Freshpet management attributes Q3 margin improvement to stronger operating performance
FRPT•Freshpet said third-quarter 2026 net sales rose 10% to $317.8 million and adjusted gross margin increased 400 basis points to 50%. The company raised full-year sales growth guidance to 12%-13% and lowered its capital spending outlook to $125 million-$150 million.
1. Quarterly results
Freshpet reported third-quarter 2026 net sales growth of 10% to $317.8 million, attributed to higher volumes. Adjusted gross margin rose 400 basis points to 50%, driven by plant expense leverage, reduced quality costs and lower relative input costs. Adjusted EBITDA increased approximately 18% to $64.5 million as higher sales and gross profit outweighed increased overhead, including logistics costs.
2. Raised outlook
Management raised full-year sales growth guidance to 12%-13% from 10%-12% and lifted its adjusted EBITDA outlook to $215 million-$220 million from $210 million-$220 million. Capital spending guidance fell to $125 million-$150 million from approximately $150 million, as manufacturing productivity gains enabled investment deferrals.
