BEDMINSTER, N.J., Nov. 05, 2025 (GLOBE NEWSWIRE) -- Freshpet, Inc. (“Freshpet” or the “Company”) (Nasdaq: FRPT) today announced that members of the executive management team will participate in the J.P. Morgan U.S. Opportunities Forum in Miami, FL. The fireside chat will be on Wednesday, November 12, 2025 at 11:45 a.m. ET. A live webcast and replay will be available on the "Investors" section of the Company's website at www.freshpet.com. About FreshpetFreshpet's mission is to elevate the way we feed our pet ...

I am a freelancer with a business education who loves to discover new ideas for long and short term investments."Stop hoping for a promotion that's not coming. Instead, start a business at which you want to work." Sallie KrawcheckAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for ...

I am a freelancer with a business education who loves to discover new ideas for long and short term investments."Stop hoping for a promotion that's not coming. Instead, start a business at which you want to work." Sallie KrawcheckAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for ...

Core Insights - Freshpet Inc. is a key player in the premium pet food market, focusing on fresh, refrigerated offerings with high-quality, natural ingredients [1] - The company reported an EPS of $1.86, significantly surpassing the estimated EPS of $0.43, leading to a stock surge of over 12% [2][6] - Freshpet's net sales rose by 14% to $288.8 million, attributed to strategic distribution expansion [2][6] Financial Performance - Freshpet achieved a net income of $101.7 million, which includes a $77.9 million tax benefit [4] - The adjusted EBITDA increased to $54.6 million from $43.5 million year-over-year [4][6] - The company is optimistic about achieving positive free cash flow for the entire year of 2025 [3] Market Position and Valuation - Freshpet's P/E ratio stands at approximately 80.17, indicating strong investor confidence [5] - The debt-to-equity ratio is 0.46, reflecting a moderate level of debt [5] - A current ratio of 4.81 suggests a solid ability to cover short-term liabilities, highlighting the company's robust financial position [5]

Core Insights - Freshpet Inc. reported third-quarter earnings significantly above Wall Street expectations, with shares rising over 9% in intra-day trading [1] - The company achieved adjusted earnings of $1.86 per share, exceeding analyst estimates of $0.43 [1] - Revenue increased by 14% year-over-year to $288.8 million, surpassing the consensus forecast of $284.22 million [1] Financial Performance - Freshpet achieved positive free cash flow for the first time during the quarter and anticipates remaining free cash flow positive for the full fiscal year 2025, one year earlier than previously expected [2] - Adjusted EBITDA rose to $54.6 million from $43.5 million in the same quarter last year [2] Guidance Update - The company updated its full-year 2025 guidance, projecting net sales growth of approximately 13%, slightly down from the prior range of 13% to 16% [3] - Adjusted EBITDA outlook was narrowed to between $190 million and $195 million from the previous range of $190 million to $210 million [3] - Capital expenditure guidance was reduced to about $140 million from $175 million [3]

Financial Performance - For the three months ended September 30, 2025, net sales increased to $288.848 million, up 14% from $253.367 million in the same period of 2024[13] - Gross profit for the nine months ended September 30, 2025, was $326.170 million, representing a 14.7% increase compared to $284.357 million for the same period in 2024[13] - The company reported an income attributable to common stockholders of $101.663 million for the three months ended September 30, 2025, compared to $11.895 million for the same period in 2024[13] - Net income for the nine months ended September 30, 2025, was $105,322 thousand, compared to $28,803 thousand for the same period in 2024, representing a significant increase[19] - Consolidated net income for the nine months ended September 30, 2025, was $105,322,000, compared to $28,802,000 for the same period in 2024, representing a significant increase[110] Assets and Liabilities - Total assets as of September 30, 2025, were $1.746 billion, an increase from $1.575 billion as of December 31, 2024[11] - Current liabilities decreased to $76.748 million as of September 30, 2025, from $98.869 million as of December 31, 2024[11] - The company’s total stockholders' equity increased to $1.178 billion as of September 30, 2025, from $1.055 billion as of December 31, 2024[11] - The company’s accumulated deficit improved to $(176.484) million as of September 30, 2025, from $(281.806) million as of December 31, 2024[11] - As of September 30, 2025, total lease liabilities were $98,029,000, significantly higher than $28,928,000 as of December 31, 2024, representing an increase of 239%[86] Expenses - Selling, general, and administrative expenses for the nine months ended September 30, 2025, were $294.961 million, compared to $265.734 million for the same period in 2024[13] - The company incurred $95,134 thousand in cash flows used in investing activities for the nine months ended September 30, 2025, compared to $128,828 thousand in 2024, indicating a reduction in capital expenditures[19] - Share-based compensation expense for the nine months ended September 30, 2025, was $20,256 thousand, down from $37,862 thousand in 2024[19] - The company’s depreciation and amortization expenses increased to $66,798 thousand for the nine months ended September 30, 2025, from $52,249 thousand in 2024[19] - Total compensation cost for share-based payments for the nine months ended September 30, 2025, was $20,256,000, down from $35,835,000 in 2024, indicating a decrease of 43%[88] Cash Flow - Cash flows provided by operating activities for the nine months ended September 30, 2025, were $105,455 thousand, slightly up from $103,919 thousand in 2024[19] - The company had cash and cash equivalents of $274,591 thousand at the end of the reporting period, compared to $274,594 thousand at the end of the previous year[19] - Cash paid for operating lease liabilities for the nine months ended September 30, 2025, was $3,054,000, compared to $1,266,000 in 2024, reflecting an increase of 141%[86] Tax and Valuation - The effective tax rate for the three months ended September 30, 2025, was -328.9%, significantly impacted by the release of a valuation allowance of $77.9 million[58] - The company reported a deferred income tax benefit of $77.9 million for the three and nine months ended September 30, 2025, due to the release of the valuation allowance[60] - The company continues to maintain a valuation allowance of $7,800,000 against certain deferred tax assets, primarily related to foreign net operating losses[61] Risks and Market Conditions - The company continues to face risks including supply chain management and potential price increases due to inflation and agricultural disruptions[9] - The company is exposed to commodity price volatility, which could impact operating costs as a percentage of net sales[190] - Major customers accounted for 26% of net sales for the three months ended September 30, 2025, consistent with the same percentage in 2024[96] Lease and Financing - The Company issued $402.5 million of 3.00% Convertible Senior Notes in March 2023, which are accounted for as a single liability measured at amortized cost[32] - The carrying value of the convertible notes as of September 30, 2025, was $396,781 thousand, while the fair value was $450,102 thousand, reflecting a premium of approximately 13.4%[71] - The effective interest rate for the convertible notes is 3.59%, with total interest expense for the three months ended September 30, 2025, amounting to $3,563 thousand[70] - The Company has various noncancelable operating lease agreements with a total present value of lease liabilities of $67,236 thousand as of September 30, 2025[82] Other Financial Metrics - The basic net income per share attributable to common stockholders for the three months ended September 30, 2025, was $2.08, compared to $0.25 for the same period in 2024[13] - Diluted net income per share for the three months ended September 30, 2025, was $1.86, compared to $0.24 in 2024, representing a growth of 675%[93] - Input costs for the three months ended September 30, 2025, were $84,087,000, up from $74,984,000 in 2024, indicating a 12% rise[110] - Media costs increased to $32,456,000 for the three months ended September 30, 2025, compared to $27,240,000 in 2024, reflecting a 19% increase[110] - Depreciation and amortization expenses rose to $24,362,000 for the three months ended September 30, 2025, from $18,341,000 in 2024, a 33% increase[110]

Key Points Expanded distribution and lower costs are driving Freshpet's profits higher. Management expects to achieve positive free cash flow in 2025. 10 stocks we like better than Freshpet › Shares of Freshpet (NASDAQ: FRPT) popped on Monday after the premium pet food provider's third-quarter profits exceeded investors' expectations. As of 1:21 p.m. ET, Freshpet's stock price was up more than 12%. Image source: Getty Images. More stores are selling Freshpet's healthier pet food Freshpet's net ...

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Financial Data and Key Metrics Changes - The third quarter net sales were $288.8 million, up 14% year over year, primarily driven by volume growth of 12.9% and a positive price mix of 1.1% [15][25] - Adjusted gross margin in the third quarter was 46.0%, a decrease from 46.5% in the prior year period [16][26] - Adjusted EBITDA for the third quarter was $54.6 million, an increase of approximately $11 million or 25% year over year [16][27] - Net income for the third quarter was $101.7 million, significantly up from $11.9 million in the prior year, primarily due to a deferred income tax benefit [27] Business Line Data and Key Metrics Changes - Freshpet remains the number one dog food brand in the U.S. food category, holding a 95% market share in the gently cooked, fresh, frozen branded dog food segment [16][17] - The company has increased its market share in the U.S. dog food and treats segment to 3.9% [16] - The household penetration as of September 28 was 14.8 million households, up 10% year over year, with a total buy rate of $111, up 4% year over year [18] Market Data and Key Metrics Changes - Freshpet products are now available in 29,745 stores, with 24% of those having multiple fridges [17] - The company ended the third quarter with 38,778 fridges, representing nearly 2.1 million cubic feet of retail space [17] - The company experienced a 45% growth in digital orders, indicating a strong performance in the e-commerce channel [11] Company Strategy and Development Direction - The company is focusing on three key strategies: best food, strong value proposition, and improved accessibility to expand its appeal [7][8] - Freshpet is testing new digital touchpoints and expanding its focus on e-commerce channels, including direct-to-consumer (DTC) [6][11] - The company is also investing in new technology to improve operational efficiency and reduce costs [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unprecedented deceleration in sales growth and emphasized the need to adapt strategies to the current economic environment [5][6] - The company expects to achieve positive free cash flow for the full year, one year ahead of its original target [5][21] - Management remains confident in achieving 48% adjusted gross margin and 22% adjusted EBITDA margin by 2027, contingent on sales volume growth [22][23] Other Important Information - The company is currently conducting a search for a new CFO and is confident in the interim CFO's capabilities [23][24] - Capital expenditures for the year are projected to be approximately $140 million, down from previous guidance [31] Q&A Session Summary Question: Inquiry about new production technologies and pricing strategy - Management expressed excitement about new technology and indicated that decisions on expansion would depend on the performance of the initial line [34][35] - The potential for improved margins was acknowledged, but no commitment was made regarding pricing strategies at this time [38] Question: Competitive dynamics in the pet food space - Management noted that new competition has not significantly impacted their retail placement plans and that they view it as validation of the fresh category's potential [40][41] - Retailers have shown strong support for Freshpet, with significant growth in fridge placements despite increased competition [42] Question: Details on the fridge island test and future expansion - The company has installed 16 fridge islands and is working with a major retailer to determine sales velocity criteria for future rollouts [46][47] Question: CapEx and capacity management - Management clarified that the $140 million CapEx will support ongoing projects and new technology implementation, with flexibility for additional investments if needed [53][55] Question: Gross margin improvement strategies - Management indicated that improvements in conversion costs and inventory management are key drivers for achieving gross margin targets [60][61]

Financial Performance - Net sales reached $288.8 million, a 14.0% year-over-year increase[15] - Adjusted EBITDA was $54.6 million, an increase of $11.1 million year-over-year[15] - Adjusted EBITDA margin was 18.9%, a 170 bps increase year-over-year[15] - Operating cash flow was $66.8 million, an increase of $10.7 million year-over-year[15] Retail Growth - Total household penetration increased by 10%[15] - Total buy rate increased by 4%[15] - MVP (Most Valuable Pet Parents) household penetration increased by 15%[15] - Cubic feet increased by 12%[15] - Store count increased by 7%[15] - Total distribution points increased by 13%[15] - Ecommerce share of sales is 14%[15] Strategic Initiatives - The company expects to spend approximately $140 million in capital expenditures in 2025[31] - The company is adapting its model to the current environment by focusing on targeted marketing, affordability/value portfolio, and expanding visibility and availability[17, 16] - The company aims for a 48% adjusted gross margin target and a 22% adjusted EBITDA margin target[78] Market Position - Freshpet holds a 3.9% market share of the total U S dog food category, which is valued at approximately $38 billion[33] - Freshpet accounts for 95% of the fresh/frozen dog food market in measured channels[35]