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.