Freshpet reported net sales growth of 13.1% in the first quarter of calendar year 2026, exceeding the company’s previously issued annual guidance range and prompting the fresh pet food maker to modestly raise its full-year outlook.
The company posted first-quarter net sales of US$297.6 million for the period ended March 31, up from US$263.2 million in the prior-year quarter. According to Freshpet, the increase was primarily driven by volume gains of 14.6%, partially offset by unfavorable price and mix effects of 1.5%.
Gross profit reached US$120.7 million, representing 40.5% of net sales, compared to 39.4% in the same quarter last year. Freshpet attributed the margin improvement to lower input costs and better leverage on plant expenses. Adjusted gross margin rose to 46.9%, up from 45.7% in the prior-year period.
The company also reported a significant improvement in profitability. Freshpet recorded net income of US$48.5 million during the quarter, compared to a net loss of US$12.7 million a year earlier. The increase was supported by higher sales, lower non-recurring selling, general and administrative expenses, and a gain tied to the sale of the company’s non-controlling interest in a privately held business.
Adjusted earnings before interest, taxes, depreciation and amortization totaled US$37.9 million, compared to US$35.5 million in the first quarter of 2025.
Billy Cyr, chief executive officer of Freshpet, said the company’s performance reflects continued momentum in the fresh pet food category and confidence in the company’s long-term growth strategy.
“We are encouraged by our strong start to 2026, delivering first quarter sales growth in excess of our 2026 guidance and reinforcing our confidence in Freshpet's long-term growth opportunity,” Cyr said in the company’s earnings release.
Freshpet highlighted its manufacturing scale, omnichannel marketing efforts and distribution network as factors contributing to market share gains in the fresh pet food segment. At the same time, the company acknowledged ongoing macroeconomic uncertainty and inflationary pressures.
Selling, general and administrative expenses totaled US$116.3 million during the quarter, representing 39.1% of net sales, compared to 43.8% in the same period last year. Freshpet said the decline as a percentage of sales was largely due to reduced non-recurring charges recorded in the first quarter of 2025, partially offset by increased media spending.
Freshpet ended the quarter with US$381.4 million in cash and cash equivalents and US$397.9 million in debt outstanding, net of unamortized debt issuance costs. Cash increased by US$103.4 million from the end of 2025, largely driven by US$95.5 million in proceeds from the sale of the company’s equity investment. Cash from operations rose to US$40.3 million during the quarter, an increase of US$35.5 million compared to the prior-year period.
The company said it plans to continue using its balance sheet to support long-term capacity expansion initiatives.
Following the stronger-than-expected first quarter, Freshpet updated its full-year 2026 guidance. The company now expects net sales growth between 8% and 11%, compared to its previous outlook of 7% to 10%. Guidance for adjusted earnings before interest, taxes, depreciation and amortization remained unchanged at US$205 million to US$215 million. Freshpet also maintained its expectation for positive free cash flow and approximately US$150 million in capital expenditures during 2026.
