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Freshpet Beats Q1, Lifts Sales Outlook as Shares Fall on Margin Pressure

A drop in adjusted EBITDA margin overshadowed the sales beat for investors.

Overview

  • Freshpet, which reported results Wednesday, posted EPS of 91 cents and net sales of $297.6 million that topped forecasts.
  • The company raised 2026 net sales growth guidance to 8% to 11% and kept its adjusted EBITDA target at $205 million to $215 million.
  • Adjusted EBITDA rose to $37.9 million, yet the margin fell to 12.7% from 13.5% as selling and marketing costs, including media spend, increased.
  • Shares were down about 10% in afternoon trading following the report, reflecting concern over the lower margin despite stronger demand.
  • Net income reached $48.5 million, helped by a $62 million gain from selling a non‑controlling stake, and cash flow improved with positive free cash flow reported.