Freshpet Inc

F:7FP

Beat and raise: Freshpet said second-quarter results came in ahead of expectations, with net sales of $305.6 million up 15.5% year over year and adjusted EBITDA of $52.2 million up about 18%. Management raised full-year 2026 sales and EBITDA guidance.

Demand held up: The company said growth stayed strong despite a tougher consumer backdrop, with more of the growth now coming from higher buying rates among its best customers rather than just new household additions.

Omnichannel expanding: Digital orders grew 41% and reached 16.7% of sales, while total distribution points rose 13%. Management said the fridge network remains a key advantage and that broader distribution, not just fridge islands, is driving growth.

Margins improved: Adjusted gross margin reached 48.6%, the highest since Q1 2020, helped by better plant leverage and lower input costs. Freshpet also lifted its 2027 gross margin floor to at least 49%.

Competition not a blocker: Management said new competition in fresh and frozen pet food has not meaningfully slowed Freshpet’s growth or distribution gains, and it continues to believe the category runway is large.

Technology upside: The new bag technology is still in startup mode, but management said it could eventually add more than 100 basis points of gross margin improvement and unlock new product innovation.

Macro caution: The company remains cautious about the consumer environment, citing weak sentiment, higher gas and fuel costs, and trucking pressure, and said guidance does not depend on a sustained macro recovery.