Freshpet, Inc. reported a 17.6% year-over-year increase in net sales to €244.8 million for the first quarter of 2025, but posted a net loss of €11.8 million, compared to net income of €17.3 million in the same period last year.
The company cited higher selling, general, and administrative (SG&A) expenses, including increased media spending and non-recurring charges, as key factors behind the loss. SG&A expenses rose to €107.2 million from €74.1 million, including a distributor liquidation-related write-off and international restructuring costs.
Gross margin remained steady at 39.4%, while adjusted gross margin increased slightly to 45.7%. Adjusted EBITDA rose to €33 million, up from €28.5 million in the prior year period.
Freshpet ended the quarter with €226.6 million in cash and €368.0 million in debt. Operating cash flow was €4.5 million, a slight decrease from the prior year.
In response to slower-than-expected growth, the company lowered its full-year 2025 guidance. It now projects net sales of €1.04 billion to €1.07 billion, down from a previous range of €1.10 billion to €1.13 billion, and adjusted EBITDA between €176.7 million and €195.3 million, compared to at least €195.3 million previously.
Freshpet plans to continue investing in its long-term capacity plans and operational improvements while adapting to ongoing economic pressures.
