,351,201
Accumulated deficit		(74,673	)		(142,669	)
Accumulated other comprehensive (loss) income		(706	)		334
Treasury stock, at cost, inclusive of excise tax and broker fees — 1,046 shares on June 30, 2026 and 14 shares on December 31, 2025		(54,821	)		(256	)
Total Stockholders' Equity		1,237,696			1,208,659
Total Liabilities and Stockholders' Equity	$	1,812,415		$	1,777,775

FRESHPET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited, in thousands, except per share data)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
		2026			2025			2026			2025
NET SALES	$	305,587		$	264,689		$	603,231		$	527,938
COST OF GOODS SOLD		176,893			156,499			353,863			315,960
GROSS PROFIT		128,694			108,190			249,368			211,978
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES		106,985			90,386			223,328			205,671
INCOME FROM OPERATIONS		21,709			17,804			26,040			6,307
OTHER INCOME (EXPENSES):
Interest and Other Income, net		2,830			2,199			5,713			4,592
Interest Expense		(3,483	)		(3,749	)		(7,069	)		(7,208	)
Gain on Equity Investment		4,539			—			66,552			—
TOTAL OTHER INCOME (EXPENSE)		3,886			(1,550	)		65,196			(2,616	)
INCOME BEFORE INCOME TAXES		25,595			16,254			91,236			3,691
INCOME TAX EXPENSE (BENEFIT)		6,107			(102	)		23,240			32
INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	19,488		$	16,356		$	67,996		$	3,659
OTHER COMPREHENSIVE (LOSS) INCOME:
Change in foreign currency translation	$	(247	)	$	240		$	(1,040	)	$	451
TOTAL OTHER COMPREHENSIVE (LOSS) INCOME		(247	)		240			(1,040	)		451
TOTAL COMPREHENSIVE INCOME	$	19,241		$	16,596		$	66,956		$	4,110
NET INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS
-BASIC	$	0.40		$	0.34		$	1.38		$	0.08
-DILUTED	$	0.39		$	0.33		$	1.29		$	0.07
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING
-BASIC		49,197			48,778			49,129			48,755
-DILUTED		55,811			50,198			55,926			50,256

FRESHPET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

	For the Six Months Ended June 30,
		2026			2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	67,996		$	3,659
Adjustments to reconcile net income to net cash flows provided by operating activities:
Provision for loss on accounts receivable		14			11,452
Loss on disposal of property, plant and equipment		154			1,229
Share-based compensation		15,516			15,037
Depreciation and amortization		49,954			42,436
Amortization of deferred financing costs		1,113			1,074
Change in operating lease right of use asset		1,638			727
Deferred income taxes		21,528			—
Gain on equity investment		(66,552	)		—
Changes in operating assets and liabilities:
Accounts receivable		(1,467	)		(3,208	)
Inventories		(9,991	)		(9,400	)
Prepaid expenses and other current assets		2,445			(3,913	)
Other assets		(3,725	)		(3,060	)
Accounts payable		(5,554	)		2,291
Accrued expenses		12,713			(18,958	)
Operating lease liability		(1,028	)		(673	)
Net cash flows provided by operating activities		84,754			38,693
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of equity investment		99,998			—
Acquisitions of property, plant and equipment, software and deposits on equipment		(57,324	)		(59,932	)
Net cash flows provided by (used in) investing activities		42,674			(59,932	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury stock, inclusive of broker fees		(54,391	)		—
Proceeds from exercise of options to purchase common stock		5,985			187
Tax withholdings related to net shares settlements of restricted stock units		(4,632	)		(2,860	)
Principal payments under finance lease obligations		(1,556	)		(1,037	)
Net cash flows used in financing activities		(54,594	)		(3,710	)
NET CHANGE IN CASH AND CASH EQUIVALENTS		72,834			(24,949	)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		277,975			268,633
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	350,809		$	243,684

FRESHPET, INC. AND SUBSIDIARIES
RECONCILIATION BETWEEN GROSS PROFIT AND ADJUSTED GROSS PROFIT

	Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026			2025
	(Dollars in thousands)
Gross profit	$	128,694		$	108,190		$	249,368		$	211,978
Depreciation expense		17,858			13,729			35,156			28,909
Non-cash share-based compensation		1,882			1,831			3,469			3,114
Loss on disposal of manufacturing equipment		—			260			12			255
Adjusted Gross Profit	$	148,434		$	124,010		$	288,005		$	244,256
Adjusted Gross Profit as a % of Net Sales		48.6	%		46.9	%		47.7	%		46.3	%

FRESHPET, INC. AND SUBSIDIARIES
RECONCILIATION BETWEEN SG&A EXPENSES AND ADJUSTED SG&A EXPENSES

	Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026			2025
	(Dollars in thousands)
SG&A expenses	$	106,985		$	90,386		$	223,328		$	205,671
Depreciation and amortization expense		6,394			6,167			13,374			12,104
Non-cash share-based compensation (a)		4,498			4,390			12,047			11,923
Loss on disposal of equipment		28			225			142			391
Distributor transition costs (b)		—			—			—			10,680
Legal obligation (c)		—			—			—			4,987
International business charges (d)		—			—			—			1,273
Adjusted SG&A Expenses	$	96,065		$	79,604		$	197,765		$	164,313
Adjusted SG&A Expenses as a % of Net Sales		31.4	%		30.1	%		32.8	%		31.1	%

(a)	Includes true-ups to share-based compensation expense. We have certain outstanding share-based awards with performance-based vesting conditions that require the achievement of certain Adjusted EBITDA margins, Adjusted EBITDA and/or Net Sales targets as a condition of vesting. At each reporting period, we reassess the probability of achieving the performance criteria and the performance period required to meet those targets. When the probability of achieving such performance conditions changes, the compensation cost previously recorded is adjusted as needed. When such performance conditions are deemed to be improbable of achievement, the compensation cost previously recorded is reversed.
(b)	Represents a non-recurring loss as a result of an accounts receivable write-off in connection with the liquidation of one of our pet specialty distributors. Concurrent with its liquidation, we transitioned to a new distribution partner, who is a leading pet specialty distributor and who we anticipate will facilitate sales to pet specialty stores. Thus, despite the transitory impact during the first quarter of 2025, our ability to continue to generate sales is consistent with what we would expect to generate within the pet specialty channel.
(c)	Represents the net settlement charges for all claims related to the litigation with Phillips.
(d)	Represents termination costs due to a business change in our international go-to-market strategy.

FRESHPET, INC. AND SUBSIDIARIES
RECONCILIATION BETWEEN NET INCOME AND ADJUSTED EBITDA

	Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026			2025
	(Dollars in thousands)
Net income	$	19,488		$	16,356		$	67,996		$	3,659
Depreciation and amortization		24,252			19,896			48,530			41,013
Interest expense, net of interest income		484			1,546			1,189			2,610
Income tax expense		6,107			(102	)		23,240			32
EBITDA		50,331			37,696			140,955			47,314
Non-cash share-based compensation (a)		6,380			6,221			15,516			15,037
Loss on disposal of property, plant and equipment		28			485			154			646
Gain on equity investment		(4,539	)		—			(66,552	)		—
Distributor transition costs (b)		—			—			—			10,680
Legal obligation (c)		—			—			—			4,987
International business charges (d)		—			—			—			1,273
Adjusted EBITDA	$	52,200		$	44,402		$	90,073		$	79,937
Adjusted EBITDA as a % of Net Sales		17.1	%		16.8	%		14.9	%		15.1	%

(a)	Includes true-ups to share-based compensation expense. We have certain outstanding share-based awards with performance-based vesting conditions that require the achievement of certain Adjusted EBITDA margins, Adjusted EBITDA and/or Net Sales targets as a condition of vesting. At each reporting period, we reassess the probability of achieving the performance criteria and the performance period required to meet those targets. When the probability of achieving such performance conditions changes, the compensation cost previously recorded is adjusted as needed. When such performance conditions are deemed to be improbable of achievement, the compensation cost previously recorded is reversed.
(b)	Represents a non-recurring loss as a result of an accounts receivable write-off in connection with the liquidation of one of our pet specialty distributors. Concurrent with its liquidation, we transitioned to a new distribution partner, who is a leading pet specialty distributor and who we anticipate will facilitate sales to pet specialty stores. Thus, despite the transitory impact during the first quarter of 2025, our ability to continue to generate sales is consistent with what we would expect to generate within the pet specialty channel.
(c)	Represents the net settlement charges for all claims related to the litigation with Phillips.
(d)	Represents termination costs due to a business change in our international go-to-market strategy.

FRESHPET, INC. AND SUBSIDIARIES
RECONCILIATION BETWEEN NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES AND FREE CASH FLOW
	Six Months Ended June 30,
		2026			2025
	(Dollars in thousands)
Net cash flows provided by operating activities	$	84,754		$	38,693
less: capital expenditures²		(57,324	)		(59,932	)
Free Cash Flow	$	27,430		$	(21,239	)

^{________________________
1} Adjusted Gross Margin, Adjusted Gross Profit, Adjusted SG&A, Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. See "Non-GAAP Measures" for how the Company defines these measures and the financial tables that accompany this release for reconciliations of these measures to the closest comparable GAAP measures.
² Capital expenditures is equivalent to the amount included in "Acquisitions of property, plant and equipment, software and deposits on equipment" on our Consolidated Statements of Cash Flows for the reported period.

Investor Contact:
Rachel Ulsh
Rulsh@freshpet.com

Media Contact:
Press@freshpet.com

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