Freshpet, Inc.: 2Q Sales and EBITDA Come in Well Ahead of Estimates, Annual Outlooks Raised, and 2027 Gross Margin Target Boosted

Research evidence excerpt

J P M O R G A N

North America Equity Research

05 August 2026

Freshpet, Inc.

2Q Sales and EBITDA Come in Well Ahead of

Estimates, Annual Outlooks Raised, and 2027 Gross

Margin Target Boosted

Overweight

FRPT, FRPT US

Price (04 Aug 26):$62.38

Food Producers & Retailers

Overall: Positive. FRPT reported a 5% sales beat (15.5% growth) and a $6MM

EBITDA beat ($52MM), with gross margin coming in ~130 basis points ahead of

estimates. The sales beat was clean in that it only included a 1% benefit from

shipment timing from lapping undershipment a year ago (which was not a

surprise). FRPT raised its 2026 sales growth outlook by 1.5% at the midpoint and

EBITDA range by $5MM , despite $8MM in expected cost pressure from higher

logsitics costs (vs. its original outlook). The company reiterated its 2027 EBITDA

margin target of 20-22% and raised its gross margin target by 1% to 49%. The

company indicated that the new line technology is a portion of this increase (but

it does not appear to account for all of it). FRPT’s earnings call is at 8AM ET.

2Q26 review. Revenue growth was +15.5% Y/Y (Bloomberg+10.4%) and

adjusted EBITDA was $52MM (vs. consensus $46MM). Adjusted gross

margin was 48.6% (consensus 47.3%). Adjusted SG&A of $96MM was

$2MM above estimates. The sales growth comprised 15.7% volume growth

and -0.2% price/mix.

2026 Outlook . The company raised its annual sales growth outlook to +1012% Y/Y, up from +8-11% Y/Y and versus the Bloomberg consensus of +9.9%.

IIt also raised its adjusted EBITDA outlook to $210-220MM, up from from

$205-215MM and versus the consensus of $211MM. The company still

expects to be FCF positive in 2026 and indicated that cap ex is likely to be at

least $150MM. Among key drivers, FRPT now expects 100-150 basis points

of gross margin expansion (up from +50-100 bps), media spend at 12.5% of

sales (unchanged), and an incremental $8MM in higher logistics costs (for fuel

surcharges and higher freight rates).

2027 Targets. For 2027, FRPT continues to expect net sales growth “well in

excess of the category” and 20-22% EBITDA margin. But the composition is

slightly different, with adjusted gross margin now at 49%, up from 48%. The

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