Freshpet, Inc.
For the period ended Sep 30, 2025. Filed Nov 3, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 3, 2025
FRPT$64.39-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-04.
0001611647-25-000021
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-03.
0001611647-25-000030
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 141 previous paragraphs and 144 current paragraphs.
86 unchanged; 46 reworded; 12 added; 9 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
At December 31, 2024, the Company determined that a full valuation allowance against its $98.5 million of net deferred tax assets was appropriate. At September 30, 2025, we determined that it was appropriate to release $77.9 million of the valuation allowance, against the $85.7 million of net deferred tax assets identified as of September 30, 2025, based on the weight of available evidence, which now supports the conclusion that it is more likely than not that the majority of deferred tax assets will be realized. Based on sustained profitability, including generating three-year cumulative income before taxes, the significant deferred tax liabilities that are expected to reverse in future periods, and the future taxable income that is expected to fully utilize the Company's NOLs, the evidence supporting the release of a valuation allowance outweighs the evidence supporting a full valuation allowance. As a result, we recognized a deferred income tax benefit of $77.9 million for the three and nine months ended September 30, 2025.
Current report
Income Tax (Benefit) Expense
Current report
Income tax benefit increased $78.0 million to $78.0 million for the three months ended September 30, 2025 as compared to income tax expense of $0.1 million in the prior year period. The increase was primarily due to the $77.9 million release of the valuation allowance against the net deferred tax assets in the current period.
Current report
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Current report
Income from Operations
Current report
Income Tax (Benefit) Expense
Current report
Income tax benefit increased $78.1 million to $77.9 million for the nine months ended September 30, 2025 as compared to income tax expense of $0.2 million in the prior year period. The increase is primarily due to the $77.9 million release of the valuation allowance against the net deferred tax assets in the current period.
Current report
Net Income
Current report
Net cash provided by operating activities of $105.5 million for the nine months ended September 30, 2025 was primarily attributed to:
Current report
Net cash provided by operating activities of $103.9 million for the nine months ended September 30, 2024 was primarily attributed to:
Current report
Net cash used in investing activities of $95.1 million for the nine months ended September 30, 2025 was primarily attributed to:
Current report
Net cash used in investing activities of $128.8 million for the nine months ended September 30, 2024 was primarily attributed to:
Removed paragraphs (9)
Previous report
We had federal net operating loss (“NOL”) carry forwards of approximately $391.5 million as of December 31, 2024, of which, approximately $146.7 million, generated in 2017 and prior, will expire between 2028 and 2037. The NOLs generated from 2018 through 2023, of approximately $244.8 million, will have an indefinite carryforward period but, can generally only be used to offset 80% of taxable income in any particular year. We may be subject to certain limitations in our annual utilization of NOL carry forwards to off-set future taxable income pursuant to Section 382 of the Internal Revenue Code, which could result in NOLs expiring unused. At December 31, 2024, we had approximately $278.4 million of state NOLs, which expire between 2025 and 2046, and had $27.6 million of foreign NOLs in the United Kingdom which do not expire. At June 30, 2025 and December 31, 2024, the Company determined that a full valuation of its net deferred tax assets and liabilities was appropriate. Although we generated net income for the three and six months ended June 30, 2025, no federal income tax expense provision was recognized in the respective periods. The reversal of temporary differences in the current periods resulted in a tax loss, which consequently resulted in no current federal income tax expense. The change in the valuation allowance against deferred tax assets resulted in no deferred tax expense nor benefit in the current periods.
Previous report
In light of recent net income positions, the Company will continue to monitor the realizability of its net deferred tax assets in the future and determine the necessity of or changes to such valuation allowance based on future positive and negative evidence. Currently, we maintain a full valuation allowance against our deferred tax assets as the evidence supporting the maintenance of a full valuation allowance outweighs the evidence supporting any release.
Previous report
Income (Loss) from Operations
Previous report
Net Income (Loss)
Previous report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Previous report
Net cash provided by operating activities of $38.7 million for the six months ended June 30, 2025 was primarily attributed to:
Previous report
Net cash provided by operating activities of $47.8 million for the six months ended June 30, 2024 was primarily attributed to:
Previous report
Net cash used in investing activities of $59.9 million for the six months ended June 30, 2025 was primarily attributed to:
Previous report
Net cash used in investing activities of $94.8 million for the six months ended June 30, 2024 was primarily attributed to:
Reworded paragraphs (46)
Previous wording
Our net sales are derived from the sale of fresh pet food products to retailers, through direct sales and distributor arrangements. Our products are sold to consumers through a fast-growing network of company-owned branded refrigerators, known as Freshpet Fridges, located in our customers’ stores. We continue to roll out Freshpet Fridges at leading retailers across North America and parts of Europe and have installed Freshpet Fridges in approximately 29,141 retail stores as of June 30, 2025. Our products are sold under the Freshpet brand name with ingredients, packaging and labeling customized by class of retail. Sales are recorded net of discounts, returns and promotional allowances.
Current wording
Our net sales are derived from the sale of fresh pet food products to retailers, through direct sales and distributor arrangements. Our products are sold to consumers through a fast-growing network of company-owned branded refrigerators, known as Freshpet Fridges, located in our customers’ stores. We continue to roll out Freshpet Fridges at leading retailers across North America and parts of Europe and have installed Freshpet Fridges in approximately 29,745 retail stores as of September 30, 2025. Our products are sold under the Freshpet brand name with ingredients, packaging and labeling customized by class of retail. Sales are recorded net of discounts, returns and promotional allowances.
Previous wording
•Increasing penetration of Freshpet Fridge locations in major classes of retail, including Grocery, Mass, International, Digital, Pet Specialty, and Club. The impact of new Freshpet Fridge installations on our net sales varies by retail class and depends on numerous factors including store traffic, refrigerator size, placement within the store, and proximity to other stores that carry our products.
Current wording
•Increasing distribution and penetration of Freshpet products in major classes of retail, including Grocery, Mass, International, Digital, Pet Specialty, and Club. The impact of new Freshpet Fridge installations on our net sales varies by retail class and depends on numerous factors including store traffic, refrigerator size, placement within the store, and proximity to other stores that carry our products. Digital orders include any purchases made online, including our direct-to-consumer business, and may also be fulfilled by our Freshpet Fridge network in brick and mortar stores.
Previous wording
•Consumer trends including growing pet ownership, pet humanization and a focus on health and wellness.
Current wording
•Consumer trends including long-term growth in pet ownership, pet humanization and a focus on health and wellness.
Previous wording
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
Current wording
Condensed Consolidated Statements of Income and Comprehensive Income
Previous wording
Net sales increased $29.4 million, or 12.5%, to $264.7 million for the three months ended June 30, 2025 as compared to $235.3 million in the same period in the prior year. The $29.4 million increase in net sales was driven by growth in the Grocery, Mass, International, and Digital channel of $24.6 million, with the remaining growth in the Pet Specialty and Club channel. The net sales increase was primarily driven by volume gains of 10.8% and favorable price/mix of 1.7%.
Current wording
Net sales increased $35.5 million, or 14.0%, to $288.8 million for the three months ended September 30, 2025 as compared to $253.4 million in the same period in the prior year. The $35.5 million increase in net sales was driven by growth in the Grocery, Mass, International, and Digital channel of $23.6 million, with the remaining growth in the Pet Specialty and Club channel. The net sales increase was primarily driven by volume gains of 12.9% and favorable price/mix of 1.1%.
Previous wording
Gross profit was $108.2 million, or 40.9% as a percentage of net sales, for the three months ended June 30, 2025, compared to $94.0 million, or 39.9% as a percentage of net sales, in the prior year period. The 1.0% increase in gross profit as a percentage of net sales was primarily due to lower input costs and reduced quality costs, partially offset by reduced leverage on plant expenses.
Current wording
Gross profit was $114.2 million, or 39.5% as a percentage of net sales, for the three months ended September 30, 2025, compared to $102.2 million, or 40.4% as a percentage of net sales, in the prior year period. The 0.9% decrease in gross profit as a percentage of net sales was primarily due to reduced leverage on plant expenses partially offset by lower input costs.
Previous wording
Adjusted Gross Profit for the three months ended June 30, 2025 was $124.0 million, or 46.9% as a percentage of net sales, compared to $108.0 million, or 45.9% as a percentage of net sales, in the prior year period. -See “—Non-GAAP Financial Measures” below.
Current wording
Adjusted Gross Profit for the three months ended September 30, 2025 was $132.8 million, or 46.0% as a percentage of net sales, compared to $117.7 million, or 46.5% as a percentage of net sales, in the prior year period. See “—Non-GAAP Financial Measures” below.
Previous wording
Selling, general and administrative expenses ("SG&A") were $90.4 million for the three months ended June 30, 2025, compared to $95.7 million in the prior year period. As a percentage of net sales, SG&A decreased to 34.1% for the three months ended June 30, 2025, compared to 40.7% in the prior year period. The decrease in SG&A as a percentage of net sales was primarily due to decreased share-based compensation and variable compensation accrual, partially offset by increased media spend as a percentage of net sales.
Current wording
Selling, general and administrative expenses ("SG&A") were $89.3 million for the three months ended September 30, 2025, compared to $90.3 million in the prior year period. As a percentage of net sales, SG&A decreased to 30.9% for the three months ended September 30, 2025, compared to 35.7% in the prior year period. The decrease in SG&A as a percentage of net sales was primarily due to decreased share-based compensation and variable compensation accrual, partially offset by increased media spend as a percentage of net sales.
Previous wording
Adjusted SG&A for the three months ended June 30, 2025 was $79.6 million, or 30.1% as a percentage of net sales, compared to $72.9 million, or 31.0% as a percentage of net sales, in the prior year period. See “—Non-GAAP Financial Measures” below.
Current wording
Adjusted SG&A for the three months ended September 30, 2025 was $78.2 million, or 27.1% as a percentage of net sales, compared to $74.2 million, or 29.3% as a percentage of net sales, in the prior year period. See “—Non-GAAP Financial Measures” below.
Previous wording
As a result of the factors discussed above, income from operations increased by $19.6 million to income from operations of $17.8 million for the three months ended June 30, 2025 as compared to a loss from operations of $1.8 million in the prior year period.
Current wording
As a result of the factors discussed above, income from operations increased by $13.0 million to income from operations of $24.9 million for the three months ended September 30, 2025 as compared to income from operations of $11.9 million in the prior year period.
Previous wording
The Company recorded interest and other income, net of $2.2 million for the three months ended June 30, 2025 as a result of interest income generated from cash and cash equivalents as compared to $2.9 million in the prior year period.
Current wording
The Company recorded interest and other income, net of $2.4 million for the three months ended September 30, 2025 as a result of interest income generated from cash and cash equivalents as compared to $3.0 million in the prior year period.
Previous wording
Interest expense increased $0.9 million to $3.7 million for the three months ended June 30, 2025 as compared to $2.8 million in the prior year period. The increase was primarily driven by a $0.9 million increase in interest expense on our Convertible Notes due to a decrease in capitalized interest compared to the prior year period as a result of assets placed into service.
Current wording
Interest expense increased $0.6 million to $3.6 million for the three months ended September 30, 2025 as compared to $2.9 million in the prior year period. The increase was primarily driven by a $0.5 million increase in interest expense on our Convertible Notes due to a decrease in capitalized interest compared to the prior year period as a result of assets placed into service.
Previous wording
Net income increased $18.1 million to net income of $16.4 million for the three months ended June 30, 2025 as compared to a net loss of $1.7 million in the prior year period due to contribution from higher sales, improved gross profit as a percentage of net sales and decreased SG&A expenses.
Current wording
Net income increased $89.8 million to net income of $101.7 million for the three months ended September 30, 2025 as compared to net income of $11.9 million in the prior year period due to the deferred income tax benefit resulting from the release of the valuation allowance as a result of sustained profitability and the expected future profitability, contribution from higher sales, and decreased SG&A expenses, partially offset by decrease in gross profit as a percentage of net sales.
Previous wording
Adjusted EBITDA was $44.4 million for the three months ended June 30, 2025 as compared to $35.1 million in the prior year period. The increase in Adjusted EBITDA was a result of increased Adjusted Gross Profit, partially offset by higher Adjusted SG&A expenses. See “—Non-GAAP Financial Measures” below.
Current wording
Adjusted EBITDA was $54.6 million for the three months ended September 30, 2025 as compared to $43.5 million in the prior year period. The increase in Adjusted EBITDA was a result of increased Adjusted Gross Profit, partially offset by higher Adjusted SG&A expenses. See “—Non-GAAP Financial Measures” below.
Previous wording
Net sales increased $68.8 million, or 15.0%, to $527.9 million for the six months ended June 30, 2025 as compared to $459.1 million in the same period in the prior year. The $68.8 million increase in net sales was driven by growth in the Grocery, Mass, International, and Digital channel of $55.4 million, with the remaining growth in the Pet Specialty and Club channel. The net sales increase was primarily driven by volume gains of 12.8% and favorable price/mix of 2.2%.
Current wording
Net sales increased $104.3 million, or 14.6%, to $816.8 million for the nine months ended September 30, 2025 as compared to $712.5 million in the same period in the prior year. The $104.3 million increase in net sales was driven by growth in the Grocery, Mass, International, and Digital channel of $79.0 million, with the remaining growth in the Pet Specialty and Club channel. The net sales increase was primarily driven by volume gains of 12.8% and favorable price/mix of 1.8%.
Previous wording
Gross profit was $212.0 million, or 40.2% as a percentage of net sales, for the six months ended June 30, 2025, compared to $182.1 million, or 39.7% as a percentage of net sales, in the prior year period. The 0.5% increase in gross profit as a percentage of net sales was primarily due to lower input costs and reduced quality costs, partially offset by reduced leverage on plant expenses.
Current wording
Gross profit was $326.2 million, or 39.9% as a percentage of net sales, for the nine months ended September 30, 2025, compared to $284.4 million, or 39.9% as a percentage of net sales, in the prior year period. The gross profit as a percentage of net sales remained consistent for both periods as the benefit from lower input costs and reduced quality costs was fully offset by reduced leverage on plant expenses.
Previous wording
Adjusted Gross Profit for the six months ended June 30, 2025 was $244.3 million, or 46.3% as a percentage of net sales, compared to $209.5 million, or 45.6% as a percentage of net sales, in the prior year period. -See “—Non-GAAP Financial Measures” below.
Current wording
Adjusted Gross Profit for the nine months ended September 30, 2025 was $377.1 million, or 46.2% as a percentage of net sales, compared to $327.2 million, or 45.9% as a percentage of net sales, in the prior year period. See “—Non-GAAP Financial Measures” below.
Previous wording
Selling, general and administrative expenses ("SG&A") were $205.7 million for the six months ended June 30, 2025, compared to $175.4 million in the prior year period. As a percentage of net sales, SG&A increased to 39.0% for the six months ended June 30, 2025, compared to 38.2% in the prior year period. The increase in SG&A as a percentage of net sales was primarily due to increased media spend as a percentage of net sales and higher non-recurring charges in the first quarter of 2025, partially offset by decreased share-based compensation and variable compensation accrual.
Current wording
SG&A expenses were $295.0 million for the nine months ended September 30, 2025, compared to $265.7 million in the prior year period. As a percentage of net sales, SG&A decreased to 36.1% for the nine months ended September 30, 2025, compared to 37.3% in the prior year period. The decrease in SG&A as a percentage of net sales was primarily due to decreased share-based compensation and variable compensation accrual, partially offset by increased media spend as a percentage of net sales and higher non-recurring charges in 2025.
Previous wording
Adjusted SG&A for the six months ended June 30, 2025 was $164.3 million, or 31.1% as a percentage of net sales, compared to $143.8 million, or 31.3% as a percentage of net sales, in the prior year period. See “—Non-GAAP Financial Measures” below.
Current wording
Adjusted SG&A for the nine months ended September 30, 2025 was $242.5 million, or 29.7% as a percentage of net sales, compared to $218.0 million, or 30.6% as a percentage of net sales, in the prior year period. See “—Non-GAAP Financial Measures” below.
Previous wording
As a result of the factors discussed above, income from operations decreased by $0.4 million to $6.3 million for the six months ended June 30, 2025 as compared to $6.7 million in the prior year period.
Current wording
As a result of the factors discussed above, income from operations increased by $12.6 million to $31.2 million for the nine months ended September 30, 2025 as compared to $18.6 million in the prior year period.
Previous wording
The Company recorded interest and other income, net of $4.6 million for the six months ended June 30, 2025 as a result of interest income generated from cash and cash equivalents as compared to $6.2 million in the prior year period.
Current wording
The Company recorded interest and other income, net of $6.9 million for the nine months ended September 30, 2025 as a result of interest income generated from cash and cash equivalents as compared to $9.2 million in the prior year period.
Previous wording
Interest expense increased $1.4 million to $7.2 million for the six months ended June 30, 2025 as compared to $5.8 million in the prior year period. The increase was primarily driven by a $1.3 million increase in interest expense on our Convertible Notes due to a decrease in capitalized interest compared to the prior year period as a result of assets placed into service.
Current wording
Interest expense increased $2.0 million to $10.8 million for the nine months ended September 30, 2025 as compared to $8.7 million in the prior year period. The increase was primarily driven by a $1.8 million increase in interest expense on our Convertible Notes due to a decrease in capitalized interest compared to the prior year period as a result of assets placed into service.
Previous wording
The $9.9 million gain on equity investment for the six months ended June 30, 2024 resulted from the change in fair value of the Company's equity interest in a privately held company, as discussed in Note 1 - Summary of Significant Accounting Policies of our (unaudited) condensed consolidated financial statements.
Current wording
The $9.9 million gain on equity investment for the nine months ended September 30, 2024 resulted from the change in fair value of the Company's equity interest in a privately held company, as discussed in Note 1 - Summary of Significant Accounting Policies of our (unaudited) condensed consolidated financial statements.
Previous wording
Net income decreased $13.2 million to net income of $3.7 million for the six months ended June 30, 2025, as compared to net income of $16.9 million in the prior year period, due to increased SG&A expenses, including increased media spend of $18.8 million and $16.9 million of non-recurring charges in the first quarter of 2025 compared to a $9.9 million gain on equity investment in the prior year period, which were partially offset by contributions from higher sales and improved gross profit as a percentage of sales.
Current wording
Net income increased $76.5 million to net income of $105.3 million for the nine months ended September 30, 2025, as compared to net income of $28.8 million in the prior year period, due to the deferred income tax benefit resulting from the release of the valuation allowance as a result of sustained profitability and the expected future profitability, and contributions from higher sales, partially offset by increased SG&A expenses, including increased media spend of $24.0 million and $17.7 million of non-recurring charges in 2025, compared to a $9.9 million gain on equity investment in the prior year period.
Previous wording
Adjusted EBITDA was $79.9 million for the six months ended June 30, 2025, compared to $65.7 million in the prior year period. The increase in Adjusted EBITDA was a result of increased Adjusted Gross Profit, partially offset by higher Adjusted SG&A expenses. See “—Non-GAAP Financial Measures” below.
Current wording
Adjusted EBITDA was $134.5 million for the nine months ended September 30, 2025, compared to $109.2 million in the prior year period. The increase in Adjusted EBITDA was a result of increased Adjusted Gross Profit, partially offset by higher Adjusted SG&A expenses. See “—Non-GAAP Financial Measures” below.
Previous wording
Such financial measures are not financial measures prepared in accordance with U.S. GAAP. We define Adjusted Gross Profit as Gross Profit before depreciation expense, non-cash share-based compensation, and loss on disposal of manufacturing equipment. We define Adjusted SG&A as SG&A expenses before depreciation and amortization expense, non-cash share-based compensation, loss on disposal of equipment, distributor transition costs, legal obligation and international business changes. EBITDA represents net (loss) income plus interest expense net of interest income, income tax expense and depreciation and amortization expense. Adjusted EBITDA represents EBITDA less gain on equity investment, plus non-cash share-based compensation expense, loss on disposal of property, plant and equipment, distributor transition costs, legal obligation, and international business changes.
Current wording
Such financial measures are not financial measures prepared in accordance with U.S. GAAP. We define Adjusted Gross Profit as Gross Profit before depreciation expense, non-cash share-based compensation, and loss on disposal of manufacturing equipment. We define Adjusted SG&A as SG&A expenses before depreciation and amortization expense, non-cash share-based compensation, loss on disposal of equipment, distributor transition costs, legal obligation and international business changes. EBITDA represents net income plus interest expense net of interest income, income tax (benefit) expense and depreciation and amortization expense. Adjusted EBITDA represents EBITDA less gain on equity investment, plus non-cash share-based compensation expense, loss on disposal of property, plant and equipment, distributor transition costs, legal obligation, and international business changes.
Previous wording
The non-GAAP financial measures are presented here because we believe they are useful to investors in assessing the operating performance of our business without the effect of non-cash items, and other items as detailed herein. The non-GAAP financial measures should not be considered in isolation or as alternatives to net income (loss), income (loss) from operations or any other measure of financial performance calculated and prescribed in accordance with U.S. GAAP. Neither EBITDA nor Adjusted EBITDA should be considered a measure of discretionary cash available to us to invest in the growth of our business. Our non-GAAP financial measures may not be comparable to similarly titled measures in other organizations because other organizations may not calculate non-GAAP financial measures in the same manner as we do.
Current wording
The non-GAAP financial measures are presented here because we believe they are useful to investors in assessing the operating performance of our business without the effect of non-cash items, and other items as detailed herein. The non-GAAP financial measures should not be considered in isolation or as alternatives to net income, income from operations or any other measure of financial performance calculated and prescribed in accordance with U.S. GAAP. Neither EBITDA nor Adjusted EBITDA should be considered a measure of discretionary cash available to us to invest in the growth of our business. Our non-GAAP financial measures may not be comparable to similarly titled measures in other organizations because other organizations may not calculate non-GAAP financial measures in the same manner as we do.
Previous wording
The following table provides a reconciliation of EBITDA and Adjusted EBITDA to net income (loss), the most directly comparable financial measure presented in accordance with U.S. GAAP:
Current wording
The following table provides a reconciliation of EBITDA and Adjusted EBITDA to net income, the most directly comparable financial measure presented in accordance with U.S. GAAP:
Previous wording
(c)Represents an accrual for legal obligations related to the ongoing litigation with Phillips.
Current wording
(c)Represents the net settlement charges for all claims related to the litigation with Phillips.
Previous wording
(c)Represents an accrual for legal obligations related to the ongoing litigation with Phillips.
Current wording
(c)Represents the net settlement charges for all claims related to the litigation with Phillips.
Previous wording
We expect to make future capital expenditures in connection with the completion of our planned development of Freshpet Kitchens Ennis Phase 2 and 3. During the six months ended June 30, 2025, we spent approximately $59.9 million of capital to meet our capacity needs as well as recurring capital expenditures. We expect to spend an additional $115.1 million in the remainder of fiscal year 2025.
Current wording
We expect to make future capital expenditures in connection with the completion of our planned development of Freshpet Kitchens Ennis Phase 2 and 3. During the nine months ended September 30, 2025, we spent approximately $95.1 million of capital to meet our capacity needs as well as recurring capital expenditures. We expect to spend an additional $44.9 million in the remainder of fiscal year 2025.
Previous wording
Working capital consists of current assets net of current liabilities. Working capital decreased $13.9 million to $324.2 million as of June 30, 2025 compared to working capital of $338.1 million as of December 31, 2024. The decrease was primarily a result of a decrease of $24.9 million in cash and cash equivalents, a decrease of $8.0 million in accounts receivable, a decrease of $5.3 million in prepaid expenses and an increase of $3.7 million in accounts payable as a result of timing. The decrease was partially offset by an increase of $9.8 million in inventories, net and a decrease of $18.4 million in accrued expenses due to timing.
Current wording
Working capital consists of current assets net of current liabilities. Working capital increased $8.7 million to $346.8 million as of September 30, 2025 compared to working capital of $338.1 million as of December 31, 2024. The increase was primarily a result of an increase of $6.0 million in cash and cash equivalents, an increase of $2.3 million in other current assets, and a decrease of $8.3 million in accounts payable and $14.8 million in accrued expenses as a result of timing. The increase was partially offset by a decrease of $4.1 million in accounts receivable, a decrease of $10.9 million in inventories, net, a decrease of $6.7 million in prepaid expenses, and an increase of $1.0 million in lease liabilities.
Previous wording
As of June 30, 2025, our capital resources consisted primarily of $243.7 million of cash and cash equivalents on hand.
Current wording
As of September 30, 2025, our capital resources consisted primarily of $274.6 million of cash and cash equivalents on hand.
Previous wording
•$75.6 million of net income, adjusted for reconciling non-cash items, which excludes $72.0 million of non-cash items related to $42.4 million of depreciation and amortization, $11.5 million of provision for loss on accounts receivable, $15.0 million of share-based compensation, $1.1 million of amortization of deferred financing costs, $1.2 million of loss on disposal of property, plant and equipment, and $0.7 million of change in operating lease right of use asset.
Current wording
•$131.1 million of net income, adjusted for reconciling non-cash items, which excludes $25.8 million of non-cash items related to $77.9 million of deferred income tax benefit, $66.8 million of depreciation and amortization, $12.1 million of provision for loss on accounts receivable, $20.3 million of share-based compensation, $1.6 million of amortization of deferred financing costs, $1.4 million of loss on disposal of property, plant and equipment, and $1.5 million of change in operating lease right of use asset.
Previous wording
•a $36.9 million decrease due to changes in operating assets and liabilities. The decrease was primarily due to the change in accrued expenses, inventories, accounts receivable, prepaid expenses and other current assets, and other assets, partially offset by the change in accounts payable.
Current wording
•a $25.6 million decrease due to changes in operating assets and liabilities. The decrease was primarily due to the change in accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses, and operating lease liability, partially offset by the change in inventories.
Previous wording
•$68.9 million of net income, adjusted for reconciling non-cash items, which excludes $52.0 million of non-cash items related to $33.3 million of depreciation and amortization, $25.8 million of share-based compensation including amortization of warrants, $1.0 million of write-off and amortization of deferred financing costs and loan discount, $0.8 million of change in operating lease right of use asset, $0.7 million of reserve for inventory obsolescence and $0.3 million of loss on disposal of property, plant and equipment, partially offset by $9.9 million of gain on equity investment.
Current wording
•$113.4 million of net income, adjusted for reconciling non-cash items, which excludes $84.6 million of non-cash items related to $52.2 million of depreciation and amortization, $37.9 million of share-based compensation including amortization of warrants, $1.6 million of write-off and amortization of deferred financing costs and loan discount, $1.0 million of change in operating lease right of use asset, $0.7 million of reserve for inventory obsolescence and $1.1 million of loss on disposal of property, plant and equipment, partially offset by $9.9 million of gain on equity investment.
Previous wording
•a $21.1 million decrease due to changes in operating assets and liabilities. The decrease was primarily due to the changes in accounts receivable, inventories, prepaid expenses and other current assets, other assets, accounts payable, and operating lease liability, primarily offset by the change in accrued expenses.
Current wording
•a $9.5 million decrease due to changes in operating assets and liabilities. The decrease was primarily due to the changes in accounts receivable, inventories, prepaid expenses and other current assets, other assets, and operating lease liability, partially offset by the change in accounts payable and accrued expenses.
Previous wording
•$59.9 million of capital expenditures related to Freshpet Kitchens, plant recurring capital expenditures, expenditures relating to investment in fridges, and other capital spend.
Current wording
•$95.1 million of capital expenditures related to Freshpet Kitchens, plant recurring capital expenditures, expenditures relating to investment in fridges, and other capital spend.
Previous wording
•$94.8 million of capital expenditures related to Freshpet Kitchens, plant recurring capital expenditures, expenditures relating to investment in fridges, and other capital spend.
Current wording
•$128.8 million of capital expenditures related to Freshpet Kitchens, plant recurring capital expenditures, expenditures relating to investment in fridges, and other capital spend.
Previous wording
Net cash used in financing activities of$3.7 millionfor the six months ended June 30, 2025, was primarily attributed to:
Current wording
Net cash used in financing activities of$4.4 millionfor the nine months ended September 30, 2025, was primarily attributed to:
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