Freshpet (NASDAQ:FRPT) reported disappointing first-quarter results and trimmed its full-year sales guidance, overshadowing improvements in margins and adjusted EBITDA.
The company posted a loss of $0.26 per share for the quarter, a sharp miss compared to analyst expectations of a $0.15 profit. Revenue also fell short, coming in at $263.2 million versus the $265.01 million consensus.
Despite the bottom-line miss, Freshpet delivered a 16% year-over-year increase in adjusted EBITDA to $35.5 million, topping the expected $33.6 million. Gross margin also improved, reaching 45.7%, slightly ahead of forecasts and last year’s 45.3%.
However, the company reported an operating loss of $11.5 million, swinging from a profit of $8.46 million in the same quarter last year. Analysts had expected a return to profitability with an estimated $8 million in operating income.
Looking ahead, Freshpet lowered its 2025 revenue forecast to between $1.12 billion and $1.15 billion, implying 15% to 18% growth. This is a notable revision from its previous outlook of $1.18 billion to $1.21 billion, which had called for growth of up to 24%.
