Freshpet, Inc. (FRPT) announced its financial results for the third quarter of 2025, revealing significant growth in revenue and net income. The company also provided an updated outlook for the full year, reflecting a cautious but optimistic approach. Key highlights from the quarter include a 14% increase in net sales to $288.8 million compared to the previous year, exceeding market expectations of $284.22 million, driven by increased volume and a favorable price/mix combination. Despite a slight decline in gross margin to 39.5% from 40.4%, Freshpet’s adjusted gross margin remained strong at 46.0%. This was partially offset by reduced leverage on plant expenses, which were mitigated by lower input costs. Net income surged to $101.7 million, a notable jump compared to $11.9 million in the previous year, mainly due to tax benefits from sustained profitability. EBITDA for the quarter also increased significantly to $54.6 million from $43.5 million in the prior year. This growth was driven by higher adjusted gross profit, although partially offset by increased adjusted SG&A expenses. The company attributes its success to adapting to changing consumer behaviors and economic conditions. Looking ahead, Freshpet has updated its full-year guidance, projecting net sales growth of approximately 13%, slightly lower than the previous range of 13% to 16%. This cautious approach reflects current economic conditions and a commitment to maintaining financial discipline, while aiming for positive free cash flow throughout 2025. Further investment in strategic areas will ensure long-term market share expansion. The company anticipates spending around $140 million on capital expenditures this year compared to the previous estimate of $175 million. Freshpet remains committed to capturing growing demand for fresh pet food, particularly through its efforts to increase household penetration and secure a larger share of new pet parents.