Freshpet (NASDAQ:FRPT) Issues Quarterly Earnings Results, Beats Expectations By $0.17 EPS

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

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 Performance

FRPT traded up $9.59 during midday trading on Wednesday, hitting $71.97. 3,453,999 shares of the company traded hands, compared to its average volume of 1,503,960. The company’s 50-day moving average is $55.23 and its 200 day moving average is $62.50. The company has a quick ratio of 5.26, a current ratio of 6.18 and a debt-to-equity ratio of 0.34. The firm has a market capitalization of $3.54 billion, a PE ratio of 19.25 and a beta of 1.61. Freshpet has a 52 week low of $46.45 and a 52 week high of $86.00.

Key Stories Impacting Freshpet

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

Analyst Upgrades and Downgrades

FRPT has been the topic of a number of research analyst reports. Piper Sandler reiterated an “overweight” rating on shares of Freshpet in a report on Monday, June 15th. Weiss Ratings cut shares of Freshpet from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday, June 1st. TD Cowen raised shares of Freshpet from a “hold” rating to a “buy” rating and set a $80.00 price objective on the stock in a research note on Wednesday, April 8th. Stifel Nicolaus set a $66.00 target price on shares of Freshpet in a report on Thursday, May 7th. Finally, Morgan Stanley reiterated an “overweight” rating and set a $77.00 price objective on shares of Freshpet in a research note on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $74.50.

Insider Buying and Selling

In other news, CEO William B. Cyr sold 42,495 shares of the business’s stock in a transaction that occurred on 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 completion of the transaction, the chief executive officer directly owned 224,459 shares of the company’s stock, valued at $11,454,142.77. The trade was a 15.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Craig D. Steeneck bought 2,000 shares of the business’s stock in a transaction on Wednesday, May 20th. The stock was bought at an average cost of $47.83 per share, with a total value of $95,660.00. Following the transaction, the director owned 37,500 shares in the company, valued at $1,793,625. This trade represents a 5.63% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders bought 4,211 shares of company stock valued at $215,027 and sold 235,262 shares valued at $11,664,591. Insiders own 4.30% of the company’s stock.

Hedge Funds Weigh In On Freshpet

Several institutional investors have recently made changes to their positions in FRPT. Motiv8 Investments LLC purchased a new stake in Freshpet during the fourth quarter valued at approximately $28,000. Parallel Advisors LLC increased its stake in shares of Freshpet by 55.0% in the 3rd quarter. Parallel Advisors LLC now owns 555 shares of the company’s stock worth $31,000 after purchasing an additional 197 shares in the last quarter. State of Wyoming purchased a new position in Freshpet during the second quarter valued at $34,000. EverSource Wealth Advisors LLC grew its holdings in Freshpet by 1,388.2% during the second quarter. EverSource Wealth Advisors LLC now owns 506 shares of the company’s stock valued at $34,000 after purchasing an additional 472 shares during the period. Finally, Ossiam raised its stake in shares of Freshpet by 81.1% in the second quarter. Ossiam now owns 509 shares of the company’s stock worth $35,000 after buying an additional 228 shares during the period.

Freshpet Company Profile

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.