Freshpet Reports 12.5% Revenue Growth and Net Income Turnaround in Q2 2025

Freshpet, Inc. reported a significant increase in financial performance for the second quarter of 2025, with net sales reaching $264.7 million, a 12.5% increase from $235.3 million in the same period last year. For the first half of 2025, the company generated $527.9 million in net sales, up 15% from $459.1 million in the prior year. The growth was primarily driven by a 10.8% increase in sales volume and a favorable price/mix effect of 1.7%. Gross profit for the quarter was $108.2 million, representing 40.9% of net sales, compared to $94.0 million, or 39.9%, in the previous year.

In terms of profitability, Freshpet reported a net income of $16.4 million for the second quarter, a substantial turnaround from a net loss of $1.7 million in the same quarter of 2024. The company attributed this improvement to higher sales, enhanced gross profit margins, and reduced selling, general, and administrative (SG&A) expenses, which decreased to 34.1% of net sales from 40.7% in the prior year. For the first half of 2025, net income was $3.7 million, down from $16.9 million in the same period last year, largely due to increased SG&A expenses and the absence of a prior year gain on equity investment.

Operationally, Freshpet has expanded its retail presence, with approximately 29,141 Freshpet Fridges installed across North America and parts of Europe as of June 30, 2025. The company continues to focus on increasing sales velocity and penetration in major retail classes, including Grocery, Mass, International, Digital, Pet Specialty, and Club. The company’s workforce has also seen changes, with a total employee headcount that reflects its growth strategy and operational needs.

Looking ahead, Freshpet plans to continue its expansion efforts, particularly in its Freshpet Kitchens, which are critical to meeting growing demand. The company has reduced its capital expenditure forecast for 2025, reflecting both a moderation in demand and operational efficiencies. Freshpet expects to spend an additional $115.1 million in capital expenditures for the remainder of the fiscal year, primarily for the completion of its Freshpet Kitchens. The company remains optimistic about its growth trajectory, despite potential challenges from macroeconomic factors such as inflation and supply chain disruptions.