Freshpet (NASDAQ: FRPT) triples 2025 profit and sets 2026 growth outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Freshpet, Inc. reported strong fourth quarter and full-year 2025 results, highlighted by faster profit growth and its first year of positive free cash flow. Q4 2025 net sales rose to
For full-year 2025, net sales reached
Positive
- Profitability and cash inflection: 2025 net income rose to $139.1 million from $46.9 million and free cash flow turned positive to $12.4 million from a $32.8 million deficit, indicating a stronger, more self-funding financial profile.
Negative
- None.
Insights
Freshpet delivered strong 2025 growth, margin gains, positive free cash flow and cautious but solid 2026 guidance.
Freshpet grew 2025 net sales to
Net income jumped to
Free cash flow swung from a
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 23, 2026
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||
Registrant’s Telephone Number, Including Area Code: (201 ) 520-4000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On February 23, 2026, Freshpet, Inc. (“Freshpet”) issued a press release disclosing its financial results for the quarter and year ended December 31, 2025. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
As previously announced, Freshpet will hold a conference call at 8:00 a.m., Eastern Time, on Monday, February 23, 2026, to discuss its financial results for the quarter and year ended December 31, 2025.
Freshpet references non-GAAP financial information in the press release and makes similar references in the transcript to the conference call. A reconciliation of these non-GAAP financial measures to the nearest comparable GAAP financial measures is contained in the attached Exhibit 99.1 press release.
Item 7.01. Regulation FD Disclosure.
On February 23, 2026, Freshpet published to the investor relations section of its website a presentation which will be used by Freshpet’s management team in meetings with analysts and stockholders. A copy of the presentation is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
The information furnished with Item 2.02 and this Item 7.01, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“the Exchange Act”) or incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Freshpet uses the “Investors” section of its website (investors.freshpet.com) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number | Description | |||||||
| 99.1 | Press Release, dated February 23, 2026 | |||||||
| 99.2 | Investors Presentation | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FRESHPET, INC. | ||||||||
| Date: February 23, 2026 | By: | /s/ John G. O'Connor | ||||||
| Name: John G. O'Connor | ||||||||
| Title: Chief Financial Officer | ||||||||
Exhibit 99.1
Freshpet, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results
Full Year 2025 Net Sales Growth of 13% and Achieves Positive Free Cash Flow
Provides Full Year 2026 Outlook
Bedminster, N.J. – February 23, 2026 – Freshpet, Inc. (“Freshpet” or the “Company”) (Nasdaq: FRPT) today reported financial results for its fourth quarter and full year ended December 31, 2025.
Fourth Quarter 2025 Financial Highlights Compared to Prior Year Period
•Net sales of $285.2 million, an increase of 8.6%.
•Gross margin of 43.3%, compared to the prior year period of 42.5%.
•Adjusted Gross Margin of 48.4%, compared to the prior year period of 48.1%.1
•Net income of $33.8 million, compared to the prior year period net income of $18.1 million.
•Adjusted EBITDA of $61.2 million, compared to the prior year period of $52.6 million.1
Full Year 2025 Financial Highlights Compared to Prior Year
•Net sales of $1,102.0 million, an increase of 13.0%.
•Gross margin of 40.8%, compared to the prior year of 40.6%.
•Adjusted Gross Margin of 46.7%, compared to the prior year of 46.5%.1
•Net income of $139.1 million, compared to the prior year net income of $46.9 million.
•Adjusted EBITDA of $195.7 million, compared to the prior year of $161.8 million.1
•Free Cash Flow of $12.4 million, compared to the prior year of ($32.8) million.1
"Fiscal year 2025 taught us some very important lessons and challenged the resilience of our business and our organization. In the end, our team demonstrated tremendous agility – delivering growth well in excess of the dog food category, surpassing $1 billion in net sales for the first time, expanding margins and achieving positive free cash flow," commented Billy Cyr, Freshpet’s Chief Executive Officer. "Importantly, we strengthened our foundation for future growth. We retooled our marketing model to drive household penetration growth and we are building momentum in e-commerce. We also began testing island fridges – our most significant step change in retail visibility and availability – and we recently started up our first manufacturing line utilizing a breakthrough technology that we believe can enhance both product quality and profitability. We believe these efforts position us well to deliver outsized growth and improve profitability while fulfilling our mission to help dogs and cats live longer, happier and healthier lives with the people who love them."
Fourth Quarter 2025
Net sales increased 8.6% to $285.2 million for the fourth quarter of 2025, compared to $262.7 million in the prior year period. The increase in net sales was primarily driven by volume gains of 9.7%, partially offset by unfavorable price/mix of 1.1%.
Gross profit was $123.5 million, or 43.3% as a percentage of net sales, for the fourth quarter of 2025, compared to $111.6 million, or 42.5% as a percentage of net sales, in the prior year period. Gross profit as a percentage of net sales increased primarily due to reduced quality costs and improved leverage on plant expenses, partially offset by higher input costs. For the fourth quarter of 2025, Adjusted Gross Profit was $138.1 million, or 48.4% as a percentage of net sales, compared to $126.3 million, or 48.1% as a percentage of net sales, in the prior year period.1
1 Adjusted Gross Margin, Adjusted Gross Profit, Adjusted SG&A, Adjusted EBITDA and Free Cash Flow 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.
1
Selling, general and administrative expenses (“SG&A”) were $79.0 million, or 27.7% as a percentage of net sales, for the fourth quarter of 2025, compared to $92.2 million, or 35.1% as a percentage of net sales, in the prior year period. SG&A as a percentage of net sales decreased primarily due to decreased share-based compensation and variable compensation accrual, partially offset by increased media spend as a percentage of net sales. Adjusted SG&A for the fourth quarter of 2025 was $76.9 million, or 27.0% as a percentage of net sales, compared to $73.6 million, or 28.0% as a percentage of net sales, in the prior year period.1
Net income was $33.8 million for the fourth quarter of 2025 compared to $18.1 million in the prior year period. The increase in net income was due to the contribution from higher sales, increase in gross profit, and decreased SG&A expenses, partially offset by the deferred income tax expense in the current year period.
Adjusted EBITDA was $61.2 million for the fourth quarter of 2025 compared to $52.6 million in the prior year period.1 The increase in Adjusted EBITDA was a result of increased Adjusted Gross Profit, partially offset by higher Adjusted SG&A.
Full Year 2025
Net sales increased 13.0% to $1,102.0 million for the full year ended December 31, 2025, compared to $975.2 million in the prior year. The increase in net sales was primarily driven by volume gains of 12.0% and favorable price/mix of 1.0%.
Gross profit was $449.6 million, or 40.8% as a percentage of net sales, for the full year ended December 31, 2025, compared to $396.0 million, or 40.6% as a percentage of net sales, in the prior year. Gross profit as a percentage of net sales increased primarily due to lower input costs and reduced quality costs, partially offset by reduced leverage on plant expenses. Adjusted Gross Profit was $515.2 million, or 46.7% as a percentage of net sales, compared to $453.5 million, or 46.5% as a percentage of net sales, in the prior year.1
SG&A expenses were $374.0 million, or 33.9% as a percentage of net sales, for the full year ended December 31, 2025, compared to $358.0 million, or 36.7% as a percentage of net sales, in the prior year. SG&A as a percentage of net sales decreased primarily due to decreased share-based compensation and variable compensation accrual, partially offset by increased media spend as a percentage of net sales and higher non-recurring charges in 2025. Adjusted SG&A for the full year ended December 31, 2025 was $319.4 million, or 29.0% as a percentage of net sales, compared to $291.6 million, or 29.9% as a percentage of net sales, in the prior year.1
Net income was $139.1 million for the full year ended December 31, 2025, compared to net income of $46.9 million in the prior year. The increase in net income was due to a $68.4 million income tax benefit, primarily resulting from the release of the valuation allowance in the current year as a result of sustained profitability and the expected future profitability, and contributions from higher sales, partially offset by increased SG&A, including increased media spend of $29.2 million and $17.7 million of non-recurring charges in 2025, compared to a $9.9 million gain on equity investment in the prior year.
Adjusted EBITDA was $195.7 million for the full year ended December 31, 2025, compared to $161.8 million in the prior year.1 The increase in Adjusted EBITDA was a result of increased Adjusted Gross Profit, partially offset by higher Adjusted SG&A.
Balance Sheet
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. For the year ended December 31, 2025, cash from operations was $160.6 million, an increase of $6.3 million compared to the prior year driven largely by the increase in net sales, partially offset by the higher variable incentive compensation payment in the first quarter of 2025.
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 2026, the Company is providing the following guidance:
•Net sales growth in the range of 7% to 10% compared to 2025;
•Adjusted EBITDA in the range of $205 million to $215 million; and
•Positive free cash flow with capital expenditures of ~$150 million.
2
The Company does not provide guidance for net 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 income metrics without unreasonable effort due to the unavailability of reliable estimates for certain components of net 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, February 23, 2026, 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 (877) 407-0792 and international listeners may dial (201) 689-8263; the passcode is 13757975.
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 press release constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on our current expectations and assumptions. These include statements regarding the ability of our new technology to enhance both product quality and profitability, the ability of our 2025 efforts to deliver outsized growth and improve profitability, our ability to fund our long-term capacity plans, be positive free cash flow and our fiscal year 2026 guidance including net sales growth, Adjusted EBITDA and capital expenditures. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements including, but not limited to, the implementation of our new technologies in the time frame, at the rate, at the cost, or with anticipated efficiencies and impact on product quality we expect, economic uncertainty, changes in rates of pet acquisition, the launch of new competitive products, impact of tariffs and ingredient pricing, effectiveness of media campaigns, success rate of new chillers, and most prominently, the risks discussed under the heading "Risk Factors" in the Company's latest annual report on Form 10-K and in 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.
3
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)
•Free Cash Flow
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 charges.
EBITDA and Adjusted EBITDA: EBITDA represents net income plus depreciation and amortization expense, interest expense net of interest income and income tax (benefit) 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 charges.
Free Cash Flow: Freshpet defines Free Cash Flow as net cash flows provided by operating activities less capital expenditures.
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.
Investor Contact:
Rachel Ulsh
Rulsh@freshpet.com
Media Contact:
Press@freshpet.com
4
FRESHPET, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
| December 31, 2025 | December 31, 2024 | ||||||||||
| ASSETS | |||||||||||
| CURRENT ASSETS: | |||||||||||
| Cash and cash equivalents | $ | 277,975 | $ | 268,633 | |||||||
| Accounts receivable, net of allowance for doubtful accounts | 63,762 | 68,419 | |||||||||
| Inventories, net | 76,766 | 80,794 | |||||||||
| Prepaid expenses | 9,807 | 16,026 | |||||||||
| Other current assets | 7,404 | 3,126 | |||||||||
| Total Current Assets | 435,714 | 436,998 | |||||||||
| Property, plant and equipment, net | 1,138,671 | 1,065,869 | |||||||||
| Deposits on equipment | 118 | 1,047 | |||||||||
| Operating lease right of use assets | 66,424 | 3,366 | |||||||||
| Long term investment in equity securities | 33,446 | 33,446 | |||||||||
| Deferred tax assets, net | 68,893 | — | |||||||||
| Other assets | 34,509 | 34,152 | |||||||||
| Total Assets | $ | 1,777,775 | $ | 1,574,878 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| CURRENT LIABILITIES: | |||||||||||
| Accounts payable | $ | 42,429 | $ | 39,164 | |||||||
| Accrued expenses | 31,610 | 56,263 | |||||||||
| Current operating lease liabilities | 2,241 | 1,322 | |||||||||
| Current finance lease liabilities | 2,315 | 2,120 | |||||||||
| Total Current Liabilities | $ | 78,595 | $ | 98,869 | |||||||
| Convertible senior notes | 397,330 | 395,163 | |||||||||
| Long term operating lease liabilities | 65,023 | 2,213 | |||||||||
| Long term finance lease liabilities | 28,075 | 23,273 | |||||||||
| Deferred tax liabilities, net | 93 | — | |||||||||
| Total Liabilities | $ | 569,116 | $ | 519,518 | |||||||
| Commitments and contingencies | — | — | |||||||||
| STOCKHOLDERS' EQUITY: | |||||||||||
| Common stock — voting, $0.001 par value, 200,000 shares authorized, 48,985 issued and 48,970 outstanding on December 31, 2025, and 48,716 issued and 48,702 outstanding on December 31, 2024 | 49 | 49 | |||||||||
| Additional paid-in capital | 1,351,201 | 1,338,160 | |||||||||
| Accumulated deficit | (142,669) | (281,806) | |||||||||
| Accumulated other comprehensive income (loss) | 334 | (787) | |||||||||
| Treasury stock, at cost — 14 shares on December 31, 2025 and on December 31, 2024 | (256) | (256) | |||||||||
| Total Stockholders' Equity | 1,208,659 | 1,055,360 | |||||||||
| Total Liabilities and Stockholders' Equity | $ | 1,777,775 | $ | 1,574,878 | |||||||
5
FRESHPET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(in thousands, except per share data)
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| NET SALES | $ | 285,229 | $ | 262,708 | $ | 1,102,015 | $ | 975,177 | |||||||||||||||
| COST OF GOODS SOLD | 161,773 | 151,108 | 652,389 | 579,221 | |||||||||||||||||||
| GROSS PROFIT | 123,456 | 111,600 | 449,626 | 395,956 | |||||||||||||||||||
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 78,993 | 92,223 | 373,954 | 357,957 | |||||||||||||||||||
| INCOME FROM OPERATIONS | 44,463 | 19,377 | 75,672 | 37,999 | |||||||||||||||||||
| OTHER (EXPENSES) INCOME: | |||||||||||||||||||||||
| Interest and Other Income, net | 2,273 | 2,710 | 9,221 | 11,868 | |||||||||||||||||||
| Interest Expense | (3,359) | (3,528) | (14,120) | (12,262) | |||||||||||||||||||
| Gain on Equity Investment | — | — | — | 9,918 | |||||||||||||||||||
| (1,086) | (818) | (4,899) | 9,524 | ||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 43,377 | 18,559 | 70,773 | 47,523 | |||||||||||||||||||
| INCOME TAX EXPENSE (BENEFIT) | 9,562 | 436 | (68,364) | 598 | |||||||||||||||||||
| INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 33,815 | $ | 18,123 | $ | 139,137 | $ | 46,925 | |||||||||||||||
| OTHER COMPREHENSIVE INCOME (LOSS): | |||||||||||||||||||||||
| Change in foreign currency translation | $ | 756 | $ | (603) | $ | 1,121 | $ | (196) | |||||||||||||||
| TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | 756 | (603) | 1,121 | (196) | |||||||||||||||||||
| TOTAL COMPREHENSIVE INCOME | $ | 34,571 | $ | 17,520 | $ | 140,258 | $ | 46,729 | |||||||||||||||
| NET INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS | |||||||||||||||||||||||
| -BASIC | $ | 0.69 | $ | 0.37 | $ | 2.85 | $ | 0.97 | |||||||||||||||
| -DILUTED | $ | 0.64 | $ | 0.36 | $ | 2.64 | $ | 0.93 | |||||||||||||||
| WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING | |||||||||||||||||||||||
| -BASIC | 48,903 | 48,642 | 48,800 | 48,487 | |||||||||||||||||||
| -DILUTED | 55,875 | 50,407 | 56,037 | 50,255 | |||||||||||||||||||
6
FRESHPET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
| Net income (loss) | $ | 139,137 | $ | 46,925 | $ | (33,614) | |||||||||||
| Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | |||||||||||||||||
| Provision for loss (gains) on accounts receivable | 12,130 | 467 | (2) | ||||||||||||||
| Loss on disposal of property, plant and equipment | 2,212 | 1,284 | 4,321 | ||||||||||||||
| Share-based compensation | 13,883 | 51,807 | 24,935 | ||||||||||||||
| Depreciation and amortization | 89,721 | 73,615 | 58,517 | ||||||||||||||
| Write-off and amortization of deferred financing costs | 2,167 | 2,089 | 4,060 | ||||||||||||||
| Change in operating lease right of use asset | 2,347 | 1,350 | 1,549 | ||||||||||||||
| Deferred income taxes | (68,800) | — | — | ||||||||||||||
| Inventory obsolescence | — | 347 | — | ||||||||||||||
| Gain on equity investment | — | (9,918) | — | ||||||||||||||
| Loss on equity method investment | — | — | 1,890 | ||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||
| Accounts receivable | (6,879) | (12,228) | 820 | ||||||||||||||
| Inventories | 3,822 | (15,484) | (1,207) | ||||||||||||||
| Prepaid expenses and other current assets | (1,312) | 269 | (2,249) | ||||||||||||||
| Other assets | (4,105) | (5,063) | (4,053) | ||||||||||||||
| Accounts payable | 1,311 | 12,484 | 3,543 | ||||||||||||||
| Accrued expenses | (23,396) | 7,811 | 19,237 | ||||||||||||||
| Operating lease liability | (1,677) | (1,467) | (1,807) | ||||||||||||||
| Net cash flows provided by operating activities | 160,561 | 154,288 | 75,940 | ||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
| Acquisitions of property, plant and equipment, software and deposits on equipment | (148,184) | (187,092) | (239,093) | ||||||||||||||
| Purchase of short-term investments | — | — | (113,441) | ||||||||||||||
| Proceeds from maturities of short-term investments | — | — | 113,441 | ||||||||||||||
| Net cash flows used in investing activities | (148,184) | (187,092) | (239,093) | ||||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
| Proceeds from exercise of options to purchase common stock | 2,106 | 9,138 | 4,517 | ||||||||||||||
| Tax withholdings related to net shares settlements of restricted stock units | (3,021) | (2,595) | (1,400) | ||||||||||||||
| Principal payments under finance lease obligations | (2,120) | (1,977) | (1,109) | ||||||||||||||
| Purchase of capped call options | — | — | (66,211) | ||||||||||||||
| Proceeds from issuance of convertible senior notes | — | — | 393,518 | ||||||||||||||
| Debt issuance costs | — | — | (2,026) | ||||||||||||||
| Net cash flows (used in) provided by financing activities | (3,035) | 4,566 | 327,289 | ||||||||||||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 9,342 | (28,238) | 164,136 | ||||||||||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 268,633 | 296,871 | 132,735 | ||||||||||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 277,975 | $ | 268,633 | $ | 296,871 | |||||||||||
7
FRESHPET, INC. AND SUBSIDIARIES
RECONCILIATION BETWEEN GROSS PROFIT AND ADJUSTED GROSS PROFIT
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Gross profit | $ | 123,455 | $ | 111,600 | $ | 449,626 | $ | 395,956 | |||||||||||||||
| Depreciation expense | 15,402 | 13,358 | 61,426 | 49,056 | |||||||||||||||||||
| Non-cash share-based compensation | (1,539) | 1,310 | 3,078 | 7,761 | |||||||||||||||||||
| Loss on disposal of manufacturing equipment | 733 | 5 | 1,020 | 696 | |||||||||||||||||||
| Adjusted Gross Profit | $ | 138,051 | $ | 126,273 | $ | 515,150 | $ | 453,469 | |||||||||||||||
| Adjusted Gross Profit as a % of Net Sales | 48.4 | % | 48.1 | % | 46.7 | % | 46.5 | % | |||||||||||||||
8
FRESHPET, INC. AND SUBSIDIARIES
RECONCILIATION BETWEEN SG&A EXPENSES AND ADJUSTED SG&A EXPENSES
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| SG&A expenses | $ | 78,993 | $ | 92,223 | $ | 373,954 | $ | 357,957 | |||||||||||||||
| Depreciation and amortization expense | 6,807 | 5,780 | 25,446 | 21,747 | |||||||||||||||||||
| Non-cash share-based compensation (a) | (4,834) | 12,635 | 10,805 | 44,046 | |||||||||||||||||||
| Loss on disposal of equipment | 124 | 225 | 610 | 588 | |||||||||||||||||||
| Distributor transition costs (b) | — | — | 10,680 | — | |||||||||||||||||||
| Legal obligation (c) | — | — | 5,703 | — | |||||||||||||||||||
| International business charges (d) | — | — | 1,273 | — | |||||||||||||||||||
| Adjusted SG&A Expenses | $ | 76,896 | $ | 73,583 | $ | 319,437 | $ | 291,576 | |||||||||||||||
| Adjusted SG&A Expenses as a % of Net Sales | 27.0 | % | 28.0 | % | 29.0 | % | 29.9 | % | |||||||||||||||
(a)Includes true-ups to share-based compensation expense. 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 the net settlement charges for all claims related to the litigation with Phillips.
(d)Represents termination costs due to a business change in our international go-to-market strategy.
9
FRESHPET, INC. AND SUBSIDIARIES
RECONCILIATION BETWEEN NET INCOME AND ADJUSTED EBITDA
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Net income | $ | 33,815 | $ | 18,123 | $ | 139,137 | $ | 46,925 | |||||||||||||||
| Depreciation and amortization | 22,209 | 19,138 | 86,872 | 70,803 | |||||||||||||||||||
| Interest expense, net of interest income | 1,084 | 760 | 4,887 | 335 | |||||||||||||||||||
| Income tax expense (benefit) | 9,562 | 436 | (68,364) | 598 | |||||||||||||||||||
| EBITDA | 66,669 | 38,457 | 162,532 | 118,661 | |||||||||||||||||||
| Non-cash share-based compensation (a) | (6,373) | 13,946 | 13,883 | 51,807 | |||||||||||||||||||
| Loss on disposal of property, plant and equipment | 857 | 230 | 1,630 | 1,284 | |||||||||||||||||||
| Distributor transition costs (b) | — | — | 10,680 | — | |||||||||||||||||||
| Legal obligation (c) | — | — | 5,703 | — | |||||||||||||||||||
| International business charges (d) | — | — | 1,273 | — | |||||||||||||||||||
| Gain on equity investment | — | — | — | (9,918) | |||||||||||||||||||
| Adjusted EBITDA | $ | 61,153 | $ | 52,633 | $ | 195,701 | $ | 161,834 | |||||||||||||||
| Adjusted EBITDA as a % of Net Sales | 21.4 | % | 20.0 | % | 17.8 | % | 16.6 | % | |||||||||||||||
(a)Includes true-ups to share-based compensation expense. 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 the net settlement charges for all claims related to the litigation with Phillips.
(d)Represents termination costs due to a business change in our international go-to-market strategy.
10
FRESHPET, INC. AND SUBSIDIARIES
RECONCILIATION BETWEEN NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES AND FREE CASH FLOW
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Net cash flows provided by operating activities | $ | 160,561 | $ | 154,288 | $ | 75,940 | |||||||||||
less: capital expenditures2 | (148,184) | (187,092) | (239,093) | ||||||||||||||
| Free Cash Flow | $ | 12,377 | $ | (32,804) | $ | (163,153) | |||||||||||
2 Capital expenditures is equivalent to the amount included in "Acquisitions of property, plant and equipment, software and deposits on equipment" on our Consolidated Statements of Cash Flows for the reported period.
11
1 February 23, 2026 Q4 & FY 2025 Earnings
2 Forward Looking Statements & Non-GAAP Measures Forward-looking statements Certain statements in this presentation by Freshpet, Inc. (the “Company”) constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on our current expectations and assumptions. These include statements related to our ability to adapt to the changing environment, strategies to address the current consumer environment, drive operational efficiencies, the timing and expected impact of new technology, expectations on capital spending, growth in digital sales and growth in rural retailer, projected number of lines and capital efficiency plans, 2026 guidance, expectations to be free cash flow positive. Words such as "anticipate", "believe", "could", "estimate", "expect", "guidance", "intend", "may", "might", "outlook", "plan", "predict", "seek", "will", "would" and variations of such word and similar future or conditional expressions are intended to identify forward looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements including difficulties in launching our new technologies, changes in consumer sentiment, failure of our marketing or new distribution channels to meet expectations, the launch of new competitive products, increases or unavailability of ingredients, difficulties in managing operational efficiencies, and most prominently, the risks discussed under the heading “Risk Factors” in the Company's latest annual report on Form 10-K and 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 presentation. 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 measures Freshpet uses certain non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted EBITDA as a % of net sales (Adjusted EBITDA Margin), Adjusted Gross Profit, Adjusted Gross Profit as a % of net sales (Adjusted Gross Margin), Adjusted SG&A and Adjusted SG&A as a % of net sales, and Free Cash Flow. These non- GAAP financial measures should be considered as supplements to GAAP reported measures, should not be considered replacements for, or superior to, GAAP measures and may not be comparable to similarly named measures used by other companies. Freshpet defines EBITDA as net income plus depreciation and amortization expense, interest expense net of interest income and income tax (benefit) 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 charges. 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 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 charges, and Free Cash Flow as net cash flows provided by operating activities less capital expenditures. 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. Non-GAAP financial measures are shown as supplemental disclosures in this presentation 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 GAAP measures, provide a more complete understanding of the Company’s business than could be obtained absent this disclosure. Adjusted EBITDA is also an important component of internal budgeting and setting management compensation. The non-GAAP measures are not and should not be considered an alternative to the most comparable GAAP measures or any other figure calculated in accordance with 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 GAAP and should not be viewed as an alternative to GAAP measures of performance. Certain of these measures represent the Company's guidance for fiscal year 2026. The Company is unable to reconcile these forward-looking non-GAAP financial measures to the most directly comparable GAAP measures without unreasonable efforts because the Company is currently unable to predict with a reasonable degree of certainty the type and impact of certain items, including the timing of and amount of costs of goods sold and selling, general and administrative expenses, that would be expected to impact GAAP measures for these periods but would not impact the non-GAAP measures. The unavailable information could significantly impact our financial results. These items are not within the Company's control and may vary greatly between periods. Based on the foregoing, the Company believes that providing estimates of the amounts that would be required to reconcile these forecasted non-GAAP measures to forecasted GAAP measures would imply a degree of precision that would be confusing or misleading to investors for the reasons identified above. 4Q & FY 2025 Earnings Presentation
3 Freshpet strengthens the bond between people and our pets so that we both live longer, healthier and happier lives while being kind to the planet. 4Q & FY 2025 Earnings Presentation
4 Highlights
5 Fiscal year 2025 taught us some very important lessons and challenged the resilience of our business and our organization. In the end, our team demonstrated tremendous agility – delivering growth well in excess of the dog food category, surpassing $1 billion in net sales for the first time, expanding margins and achieving positive free cash flow.
6Source: Internal Data, Numerator for 12 months ended 12/31/25, Nielsen for 52W ended 12/27/25 1 Ecommerce includes Click & Collect, Last Mile Delivery, Pure Play, and DTC Q4 & FY 2025: Solid growth and improvement across key metrics RetailFinancial FY 2025Comparisons to prior year period unless otherwise notedFY 2025Q4 2025 +10%Total Household Penetration$1,102.0M$285.2MNet Sales +4%Total Buy Rate+13.0%+8.6%Net Sales Growth YoY +11%MVP Household Penetration46.7%48.4%Adjusted Gross Margin* +12%Cubic Feet$139.1M$33.8MNet Income +7%Store Count$195.7M$61.2MAdjusted EBITDA +10%Total Distribution Points17.8%21.4%Adjusted EBITDA Margin* 14%Ecommerce1 Share of Sales5.8%6.2%Logistics Costs* 29.0%28.7%Input Costs* 2.1%2.1%Quality Costs* $160.6M$55.1MOperating Cash Flow *As a percent of net sales 4Q & FY 2025 Earnings Presentation
7 Adapting our model to the current environment Targeted marketing New advertising campaign Innovation unlocked by new bag technology Super serve MVPs Millennial/Gen Z expansion Fridge Islands Omnichannel Expand HH Penetration and Buy Rate Increase Velocity Advertising & Innovation Expand Visibility & Availability Drive Efficiencies Build Organization Capability to Increase Effectiveness & Leverage Scale Expand Capacity 4Q & FY 2025 Earnings Presentation
8 Marketing to our full total addressable market (TAM) Engaging pet parents with new emotionally relevant and healthy messaging creative Leveraging trusted voices to build relevance & credibility Utilizing digital and retail media to super serve our MVPs from discovery, purchase and subscription TV DTCInfluencer 4Q & FY 2025 Earnings Presentation
9 Strong value proposition Club channel sales ramping, new innovation, and full year acceleration Sharpened entry level price point on 1 lb chicken roll Affordable innovation with multipacks/bundles now available in select retailers and Complete Nutrition line Club Affordable innovation 4Q & FY 2025 Earnings Presentation
10 Improved accessibility and visibility for omnichannel consumer Fridge island expansion Rural lifestyle retailer Testing new fridge concepts Fresh leading the category • Fridge island units in mass retailer expanded to 28 stores • Testing new concept open air end-cap and bunkers Test in rural lifestyle retailer expanding to 250 in 1H26 Expect outsized growth in digital sales including expansion in DTC 4Q & FY 2025 Earnings Presentation
11 Building a stronger product proposition leveraging breakthrough technology Unlocks product appeal, freshness and innovation capabilities Aim to deliver lower cost through increased yields and throughput, and increasing capacity Designed to increase bagged product margins and decrease margin gap between bags and roll products Our New TechnologyToday Texture Shape AromaSimplified ingredient decks Quality Consistency, days open Color 4Q & FY 2025 Earnings Presentation
12 Driving operational and capital efficiency Disciplined capital spending • Expect to spend ~$150m in capex in 2026, with the potential for incremental investment to accelerate the rollout of new technology or if we have a distribution breakthrough with island fridges • Utilizing existing staffing to support volume growth this year with improved OEE 4Q & FY 2025 Earnings Presentation
13 Significant runway for growth in a large category Source: NIQ Total US Pet Food $ - OmniChannel by Category 52 Weeks Ended 12/27/25 ~$56B U.S. pet food category $38B Dog food category 4.0% Freshpet market share of dog food
14 Generational transition to younger pet parents continues to increase Freshpet’s Total Addressable Market (TAM) 4Q & FY 2025 Earnings Presentation 27 33 36 2023 2024 2025 Freshpet Total Addressable Market (households in millions) Source: Internal Proprietary Model sourced from Numerator
15 8.8 10.2 11.9 13.9 15.2 2021 2022 2023 2024 2025 Continued growth in consumer franchise; added ~1.3m households YoY Source: Numerator Panel data for the 12-month periods ending 12/31/21, 12/31/22, 12/31/23, 12/31/24, 12/31/25 Freshpet Household Penetration Growth (in millions) (52 weeks) 17% 16% 17% 10% 4Q & FY 2025 Earnings Presentation
16 Freshpet Users who are MVP’s* (Ultra/Super Heavy Buyers) (in millions) Source: Numerator Panel data for the 12-month periods ending 12/31/21, 12/31/22, 12/31/23, 12/31/24, 12/31/25 *Most Valuable Pet Parents Freshpet Users who are MVP’s (Ultra/Super Heavy Buyers) (in millions) 1.0 1.3 1.7 2.2 2.4 $438 $448 $499 $488 $506 $425 $445 $465 $485 $505 $525 $545 -0.1 0.4 0.9 1.4 1.9 2.4 2.9 2021 2022 2023 2024 2025 MVP Household Penetration MVP Buy Rate 71% of Freshpet sales % of total Freshpet households that are MVP’s 11% 13% 14% 16% 16% 4Q & FY 2025 Earnings Presentation
17 MVP growth is helping to increase buy rate Freshpet Buy Rate (52 weeks) $78 $88 $103 $110 $115 2021 2022 2023 2024 2025 +4% +5% +21% +8% Source: Numerator Panel data for the 12-month periods ending 12/31/21, 12/31/22, 12/31/23, 12/31/24, 12/31/25 13% 17% 6% 4% 4Q & FY 2025 Earnings Presentation
18 Expanding depth and breadth: 24% of all stores have multiple fridges Second/Third Fridges 24% One Fridge 76% 10,825 13,386 15,023 16,562 17,990 19,499 21,570 22,716 23,631 25,281 26,777 28,141 30,235 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 +2,094 Freshpet Store Count Number of Fridges per Store* Source: Internal data for the period ending 12/31/25; *U.S. and Canada Fridges 2025 was the best year for new store count growth in the last decade 4Q & FY 2025 Earnings Presentation
19 Capacity Update Source: Internal Data Ennis continues to be the most profitable Freshpet Kitchen and accounts for almost 40% of sales volume Bag line in Bethlehem with new technology successfully commenced production in January 2026 Plan to retrofit first bag line in Spring 2026 with “lite” version We have $1.5-$1.6 billion of installed capacity today that is not fully staffed # Lines Projected# Lines TodayFacility 77Bethlehem Kitchen 74Kitchen South 10+5Ennis Kitchen 24+16Total 4Q & FY 2025 Earnings Presentation
20 Capital Efficiency Framework More out of existing lines More out of existing sites Develop & implement new technologies
21 Q4 2025 Results
22 Q4 net sales primarily driven by volume $262.7 $285.2 Q4 2024 Q4 2025 8.6% Source: Internal Data 10% -1% 9% Volume Price/Mix Net Sales Growth Q4 2025 Net Sales ($m) Q4 2025 Net Sales Bridge
23 Consumption growth across all channels Source: NIQ consumption data, latest 13 weeks thru 12/27/25 and internal sales data Q4 2025 Consumption Growth ($) Consumption Growth Trends (volume in pounds) 9.4% 8.5% 9.0% 5.8% 1.0% Total US Pet Retail Plus + Costco Total US Pet Retail Plus XAOC Food Pet Specialty 21% 15% 12% 9% 9% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 4Q & FY 2025 Earnings Presentation
24 Q4 2025 delivered strong Adjusted EBITDA improvement despite less volume growth Q4 2025 Adj. Gross Margin % of net sales Q4 2025 Adj. EBITDA ($m) % of net sales 48.1% 48.4% Q4 2024 Q4 2025 $52.6 $61.2 Q4 2024 Q4 2025 20.0% 21.4% Net Income$18.1m $33.8mGross Margin (GAAP) 43.3%42.5% Source: Internal Data 4Q & FY 2025 Earnings Presentation
25 FY 2025 Results
26 FY 2025 net sales primarily driven by volume $975.2 $1,102.0 FY 2024 FY 2025 13.0% Source: Internal Data FY 2025 Net Sales ($m) FY 2025 Net Sales Bridge 12% 1% 13% Volume Price/Mix Net Sales Growth 4Q & FY 2025 Earnings Presentation
27 FY 2025 delivered strong Adjusted EBITDA improvement FY 2025 Adj. Gross Margin % of net sales FY 2025 Adj. EBITDA ($m) % of net sales 46.5% 46.7% FY 2024 FY 2025 $161.8 $195.7 FY 2024 FY 2025 16.6% 17.8% Net Income$46.9m $139.1mGross Margin (GAAP) 40.8%40.6% Source: Internal Data 4Q & FY 2025 Earnings Presentation
28 29.7% 6.0% 2.6% 29.0% 5.8% 2.1% Input Costs Logistics Quality 140 basis point improvement across key focus areas in FY 2025 Key Margin Improvement Targets & Progress FY 2024 FY 2025 Source: Internal Data -70 bps YoY -20 bps YoY -50 bps YoY 4Q & FY 2025 Earnings Presentation
29 Guidance
30 FY 2026 Guidance Additional considerations: • Net Sales: Lapping large club customer expansion in Q3 • Adjusted Gross Margin: Expect ~50-100 bps improvement year-over-year at midpoint of sales range • Advertising Investment: Expect media as a percent of sales to be in-line with 2025 • Capital Expenditures: Expect to be free cash flow positive; potential to increase capex if we accelerate new technology and fridge islands FY 2026 7% - 10%Net Sales Growth YoY $205 - $215MAdjusted EBITDA ~$150MCapital Expenditures 4Q & FY 2025 Earnings Presentation
31 2027 Targets Expand HH Penetration & Buy Rate Increase Velocity Advertising & Innovation Expand Visibility & Availability Drive Efficiencies Build Organization Capability to Increase Effectiveness & Leverage Scale Expand Capacity >48% Adjusted Gross Margin Target 20-22% Adjusted EBITDA Margin Target Net sales well in excess of category growth rate >Category 4Q & FY 2025 Earnings Presentation Excludes impact from new technology
32 Capital Spending, Cash Flow & Liquidity
33 Achieved positive free cash flow* in 2025 Source: Internal Data Operating Cash Flow ($m) $154.3 $160.6 2024 2025 Capital Spending: • FY 2025 spend of $148.2 million • Estimated 2026 spending of ~$150 million unless we decide to accelerate new technology investments or we have sizable retail expansion with new fridge islands Cash flow: • Generated $160.6 million of operating cash flow in 2025, a YoY increase of $6.3 million driven by higher net sales, partially offset by one-time items and increase in variable incentive comp payments in the first quarter of 2025 • Became free cash flow* positive in 2025, a year earlier than originally anticipated, with $12.4 million Liquidity: • $278.0 million of cash-on-hand as of 12/31/25 • Subsequent to year-end, we had $95.5 million of cash proceeds from the sale of an equity investment in Ollie 4Q & FY 2025 Earnings Presentation*Free Cash Flow is defined as net cash flows provided by operating activities less capital expenditures.
34 Appendix
35 Freshpet, Inc. and Subsidiaries Reconciliation between Gross Profit and Adjusted Gross Profit Source: Internal Data 4Q & FY 2025 Earnings Presentation Year Ended December 31, Three Months Ended December 31, 2024202520242025 (Dollars in thousands) $ 395,956$ 449,626$ 111,600$ 123,455Gross profit 49,05661,42613,35815,402Depreciation expense 7,7613,0781,310(1,539)Non-cash share-based compensation 6961,0205733Loss on disposal of manufacturing equipment $ 453,469$ 515,150$ 126,273$ 138,051Adjusted Gross Profit 46.5%46.7%48.1%48.4%Adjusted Gross Profit as a % of Net Sales
36 Freshpet, Inc. and Subsidiaries Reconciliation between Net Income and Adjusted EBITDA a. Includes true-ups to share-based compensation expense. 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 the net settlement charges for all claims related to the litigation with Phillips. d. Represents termination costs due to a business change in our international go-to-market strategy. Source: Internal Data 4Q & FY 2025 Earnings Presentation Year Ended December 31, Three Months Ended December 31, 2024202520242025 (Dollars in thousands) $ 46,925$ 139,137$ 18,123$ 33,815Net income 70,80386,87219,13822,209Depreciation and amortization 3354,8877601,084Interest expense, net of interest income 598(68,364)4369,562Income tax expense (benefit) 118,661162,53238,45766,669EBITDA 51,80713,88313,946(6,373)Non-cash share-based compensation (a) 1,2841,630230857Loss on disposal of property, plant and equipment —10,680——Distributor transition costs (b) —5,703——Legal obligation (c) —1,273——International business charges (d) (9,918)———Gain on equity investment $ 161,834$ 195,701$ 52,633$ 61,153Adjusted EBITDA 16.6%17.8%20.0%21.4%Adjusted EBITDA as a % of Net Sales
37 Freshpet, Inc. and Subsidiaries Reconciliation between Net Cash Flows Provided by Operating Activities and Free Cash Flow Year Ended December 31, 202320242025 (Dollars in thousands) $ 75,940$ 154,288$ 160,561Net cash flows provided by operating activities (239,093)(187,092)(148,184)less: capital expenditures1 $ (163,153)$ (32,804)$ 12,377Free Cash Flow [1] 1 Capital expenditures is equivalent to the amount included in "Acquisitions of property, plant and equipment, software and deposits on equipment" on our Consolidated Statements of Cash Flows for the reported period. Source: Internal Data 4Q & FY 2025 Earnings Presentation
38 Convertible Share Dilution Calculations at Maturity We have run share dilution calculations to compare outcomes for the 2028 convertible notes • Freshpet has structured the convertible with Flexible Settlement, so we have the option to settle the convertible in shares, cash, or a combination at its option • We have run convertible dilution calculations once using the most dilutive physical settlement method (i.e. Freshpet delivers all underlying shares upon conversion if the convertible is in-the-money) and again using net share settlement method (i.e. Freshpet delivers the $402.5 mm principal amount in cash and any remaining in-the-money amount in shares under Treasury Stock method) Note: Based on Freshpet’s $402.5 mm convertible offering, a $54.65 stock price at issue, a 27.5% conversion premium, and an up 120% capped call. 1. If the convertible is in-the-money, Freshpet can deliver full underlying shares at its option since it has chosen a Flexible Settlement Structure. 2. At stock prices below the conversion price, the convertible is redeemed for cash without any equity dilution. Net Share Settlement (mm shares)Physical Settlement (mm shares) (1,2) Convert + Capped CallConvertConvert + Capped CallConvertStock Price at Maturity 0.01.84.05.8$100.00 0.02.13.75.8$110.00 0.02.43.45.8$120.00 0.42.73.55.8$130.00 0.82.93.75.8$140.00 1.13.13.85.8$150.00 1.43.34.05.8$160.00 1.73.44.15.8$170.00 1.93.54.25.8$180.00 2.13.74.25.8$190.00 2.33.84.35.8$200.00 Source: Internal Data 4Q & FY 2025 Earnings Presentation
39 Thank you
FAQ
How did Freshpet (FRPT) perform financially in the fourth quarter of 2025?
Freshpet’s Q4 2025 net sales were $285.2 million, up 8.6% year over year. Gross margin improved to 43.3%, net income rose to $33.8 million from $18.1 million, and Adjusted EBITDA increased to $61.2 million, or 21.4% of net sales.
What were Freshpet’s full-year 2025 results for revenue, profit, and EBITDA?
For 2025, Freshpet generated $1.102 billion in net sales, a 13.0% increase over 2024. Net income reached $139.1 million, up from $46.9 million, while Adjusted EBITDA rose to $195.7 million, with margin improving to 17.8% of net sales.
Did Freshpet (FRPT) achieve positive free cash flow in 2025?
Yes. Freshpet produced $12.4 million of free cash flow in 2025, compared with negative free cash flow of $32.8 million in 2024. Operating cash flow was $160.6 million, and capital expenditures totaled $148.2 million, driving the positive free cash flow result.
What is Freshpet’s financial position regarding cash and debt at year-end 2025?
As of December 31, 2025, Freshpet held $278.0 million in cash and cash equivalents. Debt consisted primarily of convertible senior notes, with $397.3 million outstanding, net of unamortized issuance costs, giving the company meaningful liquidity alongside its leverage.
What guidance did Freshpet provide for 2026 net sales and Adjusted EBITDA?
For 2026, Freshpet expects net sales growth of 7% to 10% over 2025. The company projects Adjusted EBITDA between $205 million and $215 million, alongside positive free cash flow and approximately $150 million in planned capital expenditures for capacity and technology.
How did Freshpet’s margins trend in 2025 compared with 2024?
In 2025, Freshpet’s GAAP gross margin edged up to 40.8% from 40.6%, while Adjusted Gross Margin increased to 46.7% from 46.5%. Adjusted EBITDA margin improved to 17.8% from 16.6%, reflecting better cost control and operating leverage despite higher media spending.
What factors contributed to Freshpet’s large increase in 2025 net income?
Freshpet’s 2025 net income rose to $139.1 million, mainly due to higher sales, improved gross profit, and a $68.4 million income tax benefit from releasing a valuation allowance tied to sustained and expected profitability, partly offset by higher SG&A and non-recurring charges.
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Freshpet
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Feb 23, 2026
[10-K] Freshpet, Inc. Files Annual Report
Feb 17, 2026
[Form 4] Freshpet, Inc. Insider Trading Activity