Financial Data and Key Metrics Changes - Second quarter net sales were $264.7 million, up 12.5% year over year, primarily driven by volume growth [18][26] - Adjusted gross margin in the second quarter was 46.9%, compared to 45.9% in the prior year period [18][27] - Adjusted EBITDA in the second quarter was $44.4 million, up approximately $9 million or 26% year over year [19][29] - Capital expenditures for the second quarter were $33.4 million, with cash on hand of $243.7 million at the end of the quarter [29] Business Line Data and Key Metrics Changes - Freshpet remains the number one dog food brand in the U.S. with a 95% market share in the gently cooked fresh frozen branded food dog segment [19] - Digital orders, previously referred to as e-commerce, grew by 40% in the second quarter and now account for 13% of total sales [16] - The company is expanding its product offerings with new complete nutrition bag products and multi-packs [17] Market Data and Key Metrics Changes - Household penetration as of June 29 was 14.4 million households, up 11% year over year [22] - The total buy rate was $110, up 6% year over year, with the heaviest users (MVPs) growing to 2.2 million households, up 18% year over year [22] - Freshpet's products are now in 29,141 stores, with 24% having multiple fridges [20] Company Strategy and Development Direction - The company is focusing on operational improvements and capital efficiencies to deliver long-term margin and free cash flow targets [5][12] - Freshpet is adapting its marketing strategy to better explain the benefits of fresh food and is launching a new media campaign [14][66] - The company is optimistic about expanding its presence in the club channel and has recently expanded its test in a leading club retailer [17][96] Management's Comments on Operating Environment and Future Outlook - Management acknowledges economic uncertainty affecting consumer behavior, leading to hesitance in trading up dog food and deferring pet-related expenses [6][12] - The company has adjusted its net sales guidance for the year, now expecting growth of 13% to 16% year over year [23][30] - Management remains confident in achieving adjusted EBITDA targets of $190 million to $210 million despite the revised sales outlook [30][33] Other Important Information - The company is lowering its capital expenditure estimates for 2025 and 2026 by at least $100 million due to improved operational efficiencies [8][11] - Freshpet is removing its previous net sales target of $1.8 billion for fiscal year 2027 due to challenges in maintaining projected growth rates [24][33] - The company is confident in its ability to achieve long-term margin targets of 48% adjusted gross margin and 22% adjusted EBITDA margin [24][33] Q&A Session Summary Question: Path to 22% EBITDA margin in 2027 - Management believes mid-teens growth over the next couple of years will support the 22% EBITDA margin target, with potential upside from new technologies [36][38] Question: Clarification on net sales target removal - Management confirms that while the net sales target has been removed, the gross margin and EBITDA margin targets remain based on low to mid-teen growth expectations [45][46] Question: Dynamics between household penetration and buy rates - Management acknowledges that while household penetration is growing, the buy rate is impacted by consumers' reluctance to trade up, but there are still positive trends in premium product sales [47][50] Question: Competitive dynamics with Blue Buffalo's entry - Management views increased competition as validation of the category's growth potential and believes it will drive overall category growth, benefiting Freshpet [84][86]

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]

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) This section provides an overview of Freshpet's Q2 and H1 2025 financial performance, highlighting key sales growth, profitability metrics, and balance sheet figures [Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Overview) Freshpet reported strong Q2 2025 results, outperforming the dog food category with 12.5% net sales growth, achieving $16.4 million net income and 26.5% Adjusted EBITDA increase [CEO Commentary & Strategic Focus](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Focus) The CEO's commentary highlights Freshpet's market outperformance, strategic priorities, and updated financial targets - Freshpet significantly outperformed the dog food category in Q2 2025, delivering category-leading sales growth and strong operational improvements despite challenging consumer sentiment[2](index=2&type=chunk) - Strategic focus includes accelerating advertising and distribution programs, reducing capital expenditures, and strengthening operations[2](index=2&type=chunk) - Revised current year's net sales target and removed long-term net sales target for 2027 to align with current economic realities, while still expecting outsized long-term growth[2](index=2&type=chunk) [Q2 2025 Financial Results](index=1&type=section&id=Q2%202025%20Financial%20Results) This section presents a detailed table of Freshpet's key financial metrics for the second quarter of 2025 compared to the prior year Second Quarter 2025 Financial Performance (YoY) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :---------------------- | :----------------- | :----------------- | :--------- | | Net Sales | $264.7 | $235.3 | 12.5% | | Gross Profit | $108.2 | $94.0 | 15.1% | | Gross Margin | 40.9% | 39.9% | +100 bps | | Adjusted Gross Profit | $124.0 | $108.0 | 14.8% | | Adjusted Gross Margin | 46.9% | 45.9% | +100 bps | | SG&A Expenses | $90.4 | $95.7 | -5.5% | | SG&A as % of Net Sales | 34.1% | 40.7% | -660 bps | | Adjusted SG&A | $79.6 | $72.9 | 9.2% | | Adjusted SG&A as % of Net Sales | 30.1% | 31.0% | -90 bps | | Net Income (Loss) | $16.4 | $(1.7) | N/A | | Adjusted EBITDA | $44.4 | $35.1 | 26.5% | [First Six Months 2025 Performance Overview](index=2&type=section&id=First%20Six%20Months%202025%20Performance%20Overview) Freshpet's H1 2025 net sales grew 15.0% to $527.9 million, with Adjusted EBITDA increasing 21.6% to $79.9 million, despite a significant net income decrease due to higher SG&A [H1 2025 Financial Results](index=2&type=section&id=H1%202025%20Financial%20Results) This section provides a detailed table of Freshpet's key financial metrics for the first six months of 2025 compared to the prior year First Six Months 2025 Financial Performance (YoY) | Metric | H1 2025 (Millions) | H1 2024 (Millions) | Change (%) | | :---------------------- | :----------------- | :----------------- | :--------- | | Net Sales | $527.9 | $459.1 | 15.0% | | Gross Profit | $212.0 | $182.1 | 16.4% | | Gross Margin | 40.2% | 39.7% | +50 bps | | Adjusted Gross Profit | $244.3 | $209.5 | 16.6% | | Adjusted Gross Margin | 46.3% | 45.6% | +70 bps | | SG&A Expenses | $205.7 | $175.4 | 17.3% | | SG&A as % of Net Sales | 39.0% | 38.2% | +80 bps | | Adjusted SG&A | $164.3 | $143.8 | 14.3% | | Adjusted SG&A as % of Net Sales | 31.1% | 31.3% | -20 bps | | Net Income | $3.7 | $16.9 | -78.1% | | Adjusted EBITDA | $79.9 | $65.7 | 21.6% | - Decrease in net income for H1 2025 was primarily due to increased SG&A expenses, including **$18.8 million in media spend** and **$16.9 million in non-recurring charges**, partially offset by contributions from higher sales and improved gross profit[7](index=7&type=chunk) [Balance Sheet & Cash Flow Snapshot](index=2&type=section&id=Balance%20Sheet%20%26%20Cash%20Flow%20Snapshot) This section presents a snapshot of Freshpet's balance sheet as of June 30, 2025, and key cash flow figures for the first half of the year Balance Sheet Snapshot (June 30, 2025) | Metric | Amount (Millions) | | :---------------------- | :---------------- | | Cash and Cash Equivalents | $243.7 | | Debt Outstanding (net) | $396.2 | - 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[8](index=8&type=chunk) [Outlook & Guidance](index=2&type=section&id=Outlook) This section outlines Freshpet's updated financial guidance for the full year 2025 and long-term targets for 2027, along with non-GAAP measure disclaimers [Full Year 2025 Guidance Update](index=2&type=section&id=Full%20Year%202025%20Guidance%20Update) Freshpet updated its full-year 2025 guidance, lowering net sales growth expectations to 13%-16% while maintaining Adjusted EBITDA guidance and reducing capital expenditures to approximately $175 million Full Year 2025 Guidance Update | Metric | New Guidance (2025) | Previous Guidance (2025) | Change | | :---------------------- | :------------------ | :----------------------- | :-------- | | Net Sales Increase | 13% to 16% | 15% to 18% | Lowered | | Adjusted EBITDA | $190M to $210M | $190M to $210M | Unchanged | | Capital Expenditures | ~$175M | ~$225M | Reduced | [Long-Term 2027 Guidance Update](index=2&type=section&id=Long-Term%202027%20Guidance%20Update) The company removed its $1.8 billion net sales target for 2027 due to slower growth but reiterated Adjusted Gross Margin and Adjusted EBITDA Margin targets, expecting continued outsized growth - Removed the **$1.8 billion net sales target** for full year 2027 to adjust for recent slower growth[10](index=10&type=chunk) - Reiterated **Adjusted Gross Margin target of 48%** and **Adjusted EBITDA Margin target of 22%** for full year 2027[10](index=10&type=chunk) - Company expects to continue to deliver growth significantly in excess of the dog food category[10](index=10&type=chunk) [Non-GAAP Guidance Disclaimer](index=3&type=section&id=Non-GAAP%20Guidance%20Disclaimer) Freshpet does not provide GAAP net income guidance or reconciliation for forecasted Adjusted EBITDA due to the unreliability of estimates for certain uncontrollable components - Company does not provide GAAP net income (loss) guidance or reconciliation for forecasted Adjusted EBITDA due to unreliable estimates for certain components outside its control[13](index=13&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) This section provides details on Freshpet's conference call, company mission, product distribution, and forward-looking statement disclaimers [Conference Call & Earnings Presentation Webcast Information](index=3&type=section&id=Conference%20Call%20%26%20Earnings%20Presentation%20Webcast%20Information) Freshpet hosted a conference call on August 4, 2025, at 8:00 a.m. ET, with webcast and dial-in details provided for investor access - Conference call held on **August 4, 2025, at 8:00 a.m. ET**, with webcast available on www.freshpet.com[14](index=14&type=chunk) - Dial-in numbers: **(877) 407-0792** (North America) and **(201) 689-8263** (International), passcode: **13754861**[14](index=14&type=chunk) [About Freshpet](index=3&type=section&id=About%20Freshpet) Freshpet's mission is to provide fresh, refrigerated pet food made from locally sourced ingredients, distributed across various retailers and online in North America and Europe - Freshpet's mission is to elevate pet nutrition with fresh food made from locally farmed meats, vegetables, and fruits[15](index=15&type=chunk) - Foods are prepared in small batches at lower temperatures and maintained refrigerated throughout the supply chain[15](index=15&type=chunk) - Products are distributed through grocery, mass, digital, pet specialty, and club retailers in the US, Canada, and Europe, as well as online in the U.S[16](index=16&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward%20Looking%20Statements) This press release contains forward-looking statements regarding strategic focus and guidance, which are subject to risks and uncertainties, and Freshpet disclaims any obligation to update them unless legally required - The press release includes forward-looking statements concerning strategic focus, growth expectations, and updated guidance, subject to various risks and uncertainties[17](index=17&type=chunk) - Risks include difficulties in new technology launches, economic uncertainty, changes in pet acquisition rates, new competitive products, tariffs, and manufacturing facility construction issues, as detailed in SEC filings[17](index=17&type=chunk) - Freshpet disclaims any obligation to publicly update or revise forward-looking statements unless legally required[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) This section defines Freshpet's non-GAAP financial measures and explains management's rationale for their use in financial reporting [Definitions of Non-GAAP Measures](index=4&type=section&id=Definitions%20of%20Non-GAAP%20Measures) Freshpet defines its non-GAAP measures, including Adjusted Gross Profit, Adjusted SG&A, EBITDA, and Adjusted EBITDA, by excluding specific non-cash or non-recurring items to clarify operational performance - Adjusted Gross Profit is gross profit before depreciation, non-cash share-based compensation, and loss on disposal of manufacturing equipment[19](index=19&type=chunk) - Adjusted SG&A excludes depreciation and amortization, non-cash share-based compensation, loss on disposal of equipment, distributor transition costs, legal obligation, and international business changes[19](index=19&type=chunk) - Adjusted EBITDA is EBITDA (net income plus interest, tax, depreciation, amortization) adjusted for gain on equity investment, non-cash share-based compensation, loss on disposal of property, plant and equipment, distributor transition costs, legal obligation, and international business changes[20](index=20&type=chunk) [Management's Rationale for Non-GAAP Measures](index=4&type=section&id=Management's%20Rationale%20for%20Non-GAAP%20Measures) Management utilizes non-GAAP measures to provide a meaningful view of ongoing operating results and for investment community analysis, emphasizing they are supplementary to GAAP measures - Management believes non-GAAP measures provide a meaningful view of ongoing operating results and are widely used by the investment community for analysis and comparative evaluation[21](index=21&type=chunk) - These measures offer additional metrics to evaluate operations and, with GAAP results and reconciliations, provide a more complete business understanding[21](index=21&type=chunk) - Non-GAAP measures should not be considered an alternative to, or superior to, U.S. GAAP measures of performance[21](index=21&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Freshpet's condensed consolidated balance sheets, statements of operations, and cash flows for the reported periods [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, Freshpet's total assets increased to $1,647.5 million, with total liabilities rising to $575.8 million and stockholders' equity growing to $1,071.7 million Condensed Consolidated Balance Sheets (in thousands) | ASSETS / LIABILITIES & EQUITY | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $243,684 | $268,633 | | Total Current Assets | $409,177 | $436,998 | | Property, plant and equipment, net | $1,101,367 | $1,065,869 | | Total Assets | $1,647,494 | $1,574,878 | | Total Current Liabilities | $84,981 | $98,869 | | Convertible senior notes | $396,237 | $395,163 | | Total Liabilities | $575,840 | $519,518 | | Total Stockholders' Equity | $1,071,654 | $1,055,360 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20INCOME%20%28LOSS%29) For Q2 2025, Freshpet reported $264.7 million in net sales and $16.4 million net income, while H1 2025 saw $527.9 million net sales and $3.7 million net income Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 |\n| :---------------------- | :----------- | :----------- | :----------- | :----------- | | Net Sales | $264,689 | $235,253 | $527,938 | $459,102 | | Gross Profit | $108,190 | $93,952 | $211,978 | $182,110 | | SG&A Expenses | $90,386 | $95,702 | $205,671 | $175,396 | | Income (Loss) from Operations | $17,804 | $(1,750) | $6,307 | $6,714 | | Net Income (Loss) | $16,356 | $(1,694) | $3,659 | $16,908 | | Basic EPS | $0.34 | $(0.03) | $0.08 | $0.35 | | Diluted EPS | $0.33 | $(0.03) | $0.07 | $0.34 | [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) For H1 2025, net cash from operations was $38.7 million, with net cash used in investing at $59.9 million and financing at $3.7 million, leading to a $24.9 million decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (in thousands) | Cash Flow Activity | H1 2025 | H1 2024 | | :------------------------------ | :----------- | :----------- | | Net cash from operating activities | $38,693 | $47,819 | | Net cash used in investing activities | $(59,932) | $(94,795) | | Net cash (used in) provided by financing activities | $(3,710) | $1,804 | | Net change in cash and cash equivalents | $(24,949) | $(45,172) | | Cash and cash equivalents, end of period | $243,684 | $251,699 | [Non-GAAP Reconciliations](index=8&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of Freshpet's GAAP financial measures to their corresponding non-GAAP adjusted measures [Reconciliation Between Gross Profit and Adjusted Gross Profit](index=8&type=section&id=RECONCILIATION%20BETWEEN%20GROSS%20PROFIT%20AND%20ADJUSTED%20GROSS%20PROFIT) Adjusted Gross Profit for Q2 2025 was $124.0 million (46.9% of net sales) and for H1 2025 was $244.3 million (46.3% of net sales), both showing year-over-year improvements Gross Profit to Adjusted Gross Profit Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------------- | :----------- | :----------- | :----------- | :----------- | | Gross profit | $108,190 | $93,952 | $211,978 | $182,110 | | Depreciation expense | $13,729 | $11,827 | $28,909 | $22,502 | | Non-cash share-based compensation | $1,831 | $2,220 | $3,114 | $4,841 | | Loss on disposal of manufacturing equipment | $260 | $32 | $255 | $53 | | Adjusted Gross Profit | $124,010 | $108,031 | $244,256 | $209,506 | | Adjusted Gross Profit as a % of Net Sales | 46.9% | 45.9% | 46.3% | 45.6% | [Reconciliation Between SG&A Expenses and Adjusted SG&A Expenses](index=9&type=section&id=RECONCILIATION%20BETWEEN%20SG%26A%20EXPENSES%20AND%20ADJUSTED%20SG%26A%20EXPENSES) Adjusted SG&A Expenses for Q2 2025 were $79.6 million (30.1% of net sales) and for H1 2025 were $164.3 million (31.1% of net sales), with H1 2025 including significant non-recurring charges SG&A Expenses to Adjusted SG&A Expenses Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------------- | :----------- | :----------- | :----------- | :----------- | | SG&A expenses | $90,386 | $95,702 | $205,671 | $175,396 | | Depreciation and amortization expense | $6,167 | $5,385 | $12,104 | $10,455 | | Non-cash share-based compensation | $4,390 | $17,313 | $11,923 | $20,913 | | Loss on disposal of equipment | $225 | $104 | $391 | $233 | | Distributor transition costs | — | — | $10,680 | — | | Legal obligation | — | — | $4,987 | — | | International business charges | — | — | $1,273 | — | | Adjusted SG&A Expenses | $79,604 | $72,900 | $164,313 | $143,795 | | Adjusted SG&A Expenses as a % of Net Sales | 30.1% | 31.0% | 31.1% | 31.3% | - H1 2025 Adjusted SG&A includes **$10.7 million for distributor transition costs**, **$5.0 million for legal obligations**, and **$1.3 million for international business changes**[31](index=31&type=chunk)[32](index=32&type=chunk) [Reconciliation Between Net Income (Loss) and Adjusted EBITDA](index=10&type=section&id=RECONCILIATION%20BETWEEN%20NET%20INCOME%20%28LOSS%29%20AND%20ADJUSTED%20EBITDA) Adjusted EBITDA for Q2 2025 was $44.4 million (16.8% of net sales) and for H1 2025 was $79.9 million (15.1% of net sales), reflecting adjustments for various non-cash and non-recurring items Net Income (Loss) to Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------------- | :----------- | :----------- | :----------- | :----------- | | Net income (loss) | $16,356 | $(1,694) | $3,659 | $16,908 | | Depreciation and amortization | $19,896 | $17,212 | $41,013 | $32,957 | | Interest expense, net of interest income | $1,546 | $(110) | $2,610 | $(384) | | Income tax (benefit) expense | $(102) | $54 | $32 | $108 | | EBITDA | $37,696 | $15,462 | $47,314 | $49,589 | | Non-cash share-based compensation | $6,221 | $19,533 | $15,037 | $25,755 | | Loss on disposal of property, plant and equipment | $485 | $136 | $646 | $286 | | Distributor transition costs | — | — | $10,680 | — | | Legal obligation | — | — | $4,987 | — | | International business charges | — | — | $1,273 | — | | Gain on equity investment | — | — | — | $(9,918) | | Adjusted EBITDA | $44,402 | $35,131 | $79,937 | $65,712 | | Adjusted EBITDA as a % of Net Sales | 16.8% | 14.9% | 15.1% | 14.3% | - H1 2025 Adjusted EBITDA includes adjustments for **$10.7 million in distributor transition costs**, **$5.0 million in legal obligations**, and **$1.3 million in international business charges**[33](index=33&type=chunk)[34](index=34&type=chunk)

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]