Freshpet benefits from higher volumes and sales growth

Freshpet reported a 10% year-over-year (YoY) increase in net sales in the third quarter (Q3) of fiscal year (FY) 2026, ended 30 September 2026, reaching $317.8 million (€284.6M). The increase was driven by volume gains of 10%.

Gross profit grew 24% YoY to $141.3 million (€126.6M), equivalent to 44.5% of net sales, compared with 39.5% a year earlier. The improvement reflected better leverage on plant expenses, reduced quality costs and lower input costs. Adjusted gross margin increased to 50%, from 46%.

Freshpet CEO Billy Cyr told investors that the third quarter results “demonstrate the strength and durability” of the Freshpet business model.

“In a consumer environment that remains challenging, we are performing and operating well. We achieved double-digit sales growth and reported an adjusted gross margin of 50% in the third quarter.”

Net income fell 71% to $29.7 million (€26.6M), compared with $101.7 million (€91.1M) in the prior-year period.

Customer loyalty and omnichannel growth

Freshpet’s Most Valuable Pet Parents (MVPs), the company’s highest-value customer segment, increased their household penetration by 8% in the 12 months to 27 September 2026.

MVP households represented 17% of Freshpet households and accounted for 72% of sales, with an average annual buy rate of $522 (€468) – nearly 13 times the $41 (€37) recorded for non-MVP households.

As of 30 September, the company’s retail network included 40,523 fridges across 31,164 stores in the US and Canada. Around 75% of stores had one fridge, while 25% had more than one.

E-commerce sales grew 35% YoY in Q3 and accounted for 16.9% of Freshpet’s total business. Approximately 82% of digital order volume was fulfilled through the fridge network, via omnichannel retail or last-mile delivery services.

Nine months overview

For the first nine months (9M) of FY2026, Freshpet’s net sales increased 12.8% to $921.1 million (€825.0M), primarily driven by volume gains of 13.3%, partly offset by an unfavorable price/mix impact of 0.5%.

Gross profit reached $390.7 million (€349.9M), equivalent to 42.4% of net sales, compared with 39.9% a year earlier. Net income declined 7.2% to $97.7 million (€87.5M), from $105.3 million (€94.3M).

Guidance

Freshpet raised its full-year 2026 guidance, now expecting net sales growth of 12% to 13%, compared with its previous forecast of 10% to 12%. Adjusted EBITDA is expected to reach $215 million to $220 million (€192.6M–€197.0M), up from the previous range of $210 million to $220 million (€188.1M–€197.0M).

For FY2027, the pet food player confirmed its longer-term targets: net sales growth well above the category rate, adjusted gross margin of at least 49%, and adjusted EBITDA margin of 20% to 22%.

Company CFO John O’Connor said the cost environment had become more challenging than a few months earlier. Without a significant improvement in inflation, the company expects to land in the lower half of its adjusted EBITDA margin target range.