Freshpet

FRPT Q2 2025 Earnings

Reported Aug 4, 2025 at 6:31 AM ET · SEC Source

Q2 25 EPS

$0.33

BEAT +112.90%

Est. $0.16

Q2 25 Revenue

$264.7M

MISS 1.21%

Est. $267.9M

vs S&P Since Q2 25

-40.3%

TRAILING MARKET

FRPT -23.9% vs S&P +16.3%

Market Reaction

Did FRPT Beat Earnings? Q2 2025 Results

Freshpet delivered a decisive earnings beat in Q2 2025, posting diluted EPS of $0.33 against a consensus estimate of $0.15, a 112.90% positive surprise, even as revenue of $264.69 million came in just 1.21% below expectations despite growing 12.5% ye… Read more Freshpet delivered a decisive earnings beat in Q2 2025, posting diluted EPS of $0.33 against a consensus estimate of $0.15, a 112.90% positive surprise, even as revenue of $264.69 million came in just 1.21% below expectations despite growing 12.5% year over year. The headline profit story was driven by a sharp operational turnaround: net income swung to $16.36 million from a loss of $1.69 million a year earlier, fueled by gross margin expansion to 40.9%, a 660 basis point reduction in SG&A as a percentage of net sales, and lower input and quality costs across its production network. Adjusted EBITDA climbed to $44.40 million, with margin expanding 190 basis points to 16.8%. Looking ahead, the company tempered its full-year 2025 net sales growth outlook to 13%-16% from 15%-18%, citing a more economically constrained consumer, though it maintained its Adjusted EBITDA guidance of $190 million to $210 million and meaningfully cut capital expenditure guidance to approximately $175 million, reflecting improved capital efficiency at its facilities.

Key Takeaways

  • Volume gains of 10.8% and favorable price/mix of 1.7% drove 12.5% net sales growth
  • Lower input costs reduced input costs as percentage of net sales by 90 basis points YoY
  • Reduced quality costs decreased by 70 basis points as a percentage of net sales YoY
  • Decreased share-based compensation and variable compensation accrual reduced SG&A
  • 170 basis point combined improvement across input, logistics, and quality costs
  • Overall Equipment Effectiveness (OEE) improvements across manufacturing network
  • Ennis Kitchen became the most profitable Freshpet facility
  • 11% growth in total household penetration, 18% growth in MVP household penetration
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FRPT YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

“Against a more challenging consumer sentiment backdrop, we continue to significantly outperform the dog food category - delivering both category leading sales growth and strong improvements in operations.”

— Billy Cyr, Q2 2025 Earnings Press Release