Freshpet, Inc. (NASDAQ:FRPT) shares climbed 5.3% on Monday after the pet food company reported third-quarter results that sharply outperformed Wall Street estimates, supported by robust sales growth and improved profitability.
The company posted adjusted earnings of $1.86 per share, far exceeding the consensus forecast of $0.43. Revenue rose 14% year-on-year to $288.8 million, topping analyst expectations of $284.22 million. The strong performance was fueled by 12.9% volume growth and a 1.1% favorable price/mix effect.
“We are quickly adjusting to the new economic reality and remain one of the best performing pet food businesses—with strong financial and operational results and category-leading growth,” said Billy Cyr, Freshpet’s Chief Executive Officer.
A key highlight of the quarter was Freshpet’s achievement of positive free cash flow, a milestone that prompted the company to raise its outlook, now expecting to remain free cash flow positive for fiscal 2025, a full year ahead of its original plan.
Adjusted EBITDA came in at $54.6 million, up from $43.5 million in the same period last year.
The company also refined its 2025 full-year guidance, now projecting net sales growth of about 13%, compared to its earlier range of 13%–16%, and narrowing its adjusted EBITDA forecast to $190–$195 million from a prior $190–$210 million. Capital expenditures were cut to approximately $140 million, down from the previous $175 million estimate.
Freshpet’s gross margin for the quarter stood at 39.5%, compared to 40.4% a year earlier, while adjusted gross margin came in at 46.0%, versus 46.5% in the prior-year period.
Net income surged to $101.7 million, boosted by a $77.9 million tax benefit linked to ongoing profitability — a sign of continued operational momentum as the company consolidates its leadership in the premium pet food market.