Core Insights - Freshpet Inc. specializes in fresh, refrigerated pet food, differentiating itself with natural ingredients in a competitive market [1] - Stephens upgraded Freshpet's stock to "Overweight" with a price target increase from $80 to $90, reflecting positive sentiment based on strong financial performance [2][6] Financial Performance - Freshpet's Q4 revenue rose by 8.6% year-over-year to $285.2 million, driven by a 9.7% increase in volume, despite a 1.1% unfavorable price/mix [3][6] - The adjusted gross margin improved by 30 basis points to 48.4%, with quarterly earnings of $0.64 per share, exceeding the Zacks Consensus Estimate of $0.44 per share, resulting in a 47.19% earnings surprise [4][6] Future Outlook - Freshpet projects revenue growth of 7-10% for fiscal year 2026, targeting a total revenue between $1.18 billion and $1.21 billion, indicating continued growth and financial health [5] - The current stock price is $80.31, reflecting a 2.20% increase, with a market capitalization of approximately $3.92 billion [5]

Key Takeaways FPRT posted Q4 EPS of $0.64, topping estimates, as sales rose 8.6% on 9.7% volume growth.FPRT expanded gross margin to 48.4% and lifted EBITDA 16% to $61.2M.FPRT sees 2026 sales up 7%-10% and targets 20%-22% EBITDA margin by 2027.Freshpet, Inc. (FRPT) delivered fourth-quarter 2025 results, with the top line missing the Zacks Consensus Estimate while the bottom line surpassing the same. Both metrics showed year-over-year growth.In the fourth quarter, Freshpet delivered a resilient performance d ...

Freshpet missed its sales growth goal last year and guided to a slower print in 2026 but is largely confident in hitting its short-term targets. The Nasdaq-listed pet-food maker had already flagged a “headwinds” backdrop when it revised down sales estimates and adjusted EBITDA guidance in May. However, last year, Freshpet broke through the $1bn sales barrier for the first time and noted it bagged almost a $100m from a six-year-old category investment. “We learned that after more than a decade of strong, ...

Core Insights - Freshpet Inc. reported fourth-quarter results that exceeded earnings expectations with adjusted earnings per share of $0.64, surpassing the consensus estimate of $0.41 by $0.23 [1] - The company's revenue totaled $285.2 million, slightly below the estimate of $285.7 million, but showed an 8.6% increase from $262.7 million in the prior-year period [2] Revenue and Growth - The growth in revenue was driven by a 9.7% increase in volume, which was partially offset by an unfavorable price/mix impact of 1.1% [2] - For fiscal 2026, Freshpet projected net sales growth of 7% to 10%, equating to revenue between $1.179 billion and $1.212 billion, with a midpoint reflecting approximately 8.5% growth [3] Financial Performance - For the full year 2025, Freshpet's net sales rose 13% to $1.102 billion, and adjusted EBITDA increased to $195.7 million from $161.8 million the previous year [4] - The company generated positive free cash flow of $12.4 million, compared to negative $32.8 million in 2024 [4]

Core Insights - Freshpet Inc. specializes in fresh, natural pet food, differentiating itself in the competitive pet food industry with high-quality, refrigerated products [1] Financial Performance - Freshpet reported earnings per share (EPS) of $0.60, exceeding the estimated $0.43, with net income rising to $33.8 million from $18.1 million year-over-year [2][6] - The company generated revenue of approximately $285.2 million, slightly below the estimated $285.7 million, but achieved a net sales growth of 8.6% for the fourth quarter and 13% for the full year, reaching $1.1 billion [3][6] Profitability Metrics - Freshpet's gross margin for the quarter was 43.3%, up from 42.5% the previous year, while the adjusted gross margin increased to 48.4% from 48.1%, indicating effective cost management [4] Financial Health - The company's current ratio is about 5.52, demonstrating a strong ability to cover short-term liabilities, and the debt-to-equity ratio stands at approximately 0.42, reflecting a balanced financing approach [5][6] - Freshpet has a P/E ratio of 29.45 and an earnings yield of 3.40%, presenting a compelling investment opportunity in the pet food sector [5]

Management attributed the 2025 growth deceleration from 27% to 13% to a dramatic shift in consumer sentiment and macroeconomic headwinds affecting the pet food category. The company pivoted its commercial framework to 'super-serve' Most Valuable Players (MVPs), who now represent 71% of net sales, by shifting toward digital-forward media and streaming. Operational agility was demonstrated through controlled capacity expansion and the successful startup of a breakthrough manufacturing technology designe ...

Freshpet, Inc. (NASDAQ:FRPT) is one of the best pet stocks to buy according to hedge funds. On February 4, Piper Sandler adjusted the price target on Freshpet, Inc. (NASDAQ:FRPT) to $87 from $80 and maintained an Overweight rating on the shares. According to the firm, Freshpet, Inc. (NASDAQ:FRPT) is likely a beneficiary of stronger middle- and high-income consumers’ tax savings and elevated 2026 refunds. If the company benefits from higher tax refunds/lower withholding, as it anticipates, the firm sees thi ...

Financial Data and Key Metrics Changes - In Q4 2025, net sales were $285.2 million, an increase of 8.6% year-over-year, primarily driven by volume growth of 9.7% [17][32] - For the full year 2025, net sales reached $1.102 billion, up 13% year-over-year, aligning with guidance [18][33] - Adjusted gross margin for Q4 was 48.4%, compared to 48.1% in the prior year, while full year adjusted gross margin was 46.7%, up 20 basis points year-over-year [18][34] - Adjusted EBITDA for Q4 was $61.2 million, a 16% increase year-over-year, and for the full year, it was $195.7 million, up 21% [18][36] - Net income for Q4 was $33.8 million, compared to $18.1 million in the prior year, and for the full year, it was $139.1 million, up from $46.9 million [35][36] Business Line Data and Key Metrics Changes - The company reported a significant increase in e-commerce, which grew nearly 40% last year and now represents 14% of total business [9][15] - The company expanded its distribution network, ending the year with products in 30,235 stores, with 24% having multiple fridges [19][20] - The company achieved a household penetration of 15.2 million households, up 10% year-over-year, with a total buy rate of approximately $115, up 4% [21][22] Market Data and Key Metrics Changes - The total addressable market for Freshpet has grown to 36 million households, reflecting a continued interest in high-quality pet food [10] - The company increased its market share in the US dog food segment to 4.0% [19] - The company reported broad-based consumption growth across channels, with Nielsen-measured dollars showing 9.4% growth in total US pet retail [32] Company Strategy and Development Direction - The company is focused on building an omni-channel presence, leveraging its brand equity and manufacturing capabilities to meet consumer demands across various channels [11][52] - The company plans to rebalance its media mix to be more diversified and digital-forward, targeting Millennials and Gen Z consumers [13] - The company is investing in new manufacturing technologies to enhance product quality and operational efficiency, aiming for a competitive advantage [11][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2025 but emphasized the lessons learned that strengthened the company for future growth [6][7] - The company expects net sales growth of 7% to 10% for 2026, with adjusted EBITDA projected between $205 million and $215 million [24][40] - Management expressed optimism about the potential for growth despite macroeconomic headwinds, citing early signs of improvement in household penetration and buying rates [39][63] Other Important Information - The company welcomed new leadership, including a new CFO and SVP of Supply Chain, to support its growth strategy [27] - The company received $95.5 million from the sale of Ollie, a DTC dog food brand, which will enhance its financial position [29][30] Q&A Session Summary Question: Can you elaborate on the implied uptick in EBITDA margins for 2027? - Management indicated multiple pathways to achieving 20%+ EBITDA margins, including improvements in gross margin and operational efficiencies [44][46] Question: What insights were gained from the investment in Ollie? - The investment provided valuable insights into the DTC market, leading to a focus on building an omni-channel business [50][51] Question: What are the key drivers for consumption growth in 2026? - Management ranked effective advertising, distribution growth, and affordability initiatives as primary drivers for consumption growth [58][61] Question: How is the Fridge Island expansion progressing? - The company is in the test phase with Fridge Islands, which provide increased capacity and assortment, enhancing brand visibility [66][68] Question: What are the expectations for volume growth versus sales growth in 2026? - Management anticipates that volume growth will exceed sales growth due to affordability initiatives and improved entry-level price points [71][73]

Freshpet (NasdaqGM:FRPT) Q4 2025 Earnings call February 23, 2026 08:00 AM ET Company ParticipantsBilly Cyr - CEOJohn O'Connor - CFONicki Baty - COORachel Ulsh - VP in Investor Relations and Corporate CommunicationsConference Call ParticipantsBrian Holland - Senior Research AnalystJon Andersen - Research AnalystMichael Lavery - Senior Research AnalystPeter Benedict - Senior Research AnalystPeter Galbo - Senior Equity Research AnalystRobert Moskow - Senior Food & Beverages Research AnalystRupesh Parikh - Seni ...

Financial Data and Key Metrics Changes - In Q4 2025, net sales were $285.2 million, an increase of 8.6% year-over-year, primarily driven by volume growth of 9.7% [17][31] - For the full year 2025, net sales reached $1.102 billion, up 13% year-over-year, with volume contributing 12% growth [18][33] - Adjusted gross margin for Q4 was 48.4%, compared to 48.1% in the prior year, while full year adjusted gross margin was 46.7%, up 20 basis points year-over-year [18][34] - Adjusted EBITDA for Q4 was $61.2 million, a 16% increase year-over-year, and for the full year, it was $195.7 million, up 21% [18][36] - The company ended the year with cash on hand of $278 million and was free cash flow positive [37] Business Line Data and Key Metrics Changes - The e-commerce business grew nearly 40% last year, now accounting for 14% of total business [8][14] - The company expanded its distribution network significantly, with products now in 30,235 stores, 24% of which have multiple fridges [19][20] - The company achieved its best year in over a decade for new store growth, largely driven by club expansion [13][19] Market Data and Key Metrics Changes - The total addressable market for Freshpet has grown to 36 million households, up from 33 million [9] - The company has increased its market share in the US dog food category to 4.0% [19] Company Strategy and Development Direction - The company is focusing on building an omni-channel presence, leveraging its brand equity and manufacturing capabilities to meet consumer demands across various channels [10][51] - Freshpet aims to enhance its competitive advantages through investments in new manufacturing technologies and expanding its fridge network [10][16] - The company plans to rebalance its media mix to be more diversified and digital-forward, targeting Millennials and Gen Z consumers [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2025 but emphasized the lessons learned that have strengthened the company for future growth [5] - The company expects net sales growth of 7% to 10% for 2026, with adjusted EBITDA projected between $205 million and $215 million [23][40] - Management remains optimistic about the growth potential despite macroeconomic headwinds, citing early signs of improvement in household penetration and buying rates [64] Other Important Information - The company received $95.5 million from the sale of Ollie, a DTC dog food brand, which has strengthened its financial position [29] - Freshpet is evaluating its capital allocation strategy to accelerate growth and improve margins [29] Q&A Session Summary Question: Can you elaborate on the implied uptick in EBITDA margins for 2027? - Management indicated multiple pathways to achieve 2027 EBITDA margin targets, including improvements in gross margin and net sales growth [44][45] Question: What insights were gained from the investment in Ollie? - The investment provided valuable insights into the DTC market, leading to a focus on building an omni-channel business [49][50] Question: What are the key drivers for consumption growth in 2026? - Management ranked advertising effectiveness, distribution growth, and affordability initiatives as primary drivers for consumption growth [58][61]