Freshpet Inc. (NASDAQ:FRPT) stock surged after reporting second-quarter 2025 earnings of 33 cents per share, beating estimates. Net sales increased by 12.5% to $264.7 million, with a 10.8% volume increase. Net income was $16.4 million, reversing a loss from the previous year. Gross profit rose to $108.2 million. Adjusted gross margin improved to 46.9%.

Adjusted EBITDA rose to $44.4 million, with SG&A expenses falling. Operating cash flow was $38.7 million, with $243.7 million in cash and $396.2 million in debt. Freshpet noted improvements in quality and profitability. A new production line and upgrades are expected to reduce capital needs.

Household penetration increased, with store count reaching 29,141 locations. CEO Billy Cyr highlighted outperformance in the dog food category. Freshpet revised its 2025 outlook, expecting 13-16% net sales growth and maintaining adjusted EBITDA guidance. Long-term goals remain unchanged.

FRPT shares are trading 8.15% higher at $71.22. Freshpet CEO remains optimistic about future growth despite adjusted sales targets. The company aims to continue delivering outsized growth and create significant shareholder value. Long-term goals include adjusted gross margin and EBITDA margin targets, with expected positive cash flow by 2026.

Read more at Yahoo Finance: Freshpet CEO Says ‘Outsized Growth’ Expected Despite Lowered Sales Target