Freshpet stock drops nearly 3%, despite earnings beating expectations but revenue slightly below forecasts

Bedminster, New Jersey — On Monday, Freshpet Inc. (NASDAQ: FRPT) announced its Q4 earnings, which exceeded expectations for profit but slightly missed on revenue.

The company’s stock fell 2.7% in pre-market trading.

The pet food manufacturer reported adjusted earnings per share of $0.64 for the quarter, up $0.23 from the analyst consensus of $0.41.

However, revenue of $285.2 million was slightly below the expected $285.7 million, despite an 8.6% increase from $262.7 million in the same period last year. Revenue growth was primarily driven by a 9.7% increase in sales volume but was partially offset by a 1.1% unfavorable impact from pricing/product mix.

For fiscal 2026, Freshpet provided guidance indicating net sales growth of 7% to 10%, corresponding to a range of $1.179 billion to $1.212 billion.

The midpoint of $1.196 billion represents approximately 8.5% growth. The company also expects adjusted EBITDA to be between $205 million and $215 million, with a midpoint of $210 million, compared to $195.7 million in 2025.

CEO Billy Cyr stated, “Fiscal 2025 taught us a very important lesson and tested the resilience of our business and organization. Ultimately, our team demonstrated tremendous flexibility — achieving far beyond the dog food category’s growth, surpassing $1 billion in net sales for the first time, expanding profit margins, and generating positive free cash flow.”

For the full year 2025, net sales increased 13% to $1.102 billion. Adjusted EBITDA rose from $161.8 million last year to $195.7 million. The company achieved $12.4 million in positive free cash flow, compared to negative $32.8 million in 2024.

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