Freshpet, Inc. Reports First Quarter 2025 Financial Results
Freshpet (NASDAQ: FRPT) reported Q1 2025 financial results with net sales of $263.2 million, up 17.6% year-over-year, driven by volume gains of 14.9% and favorable price/mix of 2.7%. The company posted a net loss of $12.7 million, compared to net income of $18.6 million in the prior year period.
Gross margin remained stable at 39.4%, while Adjusted EBITDA increased to $35.5 million from $30.6 million. Due to macroeconomic headwinds affecting consumer spending, Freshpet updated its 2025 guidance, now expecting net sales between $1.12-1.15 billion (15-18% growth) and Adjusted EBITDA of $190-210 million, down from previous guidance of $1.18-1.21 billion in sales and minimum $210 million EBITDA.
The company maintains a strong balance sheet with $243.7 million in cash and $395.7 million in debt outstanding.Freshpet (NASDAQ: FRPT) ha comunicato i risultati finanziari del primo trimestre 2025 con vendite nette di 263,2 milioni di dollari, in crescita del 17,6% rispetto all'anno precedente, grazie a un aumento dei volumi del 14,9% e a un mix/prezzo favorevole del 2,7%. L'azienda ha registrato una perdita netta di 12,7 milioni di dollari, rispetto a un utile netto di 18,6 milioni nello stesso periodo dell'anno precedente.
Il margine lordo è rimasto stabile al 39,4%, mentre l'EBITDA rettificato è salito a 35,5 milioni di dollari rispetto ai 30,6 milioni precedenti. A causa delle difficoltà macroeconomiche che influenzano la spesa dei consumatori, Freshpet ha aggiornato le previsioni per il 2025, aspettandosi ora vendite nette tra 1,12 e 1,15 miliardi di dollari (crescita del 15-18%) e un EBITDA rettificato tra 190 e 210 milioni di dollari, in calo rispetto alle precedenti stime di vendite tra 1,18 e 1,21 miliardi e un EBITDA minimo di 210 milioni.
L'azienda mantiene un bilancio solido con 243,7 milioni di dollari in contanti e un debito residuo di 395,7 milioni di dollari.
Freshpet (NASDAQ: FRPT) informó los resultados financieros del primer trimestre de 2025 con ventas netas de 263,2 millones de dólares, un aumento del 17,6% interanual, impulsado por un crecimiento del volumen del 14,9% y un precio/mezcla favorable del 2,7%. La compañía reportó una pérdida neta de 12,7 millones de dólares, en comparación con una ganancia neta de 18,6 millones en el mismo periodo del año anterior.
El margen bruto se mantuvo estable en 39,4%, mientras que el EBITDA ajustado aumentó a 35,5 millones de dólares desde 30,6 millones. Debido a los vientos macroeconómicos que afectan el gasto del consumidor, Freshpet actualizó su guía para 2025, esperando ahora ventas netas entre 1,12 y 1,15 mil millones de dólares (crecimiento del 15-18%) y un EBITDA ajustado de 190-210 millones, por debajo de la guía anterior de ventas entre 1,18 y 1,21 mil millones y un EBITDA mínimo de 210 millones.
La compañía mantiene un balance sólido con 243,7 millones de dólares en efectivo y una deuda pendiente de 395,7 millones.
Freshpet (NASDAQ: FRPT)는 2025년 1분기 재무 실적을 발표했으며, 순매출 2억 6,320만 달러로 전년 대비 17.6% 증가했으며, 이는 14.9%의 판매량 증가와 2.7%의 가격/믹스 호조에 힘입은 결과입니다. 회사는 1,270만 달러의 순손실을 기록했으며, 이는 전년 동기 1,860만 달러 순이익과 대비됩니다.
총마진은 39.4%로 안정세를 유지했으며, 조정 EBITDA는 3,550만 달러로 전년 3,060만 달러에서 증가했습니다. 소비자 지출에 영향을 미치는 거시경제적 역풍으로 인해 Freshpet은 2025년 가이던스를 업데이트하여, 순매출을 11억 2천만~11억 5천만 달러 (15~18% 성장)로, 조정 EBITDA를 1억 9천만~2억 1천만 달러로 예상하며, 이전 가이던스인 11억 8천만~12억 1천만 달러 매출 및 최소 2억 1천만 달러 EBITDA에서 하향 조정했습니다.
회사는 2억 4,370만 달러의 현금과 3억 9,570만 달러의 부채를 유지하며 건전한 재무 상태를 유지하고 있습니다.
Freshpet (NASDAQ : FRPT) a publié ses résultats financiers du premier trimestre 2025 avec des ventes nettes de 263,2 millions de dollars, en hausse de 17,6 % sur un an, grâce à une augmentation des volumes de 14,9 % et à un effet prix/produit favorable de 2,7 %. La société a enregistré une perte nette de 12,7 millions de dollars, contre un bénéfice net de 18,6 millions lors de la même période l'année précédente.
La marge brute est restée stable à 39,4 %, tandis que l'EBITDA ajusté est passé à 35,5 millions de dollars contre 30,6 millions. En raison des vents contraires macroéconomiques affectant les dépenses des consommateurs, Freshpet a révisé ses prévisions pour 2025, s'attendant désormais à des ventes nettes comprises entre 1,12 et 1,15 milliard de dollars (croissance de 15 à 18 %) et un EBITDA ajusté de 190 à 210 millions, en baisse par rapport aux prévisions précédentes de 1,18 à 1,21 milliard de ventes et un EBITDA minimum de 210 millions.
La société maintient un bilan solide avec 243,7 millions de dollars de liquidités et une dette en cours de 395,7 millions.
Freshpet (NASDAQ: FRPT) meldete die Finanzergebnisse für das erste Quartal 2025 mit Nettoverkäufen von 263,2 Millionen US-Dollar, was einem Anstieg von 17,6 % im Jahresvergleich entspricht, angetrieben durch ein Volumenwachstum von 14,9 % und einen günstigen Preis-/Mix-Effekt von 2,7 %. Das Unternehmen verzeichnete einen Nettoverlust von 12,7 Millionen US-Dollar, verglichen mit einem Nettogewinn von 18,6 Millionen im Vorjahreszeitraum.
Die Bruttomarge blieb stabil bei 39,4 %, während das bereinigte EBITDA von 30,6 Millionen auf 35,5 Millionen US-Dollar anstieg. Aufgrund makroökonomischer Gegenwinde, die das Verbraucherverhalten beeinflussen, hat Freshpet seine Prognose für 2025 angepasst und erwartet nun Nettoverkäufe zwischen 1,12 und 1,15 Milliarden US-Dollar (15-18 % Wachstum) sowie ein bereinigtes EBITDA von 190-210 Millionen US-Dollar, was unter der vorherigen Prognose von 1,18-1,21 Milliarden Umsatz und mindestens 210 Millionen EBITDA liegt.
Das Unternehmen verfügt über eine solide Bilanz mit 243,7 Millionen US-Dollar in bar und ausstehenden Schulden in Höhe von 395,7 Millionen US-Dollar.
- Net sales increased 17.6% to $263.2 million in Q1 2025
- Volume gains of 14.9% and favorable price/mix of 2.7%
- Adjusted EBITDA improved to $35.5 million from $30.6 million
- Reduced logistics costs as percentage of net sales
- Strong cash position of $243.7 million
- Net loss of $12.7 million compared to prior year net income of $18.6 million
- SG&A expenses increased significantly to 43.8% of net sales from 35.6%
- Downward revision of 2025 guidance due to economic headwinds
- Write-off from pet specialty distributor liquidation
- Legal obligations related to ongoing Phillips litigation
Insights
Freshpet posted 17.6% sales growth but swung to net loss; lowered 2025 guidance amid consumer headwinds while maintaining margins.
Freshpet's Q1 results present a complex financial picture. The 17.6% revenue growth to
This profitability reversal stems primarily from SG&A expenses ballooning to
On the positive side, gross margin remained steady at
Most concerning is management's reduced 2025 outlook, now projecting revenue of
Management directly referenced "macro-economic headwinds" and is "adapting growth plans to current economic challenges," indicating potential softening in premium pet food demand as consumers face prolonged inflationary pressures.
Freshpet maintains double-digit growth but lowers outlook; balancing premium positioning against economic headwinds affecting consumer spending.
Freshpet's Q1 performance reveals the resilience yet growing vulnerability within the premium pet food segment. Despite macroeconomic pressures, achieving
The growth composition tells an important story:
Several operational challenges emerged this quarter. The liquidation of a pet specialty distributor—serious enough to warrant a receivables write-off—points to potential retail channel disruptions. Meanwhile, costs related to international go-to-market strategy changes signal adjustments to global expansion ambitions.
The reduction in capital expenditure outlook from
While pet spending has historically demonstrated recession resistance, Freshpet's premium positioning appears somewhat vulnerable to the prolonged inflationary environment affecting discretionary spending. Nevertheless, the fundamentals remain intact: cash-positive operations, margin stability at
The company still characterizes itself as "structurally advantaged" with "long-term tailwinds"—reflecting the ongoing humanization of pet food trend that continues to favor fresh, refrigerated options over traditional formats.
Delivers Approximately
Strong Operating Performance on Input, Quality and Logistics Costs
Updates 2025 Outlook
BEDMINSTER, N.J., May 05, 2025 (GLOBE NEWSWIRE) -- Freshpet, Inc. (“Freshpet” or the “Company”) (Nasdaq: FRPT) today reported financial results for its first quarter ended March 31, 2025.
First Quarter 2025 Financial Highlights Compared to Prior Year Period
- Net sales of
$263.2 million , an increase of17.6% . - Net loss of
$12.7 million , compared to the prior year period net income of$18.6 million . - Gross margin of
39.4% , consistent with the prior year period of39.4% . - Adjusted Gross Margin of
45.7% , compared to the prior year period of45.3% .1 - Adjusted EBITDA of
$35.5 million , compared to the prior year period of$30.6 million .1
“Despite the recent macro-economic headwinds, we believe Freshpet remains a structurally advantaged business with a long runway for growth in a category with long-term tailwinds. However, our growth year-to-date has not been as robust as we had anticipated so we are adapting our growth plans to the current economic challenges that our consumers are facing while continuing to drive the operational improvements that are essential to our long-term success,” commented Billy Cyr, Freshpet’s Chief Executive Officer. “Looking ahead, we believe it is prudent to adjust our 2025 outlook and plan as if the conditions we saw in the first quarter were to continue for the balance of the year. In doing so, we believe we are positioning Freshpet to weather the near-term economic headwinds and deliver long-term shareholder value while serving pets, people and the planet.”
First Quarter 2025
Net sales increased
Gross profit was
Selling, general and administrative expenses (“SG&A”) were
| 1 | Adjusted Gross Margin, Adjusted Gross Profit, Adjusted SG&A and Adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Measures” for how the Company defines these measures and the financial tables that accompany this release for reconciliations of these measures to the closest comparable GAAP measures. |
Net loss was
Adjusted EBITDA was
Balance Sheet
As of March 31, 2025, the Company had cash and cash equivalents of
The Company will utilize its balance sheet to support its ongoing capital needs in connection with its long-term capacity plan.
Outlook
For full year 2025, the Company is updating its guidance and now expects the following:
- Net sales in the range of
$1.12 billion to$1.15 billion , an increase of15% to18% from 2024, compared to$1.18 billion to$1.21 billion , an increase of21% to24% , in the previous guidance; - Adjusted EBITDA in the range of
$190 million to$210 million , compared to at least$210 million in the previous guidance; and - Capital expenditures of ~
$225 million , compared to ~$250 million in the previous guidance.
The Company does not provide guidance for net (loss) income, the U.S. GAAP measure most directly comparable to Adjusted EBITDA, and similarly cannot provide a reconciliation between its forecasted Adjusted EBITDA and net (loss) income metrics without unreasonable effort due to the unavailability of reliable estimates for certain components of net (loss) income and the respective reconciliations, including the timing of and amount of costs of goods sold and selling, general and administrative expenses. These items are not within the Company's control and may vary greatly between periods and could significantly impact future results.
Conference Call & Earnings Presentation Webcast Information
As previously announced, today, May 5, 2025, the Company will host a conference call beginning at 8:00 a.m. Eastern Time with members of its leadership team. The conference call webcast will be available live over the Internet through the “Investors” section of the Company's website at www.freshpet.com. To participate on the live call, listeners in North America may dial (844) 512-2921 and international listeners may dial (412) 317-6671; the passcode is 13753287.
About Freshpet
Freshpet's mission is to elevate the way we feed our pets with fresh food that nourishes all. Freshpet foods are blends of fresh meats, vegetables and fruits farmed locally and made at our Freshpet Kitchens. We thoughtfully prepare our foods using natural ingredients, cooking them in small batches at lower temperatures to preserve the natural goodness of the ingredients. Freshpet foods and treats are kept refrigerated from the moment they are made until they arrive at Freshpet Fridges in your local market.
Our foods are available in select grocery, mass, digital, pet specialty, and club retailers across the United States, Canada and Europe, as well as online in the U.S. From the care we take to source our ingredients and make our food, to the moment it reaches your home, our integrity, transparency and social responsibility are the way we like to run our business. To learn more, visit www.freshpet.com.
Connect with Freshpet:
https://www.facebook.com/Freshpet
https://x.com/Freshpet
http://instagram.com/Freshpet
http://pinterest.com/Freshpet
https://www.tiktok.com/@Freshpet
https://www.youtube.com/user/freshpet400
Forward Looking Statements
Certain statements in this release constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the expected impact to our growth plans of current macroeconomic dynamics, our ability to deliver long-term shareholder value and guidance with respect to 2025 net sales, Adjusted EBITDA and capital expenditures. These statements are based on management's current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. While Freshpet believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect actual results. There are several risks and uncertainties which could cause actual results, performance, and achievements to differ materially from those stated or implied by the forward-looking statements described herein, including, most prominently, the risks discussed under the heading “Risk Factors” in the Company's latest annual report on Form 10-K and its quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release. Freshpet undertakes no obligation to publicly update or revise any forward-looking statement because of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements.
Non-GAAP Financial Measures
Freshpet uses the following non-GAAP financial measures in its financial communications. These non-GAAP financial measures should be considered as supplements to the U.S. GAAP reported measures, should not be considered replacements for, or superior to, the U.S. GAAP measures and may not be comparable to similarly named measures used by other companies.
- Adjusted Gross Profit
- Adjusted Gross Profit as a percentage of net sales (Adjusted Gross Margin)
- Adjusted SG&A Expenses
- Adjusted SG&A Expenses as a percentage of net sales
- EBITDA
- Adjusted EBITDA
- Adjusted EBITDA as a percentage of net sales (Adjusted EBITDA Margin)
Adjusted Gross Profit: Freshpet defines Adjusted Gross Profit as gross profit before depreciation expense, non-cash share-based compensation and loss on disposal of manufacturing equipment.
Adjusted SG&A Expenses: Freshpet defines Adjusted SG&A as SG&A expenses before depreciation and amortization expense, non-cash share-based compensation, loss on disposal of equipment, distributor transition costs, legal obligation and international business changes.
EBITDA and Adjusted EBITDA: EBITDA represents net (loss) income plus interest expense net of interest income, income tax expense and depreciation and amortization expense, and Adjusted EBITDA represents EBITDA less gain on equity investment, plus non-cash share-based compensation expense, loss on disposal of property, plant and equipment, distributor transition costs, legal obligation, and international business changes.
Management believes that the non-GAAP financial measures are meaningful to investors because they provide a view of the Company with respect to ongoing operating results. The non-GAAP financial measures are shown as supplemental disclosures in this release because they are widely used by the investment community for analysis and comparative evaluation. They also provide additional metrics to evaluate the Company’s operations and, when considered with both the Company’s GAAP results and the reconciliation to the most comparable U.S. GAAP measures, provide a more complete understanding of the Company’s business than could be obtained absent this disclosure. The non-GAAP measures are not and should not be considered an alternative to the most comparable U.S. GAAP measures or any other figure calculated in accordance with U.S. GAAP, or as an indicator of operating performance. The Company’s calculation of the non-GAAP financial measures may differ from methods used by other companies. Management believes that the non-GAAP measures are important to an understanding of the Company's overall operating results in the periods presented. The non-GAAP financial measures are not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP measures of performance.
| FRESHPET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands, except per share data) | ||||||||
| March 31, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 243,732 | $ | 268,633 | ||||
| Accounts receivable, net of allowance for doubtful accounts | 62,654 | 68,419 | ||||||
| Inventories, net | 82,017 | 80,794 | ||||||
| Prepaid expenses | 13,922 | 16,026 | ||||||
| Other current assets | 3,067 | 3,126 | ||||||
| Total Current Assets | 405,392 | 436,998 | ||||||
| Property, plant and equipment, net | 1,082,203 | 1,065,869 | ||||||
| Deposits on equipment | 433 | 1,047 | ||||||
| Operating lease right of use assets | 3,057 | 3,366 | ||||||
| Long-term investment in equity securities | 33,446 | 33,446 | ||||||
| Other assets | 34,493 | 34,152 | ||||||
| Total Assets | $ | 1,559,024 | $ | 1,574,878 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 42,763 | $ | 39,164 | ||||
| Accrued expenses | 36,290 | 56,263 | ||||||
| Current operating lease liabilities | 1,355 | 1,322 | ||||||
| Current finance lease liabilities | 2,166 | 2,120 | ||||||
| Total Current Liabilities | $ | 82,574 | $ | 98,869 | ||||
| Convertible senior notes | 395,698 | 395,163 | ||||||
| Long-term operating lease liabilities | 1,863 | 2,213 | ||||||
| Long-term finance lease liabilities | 29,400 | 23,273 | ||||||
| Total Liabilities | $ | 509,535 | $ | 519,518 | ||||
| Commitments and contingencies | — | — | ||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Common stock — voting, issued and 48,774 outstanding on March 31, 2025, and 48,716 issued and 48,702 outstanding on December 31, 2024 | 49 | 49 | ||||||
| Additional paid-in capital | 1,344,775 | 1,338,160 | ||||||
| Accumulated deficit | (294,503 | ) | (281,806 | ) | ||||
| Accumulated other comprehensive loss | (576 | ) | (787 | ) | ||||
| Treasury stock, at cost — 14 shares on March 31, 2025 and on December 31, 2024 | (256 | ) | (256 | ) | ||||
| Total Stockholders' Equity | 1,049,489 | 1,055,360 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 1,559,024 | $ | 1,574,878 | ||||
| FRESHPET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Unaudited in thousands, except per share data) | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| NET SALES | $ | 263,249 | $ | 223,849 | ||||
| COST OF GOODS SOLD | 159,461 | 135,691 | ||||||
| GROSS PROFIT | 103,788 | 88,158 | ||||||
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 115,285 | 79,695 | ||||||
| (LOSS) INCOME FROM OPERATIONS | (11,497 | ) | 8,463 | |||||
| OTHER (EXPENSES) INCOME: | ||||||||
| Interest and Other Income, net | 2,393 | 3,335 | ||||||
| Interest Expense | (3,459 | ) | (3,060 | ) | ||||
| Gain on Equity Investment | — | 9,918 | ||||||
| (1,066 | ) | 10,193 | ||||||
| (LOSS) INCOME BEFORE INCOME TAXES | (12,563 | ) | 18,656 | |||||
| INCOME TAX EXPENSE | 134 | 54 | ||||||
| (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (12,697 | ) | $ | 18,602 | |||
| OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||
| Change in foreign currency translation | $ | 211 | $ | (118 | ) | |||
| TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | 211 | (118 | ) | |||||
| TOTAL COMPREHENSIVE (LOSS) INCOME | $ | (12,486 | ) | $ | 18,484 | |||
| NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS | ||||||||
| -BASIC | $ | (0.26 | ) | $ | 0.38 | |||
| -DILUTED | $ | (0.26 | ) | $ | 0.37 | |||
| WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING | ||||||||
| -BASIC | 48,733 | 48,320 | ||||||
| -DILUTED | 48,733 | 50,049 | ||||||
| FRESHPET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited, in thousands) | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net (loss) income | $ | (12,697 | ) | $ | 18,602 | |||
| Adjustments to reconcile net (loss) income to net cash flows provided by operating activities: | ||||||||
| Provision for loss on accounts receivable | 11,452 | 4 | ||||||
| Loss on disposal of property, plant and equipment | 744 | 150 | ||||||
| Share-based compensation | 8,816 | 6,221 | ||||||
| Inventory obsolescence | — | 699 | ||||||
| Depreciation and amortization | 21,827 | 15,902 | ||||||
| Amortization of deferred financing costs | 535 | 514 | ||||||
| Change in operating lease right of use asset | 309 | 379 | ||||||
| Gain on equity investment | — | (9,918 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (5,609 | ) | (11,757 | ) | ||||
| Inventories | (2,952 | ) | (7,817 | ) | ||||
| Prepaid expenses and other current assets | 688 | 548 | ||||||
| Other assets | (1,102 | ) | (691 | ) | ||||
| Accounts payable | 4,574 | 9,909 | ||||||
| Accrued expenses | (21,461 | ) | (16,943 | ) | ||||
| Operating lease liability | (317 | ) | (396 | ) | ||||
| Net cash flows provided by operating activities | 4,807 | 5,406 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Acquisitions of property, plant and equipment, software and deposits on equipment | (26,491 | ) | (46,473 | ) | ||||
| Net cash flows used in investing activities | (26,491 | ) | (46,473 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Tax withholdings related to net shares settlements of restricted stock units | (2,861 | ) | (223 | ) | ||||
| Principal payments under finance lease obligations | (513 | ) | (502 | ) | ||||
| Proceeds from exercise of options to purchase common stock | 157 | 2,815 | ||||||
| Net cash flows (used in) provided by financing activities | (3,217 | ) | 2,090 | |||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (24,901 | ) | (38,977 | ) | ||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 268,633 | 296,871 | ||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 243,732 | $ | 257,894 | ||||
| FRESHPET, INC. AND SUBSIDIARIES RECONCILIATION BETWEEN GROSS PROFIT AND ADJUSTED GROSS PROFIT | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| (Dollars in thousands) | ||||||||
| Gross profit | $ | 103,788 | $ | 88,158 | ||||
| Depreciation expense | 15,179 | 10,675 | ||||||
| Non-cash share-based compensation | 1,283 | 2,622 | ||||||
| (Loss) gain on disposal of manufacturing equipment | (5 | ) | 21 | |||||
| Adjusted Gross Profit | $ | 120,245 | $ | 101,476 | ||||
| Adjusted Gross Profit as a % of Net Sales | 45.7 | % | 45.3 | % | ||||
| FRESHPET, INC. AND SUBSIDIARIES RECONCILIATION BETWEEN SG&A EXPENSES AND ADJUSTED SG&A EXPENSES | ||||||||||
| For the Three Months Ended March 31, | ||||||||||
| 2025 | 2024 | |||||||||
| (Dollars in thousands) | ||||||||||
| SG&A expenses | $ | 115,285 | $ | 79,695 | ||||||
| Depreciation and amortization expense | 5,937 | 5,070 | ||||||||
| Non-cash share-based compensation (a) | 7,533 | 3,600 | ||||||||
| Loss on disposal of equipment | 166 | 129 | ||||||||
| Distributor transition costs (b) | 10,680 | — | ||||||||
| Legal obligation (c) | 4,987 | — | ||||||||
| International business charges (d) | 1,273 | — | ||||||||
| Adjusted SG&A Expenses | $ | 84,709 | $ | 70,896 | ||||||
| Adjusted SG&A Expenses as a % of Net Sales | 32.2 | % | 31.7 | % | ||||||
| (a) | Includes true-ups to share-based compensation expense in prior period. We have certain outstanding share-based awards with performance-based vesting conditions that require the achievement of certain Adjusted EBITDA margins, Adjusted EBITDA and/or Net Sales targets as a condition of vesting. At each reporting period, we reassess the probability of achieving the performance criteria and the performance period required to meet those targets. When the probability of achieving such performance conditions changes, the compensation cost previously recorded is adjusted as needed. When such performance conditions are deemed to be improbable of achievement, the compensation cost previously recorded is reversed. | |||||||||
| (b) | Represents a non-recurring loss as a result of an accounts receivable write-off in connection with the liquidation of one of our pet specialty distributors. Concurrent with its liquidation, we transitioned to a new distribution partner, who is a leading pet specialty distributor and who we anticipate will facilitate sales to pet specialty stores. Thus, despite the transitory impact during the first quarter of 2025, our ability to continue to generate sales is consistent with what we would expect to generate within the pet specialty channel. | |||||||||
| (c) | Represents an accrual for legal obligations related to the ongoing litigation with Phillips. | |||||||||
| (d) | Represents termination costs due to a business change in our international go-to-market strategy. | |||||||||
| FRESHPET, INC. AND SUBSIDIARIES RECONCILIATION BETWEEN NET (LOSS) INCOME AND ADJUSTED EBITDA | ||||||||||
| For the Three Months Ended March 31, | ||||||||||
| 2025 | 2024 | |||||||||
| (Dollars in thousands) | ||||||||||
| Net (loss) income | $ | (12,697 | ) | $ | 18,602 | |||||
| Depreciation and amortization | 21,116 | 15,745 | ||||||||
| Interest expense, net of interest income | 1,064 | (275 | ) | |||||||
| Income tax expense | 134 | 54 | ||||||||
| EBITDA | 9,617 | 34,126 | ||||||||
| Non-cash share-based compensation (a) | 8,816 | 6,221 | ||||||||
| Loss on disposal of property, plant and equipment | 161 | 150 | ||||||||
| Distributor transition costs (b) | 10,680 | — | ||||||||
| Legal obligation (c) | 4,987 | — | ||||||||
| International business charges (d) | 1,273 | — | ||||||||
| Gain on equity investment | — | (9,918 | ) | |||||||
| Adjusted EBITDA | $ | 35,534 | $ | 30,579 | ||||||
| Adjusted EBITDA as a % of Net Sales | 13.5 | % | 13.7 | % | ||||||
| (a) | Includes true-ups to share-based compensation expense in prior period. We have certain outstanding share-based awards with performance-based vesting conditions that require the achievement of certain Adjusted EBITDA margins, Adjusted EBITDA and/or Net Sales targets as a condition of vesting. At each reporting period, we reassess the probability of achieving the performance criteria and the performance period required to meet those targets. When the probability of achieving such performance conditions changes, the compensation cost previously recorded is adjusted as needed. When such performance conditions are deemed to be improbable of achievement, the compensation cost previously recorded is reversed. | |||||||||
| (b) | Represents a non-recurring loss as a result of an accounts receivable write-off in connection with the liquidation of one of our pet specialty distributors. Concurrent with its liquidation, we transitioned to a new distribution partner, who is a leading pet specialty distributor and who we anticipate will facilitate sales to pet specialty stores. Thus, despite the transitory impact during the first quarter of 2025, our ability to continue to generate sales is consistent with what we would expect to generate within the pet specialty channel. | |||||||||
| (c) | Represents an accrual for legal obligations related to the ongoing litigation with Phillips. | |||||||||
| (d) | Represents termination costs due to a business change in our international go-to-market strategy. | |||||||||
Investor Contact: Rachel Ulsh Rulsh@freshpet.com Media Contact: Press@freshpet.com
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