Freshpet reports $1B+ net sales for the first time in FY2025

As a U.S.-based producer of fresh pet food, Freshpet has surpassed $1.1 billion (€1B) in net sales for the fiscal year (FY) 2025, ending 31 December 2025. The result represents a 13% year-over-year (YoY) surge, driven by 12% volume growth and a 1% favorable price/mix. 

Freshpet also maintained profitability for the second consecutive year, with net income totaling $139.1 million (€128M), nearly tripling from $46.9 million (€43M) in FY2024.

The performance was supported by an income tax benefit of $68.4 million (€63M). “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,” says Billy Cyr, Chief Executive Officer of Freshpet.

Gross margin reached 40.8%, rising by 0.2 percentage points (pp) YoY due to lower input costs and reduced quality costs.

Setback

Despite the milestone, net sales growth is almost half of that recorded in 2024, when the company expanded revenue by 27% compared to 2023.

This led to a change in strategy. “This dramatic change in sentiment forced us to re-evaluate every aspect of our model and adapt to the new environment. We changed our messaging and media buying strategy. We increased our focus on creating value at the entry point,” explains Cyr.

Retail penetration

While total household penetration grew 10% YoY, store count rose 7% over the same period, driven by expansion across retail channels. For instance, the company began testing island fridges, which reached 28 stores in mass retailers during the year. Additionally, a successful pilot phase launched the brand’s products in rural lifestyle stores.

According to Cyr, 2025 was Freshpet’s “best year in over a decade” for new-store expansion, as increased competition in the fresh-food market did not hinder its fridge expansion. Currently, the company’s products are in 30,235 points of sale, 24% of which have multiple fridges in the US and Canada.

E-commerce still represented only 14% of total sales during the fiscal year, but the company expects it to grow in 2026, including with expansion in direct-to-consumer (DTC) channels.

Q4 results

Quarterly net sales increased 8.6% to $285.2 million (€262M), mainly driven by volume gains of 9.7%, but partially offset by unfavorable price/mix of 1.1%.

Net income nearly doubled to $33.8 million (€31M), from $18.1 million (€17M) over the same period last year, attributed to higher sales, increased gross profit and decreased expenses.

Gross profit was $123.5 million (€114M), meaning 43.3% of net sales, a 10.6% YoY increase.

Guidance

For FY2026, Freshpet expects net sales to grow between 7% and 10% YoY, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) are forecast to be in the range of $205 million (€189M) to $215 million (€198M).

“To meet or exceed the high end of our guidance, from a category perspective, we would likely need to see stronger dog food category growth and/or a resurgence in trade-up behaviors,” says John O’Connor, Chief Financial Officer at Freshpet.

According to Cyr, the new messaging and related media plans implemented during FY2025 are showing early signs of generating household penetration growth. “In 2026, we are rebalancing our media mix to be more diversified and digital-forward, helping to build out our omnichannel presence,” the CEO concludes.