Group 1: Earnings Performance - Freshpet reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, compared to a loss of $0.03 per share a year ago, representing an earnings surprise of +175.00% [1] - The company posted revenues of $264.69 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.25%, but showing an increase from year-ago revenues of $235.25 million [2] Group 2: Stock Performance and Outlook - Freshpet shares have declined approximately 55.5% since the beginning of the year, contrasting with the S&P 500's gain of 6.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $288.62 million, and for the current fiscal year, it is $1.23 on revenues of $1.12 billion [7] Group 3: Industry Context - The Zacks Industry Rank for Food - Miscellaneous is currently in the bottom 22% of over 250 Zacks industries, indicating that the outlook for the industry can significantly impact stock performance [8]

Financial Performance - Net sales reached $264.7 million, a 12.5% increase year-over-year[13] - Adjusted gross margin improved to 46.9%, up 100 basis points year-over-year[13] - Adjusted EBITDA was $44.4 million, an increase of $9.3 million year-over-year, with an adjusted EBITDA margin of 16.8%, up 190 basis points[13] - Operating cash flow was $33.9 million[13] Operational Efficiency - Logistics costs were 5.7% of net sales, a decrease of 10 basis points year-over-year[13] - Input costs were 28.9% of net sales, a decrease of 90 basis points year-over-year[13] - Quality costs were 2.0% of net sales, a decrease of 70 basis points year-over-year[13] - The company expects to reduce capital spending by at least $100 million in 2025-2026 due to improved output and new technology[17] Retail and Consumer Growth - Total household penetration increased by 11%[13] - Total buy rate increased by 6%[13] - MVP (Most Valuable Pet Parents) household penetration increased by 18%[13] - The company added approximately 1.4 million households year-over-year[25] Guidance - The company updated its net sales growth guidance for FY 2025 to 13-16% year-over-year[62] - Capital expenditures are expected to be approximately $175 million[62] - The company expects to end the year with approximately $250 million in cash and be free cash flow positive in 2026[64]

Exhibit 99.1 Freshpet, Inc. Reports Second Quarter 2025 Financial Results Delivers Category Leading Growth Drives Operational Efficiencies that Deliver Margin Expansion and Reduce Capital Requirements Updates Outlook for 2025 and 2027 Bedminster, N.J. – August 4, 2025 – Freshpet, Inc. ("Freshpet" or the "Company") (Nasdaq: FRPT) today reported financial results for its second quarter and six months ended June 30, 2025. Second Quarter 2025 Financial Highlights Compared to Prior Year Period "Against a more ch ...

Core Insights - Freshpet, Inc. reported a strong financial performance in Q2 2025, with net sales increasing by 12.5% to $264.7 million compared to $235.3 million in the prior year period, driven by volume gains of 10.8% and a favorable price/mix of 1.7% [3][8] - The company is adapting to a challenging economic environment by revising its net sales targets and focusing on operational efficiencies, including reducing capital expenditures and enhancing advertising and distribution efforts [2][15] - Freshpet's gross profit for Q2 2025 was $108.2 million, representing a gross margin of 40.9%, an increase from 39.9% in the prior year period, attributed to lower input costs and reduced quality costs [4][8] Financial Performance - For the first six months of 2025, net sales rose by 15.0% to $527.9 million, with volume gains of 12.8% and a favorable price/mix of 2.2% [7][9] - The company achieved a net income of $16.4 million in Q2 2025, compared to a net loss of $1.7 million in the prior year, driven by higher sales and improved gross profit margins [6][8] - Adjusted EBITDA for Q2 2025 was $44.4 million, up from $35.1 million in the prior year, reflecting increased adjusted gross profit [6][12] Cost Management - Selling, general and administrative expenses (SG&A) decreased to $90.4 million in Q2 2025 from $95.7 million in the prior year, with SG&A as a percentage of net sales dropping to 34.1% from 40.7% [5][8] - Adjusted SG&A for Q2 2025 was $79.6 million, or 30.1% of net sales, compared to $72.9 million, or 31.0% in the prior year [5][36] Outlook - Freshpet updated its guidance for 2025, expecting net sales growth of 13% to 16%, down from the previous guidance of 15% to 18%, while maintaining an adjusted EBITDA target of $190 million to $210 million [15][16] - The company removed its long-term net sales target of $1.8 billion for 2027 but reiterated its adjusted gross margin target of 48% and adjusted EBITDA margin target of 22% for the same year [15][16] Balance Sheet - As of June 30, 2025, Freshpet had cash and cash equivalents of $243.7 million and total debt of $396.2 million [13][26] - Cash from operations for the first six months of 2025 was $38.7 million, a decrease of $9.1 million compared to the prior year, primarily due to higher variable incentive compensation payments [13][34]

Company Overview - Freshpet (FRPT) is expected to report a year-over-year increase in earnings, with a consensus estimate of $0.12 per share, reflecting a +500% change, and revenues projected at $267.74 million, up 13.8% from the previous year [3]. Earnings Expectations - The earnings report is anticipated to be released on August 4, and the stock may rise if the results exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 1.32% lower over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - Freshpet has an Earnings ESP of +40.68%, suggesting analysts have recently become more optimistic about the company's earnings prospects [12]. - However, the stock currently holds a Zacks Rank of 5, complicating the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Freshpet was expected to earn $0.13 per share but only achieved $0.09, resulting in a surprise of -30.77% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Industry Comparison - Ingredion (INGR), another player in the Zacks Food - Miscellaneous industry, is expected to post earnings of $2.78 per share, indicating a year-over-year change of -3.1%, with revenues projected at $1.9 billion, up 1.3% [18][19]. - Ingredion's consensus EPS estimate has been revised 2% upward in the last 30 days, but it has an Earnings ESP of 0% and a Zacks Rank of 2 [19][20].

Core Viewpoint - Freshpet is set to report earnings on August 4, 2025, with expectations of significant year-over-year growth in earnings and revenue, indicating positive business momentum [2][3]. Financial Performance - In the upcoming earnings report, analysts expect Freshpet to post earnings of $0.12 per share, reflecting a year-over-year growth of 500% [2]. - The revenue forecast for the same quarter is $267.74 million, which represents a 13.81% increase from the prior-year quarter [2]. - For the entire fiscal year, earnings are projected at $1.24 per share, showing a growth of 61.04%, while revenue is expected to reach $1.12 billion, indicating a 15.3% increase from the previous year [3]. Analyst Sentiment - Recent revisions to analyst forecasts for Freshpet are crucial as they reflect short-term business trends, with positive revisions indicating optimism about profitability [3]. - Over the past month, there has been a 2.36% decline in the Zacks Consensus EPS estimate, leading to a Zacks Rank of 4 (Sell) for Freshpet [5]. Valuation Metrics - Freshpet is currently trading at a Forward P/E ratio of 57.98, significantly higher than the industry average of 16.27, indicating a premium valuation [6]. - The company has a PEG ratio of 1.36, which is lower than the Food - Miscellaneous industry average of 1.65, suggesting a more favorable growth outlook relative to its price [7]. Industry Context - The Food - Miscellaneous industry, part of the Consumer Staples sector, holds a Zacks Industry Rank of 169, placing it in the bottom 32% of over 250 industries [7]. - The Zacks Industry Rank indicates that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive landscape [8].

Group 1 - Freshpet, Inc. will report its second quarter results for the period ended June 30, 2025, on August 4, 2025, before market open [1] - A conference call with the executive management team is scheduled for August 4, 2025, at 8:00 a.m. ET to discuss the results [2] - The conference call will be available for live broadcast on the company's website and will be archived for later access [3] Group 2 - Freshpet's mission is to provide fresh food for pets, using locally sourced ingredients and cooking in small batches to maintain quality [4] - The company's products are available in various retail formats across the U.S., Canada, and Europe, as well as online in the U.S. [5]

Company Performance - Freshpet's stock closed at $72.45, reflecting a -2.45% change from the previous day's closing price, underperforming the S&P 500 which gained 0.94% [1] - The stock has decreased by 15.27% over the past month, contrasting with the Consumer Staples sector's gain of 2.68% and the S&P 500's gain of 1.67% [1] Earnings Forecast - The upcoming EPS for Freshpet is projected at $0.1, indicating a significant increase of 433.33% compared to the same quarter last year [2] - Revenue is expected to reach $268.55 million, representing a 14.16% growth year-over-year [2] Annual Estimates - For the entire year, earnings are forecasted at $1.27 per share and revenue at $1.13 billion, showing increases of +64.94% and +15.61% respectively compared to the previous year [3] - Recent adjustments to analyst estimates reflect changing business dynamics, with positive revisions indicating analyst optimism about profitability [3] Valuation Metrics - Freshpet has a Forward P/E ratio of 58.44, which is significantly higher than the industry average of 16.92 [6] - The PEG ratio for Freshpet stands at 1.24, compared to the industry average PEG ratio of 1.58 [6] Industry Context - The Food - Miscellaneous industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 178, placing it in the bottom 28% of over 250 industries [7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Freshpet's stock closed at $78.89, reflecting a +1.87% change from the previous day, outperforming the S&P 500's gain of 0.55% [1] - Over the past month, Freshpet's shares have decreased by 2.74%, underperforming the Consumer Staples sector's gain of 1.91% and the S&P 500's gain of 6.29% [1] Earnings Forecast - Freshpet is expected to report an EPS of $0.11, indicating a significant growth of 466.67% compared to the same quarter last year [2] - The revenue forecast for the upcoming quarter is $268.8 million, representing a 14.26% increase year-over-year [2] - For the full year, the Zacks Consensus Estimates predict earnings of $1.39 per share and revenue of $1.13 billion, reflecting year-over-year changes of +80.52% and +15.88%, respectively [3] Analyst Estimates and Rankings - Recent adjustments to analyst estimates for Freshpet indicate positive sentiment regarding the company's business operations [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Freshpet at 3 (Hold) [6] - The Zacks Consensus EPS estimate has increased by 0.29% over the past month [6] Valuation Metrics - Freshpet has a Forward P/E ratio of 55.81, significantly higher than the industry average of 16.57, indicating a premium valuation [7] - The current PEG ratio for Freshpet is 1.17, compared to the industry average of 1.67, suggesting a more favorable growth outlook relative to its price [8] Industry Context - The Food - Miscellaneous industry, part of the Consumer Staples sector, holds a Zacks Industry Rank of 165, placing it in the bottom 33% of over 250 industries [9] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Core Viewpoint - The article discusses three stocks—Target, Celsius Holdings, and Freshpet—that have underperformed but may have potential for recovery in the near future, despite their current challenges [1][2][3]. Group 1: Target - Target's stock has decreased by 33% over the past year, attributed to negative store comps and declining net sales over two consecutive quarters [4][5]. - The stock's yield has risen to 4.6%, and the company has a history of increasing dividends for 53 consecutive years, with expectations for a potential hike soon [5][6]. - Target faces challenges in regaining customer trust due to political controversies that have alienated both conservative and liberal shoppers [8][9]. - The company has a payout ratio of less than 50% of its trailing earnings, indicating room for dividend increases while aiming for a turnaround [6][10]. Group 2: Celsius Holdings - Celsius Holdings has experienced a 42% decline in stock value over the past year, despite being one of the year's biggest market winners with over 60% growth [11]. - The company has seen significant revenue growth in previous years, but recent quarters have shown year-over-year declines [12]. - The acquisition of Alani Nu is expected to positively impact market share and revenue, with results anticipated to improve starting from the current quarter [13]. Group 3: Freshpet - Freshpet's stock has dropped by 39%, holding a 3.5% share of the dog food market but dominating the fresh or frozen pet food segment with 96% market share in brick-and-mortar retailers [14]. - The company has consistently achieved over 27% top-line growth for seven years, but it has revised its growth expectations down to 15% to 18% for the current year [15]. - Despite the decline, Freshpet's stock remains at a premium valuation, trading at three times sales and 37 times next year's earnings, indicating potential for recovery if growth resumes [16].