Freshpet, Inc. · NASDAQ:FRPT
Freshpet — Q2 2025 Earnings Presentation
31 slides from Freshpet's earnings presentation, Aug 4, 2025
Slide 1: Q2 2025 Earnings
Q2 2025 Earnings August 4, 2025 Q2 2025 Earnings Presentation 1
Slide 2: Forward Looking Statements & Non-GAAP Measures
Forward Looking Statements & Non-GAAP Measures FORWARD-LOOKING STATEMENTS NON-GAAP MEASURES analysis and comparative evaluation. They also provide additional metrics to evaluate the Company’s operations and, when considered Certain statements in this presentation by Freshpet, Inc. (the Freshpet uses
Slide 3: Freshpet mission statement
Freshpet strengthens the bond between people and our pets so that we both live longer, healthier and happier lives while being kind to the planet. Q2 2025 Earnings Presentation 3
Slide 4: Highlights
Highlights Q2 2025 Earnings Presentation 4
Slide 5: Management quote on outperforming the dog food category
“Against a more challenging consumer sentiment backdrop, we continue to significantly outperform the dog food category – delivering both category leading sales growth and strong improvements in operations.” Q2 2025 Earnings Presentation 5
Slide 6: Strong profitability improvement despite lower sales volume
Q2 2025: Strong profitability improvement despite lower sales volume FINANCIAL RETAIL Q2 2025 YoY Change All comparisons to prior year period Q2 2025 Net Sales $264.7M +12.5% Total Household Penetration +11% Adjusted Gross Margin* 46.9% +100 bps Total Buy Rate +6% Adjusted EBITDA $44.4M +$9.3M MVP H
Slide 7: Key fundamentals remain intact
Q2 2025: Key fundamentals remain intact Strength of the Freshpet Improved operational Improving capital growth model effectiveness efficiency • Net sales growth far exceeding • 170 basis point improvement • More out of existing lines, more category growth across quality, input, and logistics out of e
Slide 8: Significant operational achievements
Q2 2025: Significant operational achievements Ennis Kitchen has become Development of new Ability to reduce capital our most profitable facility production technologies spending by a combined total of at least $100 million in 2025-2026 • Achieved better profitability • Designed to increase bagged • Im
Slide 9: Addressing the current consumer environment
Addressing the current consumer environment Marketing Channels Value Products • New advertising campaign • Value-oriented channel expansion • Entry price point bag (Complete launching in August to (club & mass) Nutrition) and complement more social/digital multipacks/bundles in select • Expanded tes
Slide 10: Vast runway for growth in a large category
Vast runway for growth in a large category $54B U.S. pet food category1 95% $37B Dog food category1 3.6% Freshpet market share of fresh/frozen in Freshpet market share of dog food1 measured channels2 1. NIQ Total US Pet Food $ - OmniChannel by Category 52 Weeks Ended 6/28/25 2. NIQ Brick & Mortar Cu
Slide 11: Continued growth in consumer franchise; added ~1.4m households YoY
Continued growth in consumer franchise; added ~1.4m households YoY Freshpet Household Penetration Growth (in millions) (52 weeks) 14.4 13.0 +11% 11.0 +19% 10.0 8.0 +10% +24% 2021 2022 2023 2024 2025 Source: Numerator Panel data for the 52-week periods ending 7/4/21, 7/3/22, 7/2/23, 6/30/24, 6/29/25
Slide 12: Sales increasingly concentrated in heaviest users, MVPs
Freshpet sales are increasingly concentrated in our heaviest users– now called MVP’s* – and account for 70% of LTM net sales Freshpet Users 2.5 who are MVP’s (Ultra/Super Heavy Buyers) (in millions) 2.2 $535 MVP Household Penetration MVP Buy Rate 2.0 1.9 $515 $501 1.5 $492 $495 1.5 1.1 $490 70% $475
Slide 13: MVP growth is helping to increase buy rate
MVP growth is helping to increase buy rate Freshpet Buy Rate (52 weeks) $110 $103 $92 +6% +12% $76 $77 +21% +1% 2021 2022 2023 2024 2025 Source: Numerator Panel data for the 52-week periods ending 7/4/21, 7/3/22, 7/2/23, 6/30/24, 6/29/25 Q2 2025 Earnings Presentation 13
Slide 14: Expanding depth and breadth: 24% of stores have multiple fridges
Expanding depth and breadth: 24% of all stores have multiple fridges Freshpet Store Count Number of Fridges per Store* YTD +1,000 29,141 28,141 Second/Third 26,777 Fridges 25,281 24% 23,631 22,716 21,570 19,499 18,004 16,609 15,015 One Fridge 13,387 76% 10,826 2013 2014 2015 2016 2017 2018 2019 2020
Slide 15: Capacity Update
Capacity Update # Lines Facility # Lines Today Projected Bethlehem Kitchen 6 7 Kitchen South 4 7 Ennis Kitchen 5 10+ Total 15 24+ Ennis now the most profitable Freshpet Kitchen New production technology line for bagged product to be commissioned in 4Q 2025 in Bethlehem • Potential to retrofit existing
Slide 16: Capital Efficiency Framework
Capital Efficiency Framework MORE OUT OF MORE OUT OF DEVELOP & IMPLEMENT EXISTING LINES EXISTING SITES NEW TECHNOLOGIES Q2 2025 Earnings Presentation 16
Slide 17: Q2 2025 Results
Q2 2025 Results Q2 2025 Earnings Presentation 17
Slide 18: Q2 net sales primarily driven by volume
Q2 net sales primarily driven by volume Q2 2025 Net Sales ($m) Q2 2025 Net Sales Bridge $264.7 1.7% 12.5% 12.5% 10.8% $235.3 Q2 2024 Q2 2025 Volume Price/Mix Net Sales Growth Source: Internal Data Q2 2025 Earnings Presentation 18
Slide 19: Broad based consumption growth across channels
Broad based consumption growth across channels Q2 2025 Consumption Growth ($) Consumption Growth Trends (volume in pounds) 13% 13% 28% 12% 26% 21% 15% 6% 12% Total US Pet XAOC Food Pet Specialty Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Retail Plus UNMEASURED CHANNEL ADDED 1.5 PTS OF GROWTH Source: NI
Slide 20: Q2 2025 solid Adjusted Gross Margin and Adjusted EBITDA improvement
Q2 2025 delivered solid Adjusted Gross Margin and Adjusted EBITDA improvement despite less volume growth Q2 2025 Adj. Gross Margin Q2 2025 Adj. EBITDA ($m) % of net sales % of net sales 46.9% $44.4 45.9% 16.8% $35.1 14.9% Q2 2024 Q2 2025 Q2 2024 Q2 2025 39.9% 40.9% ($1.7m) $16.4m Gross Margin (GAAP)
Slide 21: 170 basis point improvement across key focus areas
170 basis point improvement across key focus areas in Q2 2025 Key Margin Improvement Targets & Progress Q2 2024 Q2 2025 29.8% 28.9% 5.8% 5.7% 2.7% 2.0% Input Costs Logistics Quality -90 bps YoY -10 bps YoY -70 bps YoY Source: Internal Data Q2 2025 Earnings Presentation 21
Slide 22: Guidance
Guidance Q2 2025 Earnings Presentation 22
Slide 23: FY 2025 Guidance
FY 2025 Guidance Previous Updated Net Sales Growth YoY 15 – 18% 13 – 16% Adjusted EBITDA $190M – $210M No change Capital Expenditures ~$225M ~$175M Additional considerations: • Net Sales: Expect sequential increase in net sales per quarter • Adjusted Gross Margin: Expect modest expansion • Advertisi
Slide 24: 2027 Targets
2027 Targets Advertising & Innovation 48% Adjusted Gross Drive Expand HH Margin Target Efficiencies Penetration Build Organization Capability to Increase Effectiveness & Increase Velocity 22% Leverage Scale Adjusted EBITDA Margin Target Expand Expand Visibility & Capacity Availability 24 2025 Earning
Slide 25: Capital Spending, Cash Flow & Liquidity
Capital Spending, Cash Flow & Liquidity 25 Q2 2025 EARNINGS PRESENTATION
Slide 26: Q2 2025 operating cash flow impacted by one-time items
Q2 2025 operating cash flow impacted by one-time items Capital Spending: • YTD Q2 2025 spend of $59.9 million Operating Cash Flow ($m) • Estimated 2025 spending of ~$175 million $47.8 • Deferring at least $100 million in capex from 2025-2026 and believe we can still meet demand we expect to generate
Slide 27: Appendix
Appendix Q2 2025 Earnings Presentation 27
Slide 28: Reconciliation between Gross Profit and Adjusted Gross Profit
Freshpet, Inc. and Subsidiaries Reconciliation between Gross Profit and Adjusted Gross Profit For the Three Months Ended For the Six Months Ended June 30, June 30, 2025 2024 2025 2024 (Dollars in thousands) Gross profit $ 108,190 $ 93,952 $ 211,978 $ 182,110 Depreciation expense 13,729 11,827 28,909
Slide 29: Reconciliation between Net Income (loss) and Adjusted EBITDA
Freshpet, Inc. and Subsidiaries Reconciliation between Net Income (loss) and Adjusted EBITDA For the Three Months Ended For the Six Months Ended June 30, June 30, 2025 2024 2025 2024 (Dollars in thousands) Net income (loss) $ 16,356 $ (1,694) $ 3,659 $ 16,908 Depreciation and amortization 19,896 17,
Slide 30: Convertible Share Dilution Calculations at Maturity
Convertible Share Dilution Calculations at Maturity We have run share dilution calculations to compare outcomes for the 2028 convertible notes Freshpet has structured the convertible with Flexible Settlement, so we have the option to settle the convertible in shares, cash, or a combination at it
Slide 31: Thank you
Thank you Q2 2025 Earnings Presentation 31