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Freshpet (FRPT) is moving nicely higher today after posting strong Q3 results this morning. The pet food maker reported EPS of $1.86, a massive jump from $0.24 a year ago, while revenue rose 14% yr/yr to $288.8 mln, beating expectations. The company slightly trimmed its FY25 revenue outlook to roughly 13% growth, from prior guidance of +13-16%, citing uncertainty around consumer sentiment. Still, investors appear to be looking past the modest adjustment, focusing instead on Freshpet's ability to adapt and succeed in a more challenging backdrop.

• Revenue was driven by 12.9% volume growth and 1.1% price and mix. Freshpet saw broad-based strength, with U.S. pet retail up 10%, U.S. food up 8%, and pet specialty up 2%.
• Digital orders jumped 45%, and the company noted it remains significantly underpenetrated in e-commerce, including direct-to-consumer, and is preparing for it to become a more meaningful growth driver heading into 2026.
• Management shifted its advertising to emphasize freshness benefits and emotional connection, with new campaigns resonating well with consumers and MVP households.
• The company also leaned into value, introducing new entry-level offerings like its Complete Nutrition Bag, multi-packs, and a sharper price point on its one-pound chicken roll to attract more price-sensitive shoppers.
• These efforts, along with new manufacturing technology, helped FRPT achieve positive free cash flow, now expected for the full year, a year ahead of schedule.

Briefing.com Analyst Insight

This was a strong and encouraging quarter for Freshpet, particularly given the cautious consumer backdrop and growing competition in the category. Management continues to adapt effectively, maintaining strong demand, disciplined spending, and progress in key strategic areas like digital and value offerings. New competitors are seen more as proof that the fresh pet food trend is here to stay rather than a real threat, and Freshpet is sticking to its focus on brand strength instead of heavy discounting. Even with the slight guidance cut, investors seem encouraged by how well the company is executing and by the resilience of the category. Freshpet looks well set up to keep gaining ground once conditions start to improve.