Key Highlights

• Net sales rose 10% year-over-year to $317.8 million in Q3 2026, driven entirely by Volume gains.

• Adjusted gross Margin reached 50%, the highest level in more than seven years.

• Adjusted EBITDA came in at $64.5 million, up from $54.6 million in the prior-year period.

• Freshpet raised and narrowed its 2026 full-year financial outlook across all key metrics.

Freshpet, Inc.(NASDAQ:FRPT), a pet food company specialising in fresh, refrigerated meals for dogs and cats, posted third-quarter 2026 results that reflected continued sales momentum and margin improvement even amid a competitive consumer environment.

Revenue and Profitability in the Quarter

Net sales for the three months ended September 30, 2026, totalled $317.8 million, representing a 10% increase compared to $288.8 million in the same quarter a year earlier. The entire increase was attributed to volume gains. Gross Profit reached $141.3 million, or 44.5% of net sales, compared to $114.2 million, or 39.5%, in the prior-year quarter. On an adjusted basis, gross profit was $158.8 million, translating to an adjusted gross margin of 50%, up from 46% a year ago. Management attributed the margin expansion to improved Leverage on plant expenses, lower quality costs, and reduced input costs.

Selling, general, and administrative expenses were $106.2 million, or 33.4% of net sales, compared to $89.3 million, or 30.9%, in the year-ago quarter. The increase was primarily driven by higher logistics costs and variable compensation accrual, partly offset by lower media spend as a percentage of net sales.

Net income for the quarter was $29.7 million, down from $101.7 million in Q3 2025. However, the prior-year figure included a one-time $77.9 million deferred income tax benefit resulting from a release of a valuation allowance. Adjusted EBITDA rose to $64.5 million, or 20.3% of net sales, compared to $54.6 million, or 18.9%, in Q3 2025.

Year-to-Date Performance

For the nine months ended September 30, 2026, Freshpet reported net sales of $911.7 million, an increase of 15.1% compared to $792.3 million in the same period a year earlier. Adjusted EBITDA for the first nine months totalled $183.3 million, or 20.1% as a percentage of net sales, compared to $137.2 million, or 17.3%, in the prior-year period.

Updated 2026 Outlook

Freshpet raised and narrowed its full-year guidance. The company now expects net sales in the range of $1.215 billion to $1.225 billion, up from its prior guidance range of $1.195 billion to $1.225 billion. Adjusted EBITDA is expected between $250 million and $260 million, up from the earlier range of $235 million to $260 million. Adjusted EBITDA margin is projected at 20.5% to 21.2%, versus the previous 19.7% to 21.2%.

Capital expenditures for 2026 are now expected between $195 million and $205 million, reflecting Investment in Manufacturing capacity. The company noted that 2026 would be a peak year for its capital cycle, with spending projected to decline meaningfully in 2027 as major construction phases conclude.

Looking Ahead

Freshpet enters the final quarter of 2026 with elevated full-year expectations, reflecting both sales growth and margin expansion. The company continues to invest in manufacturing capacity while targeting a lower Capital Expenditure trajectory in the years ahead. Its focus remains on expanding its consumer base and product distribution network.