Freshpet Q1 2025 Earnings Summary

Freshpet reported net sales of $263.2 million in the first quarter of 2025, up 17.6% from $223.8 million in Q1 2024. Sales growth was primarily driven by a 14.9% increase in volume and a 2.7% benefit from favorable pricing and product mix.
Despite revenue growth, the company posted a net loss of $12.7 million, compared to net income of $18.6 million in the prior year. The loss was mainly attributed to higher SG&A expenses, which rose to $115.3 million from $79.7 million, largely due to increased media spending, legal charges, and a distributor-related write-off. Adjusted SG&A increased more modestly to $84.7 million (32.2% of sales) from $70.9 million (31.7%).
Gross margin remained steady at 39.4%, while adjusted gross margin improved slightly to 45.7% from 45.3%, aided by lower input and quality costs. Adjusted EBITDA rose to $35.5 million from $30.6 million.
Outlook for 2025 (Updated):
• Net sales forecast revised down to $1.12–$1.15 billion (15–18% growth), from previous $1.18–$1.21 billion (21–24% growth).
• Adjusted EBITDA now expected at $190–$210 million, down from at least $210 million previously.
• Capital expenditures projected at ~$225 million, lowered from ~$250 million.
Freshpet cited macroeconomic headwinds and consumer pressures as reasons for the revised outlook but reiterated confidence in its long-term growth potential and structural advantages in the fresh pet food market.

Freshpet, Inc. reported strong financial results for the fourth quarter and full year of 2024, demonstrating significant revenue growth and improved profitability.

For Q4 2024, net sales increased by 22% year-over-year to $262.7 million, driven primarily by a 20.7% volume increase. Gross margin improved substantially to 42.5% from 34.6% in the prior year period, supported by lower input costs, reduced quality costs, and better leverage on plant expenses. Adjusted EBITDA rose to $52.6 million from $31.3 million, reflecting enhanced operational efficiencies.

For the full year 2024, net sales grew 27.2% to $975.2 million. The company reported net income of $46.9 million, a major turnaround from the prior year’s net loss of $33.6 million. Gross margin expanded to 40.6% from 32.7% in 2023, while Adjusted EBITDA more than doubled to $161.8 million from $66.6 million. Operating cash flow also showed a significant increase, reaching $154.3 million compared to $75.9 million in the prior year.

CEO Billy Cyr highlighted that 2024 was a “breakout year” for Freshpet, exceeding some of the company’s previously set 2027 targets. The company now anticipates becoming free cash flow positive by 2026, allowing it to self-fund future growth. Freshpet also raised its long-term profit margin targets, citing greater scale efficiencies.

The company remains focused on disciplined growth and further margin improvements as it continues to transform the pet food category.