Freshpet Q1 Net Sales Up 13.1% to $297.6M, Adjusted EBITDA Range Maintained
Freshpet delivered Q1 net sales of $297.6 million, up 13.1%, with gross margin rising to 40.5% and adjusted gross margin to 46.9%. It swung to net income of $48.5 million from a $12.7 million loss and raised full-year net sales growth guidance to 8%-11%, keeping adjusted EBITDA at $205-$215 million.
1. Q1 Financial Highlights
Net sales rose 13.1% to $297.6 million, driven by 14.6% volume gains despite a 1.5% price/mix headwind. Gross margin increased to 40.5% and adjusted gross margin to 46.9%, while net income reached $48.5 million versus a $12.7 million loss and adjusted EBITDA climbed to $37.9 million.
2. Balance Sheet & Cash Flow
Cash and cash equivalents increased to $381.4 million, up $103.4 million from year-end. Outstanding debt stood at $397.9 million net of issuance costs, and operating cash flow rose to $40.3 million, reflecting higher earnings and proceeds from an equity investment sale.
3. 2026 Outlook Revised
The company raised full-year net sales growth guidance to 8%-11% from prior 7%-10%, while maintaining its adjusted EBITDA outlook at $205-$215 million and capital expenditures around $150 million.
4. Strategic Drivers and Risks
Management cites differentiated fresh pet food offerings, manufacturing scale, and omnichannel distribution as growth drivers, while noting macroeconomic volatility and inflation risks as factors for cautious guidance adjustments.