Freshpet raises 2026 sales growth outlook after Q3 revenue increases 10%

USA – Freshpet increased net sales by 10% to US$317.8 million in the third quarter of 2026, supported by higher sales volumes and improved manufacturing efficiency, prompting the refrigerated pet food producer to raise its full-year revenue growth outlook.

Sales for the three months ended September 30 rose to US$288.8 million, up from US$258.8 million in the same period last year, with volumes increasing 10%, according to the company’s November 4 earnings release.

Gross profit rose to US$141.3 million from US$114.2 million, while gross margin expanded to 44.5%, up from 39.5% a year earlier. 

Freshpet attributed the improvement to better leverage of plant expenses, lower quality costs and reduced input costs. Adjusted gross margin also increased to 50% from 46%.

“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,” said Billy Cyr, Freshpet’s chief executive officer.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to US$64.5 million from US$54.6 million, with the adjusted EBITDA margin increasing to 20.3% from 18.9%.

Net income, however, declined to US$29.7 million from US$101.7 million. The previous year’s third-quarter result included a US$77.9 million deferred income tax benefit. Operating income increased to US$35.1 million from US$24.9 million.

Full-year outlook upgraded

For the first nine months of 2026, Freshpet recorded net sales of US$921.1 million, up 12.8% year on year. Volume growth of 13.3% was partly offset by a 0.5% decline from pricing and product mix. 

Adjusted EBITDA reached US$154.6 million, compared with US$134.5 million in the same period of 2025.

The company raised its full-year sales growth forecast to 12–13%, from its previous estimate of 10–12%. It also narrowed its adjusted EBITDA guidance to US$215 million–US$220 million, raising the lower end from US$210 million.

Freshpet expects positive free cash flow and capital expenditure of US$125 million–US$150 million, down from its previous estimate of approximately US$150 million. 

It maintained its 2027 targets of at least 49% adjusted gross margin and an adjusted EBITDA margin of 20–22%.

The results follow Freshpet’s first-time surpassing of US$1 billion in annual sales in 2025, reflecting continued expansion in its refrigerated pet food business.

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