Overview

* Freshpet ( FRPT ) Q3 net sales rise 14% to $288.8 mln, beating analyst expectations

* Adjusted EBITDA for Q3 beats estimates, reflecting strong operational performance

* Company achieves positive free cash flow in Q3, expects full-year 2025 positivity

Outlook

* Freshpet ( FRPT ) revises 2025 net sales growth to ~13% from 13%-16% previously

* Adjusted EBITDA for 2025 expected between $190 mln and $195 mln

* Capital expenditures for 2025 reduced to ~$140 mln from ~$175 mln

Result Drivers

* VOLUME GAINS - Net sales increase driven by 12.9% volume gains and 1.1% favorable price/mix

* STRATEGY ADJUSTMENTS - Co adapted marketing, distribution, and innovation strategies to changing consumer behavior, per CEO Billy Cyr

* COST MANAGEMENT - Achieved positive free cash flow by lowering capital spending plans, expects full-year 2025 positivity

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $288.80 $285.80

mln mln (17

Analysts

)

Q3 Net $101.70

Income mln

Q3 Beat $54.60 $54.30

Adjusted mln mln (16

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the food processing peer group is "buy"

* Wall Street's median 12-month price target for Freshpet Inc ( FRPT ) is $70.00, about 29.7% above its October 31 closing price of $49.21

* The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 43 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)