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Mar 31, 2025
Freshpet Q1 2025 Earnings Report
Freshpet reported solid revenue growth but swung to a net loss due to elevated SG&A expenses and one-time charges.
Key Takeaways
Freshpet's Q1 2025 performance reflected strong sales momentum with a 17.6% increase in revenue, but profitability declined due to significant non-recurring SG&A costs. Gross margin remained stable, and adjusted EBITDA grew year-over-year.
Revenue rose to $263.2M, driven by volume gains and favorable pricing.
The company posted a net loss of $12.7M, down from $18.6M in net income last year.
Adjusted EBITDA increased to $35.5M, supported by improved gross profit.
Non-recurring SG&A charges totaled $16.9M, heavily impacting profitability.
Forward Guidance
Freshpet revised its 2025 outlook downward, expecting slower growth due to ongoing macroeconomic challenges and consumer headwinds.
Positive Outlook
- Net sales expected to grow 15%-18% in 2025.
- Adjusted EBITDA still forecasted up to $210M.
- Improved logistics cost efficiency in Q1.
- Strong cash position at $243.7M.
- Volume and pricing continued to support revenue.
Challenges Ahead
- Full-year revenue guidance lowered from $1.18B–$1.21B to $1.12B–$1.15B.
- Adjusted EBITDA guidance reduced from at least $210M to $190M–$210M.
- SG&A pressured by non-recurring legal, distributor, and international costs.
- High media spend as a percentage of net sales.
- Operating leverage reduced by lower plant cost efficiencies.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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