Freshpet (NASDAQ:FRPT) Announces Quarterly Earnings Results

Freshpet (NASDAQ:FRPT) announced its earnings results on Wednesday. The company reported $0.39 EPS for the quarter, beating analysts’ consensus estimates of $0.22 by $0.17, FiscalAI reports. The business had revenue of $305.59 million during the quarter, compared to analysts’ expectations of $292.33 million. Freshpet had a net margin of 17.63% and a return on equity of 6.22%. The firm’s revenue was up 15.4% on a year-over-year basis. During the same period in the prior year, the company earned $0.33 earnings per share.

Here are the key takeaways from Freshpet’s conference call:

• Second-quarter results exceeded expectations, with net sales up 15.5% year over year to $305.6 million, adjusted EBITDA up 18% to $52.2 million, and adjusted gross margin expanding 170 basis points to 48.6%.
• Freshpet raised its 2026 outlook to 10%–12% net sales growth and $210 million–$220 million of adjusted EBITDA, while increasing its 2027 adjusted gross-margin floor to at least 49% and reiterating its 20%–22% adjusted EBITDA margin target.
• Omni-channel momentum remains strong: digital orders increased 41% and represented 16.7% of sales, distribution points grew 13%, and the company plans to reach at least 700 rural lifestyle retail stores by year-end.
• The new bag manufacturing technology is progressing, with three lines operating and an expected long-term gross-margin benefit of more than 100 basis points, alongside improved throughput, yields, quality, and product-innovation capabilities.
• Management cited a volatile consumer environment, slowing sequential household-penetration growth, higher fuel and trucking costs, and a difficult third-quarter comparison; the low end of guidance assumes little to no sequential improvement in sales or penetration.

Freshpet Stock Up 12.8%

FRPT traded up $8.01 during trading on Wednesday, hitting $70.39. The stock had a trading volume of 2,606,638 shares, compared to its average volume of 1,498,491. The company has a debt-to-equity ratio of 0.34, a quick ratio of 5.26 and a current ratio of 6.18. The company has a market capitalization of $3.46 billion, a PE ratio of 19.21 and a beta of 1.61. Freshpet has a twelve month low of $46.45 and a twelve month high of $86.00. The stock has a 50 day simple moving average of $55.23 and a two-hundred day simple moving average of $62.50.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on FRPT shares. Wall Street Zen raised shares of Freshpet from a “sell” rating to a “hold” rating in a research note on Sunday. Bank of America dropped their price objective on shares of Freshpet from $75.00 to $70.00 and set a “neutral” rating for the company in a research note on Wednesday, July 1st. Weiss Ratings downgraded Freshpet from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, June 1st. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $63.00 price target on shares of Freshpet in a report on Thursday, May 7th. Finally, Wells Fargo & Company reduced their target price on Freshpet from $75.00 to $70.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Freshpet presently has a consensus rating of “Moderate Buy” and an average target price of $74.50.

More Freshpet News

Here are the key news stories impacting Freshpet this week:

• Positive Sentiment: Freshpet reported second-quarter revenue of $305.6 million, up approximately 15% year over year and above the $292.3 million analyst consensus. Earnings per share of $0.39 also exceeded expectations of $0.22, helped by volume growth, lower costs and stronger margins. Freshpet Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company raised its 2026 net-sales and adjusted EBITDA outlook. Management now expects approximately $1.2 billion in annual revenue and increased its long-term adjusted gross-margin target to above 49%, signaling continued operating leverage. Freshpet Raises 2026 Outlook After Strong Q2 Results
• Positive Sentiment: William Blair analyst Jon Andersen maintained a Buy rating, citing Freshpet’s niche leadership, potential for further margin expansion and improving cash flow. The endorsement supports the bullish investment case following the earnings beat. Freshpet Earns Buy Rating
• Neutral Sentiment: The sharp advance also appears partly technical: reports identified a potential short squeeze as short sellers covered positions after the earnings beat and outlook increase. This can accelerate gains but may also increase near-term volatility. Freshpet Short Squeeze After Outlook Increase

Insider Transactions at Freshpet

In other news, CEO William B. Cyr sold 42,495 shares of the company’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $51.03, for a total transaction of $2,168,519.85. Following the transaction, the chief executive officer owned 224,459 shares in the company, valued at $11,454,142.77. This represents a 15.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Craig D. Steeneck purchased 2,000 shares of the business’s stock in a transaction on Wednesday, May 20th. The shares were bought at an average price of $47.83 per share, for a total transaction of $95,660.00. Following the purchase, the director directly owned 37,500 shares in the company, valued at $1,793,625. This represents a 5.63% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders have bought 4,211 shares of company stock worth $215,027 and have sold 235,262 shares worth $11,664,591. 4.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Freshpet

A number of institutional investors have recently modified their holdings of the stock. Parallel Advisors LLC lifted its holdings in Freshpet by 55.0% in the third quarter. Parallel Advisors LLC now owns 555 shares of the company’s stock valued at $31,000 after acquiring an additional 197 shares during the period. Smartleaf Asset Management LLC increased its position in shares of Freshpet by 32.0% during the fourth quarter. Smartleaf Asset Management LLC now owns 882 shares of the company’s stock worth $53,000 after purchasing an additional 214 shares in the last quarter. Ossiam raised its stake in Freshpet by 81.1% in the 2nd quarter. Ossiam now owns 509 shares of the company’s stock valued at $35,000 after purchasing an additional 228 shares during the last quarter. The Manufacturers Life Insurance Company boosted its stake in Freshpet by 2.6% during the 4th quarter. The Manufacturers Life Insurance Company now owns 8,966 shares of the company’s stock worth $546,000 after purchasing an additional 230 shares during the last quarter. Finally, FORA Capital LLC boosted its position in Freshpet by 6.0% during the third quarter. FORA Capital LLC now owns 7,353 shares of the company’s stock worth $405,000 after acquiring an additional 417 shares during the last quarter.

About Freshpet

Freshpet Inc (NASDAQ: FRPT) is a leading pet food company specializing in fresh, refrigerated meals and treats for dogs and cats. The company’s products are formulated with carefully selected, natural ingredients and are designed to offer a higher level of nutrition and freshness than traditional dry or canned pet foods. Freshpet’s offerings include refrigerated rolls, pâtés and snacks, all of which are sold through the refrigerated section of grocery, mass-market and pet specialty stores.

Freshpet’s product portfolio is built around the concept of fresh, minimally processed recipes that do not require preservatives or artificial colors.