Freshpet Inc. ( FRPT ) reported third-quarter results on Monday that topped Wall Street expectations.

The company reported earnings of $1.86 per share, while analysts estimated 44 cents per share. The increase in earnings was due to the deferred income tax benefit resulting from the release of a $77.9 million valuation allowance in the current quarter.

Freshpet ( FRPT ) reported third-quarter adjusted EPS of 47 cents, topping the 43-cent estimate; adjusted EPS excludes deferred income tax benefits of $1.39 per share.

Also Read: This Freshpet ( FRPT ) Analyst Is No Longer Bullish; Here Are Top 5 Downgrades For Thursday

Net sales rose to $288.85 million, an increase of 14.0%, topping consensus estimates of $284.2 million. The rise in net sales was primarily driven by a 12.9% increase in volume, as well as a 1.1% benefit from favorable pricing and product mix.

The company reported an adjusted gross margin of 46.0%, slightly lower than the 46.5% reported in the same period last year. Meanwhile, adjusted EBITDA margin was 18.9%, up from 17.2% in the prior-year period.

As of September 30, 2025, the company held $274.6 million in cash and cash equivalents and had $396.8 million in debt outstanding, net of $5.7 million in unamortized debt issuance costs.

Outlook

For the full-year 2025, the company updated its outlook to reflect net sales growth of approximately 13%, compared to the previously projected range of 13% to 16% over 2024.

The company trimmed its full-year 2025 sales outlook to about $1.102 billion, down from its prior range of $1.102 billion–$1.131 billion, compared with analyst estimates of $1.108 billion.

The company now expects adjusted EBITDA in the range of $190 million to $195 million, versus its prior forecast of $190 million to $210 million, and plans capital expenditures of approximately $140 million, compared with about $175 million previously.

Management Commentary

Billy Cyr, Freshpet’s Chief Executive Officer, commented, “We are quickly adjusting to the new economic reality and remain one of the best performing pet food businesses—with strong financial and operational results and category-leading growth. We are also maintaining financial discipline by further lowering our capital spending plans, which helped us achieve positive free cash flow in the third quarter and we now expect to be free cash flow positive for fiscal year 2025 as well—a year earlier than our original goal. “

CEO Adopts Rule 10b5-1 Trading Plan

Separately, Freshpet ( FRPT ) announced that CEO Billy Cyr, along with his family members and related trusts, plans to adopt Rule 10b5-1 trading plans to exercise stock options granted in 2016 that expire in September 2026 and sell shares only to cover the exercise price, taxes, and estate planning needs.

The plans will include no other Freshpet ( FRPT ) equity and will be adopted in the next open trading window. Under SEC rules, no sales can occur until after the company reports fourth-quarter results in February 2026.

Cyr and related parties currently hold 1.32 million shares, or roughly 2.7% of outstanding stock, and expect to retain at least 350,000 shares after the planned transactions.

High Short Interest Signals Bearish Bets

The company has a short float of 6.74 million shares, representing 18.18% of its publicly traded float, indicating a relatively high level of short interest among investors betting against the stock.

Price Action: FRPT shares were trading higher by 6.52% to $52.42 premarket at last check Monday.

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