Freshpet’s net sales increased 10% to US$317.8 million in the third quarter of 2026, driven primarily by higher volumes, as improved manufacturing efficiency and lower input costs helped the refrigerated pet food company expand margins and raise its annual outlook. The results extended the double-digit sales growth reported earlier in 2026.
Sales rose from US$288.8 million in the same quarter of 2025, with volume gains of 10%, according to the company’s November 4 earnings release. Results covered the three months ended September 30, following a year in which Freshpet surpassed US$1 billion in annual sales for the first time.
“In a challenging consumer and intense competitive environment, we delivered double-digit net sales growth, expanded margins and achieved our strongest Adjusted Gross Margin in more than seven years, while continuing to grow market share,” Billy Cyr, Freshpet’s chief executive officer, said in the release.
Gross profit increased to US$141.3 million from US$114.2 million a year earlier. Gross margin reached 44.5%, up from 39.5%, which Freshpet attributed primarily to improved leverage on plant expenses, reduced quality costs and lower input costs. Adjusted gross margin increased to 50%, compared with 46% a year earlier.
Higher expenses offset some of those gains. Selling, general and administrative expenses reached US$106.2 million, or 33.4% of sales, compared with US$89.3 million, or 30.9%, a year earlier. Freshpet attributed the increase as a share of sales primarily to higher logistics costs and variable compensation accruals, partially offset by lower media spending as a percentage of sales.
Net income declined to US$29.7 million from US$101.7 million. However, the prior-year quarter included a US$77.9 million deferred income tax benefit. Operating income increased to US$35.1 million from US$24.9 million.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to US$64.5 million from US$54.6 million. Adjusted EBITDA margin increased to 20.3% from 18.9%. Adjusted gross margin and adjusted EBITDA are non-GAAP financial measures.
For the first nine months of 2026, sales increased 12.8% to US$921.1 million. Volume gains of 13.3% were partially offset by unfavorable pricing and product mix of 0.5%. Adjusted EBITDA reached US$154.6 million, compared with US$134.5 million a year earlier.
Freshpet now expects full-year sales growth of 12% to 13%, up from its previous forecast of 10% to 12%. It narrowed its adjusted EBITDA outlook to US$215 million to US$220 million, raising the lower end from US$210 million.
The company also expects positive free cash flow and capital expenditures of US$125 million to US$150 million, compared with approximately US$150 million previously. Freshpet maintained its 2027 targets, including an adjusted gross margin of at least 49% and an adjusted EBITDA margin of 20% to 22%.
