Freshpet, Inc. reported full‑year 2025 results that included net sales of $1,102.0 million, up 13.0% from $973.5 million in 2024. Adjusted EBITDA rose to $195.7 million, a 20.9% increase from $161.8 million in 2024, driven by higher volume and improved cost leverage at its Ennis kitchen. Net income reached $139.1 million, up from $46.9 million in 2024, largely due to a $68.4 million income‑tax benefit from the release of a valuation allowance. Freshpet also achieved positive free cash flow a year ahead of its 2026 target, reporting cash and cash equivalents of $278.0 million and debt of $397.3 million as of December 31, 2025.
The adjusted EBITDA growth of 20.9% reflects a combination of volume expansion and disciplined cost management. Higher sales volumes at the Ennis plant were offset by modest increases in input costs, while the company’s focus on operational efficiency and scale helped maintain margin levels. The 20.9% figure corrects the earlier 25% estimate, aligning with the company’s own financial statements.
Freshpet’s earnings per share of $0.64 beat the consensus estimate of $0.43, a $0.21 or 48.8% beat. The strong earnings result was driven by cost control and margin expansion, as the company maintained a higher adjusted gross margin of 48.4% in Q4 versus 48.1% in the prior year. The tax benefit and improved operational leverage also contributed to the earnings beat.
Revenue for the quarter was $285.2 million, slightly below the consensus estimate of $285.8 million, a miss of $0.6 million or 0.2%. The miss was attributed to a modest slowdown in demand, which tempered the growth momentum seen in earlier quarters. Despite the revenue miss, the company’s overall sales growth remained robust at 13% year‑over‑year.
For 2026, Freshpet guided net sales growth of 7% to 10% and adjusted EBITDA of $205 million to $215 million, a downward revision from the prior guidance of 10% to 12% for sales and $210 million to $220 million for EBITDA. The more conservative outlook signals management’s caution about near‑term demand conditions while maintaining confidence in profitability through disciplined capital allocation.
Market reaction to the results was muted, with the stock trading down 2.7% to 3.1% in pre‑market trading. The decline was driven by the slight revenue miss and the conservative 2026 guidance, which tempered investor enthusiasm despite the company’s strong earnings and free‑cash‑flow achievement.
"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," said CEO Billy Cyr. "Importantly, we strengthened our foundation for future growth. We retooled our marketing model to drive household penetration growth and we are building momentum in e-commerce. We also began testing island fridges – our most significant step change in retail visibility and availability – and we recently started..." "We believe these efforts position us well to deliver outsized growth and improve profitability while fulfilling our mission to help dogs and cats live longer, happier and healthier lives with the people who love them," added Cyr.
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