Freshpet Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.75%.
Did FRPT Beat Earnings? Q4 2025 Results
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
Forward Guidance & Outlook
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
Figures from SEC filings and company reports. Not investment advice.