Freshpet, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results

Core Insights - Freshpet, Inc. reported significant growth in net sales, surpassing $1 billion for the first time, with a focus on enhancing retail visibility and e-commerce momentum [4][18]. Financial Highlights - Fourth Quarter 2025 - Net sales increased by 8.6% to $285.2 million compared to $262.7 million in the prior year [5]. - Gross profit was $123.5 million, representing a gross margin of 43.3%, up from 42.5% in the prior year [6]. - Adjusted Gross Profit reached $138.1 million, or 48.4% of net sales, compared to 48.1% in the prior year [6]. - SG&A expenses decreased to $79.0 million, or 27.7% of net sales, down from 35.1% in the prior year [7]. - Net income for the quarter was $33.8 million, compared to $18.1 million in the prior year [9]. - Adjusted EBITDA was $61.2 million, an increase from $52.6 million in the prior year [10]. Financial Highlights - Full Year 2025 - Full year net sales increased by 13.0% to $1,102.0 million from $975.2 million in the prior year [11]. - Gross profit for the year was $449.6 million, with a gross margin of 40.8%, slightly up from 40.6% in the prior year [12]. - Adjusted Gross Profit was $515.2 million, or 46.7% of net sales, compared to 46.5% in the prior year [12]. - SG&A expenses for the year were $374.0 million, or 33.9% of net sales, down from 36.7% in the prior year [13]. - Net income for the year was $139.1 million, significantly up from $46.9 million in the prior year, aided by a $68.4 million income tax benefit [14]. - Adjusted EBITDA for the year was $195.7 million, compared to $161.8 million in the prior year [15]. Balance Sheet and Cash Flow - As of December 31, 2025, the company had cash and cash equivalents of $278.0 million and total debt of $397.3 million [16]. - Cash from operations for the year was $160.6 million, an increase of $6.3 million compared to the prior year [16]. Outlook for 2026 - The company expects net sales growth in the range of 7% to 10% compared to 2025 [18]. - Adjusted EBITDA is projected to be between $205 million and $215 million, with positive free cash flow anticipated [18].