← Back

Freshpet: Freshpet's Q4 and Full-Year 2025 Earnings: A Resilient Performance

Freshpet's fourth-quarter net sales were $285.2 million, up 8.6% year over year, with adjusted EBITDA of $61.2 million, up 16% year over year. For the full year, net sales were up 13% year over year, and adjusted EBITDA was $195.7 million, up 21% year over year. The company's actual EPS came out at $0.605, beating estimates of $0.43. The strong financial performance was driven by the company's focus on creating value, increasing household penetration, and expanding its distribution channels.

FRPT

USD 80.89

2.94%

A-Score: 3.6/10

Publication date: February 23, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Net Sales Growth Declined from 27% (FY2024) to 13% (FY2025), but outperformed category growth by over 10 points.
  • Adjusted EBITDA Growth Surged 21% YoY to $195.7M in FY2025, with guidance of $205–215M for FY2026.
  • Market Share Expansion Achieved 4% in the $38B U.S. dog food segment, with 39,347 fridges and 80% grocery ACV.
  • Manufacturing Innovation Launched new production tech, improving quality/throughput, with 16 lines supporting >$1.5B in sales.
  • Ecommerce Growth Digital sales rose to 14% of total revenue (14.6% in Q4), driven by 40% YoY growth and omnichannel strategy.

Revenue Growth Drivers

The company's revenue growth was driven by effective advertising, product innovation, and increased visibility. Freshpet's ecommerce business is gaining traction, with digital business growing nearly 40% last year, now up to 14% of its total business. The company is also expanding its distribution channels, including club expansion and new store development. As William B. Cyr mentioned, "Our ecommerce business is gaining traction, with digital business growing nearly 40% last year, now up to 14% of our total business."

Margin Expansion

Freshpet's adjusted gross margin expanded to 48.4% in the fourth quarter, driven by increased sales growth without increasing headcount. The company aims to achieve a 48% plus gross margin target for 2027, driven by improved operational efficiency, quality costs, and input costs. The company's focus on affordability, with initiatives to improve entry-level price points, is also expected to contribute to margin expansion.

Guidance and Outlook

For 2026, Freshpet expects net sales growth to be between 7% to 10%, with adjusted EBITDA in the range of $205 million to $215 million. The company's guidance assumes no material change in the macroeconomic environment and does not include significant fridge island expansion. Analysts estimate next year's revenue growth at 9.4%, which is within the company's guidance range.

Valuation

Using the current P/E Ratio of 27.62 and EV/EBITDA of 27.25, we can assess what's priced into Freshpet's stock. The company's strong financial performance and growth prospects are reflected in its valuation multiples. With a ROE of 12.35% and ROIC of 4.44%, Freshpet is generating returns that are attractive relative to its cost of capital.

Freshpet's A-Score