Freshpet, Inc. has reported its financial results for the fourth quarter and full year 2025, demonstrating notable growth and achievements. The company's net sales for the fourth quarter of 2025 were $285.2 million, marking an increase of 8.6% compared to the prior year period. The gross margin for the same period was 43.3%, up from 42.5% in the prior year, and the adjusted gross margin was 48.4%, compared to 48.1% in the prior year.
For the full year 2025, Freshpet, Inc. reported net sales of $1,102.0 million, reflecting a 13.0% increase from the prior year. The gross margin was 40.8%, compared to 40.6% in the prior year, while the adjusted gross margin was 46.7%, up from 46.5% in the prior year. The company also achieved positive free cash flow of $12.4 million for the full year, a significant improvement from the negative free cash flow of ($32.8) million in the prior year.
Net income for the full year 2025 was $139.1 million, a substantial increase from the prior year's net income of $46.9 million. Additionally, the adjusted EBITDA for the full year 2025 was $195.7 million, up from $161.8 million in the prior year.
The company's CEO, Billy Cyr, expressed satisfaction with the results, noting that the fiscal year 2025 brought significant growth, surpassing $1 billion in net sales for the first time and achieving positive free cash flow. He highlighted the company's efforts to strengthen its foundation for future growth, including retooling its marketing model, expanding momentum in e-commerce, and testing new technologies to enhance product quality and profitability.
Looking ahead to 2026, Freshpet, Inc. provided guidance for net sales growth in the range of 7% to 10% compared to 2025, with adjusted EBITDA projected to be in the range of $205 million to $215 million. The company also anticipates positive free cash flow with capital expenditures of approximately $150 million.
As of December 31, 2025, the company had cash and cash equivalents of $278.0 million with $397.3 million of debt outstanding, net of $5.2 million of unamortized debt issuance costs. The company's cash from operations for the year ended December 31, 2025, increased to $160.6 million, driven largely by the increase in net sales.
Freshpet, Inc.'s strong financial performance and strategic initiatives position the company for continued growth and profitability, reinforcing its mission to provide fresh, nourishing food for pets. The market has reacted to these announcements by moving the company's shares 1.56% to a price of $64.25. Check out the company's full 8-K submission here.
