Freshpet (FRPT) Q4 2025 earnings summary

Executive summary

• Net sales grew 13% in 2025, surpassing $1.1 billion for the first time, outpacing the dog food category and expanding margins.

• Adjusted EBITDA rose 21% to $195.7 million, with margin and operational improvements contributing to profitability.

• Positive free cash flow of $12.4 million was achieved a year ahead of plan, reversing a prior year deficit.

• Household penetration and MVP (heavy user) base grew, adding 1.3 million households year-over-year.

• Digital sales reached 14% of total business, with omni-channel and retail expansion supporting growth.

Financial highlights

• FY 2025 net sales reached $1,102.0 million, up 13.0% year-over-year; Q4 net sales were $285.2 million, up 8.6%.

• FY 2025 net income was $139.1 million, up from $46.9 million, mainly due to a $68.4 million deferred tax benefit.

• Adjusted gross margin improved to 46.7% for FY 2025 and 48.4% for Q4 2025.

• FY 2025 adjusted EBITDA was $195.7 million (17.8% margin), up from $161.8 million (16.6%) in FY 2024.

• Operating cash flow for FY 2025 was $160.6 million; capital expenditures were $148.2 million.

Outlook and guidance

• 2026 net sales growth expected at 7%-10%, with adjusted EBITDA guidance of $205-$215 million.

• Adjusted gross margin expected to improve by 50–100 basis points in FY 2026.

• Capital expenditures projected at ~$150 million for 2026, excluding potential incremental investments.

• Free cash flow positive status expected to continue in 2026; 2027 targets include adjusted gross margin of at least 48% and EBITDA margin of 20%-22%.

• Market share gains and growth above the US dog food category anticipated.