Freshpet : FRPT Q1 2026 Earnings Presentation

Published: 2026-05-06 06:42:13 ET FRPT

Published on 05/06/2026 at 06:42 am EDT

Q1 2026

Earnings

May 6, 2026

Freshpet strengthens the bond between people and our pets so that we both live longer, healthier and happier lives while being kind to the planet.

1Q26 Earnings Presentation 3

Highlights

We are encouraged by our strong start to 2026, delivering first quarter sales growth in excess of our 2026 guidance and reinforcing our confidence in Freshpet's long-term growth opportunity. Our performance reflects the strength of our differentiated product offerings, our manufacturing scale and expertise, our extensive omnichannel marketing and distribution capabilities, and our ability to adapt in a dynamic environment to drive market share gains and lead the growing fresh pet food segment.

Q1 2026: Growth and progress across key metrics

Financial

Q1 2026

YoY Change

Net Sales

$297.6M

+13.1%

Adjusted Gross Margin*

46.9%

+120 bps

Net Income

$48.5M

+$61.2M

Adjusted EBITDA

$37.9M

+$2.4M

Adjusted EBITDA Margin*

12.7%

-80 bps

Logistics Costs*

6.3%

+40 bps

Input Costs*

28.5%

-80 bps

Quality Costs*

2.1%

-10 bps

Operating Cash Flow

$40.3M

+$35.5M

Free Cash Flow

$12.7M

+$34.4M

*As a percent of net sales

Retail

Comparisons to prior year period unless otherwise noted

Q1 2026

Total Household Penetration

+8%

Total Buy Rate

+6%

MVP Household Penetration

+13%

Fridge Growth

+7%

Cubic Feet of Fridges

+7%

Store Count

+7%

Total Distribution Points

+10%

Ecommerce1 Share of Sales

16.1%

Market Share2

4.2%

Source: Internal Data, Numerator for 12 months ended 3/29/26, Nielsen for 52W ended 3/28/26

Ecommerce includes Click & Collect, Last Mile Delivery, Pure Play, and DTC

Market share of US dog food and treats from Nielsen Omnichannel

1Q26 Earnings Presentation 6

Freshpet's opportunity

Large category, growing market share

~$38B Dog food and treats category; Freshpet has 4.2% market share

Growing Total Addressable Market (TAM)

36M Households and growing; Generational shift

Improving returns on capital

Disciplined capital spending; applying capital efficiency framework with scale benefits

Source: NIQ Total US Pet Food $ - OmniChannel by Category 52 Weeks Ended 3/28/26

Total Addressable Market based on Internal Proprietary Model sourced from Numerator 1Q26 Earnings Presentation 7

Significant runway for growth in a large category

U.S. pet food category

Dog food and treats category

Freshpet market share of dog food and treats

Source: NIQ Total US Pet Food $ - OmniChannel by Category 52 Weeks Ended 3/28/26

Generational transition to younger pet parents continues to increase Freshpet's Total Addressable Market (TAM)

Freshpet Total Addressable Market (households in millions)

2023 2024 2025

Source: Internal Proprietary Model sourced from Numerator 1Q26 Earnings Presentation 9

Continued growth in consumer franchise; added ~1.3m households YoY

Freshpet Household Penetration Growth (in millions)

(52 weeks)

16.1

14.8

13.0

10.0

10.8

2022

2023

2024

2025

2026

20%

14%

Source: Numerator Panel data for the 12-month periods ending 4/3/22, 4/2/23, 3/31/24, 3/30/25, 3/29/26

1Q26 Earnings Presentation 10

Freshpet Users who are MVP's* (Ultra/Super Heavy Buyers) (in millions)

Freshpet Users who are MVP's (Ultra/Super Heavy Buyers) (in millions)

MVP Household Penetration MVP Buy Rate

2.5

2.2

1.8

1.4

1.1

2022

2023

2024

2025

2026

% of total Freshpet households that are MVP's

11%

13%

14%

15%

16%

$430

$464

$496

$491

71%

of Freshpe sales

$513

Source: Numerator Panel data for the 12-month periods ending 4/3/22, 4/2/23, 3/31/24, 3/30/25, 3/29/26

*Most Valuable Pet Parents

1Q26 Earnings Presentation 11

MVP growth is also supporting buy rate expansion

Freshpet Buy Rate

(52 weeks)

$114

$102 $107

$92

$76

2022

2023

2024

2025

2026

20%

11%

Source: Numerator Panel data for the 12-month periods ending 4/3/22, 4/2/23, 3/31/24, 3/30/25, 3/29/26 1Q26 Earnings Presentation 12

Large retail footprint acts as micro fulfillment centers for omnichannel customers with ~80% of our delivered sales through the fridge network

Freshpet Store & Fridge Counts

Store Count Fridge Count

Number of Fridges per Store*

39,464

39,347

36,544

34,274

Second/Third Fridges

25%

29,547

26,963

30,235

22,385

24,717

28,141

26,777

25,281

18,095

19,829

19,499

22,716

23,631

21,570

15,023

16,562

13,386

10,825

One Fridge 75%

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD

2026

30,425

Source: Internal data for the period ending 3/31/26; *U.S. and Canada Fridges 1Q26 Earnings Presentation 13

Winning with the omnichannel consumer

Shift in marketing mix and message is driving an omnichannel business

Launched new campaign called "Kitchen Conversations"

Utilizing digital and retail media to super serve our MVPs from discovery, purchase and subscription

Breadth of forms, sizes, prices and channels

Value packs expanding in club

Entry price point as well as Homestyle Creations at high end

Innovation leveraging new technology

Large fridge network evolves to take advantage of fast local delivery and increase holding capacity for online sales

Incremental distribution points in club and rural lifestyle retail

Testing new retail display concepts

Expect outsized growth in digital sales including expansion in DTC

Building a stronger product proposition by leveraging breakthrough technology

Unlocks product appeal, freshness and innovation capabilities

Aim to deliver lower cost through increased yields and throughput, and increasing capacity

Designed to increase bagged product margins and decrease margin gap between bags and roll products

Today

Our New Technology

Simplified recipes

Clean ingredients

Aroma

Texture

Shape

Color

Quality

Consistency, days open

1Q26 Earnings Presentation 15

Manufacturing Capacity Update

Bethlehem Kitchen

Kitchen South

Ennis Kitchen

10+

Total

24+

Owning our manufacturing enables us to advance the technology of the fresh pet food category

New technology showing encouraging results:

First bag line successfully commenced production in January 2026

Converted bag line with "lite" version of new technology in April 2026, second "lite" line scheduled for end of 2Q/early 3Q

Expect to spend ~$150m in capex in 2026, primarily on capacity, with the potential for incremental investment to accelerate the rollout of new technology or if we have a distribution breakthrough with island fridges

Facility Lines Today Lines Projected

Source: Internal Data 1Q26 Earnings Presentation 16

Capital Efficiency Framework

More out of existing lines

More out of existing sites

Develop G implement new technologies

Q1 2026 Results

Q1 2026 Net sales primarily driven by volume

Q1 2026 Net Sales ($m)

Q1 2026 Net Sales Bridge

$297.6

15%

13%

$263.2

Q1 2025

Q1 2026

Volume

Price/Mix

Net Sales Growth

13.1%

-2%

Source: Internal Data

1Q26 Earnings Presentation 19

Consumption growth across all channels

Q1 2026 Consumption Growth ($)

Consumption Growth Trends (volume in pounds)

15%

13.5%

13%

10.4%

11%

10.2%

10%

5.4%

6.5%

Total US Pet Total US Pet Retail Plus + Retail Plus

Costco

XAOC

Food

Pet Specialty

Q1 2025

Q2 2025

Q3 2025

Q4 2025

Q1 2026

Source: NIQ consumption data, latest 13 weeks thru 3/28/26 and internal sales data

1Q26 Earnings Presentation 20

Q1 2026 delivered 120 basis point Adj. Gross Margin improvement

Q1 2026 Adj. Gross Margin

% of net sales

Q1 2026 Adj. EBITDA ($m)

% of net sales

45.7%

46.9%

$37.9

$35.5

Q1 2025

Q1 2026

Q1 2025

Q1 2026

39.4% Gross Margin (GAAP) 40.5%

($12.7m) Net Income (loss) $48.5m

13.5%

12.7%

Source: Internal Data 1Q26 Earnings Presentation 21

Guidance

FY 2026 Guidance

Updated

Net Sales Growth YoY

7% - 10%

8% - 11%

Adjusted EBITDA

$205 - $215M

No change

Capital Expenditures

~$150M

No change

Additional considerations:

Net Sales: Uncertain consumer environment; lapping large club customer expansion in Q3

Adjusted Gross Margin: Expect ~50-100 bps improvement year-over-year at midpoint of sales range

Inflation: Now anticipate higher costs in logistics, packaging, etc.

Advertising Investment: Expect media as a percent of sales to be in-line with 2025

Capital Expenditures: Expect to be free cash flow positive; potential to increase capex if we accelerate new technology and fridge islands

1Q26 Earnings Presentation 23

2027 Targets

Advertising & Innovation

Drive Efficiencies

Expand HH Penetration & Buy Rate

>Category

Net sales well in excess of category growth rate

Increase Velocity

>48%

20-22%

Adjusted Gross Margin Target

Build Organization Capability to Increase Effectiveness & Leverage Scale

Adjusted EBITDA Margin Target

Expand Capacity

Expand Visibility & Availability

1Q26 Earnings Presentation 24

Capital Spending, Cash Flow & Liquidity

Liquidity:

$381.4 million of cash-on-hand as of 3/31/26

Strong balance sheet provides ample financial flexibility

Capital Spending:

Q1 2026 spend of $27.6 million

Estimated 2026 spending of ~$150 million unless we decide to accelerate new technology investments or we have sizable retail expansion with new fridge islands

Cash flow:

Generated $40.3 million of operating cash flow in Q1 2026, a YoY increase of $35.5 million driven by higher net sales, timing of payments, and incentive compensation favorability

Positive free cash flow* of $12.7 million

Operating Cash Flow ($m)

$40.3

$4.8

Q1 2025 Q1 2026

Source: Internal Data

*Free Cash Flow is defined as net cash flows provided by operating activities less capital expenditures. 1Q26 Earnings Presentation 26

Appendix

Three Months Ended March 31,

2026 2025

(Dollars in thousands)

Freshpet, Inc. and Subsidiaries Reconciliation between Gross Profit and Adjusted Gross Profit

Gross profit

$ 120,674

$ 103,788

Depreciation expense

17,298

15,179

Non-cash share-based compensation

1,588

1,283

Loss (gain) on disposal of manufacturing equipment

(5)

Adjusted Gross Profit

$ 139,572

$ 120,245

Adjusted Gross Profit as a % of Net Sales

46.9%

45.7%

Source: Internal Data 1Q26 Earnings Presentation 28

Three Months Ended March 31,

2026 2025

(Dollars in thousands)

Includes true-ups to share-based compensation expense. We have certain outstanding share-based awards with performance-based vesting conditions that require the achievement of certain Adjusted EBITDA margins, Adjusted EBITDA and/or Net Sales targets as a condition of vesting. At each reporting period, we reassess the probability of achieving the performance criteria and the performance period required to meet those targets. When the probability of achieving such performance conditions changes, the compensation cost previously recorded is adjusted as needed. When such performance conditions are deemed to be improbable of achievement, the compensation cost previously recorded is reversed.

Represents a non-recurring loss as a result of an accounts receivable write-off in connection with the liquidation of one of our pet specialty distributors. Concurrent with its liquidation, we transitioned to a new distribution partner, who is a leading pet specialty distributor and who we anticipate will facilitate sales to pet specialty stores. Thus, despite the transitory impact during the first quarter of 2025, our ability to continue to generate sales is consistent with what we would expect to generate within the pet specialty channel.

Represents the net settlement charges for all claims related to the litigation with Phillips.

Represents termination costs due to a business change in our international go-to-market strategy.

Freshpet, Inc. and Subsidiaries Reconciliation between Net Income and Adjusted EBITDA

Net income (loss)

$ 48,508

$ (12,697)

Depreciation and amortization

24,278

21,116

Interest expense, net of interest income

705

1,064

Income tax expense

17,133

134

EBITDA

90,624

9,617

Non-cash share-based compensation (a)

9,137

8,816

Loss on disposal of property, plant and equipment

126

161

Gain on equity investment

(62,013)

Distributor transition costs (b)

10,680

Legal obligation (c)

4,987

International business charges (d)

1,273

Adjusted EBITDA

$ 37,874

$ 35,534

Adjusted EBITDA as a % of Net Sales

12.7%

13.5%

Source: Internal Data 1Q26 Earnings Presentation 29

Freshpet, Inc. and Subsidiaries Reconciliation between

Net Cash Flows Provided by Operating Activities and Free Cash Flow

Three Months Ended March 31,

[1]

2026

2025

(Dollars in thousands)

Net cash flows provided by operating activities

40,329 $

4,807

less: capital expenditures1

(27,599)

(26,491)

Free Cash Flow

12,730 $ (21,684)

1 Capital expenditures is equivalent to the amount included in "Acquisitions of property, plant and equipment, software and deposits on equipment" on our Consolidated Statements of Cash Flows for the reported period.

Source: Internal Data 1Q26 Earnings Presentation 30

Convertible Share Dilution Calculations at Maturity

Stock Price at Maturity

Convert

Convert + Capped Call

Convert

Convert + Capped Call

$100.00

5.8

4.0

1.8

0.0

$110.00

5.8

3.7

2.1

0.0

$120.00

5.8

3.4

2.4

0.0

$130.00

5.8

3.5

2.7

0.4

$140.00

5.8

3.7

2.9

0.8

$150.00

5.8

3.8

3.1

1.1

$160.00

5.8

4.0

3.3

1.4

$170.00

5.8

4.1

3.4

1.7

$180.00

5.8

4.2

3.5

1.9

$190.00

5.8

4.2

3.7

2.1

$200.00

5.8

4.3

3.8

2.3

We have run share dilution calculations to compare outcomes for the 2028 convertible notes

Freshpet has structured the convertible with Flexible Settlement, so we have the option to settle the convertible in shares, cash, or a combination at its option

We have run convertible dilution calculations once using the most dilutive physical settlement method (i.e. Freshpet delivers all underlying shares upon conversion if the convertible is in-the-money) and again using net share settlement method (i.e. Freshpet delivers the $402.5mm principal amount in cash and any remaining in-the-money amount in shares under Treasury Stock method)

NoĒg: Based on Freshpet's $402.5mm convertible offering, a $54.65 stock price at issue, a 27.5% conversion premium, and an up 120% capped call.

If the convertible is in-the-money, Freshpet can deliver full underlying shares at its option since it has chosen a Flexible Settlement Structure.

At stock prices below the conversion price, the convertible is redeemed for cash without any equity dilution.

Physical Settlement (mm shares) (1,2)

Net Share Settlement (mm shares)

Source: Internal Data 1Q26 Earnings Presentation 31

Thank you

Disclaimer

Freshpet Inc. published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2026 at 10:41 UTC.