Freshpet Issues Cautious 2026 Outlook, Q4 Sales Up 8.6% But Revenue Miss
Freshpet’s Q4 net sales rose 8.6% to $285.2 million on 9.7% volume growth, delivering 64 cents EPS versus a 59-cent estimate but narrowly missing revenue projections at $285.23 million. The company forecasts 2026 net sales growth of 7–10%, adjusted EBITDA of $205–215 million and positive free cash flow with ~$150 million capex.
1. Q4 Financial Performance
Freshpet recorded net sales of $285.2 million in Q4, up 8.6% year-over-year, driven by a 9.7% increase in volume offset by a 1.1% unfavorable price/mix impact. The company delivered adjusted EPS of $0.64, topping the $0.59 consensus, while revenue of $285.23 million narrowly missed estimates; adjusted gross margin expanded to 48.4% and SG&A declined to 27.0% of net sales.
2. Full-Year 2025 Results
For the year ended December 31, 2025, Freshpet’s net sales grew 13.0% to $1.102 billion and net income rose to $139.1 million from $46.9 million. Adjusted EBITDA reached $195.7 million and free cash flow turned positive at $12.4 million versus a $32.8 million outflow, with $278.0 million in cash against $397.3 million of net debt.
3. 2026 Outlook and Strategy
The company forecasts 2026 net sales growth of 7%–10% and adjusted EBITDA of $205–215 million, expecting positive free cash flow with approximately $150 million in capital expenditures. Management plans to drive household penetration via e-commerce expansion and retail innovations such as island fridges, alongside a new manufacturing line to enhance product quality and profitability.