Freshpet Inc ( (FRPT) ) has released its Q1 earnings. Here is a breakdown of the information Freshpet Inc presented to its investors.
Freshpet Inc., a company specializing in fresh, refrigerated pet food, operates in the pet food industry and is known for its unique approach of using locally sourced ingredients and small-batch cooking methods. In its first-quarter earnings report for 2025, Freshpet Inc. announced a net sales growth of approximately 18%, reaching $263.2 million. However, the company reported a net loss of $12.7 million, a significant decline from the previous year’s net income of $18.6 million. The gross margin remained stable at 39.4%, while the adjusted EBITDA increased to $35.5 million from $30.6 million in the prior year period. The company’s financial performance was marked by a 17.6% increase in net sales, driven by a 14.9% rise in volume and a 2.7% favorable price/mix. Despite achieving higher sales, Freshpet faced challenges with increased SG&A expenses, which rose to $115.3 million, largely due to higher media spending, share-based compensation, and non-recurring charges. Looking ahead, Freshpet has adjusted its 2025 outlook to reflect anticipated economic conditions, forecasting net sales between $1.12 billion and $1.15 billion and adjusted EBITDA between $190 million and $210 million. The company remains focused on operational improvements to navigate near-term challenges while aiming to deliver long-term shareholder value.