Freshpet reins in sales growth bets but 2027 targets largely intact

Freshpet missed its income maturation extremity past twelvemonth and guided to a slower people successful 2026 but is mostly assured successful hitting its short-term targets.

The Nasdaq-listed pet-food shaper had already flagged a “headwinds” backdrop erstwhile it revised down income estimates and adjusted EBITDA guidance successful May. However, past year, Freshpet broke done the $1bn income obstruction for the archetypal clip and noted it bagged astir a $100m from a six-year-old class investment.

“We learned that aft much than a decennary of strong, reliable, and predictable growth, the pet-food class and the Freshpet maturation algorithm are not immune to swings successful user sentiment,” CEO Billy Cyr said yesterday (23 February) arsenic helium discussed the yearly results with analysts.

“Category maturation past twelvemonth slowed dramatically and our nett income maturation complaint dropped from 27% successful fiscal twelvemonth 2024 to 13% successful fiscal twelvemonth 2025.”

That 13% was beneath the 15-18% usher presented successful May – chopped from 21-24% - though income conscionable astir came successful connected people astatine $1.10bn, compared to the forecast $1.12bn to $1.15bn, which had been lowered from $1.18-1.21bn.

For fiscal 2026, New Jersey-based Freshpet expects 7-10% growth.

Adjusted EBITDA grew 21% successful 2025 to $195.7m, wrong the anticipated $190-$210m scope that was chopped successful May from “at least” $210m. The outlook for the caller twelvemonth was acceptable astatine $205-215m.

“We judge this is simply a prudent spot to commencement our guidance aft a challenging year,” recently installed CFO John O’Connor said.

“This guidance for the twelvemonth assumes that determination is nary worldly alteration successful the macroeconomic situation compared to wherever we exited 2025. It does not see immoderate important fridge land expansion.”

Fridge islands are a caller in-store conception for Freshpet, what CEO Cyr described arsenic “a large caller operator of maturation and profitability”.

They are investigating successful a “major retailer” and person been expanded from 16 to 28 stores.

Despite past year’s challenges, Freshpet remains assured it tin conscionable its 2027 income people which includes hitting an adjusted gross borderline extremity of 48%.

Despite a “slowdown successful measurement growth”, the borderline accrued 20 ground points to 46.7% past year, Cyr said.

However, the adjusted EBITDA borderline people of 22% successful 2027 has been tweaked to 20-22%. It edged up to 17.8% successful 2025 from 16.6% successful the anterior 12 months, erstwhile Freshpet reached the nett net milestone.

Net income surged to $139.1m past twelvemonth from $46.9m.

“In respect to our fiscal twelvemonth 2027 targets, we stay assured successful our quality to present nett income maturation good successful excess of the US dog-food class maturation and frankincense turn marketplace share,” Cyr said yesterday.