Freshpet reins in sales growth bets but 2027 targets largely intact

Core Viewpoint - Freshpet experienced a slowdown in sales growth and has adjusted its future growth expectations, but remains optimistic about achieving short-term targets and long-term goals [1][2][3]. Sales Performance - Freshpet's net sales growth rate decreased from 27% in fiscal year 2024 to 13% in fiscal year 2025, which was below the revised guidance of 15-18% [2]. - The company achieved sales of approximately $1.10 billion in fiscal year 2025, slightly below the forecast range of $1.12 billion to $1.15 billion [2]. Future Growth Expectations - For fiscal year 2026, Freshpet anticipates a growth rate of 7-10% [3]. - The adjusted EBITDA for 2025 grew by 21% to $195.7 million, within the revised range of $190-$210 million [3]. Strategic Initiatives - Freshpet is testing a new in-store concept called fridge islands, which are expected to drive growth and profitability [4]. - The company has expanded the fridge island concept from 16 to 28 stores in collaboration with a major retailer [4]. Profitability Metrics - Freshpet aims to achieve an adjusted gross margin of 48% by 2027, with the margin increasing to 46.7% last year from 46.5% [5]. - The adjusted EBITDA margin target for 2027 has been revised to a range of 20-22%, up from the previous target of 22% [5]. Market Positioning - Freshpet remains confident in its ability to exceed the growth of the US dog-food category and increase market share by 2027 [6].