Freshpet, Inc. Q3 2026 Earnings Recap

Freshpet reported double-digit sales growth and a 50% adjusted gross margin, while the stock rose 2.4% after earnings— a roughly muted reaction. The call highlighted improving margins and broad-based growth, alongside a challenging consumer environment and increased competition.

Key Takeaways

• Adjusted gross margin reached 50%, the highest level in more than seven years; management said the increase was primarily driven by improved operating performance, with only a limited benefit from new bag technology.
• MVP household penetration increased 8%, while total household penetration gains combined with buying-rate growth contributed to 10% growth.
• Store count rose 5% to more than 31,000, and total distribution points increased 14%; 25% of stores now have more than one fridge.
• E-commerce sales grew 35% year over year and represented 16.9% of total business; about 82% of digital order volume went through Freshpet’s fridge network via retail delivery services.
• Management described the consumer environment as challenging and noted significant new competition.