Freshpet (FRPT) Q4 2025 Earnings
How Did FRPT Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: −3.75%.
Did FRPT Beat Earnings? Q4 2025 Results
Yes. Freshpet reported Q4 2025 earnings of $0.64 a share on Feb 23, 2026, beating the $0.48 consensus estimate by 34.3%. Revenue was $285.2M against a $285.7M estimate.
Freshpet delivered a standout fourth quarter, posting earnings per share of $0.64 against a consensus estimate of $0.41, a beat of 54.40%, even as revenue of $285.23 million came in just 0.21% shy of the $285.82 million Wall Street had expected. The top line still grew 8.6% year-over-year, driven by volume gains of 9.7%, and capped a fiscal year in which Freshpet crossed the $1.10 billion annual net sales threshold for the first time. The profitability story was the real headline: GAAP gross margin expanded to 43.3% from 42.5% a year earlier, while SG&A costs fell sharply to 27.7% of net sales from 35.1%, reflecting reduced share-based compensation and lower variable compensation accruals. The company also hit positive free cash flow of $12.38 million for the full year, a milestone it had not expected to reach until 2026. Shares climbed roughly 5% on the news, though some observers noted the 2026 net sales growth guidance of 7% to 10%, alongside Adjusted EBITDA of $205 million to $215 million, signals a deliberate pivot toward execution and margin expansion over pure revenue acceleration.
- Volume gains of 9.7% in Q4 2025 and 12.0% for full year 2025
- Reduced quality costs and improved leverage on plant expenses driving gross margin expansion
- 140 basis point improvement across input costs, logistics, and quality in FY 2025
- Decreased share-based compensation and variable compensation accrual reducing SG&A
- $68.4 million income tax benefit from release of valuation allowance due to sustained profitability
- MVP (Most Valuable Pet Parents) households represent 71% of Freshpet sales
“Fiscal year 2025 taught us some very important lessons and challenged the resilience of our business and our organization. In the end, our team demonstrated tremendous agility – delivering growth well in excess of the dog food category, surpassing $1 billion in net sales for the first time, expanding margins and achieving positive free cash flow.”
Freshpet CEO, on the earnings call
What Was Freshpet's Outlook in Q4 2025?
For full year 2026, Freshpet guides net sales growth of 7% to 10% compared to 2025, Adjusted EBITDA in the range of $205 million to $215 million, and positive free cash flow with capital expenditures of approximately $150 million. The company expects approximately 50-100 basis points of Adjusted Gross Margin improvement year-over-year at the midpoint of the sales range. Media spend as a percentage of sales is expected to be in-line with 2025. Capital expenditures could increase if the company accelerates new technology rollout or achieves a distribution breakthrough with island fridges. For 2027, the company targets Adjusted Gross Margin above 48%, Adjusted EBITDA Margin of 20-22%, and net sales growth well in excess of category growth rate.
FRPT YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $285.2M | $262.7M | +8.6% |
| Gross Profit | $123.5M | $111.6M | +10.6% |
| Operating Income | $44.5M | $19.4M | +129.5% |
| Net Income | $33.8M | $18.1M | +86.6% |
Figures from SEC filings and company reports. Not investment advice.