Freshpet, Inc. (NASDAQ:FRPT) reported second-quarter earnings that far exceeded analyst estimates, pushing its shares up more than 3% in premarket trading despite a slight revenue miss and lowered sales guidance.
The pet food maker posted adjusted earnings per share of $0.33, tripling the consensus estimate of $0.11. Revenue grew 12.5% year-over-year to $264.7 million but fell just short of the $267.85 million analysts had forecast. The revenue increase was primarily driven by a 10.8% volume gain and a 1.7% favorable price/mix impact.
“Against a more challenging consumer sentiment backdrop, we continue to significantly outperform the dog food category – delivering both category-leading sales growth and strong improvements in operations,” said Billy Cyr, Freshpet’s CEO.
Net income for the quarter came in at $16.4 million, a turnaround from a net loss of $1.7 million in the same period last year. Gross margin improved to 40.9% from 39.9% a year ago, while adjusted EBITDA rose to $44.4 million compared to $35.1 million previously.
The company lowered its full-year 2025 net sales growth guidance to 13-16%, down from the earlier 15-18% range, citing economic pressures weighing on consumers. However, Freshpet kept its adjusted EBITDA forecast steady at $190-$210 million and cut planned capital expenditures to around $175 million from $225 million.
Freshpet also withdrew its long-term $1.8 billion sales target for 2027 to reflect the recent slowdown but reaffirmed its goals of a 48% adjusted gross margin and 22% adjusted EBITDA margin for that year.
“We still believe we will deliver outsized growth for a long period of time, but we need to plan for the current economic realities,” Cyr added.
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