Freshpet’s refrigerated pet food sales increased by 10% in the third quarter of 2026, totaling $317.8 million—the company’s highest gross margin in more than seven years. This growth occurred even as competition intensified, with volume increases and manufacturing improvements fueling profitability. They also raised their full-year sales forecast to a range of 12% to 13%, an upward revision from the previous 10% to 12% estimate.
Quarterly net sales reached $317.8 million, up from $288.8 million in the same period of 2025. The entire increase came from higher volume, while gross profit rose to $141.3 million from $114.2 million. The gross margin expanded to 44.5%, compared with 39.5% a year earlier, due to better plant efficiency and reduced input costs. Adjusted EBITDA climbed to $64.5 million, with a margin of 20.3%, up from 18.9% in the prior-year quarter.
Through the first nine months of 2026, sales totaled $921.1 million, a 12.8% increase over the same period in 2025. Volume growth of 13.3% was partially balanced by pricing adjustments and shifts in product mix. Adjusted EBITDA for the nine-month period reached $154.6 million, up from $134.5 million.
Read Also: Industry pushes for federal oversight of pet health supplements
The company’s momentum continued from earlier in 2026, when it surpassed $1 billion in annual sales for the first time. Freshpet now expects full-year sales growth of 12% to 13%, an increase from its prior guidance of 10% to 12%. They also tightened their adjusted EBITDA outlook to a range of $215 million to $220 million, raising the lower end from $210 million.
Higher logistics costs and variable compensation reduced some margin gains, with selling, general, and administrative expenses rising to $106.2 million, 33.4% of sales, from $89.3 million a year earlier. Net income fell to $29.7 million, down from $101.7 million, though the prior-year quarter included a $77.9 million deferred tax benefit. Operating income improved to $35.1 million from $24.9 million.
For 2027, Freshpet kept its financial targets, including an adjusted gross margin of at least 49% and an adjusted EBITDA margin between 20% and 22%. The company also projects positive free cash flow and capital expenditures of $125 million to $150 million, slightly lower than its previous estimate of around $150 million.
