Freshpet Reports 13% Full Year Sales Growth to $1.102B, Achieves Positive $12.4M FCF
Freshpet’s 2025 net sales rose 13% to $1.102 billion, net income surged to $139.1 million from $46.9 million, and free cash flow turned positive $12.4 million. In Q4, sales climbed 8.6% to $285.2 million, gross margin expanded to 43.3%, and net income reached $33.8 million.
1. Full Year 2025 Highlights
Freshpet achieved net sales of $1.102 billion in 2025, up 13% from prior year. Net income rose to $139.1 million versus $46.9 million, adjusted EBITDA increased to $195.7 million, and free cash flow improved to positive $12.4 million from negative $32.8 million.
2. Fourth Quarter Performance
In Q4, net sales increased 8.6% to $285.2 million, while net income more than doubled to $33.8 million. Adjusted EBITDA reached $61.2 million and gross margin expanded to 43.3% as SG&A expense ratio declined to 27.7% of sales.
3. Margin and Expense Drivers
Gross margin improved due to reduced quality costs and better leverage on plant expenses, lifting adjusted gross margin to 48.4%. SG&A expenses fell from 35.1% to 27.7% of net sales, driven by lower share-based and variable compensation.
4. Strategic Initiatives and Outlook
The company retooled its marketing model to boost household penetration, accelerated e-commerce growth, and began testing in-store island fridges. A new manufacturing line start-up targets improved product quality and profitability, and full year 2026 guidance was provided to build on this momentum.