Freshpet (NASDAQ:FRPT) reported record fourth-quarter and full-year 2025 results on Monday, crossing the billion-dollar revenue mark for the first time in the company's history.
The Bedminster-based fresh pet food pioneer delivered full-year net sales of $1,102 million, representing a 13% increase over 2024, while achieving a critical strategic goal by turning Free Cash Flow positive at $12.4 million—a year ahead of its original 2027 target.
The company’s shift from high-growth startup to profitable scale was underscored by its $195.7 million in adjusted EBITDA, driven by significant operational improvements at its Ennis, Texas, manufacturing hub.
Freshpet's "Freshpet 2.0" strategy is successfully converting heavy media investment into volume-based growth, with digital and e-commerce sales now making up 14% of total revenue after growing 45% year-over-year.
Looking ahead to 2026, Freshpet issued guidance of 7% to 10% sales growth and an adjusted EBITDA range of $205 million to $215 million.
Central to this outlook is the expansion of "Fridge Islands"—high-visibility retail displays that combine open-air and closed-door fridges designed to change the consumer experience from searching for a packaged good to "grocery shopping for your pet."
The company is currently testing these islands in mass retailers like Walmart and Target following successful pilot runs in late 2025.
With $278 million in cash on hand and a moderated capital expenditure plan, management indicated it has the existing infrastructure to support a run-rate of $1.5 billion in annual sales.