Pet food company Freshpet (NASDAQ:FRPT) met Wall Street’s revenue expectations in Q4 CY2025, with sales up 8.6% year on year to $285.2 million. Its GAAP profit of $0.64 per share was 64.7% above analysts’ consensus estimates.

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Revenue: $285.2 million vs analyst estimates of $285.8 million (8.6% year-on-year growth, in line)

EPS (GAAP): $0.64 vs analyst estimates of $0.39 (64.7% beat)

Adjusted EBITDA: $61.15 million vs analyst estimates of $57.89 million (21.4% margin, 5.6% beat)

EBITDA guidance for the upcoming financial year 2026 is $210 million at the midpoint, below analyst estimates of $226.3 million

Operating Margin: 15.6%, up from 7.4% in the same quarter last year

Free Cash Flow was $2.06 million, up from -$7.90 million in the same quarter last year

Organic Revenue rose 8.6% year on year (miss)

Sales Volumes rose 9.7% year on year (20.7% in the same quarter last year)

Market Capitalization: $3.64 billion

"Fiscal year 2025 taught us some very important lessons and challenged the resilience of our business and our organization. In the end, 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," commented Billy Cyr, Freshpet’s Chief Executive Officer.

Standing out from typical processed pet foods, Freshpet (NASDAQ:FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.

A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.

With $1.10 billion in revenue over the past 12 months, Freshpet is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. On the bright side, it can grow faster because it has a longer list of untapped store chains to sell into.

As you can see below, Freshpet’s sales grew at an excellent 22.8% compounded annual growth rate over the last three years as consumers bought more of its products.

This quarter, Freshpet grew its revenue by 8.6% year on year, and its $285.2 million of revenue was in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 9.1% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is noteworthy and implies the market sees success for its products.

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Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.

Freshpet’s average quarterly volume growth of 19.3% over the last two years has beaten the competition by a long shot. This is great because companies with significant volume growth are needles in a haystack in the stable consumer staples sector.

In Freshpet’s Q4 2025, sales volumes jumped 9.7% year on year. This result shows the business is staying on track, but the deceleration suggests growth is getting harder to come by.

It was good to see Freshpet beat analysts’ EPS expectations this quarter. We were also glad its EBITDA outperformed Wall Street’s estimates. On the other hand, its gross margin missed and its full-year EBITDA guidance fell short of Wall Street’s estimates. Zooming out, we think this was a mixed quarter. The market seemed to be hoping for more, and the stock traded down 2.8% to $72.46 immediately after reporting.

Should you buy the stock or not? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.