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▼ FY 2025 Summary Analysis
Annual report ending Dec 31, 2025Overview and Growth
Fiscal 2025 results for Freshpet, Inc. combined $1.10B of revenue with net income of $139.14M and an operating cash inflow of $160.56M. The $1.10B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 13.0% above fiscal 2024 revenue of $975.18M, marking a year-over-year increase. The company reported diluted EPS of $2.64, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $0.93 in fiscal 2024, the current result was 183.9% higher. The revenue-to-assets relationship was 0.62x, showing the sales generated relative to the resources carried on the balance sheet.Profitability
The first profit layer was $449.63M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross margin was 40.8%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operating income was $75.67M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Relative to revenue, operating income represented 6.9%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $139.14M for the fiscal year. Measured against reported revenue, net income produced a 12.6% margin after operating costs and the remaining recognized items. The earnings statement records $70.77M of pretax income, the profit base against which the reported tax provision can be assessed. Pretax income represented 6.4% of revenue, placing earnings before tax in the context of the company’s operating scale. An income-tax benefit of $68.36M improved the final result relative to pretax income or loss. The tax benefit equaled 96.6% of positive pretax income, lifting the after-tax result. The relationship between net income and period-end equity was 11.5%, indicating the profitability achieved on book capital. Return on period-end assets was 7.8%, connecting net income with the company’s total asset base.Liquidity and Capital Structure
The company held $1.78B of assets against $569.12M of liabilities and $1.21B of equity, revealing how the asset base was financed. The near-term balance sheet paired $435.71M of current assets with $78.59M of current liabilities at the reporting date. Current assets covered current liabilities by 5.54x, leaving a positive buffer for near-term obligations. Cash and equivalents totaled $277.98M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 353.7%, excluding receivables and other current assets. Relative to total assets, liabilities measured 32.0%, complementing the separate equity-based view of the company’s capital structure. Cash and equivalents equaled 15.6% of total assets, showing the liquid cash component within the company’s broader resource base. Total assets were 12.9% higher than fiscal 2024 assets of $1.57B, measuring the company’s own balance-sheet change.Cash Flow and Earnings Quality
The company reported $160.56M of operating cash flow, a cash inflow that shows the cash generated by operations. Against net income, operating cash flow measured 1.15x, showing the relationship between accrual earnings and operating cash. The cash-flow statement records $148.18M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 92.3% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $12.38M of positive free cash flow for the period. Free cash flow represented 1.1% of revenue, linking post-investment cash generation with the company’s operating scale. The free-cash-flow-to-assets relationship was 0.7%, comparing post-investment cash with the balance-sheet asset base.
Based on the annual report for the fiscal year ending Dec 31, 2025.
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