Freshpet (FRPT) as of March 31, 2026 presents a balance sheet with total assets of $1.84B and total liabilities of $577M, yielding GAAP book equity of $1.26B. Under liquidation haircuts, the recovery picture is materially negative once the PP&E-heavy asset base is discounted. The dominant asset is PP&E net of depreciation at $1.14B (gross $1.50B, accumulated D&A $355M); at a 50-70% haircut, this produces liquidation recovery of $571M-$800M on the largest single asset class, against gross carrying value of $1.14B. Cash of $381M recovers at par. AR of $65M recovers at approximately $59-62M. Inventory of $81M (finished goods $52M, WIP/raw $28M) recovers at roughly $49M at a 60% haircut. Intangibles embedded in OtherAssetsNoncurrent ($35M) and deferred tax assets ($53M) recover at zero under liquidation convention. Total haircutted asset pool approximates $1.16B-$1.40B. Against this, liabilities at face: current liabilities $88M (AP $35M, accrued $48M, lease current $5M), convertible notes $402.5M face ($397.9M carrying), noncurrent operating lease $64M, noncurrent finance lease $27M, deferred tax liability $0.1M, and other noncurrent. Total liabilities at face approximately $577M. Estimated liquidation recovery to equity thus ranges from approximately $580M-$820M, but this excludes the August 2025 warehouse lease not yet on balance sheet (commences Q1 2027, undisclosed variable amount) and the $134M undiscounted operating lease obligation tail ($108M beyond 2029 alone). The Convertible Notes ($402.5M face, maturing April 1, 2028) are senior unsecured and must be settled at par in liquidation; no early conversion has occurred and the 130% stock price trigger was not met as of March 31, 2026. The most significant QoQ change is a $103M increase in cash driven by $95.5M proceeds from the sale of an equity investment (carrying value $33.4M at December 31, 2025, generating $62M pre-tax gain recognized in Q1 2026). This gain is non-recurring and income-statement; its balance-sheet effect is the cash accretion. The deferred tax asset of $53M arose from valuation allowance release in 2025 and recovers at zero in liquidation. Accrued liabilities jumped $16M QoQ to $47.5M, partially timing-driven. The filing discusses the August 2025 warehouse lease in MD&A and Note 12 as having indeterminate future commitments but does not separately XBRL-tag the undiscounted future commitment amount.
▼ Community Notes