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Sep 30
Freshpet Q3 2025 Earnings Report
Freshpet posted strong Q3 results, driven by double-digit sales growth and a large tax benefit that boosted net income.
Key Takeaways
Freshpet reported solid performance in Q3 2025 with 14% revenue growth and significant net income driven by a $77.9M tax benefit. The company achieved positive free cash flow ahead of schedule and saw a notable increase in adjusted EBITDA.
Net sales rose 14% YoY to $288.8M, driven by volume growth and favorable price/mix.
Net income surged to $101.7M due to a $77.9M deferred tax benefit.
Adjusted EBITDA reached $54.6M, up from $43.5M the previous year.
Freshpet achieved positive free cash flow ahead of schedule and expects to remain FCF positive for FY2025.
Freshpet
Freshpet
Freshpet Revenue by Geographic Location
Revenue by Geographic Location
Total Revenue
CapyFin.com Forward Guidance
Freshpet revised full-year 2025 guidance to the lower end of previous ranges, maintaining financial discipline while projecting full-year positive free cash flow.
Positive Outlook
- Full-year net sales expected to grow ~13%
- Adjusted EBITDA guided between $190M and $195M
- Capital expenditures reduced from $175M to ~$140M
- Company now expects full-year 2025 free cash flow positivity
- Strong household penetration and market share growth expected
Challenges Ahead
- Guidance revised to lower end of prior range
- Continued economic uncertainty influencing consumer behavior
- Reduced gross margin due to lower plant leverage
- Ongoing pressure from SG&A and media spend
- Lowered expectations reflect more cautious industry outlook