Freshpet Inc
NASDAQ:FRPT
Freshpet Inc
Freshpet Inc. emerged as an innovator in the world of pet food by carving a unique niche in the refrigerated pet food market. Founded with the conviction that pets deserve the same fresh, wholesome food as humans, the company embarked on a mission to transform how pet owners nourish their furry companions. At its core, Freshpet capitalizes on the growing trend of pet humanization and health-consciousness by offering pet foods made from high-quality meats and vegetables. These products are devoid of preservatives, making refrigeration essential, hence their distinctive presence in dedicated refrigerators within pet food aisles. This approach not only sets them apart from traditional shelf-stable pet foods but also highlights their commitment to freshness and superior nutrition.
Freshpet’s business model is strategically designed to tap into both retail and consumer markets. The company distributes its fresh pet food through an expansive network of retail partners, including big-box stores, pet specialty stores, and grocery chains, ensuring widespread accessibility. To support its business operations, Freshpet invests significantly in marketing to educate consumers on the benefits of fresh pet food and the nutritional advantages it holds over conventional alternatives. Revenue generation thrives on repeat purchases driven by brand loyalty and consumer trust, cultivated through product efficacy and visible pet health improvements. By maintaining tight control over its supply chain and investing in advanced production facilities, Freshpet ensures it can meet consumer demand while upholding the quality and freshness promise that has become its hallmark.
Freshpet Inc. emerged as an innovator in the world of pet food by carving a unique niche in the refrigerated pet food market. Founded with the conviction that pets deserve the same fresh, wholesome food as humans, the company embarked on a mission to transform how pet owners nourish their furry companions. At its core, Freshpet capitalizes on the growing trend of pet humanization and health-consciousness by offering pet foods made from high-quality meats and vegetables. These products are devoid of preservatives, making refrigeration essential, hence their distinctive presence in dedicated refrigerators within pet food aisles. This approach not only sets them apart from traditional shelf-stable pet foods but also highlights their commitment to freshness and superior nutrition.
Freshpet’s business model is strategically designed to tap into both retail and consumer markets. The company distributes its fresh pet food through an expansive network of retail partners, including big-box stores, pet specialty stores, and grocery chains, ensuring widespread accessibility. To support its business operations, Freshpet invests significantly in marketing to educate consumers on the benefits of fresh pet food and the nutritional advantages it holds over conventional alternatives. Revenue generation thrives on repeat purchases driven by brand loyalty and consumer trust, cultivated through product efficacy and visible pet health improvements. By maintaining tight control over its supply chain and investing in advanced production facilities, Freshpet ensures it can meet consumer demand while upholding the quality and freshness promise that has become its hallmark.
Sales Growth: Net sales grew 13% in 2025 to $1.102 billion, beating the company’s $1 billion target, but growth slowed from 27% in the prior year.
Margin Expansion: Adjusted gross margin improved to 46.7% for the year and reached 48.4% in Q4, with adjusted EBITDA up 21% to $195.7 million.
Free Cash Flow: The company achieved positive free cash flow in 2025 and ended the year with $278 million in cash, rising to about $400 million after the Ollie sale.
2026 Outlook: Guidance for 2026 calls for 7% to 10% net sales growth and adjusted EBITDA of $205–215 million, with expected margin improvements and capital expenditures of about $150 million.
Omnichannel & E-commerce: Digital sales rose nearly 40% to 14% of the business, with continued focus on omnichannel expansion including DTC, club, and rural lifestyle retail.
Market Share Gains: Freshpet grew market share to 4% of the $38 billion US dog food segment and outpaced the pet category by over 10 percentage points.
Capacity & Technology: Significant investments in new manufacturing technology are expected to boost future efficiency, with potential further CapEx if fridge island and technology rollouts are accelerated.
