Freshpet (NASDAQ:FRPT) posted second-quarter results that exceeded earnings expectations, lifting shares over 6% today, despite missing revenue forecasts and trimming its sales guidance.
The company reported adjusted earnings per share of $0.33, well ahead of the $0.11 consensus. Revenue rose 12.5% year-over-year to $264.7 million, falling short of the $267.85 million forecast. Growth was driven by a 10.8% increase in volume and a 1.7% favorable price/mix.
Freshpet posted net income of $16.4 million versus a loss of $1.7 million a year ago. Gross margin improved to 40.9%, up from 39.9%, while adjusted EBITDA rose to $44.4 million from $35.1 million in the same period last year.
Freshpet lowered its 2025 net sales growth forecast to 13–16%, down from 15–18%, citing consumer economic pressures. However, it maintained its adjusted EBITDA target of $190–$210 million and reduced its capital spending outlook to $175 million from $225 million.
The company also withdrew its long-term $1.8 billion sales target for 2027 but reaffirmed its adjusted gross margin goal of 48% and EBITDA margin target of 22%.
