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American Focus > Blog > Economy > Freshpet CEO Says ‘Outsized Growth’ Expected Despite Lowered Sales Target
Economy

Freshpet CEO Says ‘Outsized Growth’ Expected Despite Lowered Sales Target

Last updated: August 4, 2025 9:05 am
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Freshpet CEO Says ‘Outsized Growth’ Expected Despite Lowered Sales Target
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Freshpet Inc. (NASDAQ:FRPT) saw a surge in its stock price on Monday following the release of its second-quarter 2025 earnings report. The company reported earnings of 33 cents per share, surpassing the consensus estimate of 16 cents. Despite this positive news, net sales came in slightly below expectations at $264.7 million, missing the analyst estimate of $268.9 million.

The increase in sales was driven by a 10.8% rise in volume and a 1.7% improvement in price and mix. Net income for the quarter was $16.4 million, a significant improvement from the net loss of $1.7 million in the same period last year. Gross profit also saw a notable increase, reaching $108.2 million, or 40.9% of net sales, up from $94.0 million, or 39.9%.

Adjusted gross margin improved to 46.9% from 45.9%, while adjusted EBITDA rose to $44.4 million from $35.1 million. SG&A expenses decreased to $90.4 million from $95.7 million, with adjusted SG&A totaling $79.6 million.

Freshpet noted improvements across quality, input, and logistics costs during the quarter, with the Ennis Kitchen facility emerging as the most profitable. The company also announced plans to commission a new production line for bagged products in Bethlehem in the fourth quarter of 2025, with potential retrofits starting in the second half of 2026.

Household penetration for Freshpet rose by 11% year-over-year, with the company’s Most Valuable Pet Parents (MVPs) cohort increasing by 18%. Store count reached 29,141 locations, with 24% of stores now hosting multiple fridges.

CEO Billy Cyr expressed optimism about the company’s performance, highlighting its ability to outperform the dog food category despite challenging consumer sentiment. He emphasized the company’s focus on controlling what is within its power, including accelerating advertising and distribution programs, reducing capital expenditures, and strengthening operations.

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Freshpet updated its 2025 outlook, revising net sales growth expectations to 13% to 16% and capital expenditures estimate to approximately $175 million. The company removed its long-term net sales target for 2027 but reaffirmed its adjusted gross margin and adjusted EBITDA margin goals.

In conclusion, Freshpet remains confident in its ability to deliver significant growth and create shareholder value. Despite revising its sales targets to align with current economic conditions, the company is optimistic about its prospects for long-term success in the pet food market.

TAGGED:CEOexpectedFreshpetGrowthLoweredOutsizedSalesTarget
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