FRPT · Freshpet, Inc.

Freshpet's first quarter 2026 results demonstrated strong operational performance, with net sales increasing 13.1% to $297.6 million, driven entirely by volume gains of 14.6% as price/mix declined 1.5%. The company reported GAAP net income of $48.5 million, a significant improvement from a net loss of $12.7 million in the prior year period, primarily due to a $62.0 million gain on the sale of an equity investment. Adjusted gross margin expanded 120 basis points to 46.9%, benefiting from lower input costs and improved leverage on plant expenses. Adjusted EBITDA grew to $37.9 million from $35.5 million, though margin contracted 80 basis points to 12.7% due to higher adjusted SG&A spending, including increased media investment. Management highlighted the strength of Freshpet's differentiated product offerings, manufacturing scale, and omnichannel capabilities as drivers of market share gains. The company raised its full-year 2026 net sales growth guidance to 8%-11% (from 7%-10%), while maintaining Adjusted EBITDA guidance of $205-$215 million and capital expenditure expectations of ~$150 million. Freshpet also reiterated its expectation to be free cash flow positive for the year. The company's balance sheet remains strong with $381.4 million in cash and equivalents, supported by $95.5 million in proceeds from the equity investment sale. The presentation attached as Exhibit 99.2 outlines the company's long-term growth strategy, including capacity expansion plans and 2027 targets of >48% adjusted gross margin and 20-22% adjusted EBITDA margin.