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What were the key takeaways from Freshpet’s earnings call?

- **Revenue Beats Expectations**: Q3 net sales +14% YoY ($288.8M), EBITDA +25% YoY ($54.6M). 
- **Strategic Tech Investment**: New production line to close bag/roll margin gap, 16 new fridge islands launched. 
- **Free Cash Flow Milestone**: Positive FCF in Q3, targeting full-year positive. 
- **E-commerce Growth**: 45% Q3 e-commerce growth, DTC targeting 14%+ share by 2026. 
- **Financial Discipline**: 2025 CapEx $140M (down $35M), media spend >20% of sales.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 net sales $288.8M (+14% YoY), driven by 12.9% volume growth and 1.1% price/mix. Adjusted EBITDA $54.6M (+25% YoY). 
- **Strategic Initiatives**: 
  - New production technology line expected to start Q4 2025, with potential to close margin gap between bagged and rolled products. 
  - Expansion of e-commerce (45% Q3 growth) and DTC channels targeting 70% MVPs. 
  - 16 new fridge islands launched in key retailers, with 125+ stores testing by end-2025. 
- **Free Cash Flow**: Achieved positive free cash flow in Q3, now targeting full-year positive FCF. 
- **Guidance Update**: 2025 net sales growth ~13%, adjusted EBITDA $190-195M (vs. prior $190-210M). 

**【CFO Financial Commentary】**
- **Financial Highlights**: 
  - Q3 GAAP net income $101.7M (vs. $11.9M prior), driven by $77.9M deferred tax benefit. 
  - Adjusted gross margin 46.0%, stable vs. prior year. 
  - SG&A 27.1% of sales (vs. 29.3% prior), media spend 11.2% of sales. 
- **Liquidity**: $274.6M cash on hand, no need for external capital. 
- **CapEx**: $140M 2025 (down from $175M prior), focused on new tech adoption and capacity. 

**【Q&A Key Highlights】**
- **Technology Impact**: Light-version bag line conversion expected Q2 2026, with potential to improve margins 100-200bps. 
- **Distribution Growth**: 12% +2025 fridge count expansion, 29,745 stores with 38,778 fridges. 
- **Competitive Response**: Maintaining media spend >20% of sales, avoiding trade promotions to preserve brand equity. 
- **Tax Outlook**: NOL utilization completed, expect cash taxes ~2028. 
- **E-commerce**: DTC business 70% incremental households, targeting 14%+ e-commerce share by 2026.

Freshpet, Inc. (FRPT) Q3 2025 Earnings Call Transcript

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