Pet food company Freshpet (NASDAQ: FRPT) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 15.5% year on year to $305.6 million. Its GAAP profit of $0.39 per share was 73.6% above analysts’ consensus estimates.
Is now the time to buy Freshpet? Find out by accessing our full research report, it’s free.
Freshpet (FRPT) Q2 CY2026 Highlights:
- Revenue: $305.6 million vs analyst estimates of $292.3 million (15.5% year-on-year growth, 4.5% beat)
- EPS (GAAP): $0.39 vs analyst estimates of $0.22 (73.6% beat)
- Adjusted EBITDA: $52.2 million vs analyst estimates of $45.91 million (17.1% margin, 13.7% beat)
- EBITDA guidance for the full year is $215 million at the midpoint, above analyst estimates of $211.1 million
- Operating Margin: 7.1%, in line with the same quarter last year
- Free Cash Flow Margin: 4.8%, up from 0.2% in the same quarter last year
- Organic Revenue rose 15.5% year on year (beat)
- Sales Volumes rose 15.7% year on year (10.8% in the same quarter last year)
- Market Capitalization: $3.07 billion
"Our second quarter performance demonstrates the strength and resilience of our business model. It also reinforces our belief that fresh is the future of pet food and that Freshpet is uniquely positioned to win in that segment," commented Billy Cyr, Freshpet’s Chief Executive Officer.
Company Overview
Standing out from typical processed pet foods, Freshpet (NASDAQ: FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
With $1.18 billion in revenue over the past 12 months, Freshpet is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. On the bright side, it can grow faster because it has a longer list of untapped store chains to sell into.
As you can see below, Freshpet’s sales grew at an impressive 20.8% compounded annual growth rate over the last three years as consumers bought more of its products.
This quarter, Freshpet reported year-on-year revenue growth of 15.5%, and its $305.6 million of revenue exceeded Wall Street’s estimates by 4.5%.
Looking ahead, sell-side analysts expect revenue to grow 7.1% over the next 12 months, a deceleration versus the last three years. Still, this projection is above average for the sector and suggests the market is forecasting some success for its newer products.
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
Volume Growth
Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.
To analyze whether Freshpet generated its growth from changes in price or volume, we can compare its volume growth to its organic revenue growth, which excludes non-fundamental impacts on company financials like mergers and currency fluctuations.
Over the last two years, Freshpet’s average quarterly volume growth of 15.7% has outpaced the competition by a long shot. In the context of its 13.5% average organic revenue growth, we can see that most of the company’s gains have come from more customers purchasing its products.
In Freshpet’s Q2 2026, sales volumes jumped 15.7% year on year. This result was in line with its historical levels.
Key Takeaways from Freshpet’s Q2 Results
It was good to see Freshpet beat analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. On the other hand, its gross margin missed. Zooming out, we think this quarter featured some important positives. The stock traded up 7.6% to $67.10 immediately after reporting.
Sure, Freshpet had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
