---
title: "Freshpet Boosts Full-Year Outlook But Investors Frown Over EBITDA Margin Decline"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285421250.md"
description: "Freshpet, Inc. (NASDAQ:FRPT) reported strong first-quarter results, beating earnings estimates and raising its 2026 sales guidance to 8%-11%. Despite a 13.1% increase in net sales to $297.6 million and a net income of $48.5 million, shares fell 9.94% due to a decline in adjusted EBITDA margin from 13.5% to 12.7%. The company noted resilient demand and significant digital order growth, while monitoring macroeconomic factors. Freshpet ended the quarter with $381.4 million in cash and $397.9 million in debt."
datetime: "2026-05-06T18:26:57.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285421250.md)
  - [en](https://longbridge.com/en/news/285421250.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285421250.md)
---

# Freshpet Boosts Full-Year Outlook But Investors Frown Over EBITDA Margin Decline

**Freshpet, Inc.** (NASDAQ:FRPT) reported first-quarter results on Wednesday that beat Wall Street expectations and raised its full-year sales outlook, driven by double-digit volume growth and margin expansion.

Despite the strong results and higher guidance, Freshpet shares traded lower following the earnings release.

Freshpet reported first-quarter EPS of 91 cents, beating analyst estimates of 15 cents. Net sales increased 13.1% year over year to $297.6 million, above estimates of $291.8 million.

Net income totaled $48.5 million, compared with a net loss of $12.7 million a year earlier.

## Growth, Margins Improve

Sales growth was driven by volume gains of 14.6%, partly offset by unfavorable price and mix of 1.5%.

Gross profit increased to $120.7 million from $103.8 million, while gross margin expanded to 40.5% from 39.4%. Adjusted gross margin rose to 46.9% from 45.7%, helped by lower input costs and improved plant leverage.

Operating income totaled $4.3 million, compared with an operating loss of $11.5 million in the prior-year quarter.

Adjusted EBITDA increased to $37.9 million from $35.5 million, while adjusted EBITDA margin declined to 12.7% from 13.5%.

## Cash Flow, Balance Sheet

SG&A expenses rose slightly to $116.3 million, though SG&A as a percentage of sales improved to 39.1% from 43.8%. Adjusted SG&A increased to $101.7 million, partly due to higher media spending.

Net income also benefited from a $62 million gain tied to the sale of the company's non-controlling equity investment.

Operating cash flow increased to $40.3 million from $4.8 million, while free cash flow improved to positive $12.7 million from negative $21.7 million. Capital expenditures totaled $27.6 million.

Freshpet ended the quarter with $381.4 million in cash and $397.9 million in debt.

## Outlook

CEO **Billy Cyr** said, "We are encouraged by our strong start to 2026, delivering first quarter sales growth in excess of our 2026 guidance and reinforcing our confidence in Freshpet's long-term growth opportunity."

Freshpet raised full-year 2026 sales growth guidance to 8% to 11% from 7% to 10%, implying revenue of about $1.19 billion to $1.223 billion versus estimates of $1.203 billion.

The company maintained its adjusted EBITDA outlook of $205 million to $215 million and continued to expect positive free cash flow with about $150 million in capital expenditures.

## Conference Call Highlights

Freshpet said demand remains resilient, though management is monitoring macroeconomic volatility, inflation, tariffs, fuel, and ingredient costs.

Digital orders grew 43% and represented 16.1% of sales, with most fulfilled through Freshpet's fridge network. Products are now in 30,435 stores, while Tractor Supply is expected to expand Freshpet to about 700 stores by year-end.

Management also said new advertising is lowering customer acquisition costs, while new manufacturing technology could improve quality, throughput, and yield.

**FRPT Price Action:** Freshpet shares were down 9.94% at $54.19 at the time of publication on Wednesday, according to Benzinga Pro data.

_Photo by T. Schneider via Shutterstock_

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