Freshpet (NASDAQ:FRPT) Issues Earnings Results, Beats Estimates By $0.19 EPS

Freshpet (NASDAQ:FRPT) released its quarterly earnings data on Wednesday. The company reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.39 by $0.19, Zacks reports. Freshpet had a return on equity of 5.97% and a net margin of 17.28%. Freshpet’s quarterly revenue was up 10.1% on a year-over-year basis. During the same quarter last year, the company earned $1.86 EPS.

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

• Freshpet raised its 2026 outlook, now expecting 12%–13% sales growth and adjusted EBITDA of $215 million–$220 million. Third-quarter sales rose 10%, adjusted EBITDA increased 18%, and adjusted gross margin reached 50%.
• Growth was broad-based: MVP household penetration rose 8%, e-commerce sales increased 35%, and distribution points grew 14%. Management said its products are holding up against new competitors, while noting that customer order timing caused reported sales growth to trail measured consumption growth.
• Improved manufacturing performance unlocked more than $100 million of capacity within the existing footprint, allowing Freshpet to lower its 2026 capital-spending outlook to $125 million–$150 million. The company expects its new bag technology to contribute substantially to a 100-basis-point adjusted gross-margin improvement in 2027.
• Higher logistics costs, along with structural inflation in ingredients and packaging, are pressuring profitability; management expects logistics costs to remain elevated and plans selective price increases in 2027. Planned maintenance downtime, holiday-related production interruptions, and additional staffing are expected to reduce fourth-quarter adjusted gross margin sequentially, potentially to below the prior-year level.

Freshpet Stock Down 0.8%

Freshpet stock traded down $0.58 during mid-day trading on Wednesday, hitting $69.02. The company had a trading volume of 1,054,734 shares, compared to its average volume of 1,395,385. The stock has a market cap of $3.39 billion, a price-to-earnings ratio of 18.18 and a beta of 1.75. The company has a quick ratio of 5.03, a current ratio of 6.05 and a debt-to-equity ratio of 0.34. Freshpet has a 1 year low of $46.45 and a 1 year high of $86.00. The business has a fifty day moving average of $64.99 and a 200 day moving average of $63.89.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Morgan Stanley downgraded Freshpet from an “overweight” rating to an “equal weight” rating and cut their price target for the stock from $77.00 to $72.00 in a report on Thursday, August 6th. Stifel Nicolaus boosted their price target on shares of Freshpet from $66.00 to $78.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Weiss Ratings raised shares of Freshpet from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, September 28th. Wall Street Zen upgraded shares of Freshpet from a “sell” rating to a “hold” rating in a report on Sunday, August 2nd. Finally, JPMorgan Chase & Co. lowered their target price on shares of Freshpet from $78.00 to $76.00 and set an “overweight” rating for the company in a research note on Monday, October 26th. Nine equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $79.62.

Insiders Place Their Bets

In related news, Director Walter George acquired 1,000 shares of the firm’s stock in a transaction on Monday, September 14th. The stock was bought at an average price of $64.92 per share, for a total transaction of $64,920.00. Following the completion of the purchase, the director directly owned 51,746 shares of the company’s stock, valued at approximately $3,359,350.32. The trade was a 1.97% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO William Cyr sold 41,022 shares of Freshpet stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $72.86, for a total value of $2,988,862.92. Following the sale, the chief executive officer owned 267,152 shares in the company, valued at $19,464,694.72. This trade represents a 13.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 171,636 shares of company stock worth $12,754,864 over the last ninety days. Insiders own 4.30% of the company’s stock.

About Freshpet

Freshpet, Inc (NASDAQ: FRPT) is a pet food company that develops, manufactures and markets refrigerated, fresh food and treats for dogs and cats. Its products are made with animal proteins, vegetables and other ingredients and are designed to be stored in the refrigerator rather than on a conventional shelf.

The company sells its products under the Freshpet brand and related product lines, including Freshpet Select and Vital. Its offerings include refrigerated meals, rolls, recipes and treats formulated for different pet sizes, ages and dietary needs.