Freshpet (FRPT) Q3 2026 Earnings Report

The call was strongly positive overall. Freshpet reported double-digit volume-led sales growth, record adjusted gross margin, adjusted EBITDA growth, improved cash generation, higher 2026 guidance, expanded distribution, strong e-commerce performance, and significant capacity and innovation opportunities. Management also acknowledged elevated logistics costs, structural ingredient and packaging inflation, competitive entrants, a likely fourth-quarter gross-margin step-down, and a prior-year tax benefit that affected net-income comparisons. The number and magnitude of the reported operational and financial positives significantly outweighed the stated challenges.

For 2026, Freshpet expects net sales growth of 12% to 13%, adjusted EBITDA in the range of $215 million to $220 million, an increase of 10% to 13% year over year, media spending of approximately 12.5% of net sales and over $5 million of additional media investment, logistics costs an additional $10 million to $12 million versus original expectations, adjusted gross margin to improve by approximately 150 basis points at the midpoint of net sales guidance, and capital expenditures in the range of $125 million to $150 million; management expects a step down in adjusted gross margin in the fourth quarter, which could be flat to down year over year, and selective price increases for 2027, when it expects net sales growth well in excess of the U.S. dog food category growth, at least 49% adjusted gross margin, and to capture substantially all of the annualized 100 basis points of adjusted gross margin improvement from new bag technology, while expecting to be in the lower half of its adjusted EBITDA margin range if there is not a significant improvement in the inflation picture.