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Freshpet (FRPT) is nicely higher after reporting its Q4 results this morning. The company comfortably beat EPS expectations, while revenue was roughly in line, increasing 8.6% yr/yr to $285.2 mln. For FY26, FRPT guided for 7-10% revenue growth, or roughly $1.18-1.21 bln, which was also in line with expectations.

• Growth was driven by 9.7% volume growth, partially offset by unfavorable price/mix of 1.1%, reflecting FRPT's sharper entry-point pricing and value-oriented offerings.
• Consumption trends remained solid across channels, with NIQ measured-dollar growth of 8.5% in Total U.S. Pet Retail Plus, 5.8% in U.S. Food, and 1.0% in Pet Specialty.
• Digital remains a key bright spot, increasing to 14.6% of Q4 sales. FRPT is seeing strong traction among Millennials and Gen Z, which it views as an important long-term growth driver.
• Adj. gross margin expanded 30 bps to 48.4%, driven by lower quality costs, which helped support a 16% yr/yr increase in adj. EBITDA to $61.2 mln despite higher media spending.
• Distribution initiatives remain a major focus, with FRPT delivering its best year of new store growth in over a decade, expanding the fridge island test from 16 to 28 stores, and confirming a rural lifestyle retailer rollout to 250 stores in 1H26.
• MVP households (71% of sales) and ultra buyers continue to grow, and management said it is not seeing trade-down or less frequent purchases from loyal users despite the tougher macro backdrop.
• FRPT is taking a prudent approach on FY26 guidance, given the challenging FY25, and is assuming no material change in the macroeconomic environment nor any significant fridge island expansion. It does, however, expect growth to remain in excess of the U.S. dog food category.

Briefing.com Analyst Insight

It has been a bumpy ride for FRPT following earnings, which feels consistent with a quarter that was solid operationally but paired with a more measured FY26 setup. Overall, this was another encouraging report. FRPT delivered a strong EPS beat and in-line revenue growth despite a still challenging macro backdrop, underscoring how well management has adapted its strategy through sharper value offerings, more targeted advertising, and a growing omnichannel presence, while also navigating increased competition with little apparent disruption. Additionally, despite FY25 growth slowing to 13% from 27% in FY24, FRPT still outpaced the category by more than 10 points. Its strategy also appears to be resonating with loyal users, which are exhibiting more resilient behavior. The initial hesitation likely reflects a cautious FY26 outlook for investors looking for a clearer reacceleration in growth, but the rebound in shares suggests management's constructive tone and continued execution helped support sentiment. That said, with shares continuing to climb, the bar is rising, and FRPT will need to keep executing to support further upside.