Freshpet, Inc. (NASDAQ: FRPT)

Freshpet, Inc. manufactures markets and distributes fresh refrigerated dog food cat food and dog treats. The company operates in the United States pet food industry focusing on the fresh refrigerated segment that offers an alternative to traditional dry kibble and canned wet food. Freshpet positions its brand to benefit from trends of pet humanization and health and wellness. It sells its products through a network of company owned branded refrigerators known as Freshpet Fridges located in grocery mass international digital pet specialty and club retail stores. As of December 31 2025 the company served approximately 15.2 million households in the United States and maintained a presence in about 30,235 stores. Freshpet’s mission is to elevate the way we feed our pets with fresh food that nourishes all while being good for pets people and planet. The company has donated nearly twenty six million fresh meals to pets via shelters charitable organizations and humane societies.

Freshpet generates revenue primarily from the sale of its fresh refrigerated pet food products and treats. The company sells fresh dog food cat food and dog treats under the Freshpet brand with additional treat lines offered under the Dognation and Dog Joy labels. Revenue is derived from sales to retailers who purchase products for resale to end consumers as well as from direct to consumer channels where applicable. Freshpet also earns revenue from the sale of its Freshpet Fridge units to retailers under long term placement agreements. The company’s pricing strategy aims to be accessible to the average consumer while maintaining margins that support continued investment in product innovation and distribution expansion. Retailers benefit from Freshpet’s ability to grow pet category sales increase store traffic and deliver category leading margins which encourages broader shelf placement and repeat orders.

The company operates through the following segments.

• Freshpet’s single segment encompasses the manufacturing marketing and distribution of fresh dog food cat food and dog treats. This segment includes all activities related to product formulation ingredient sourcing production in company owned Freshpet Kitchens quality assurance packaging and delivery of finished goods to retail locations. The segment manages three major manufacturing sites known as Freshpet Kitchens Bethlehem Freshpet Kitchens South and Freshpet Kitchens Ennis which together operate multiple production lines. The segment also manages the Freshpet Fridge network which serves as a key merchandising platform at point of sale and supports brand visibility and consumer trial.

Freshpet competes in a highly competitive U. S. pet food market that includes large multinational pet food manufacturers regional niche brands direct to consumer frozen offerings and retailer private label products. The company differentiates itself through its focus on fresh refrigerated nutrition minimal processing and transparent ingredient sourcing. Its competitive advantages stem from proprietary recipes an in house veterinary nutritionist network a growing Freshpet Fridge footprint and a reputation for product quality and safety validated by Safe Quality Food Level III certification. Freshpet’s marketing strategy emphasizes consumer education about the benefits of fresh refrigerated pet food through national television advertising streaming digital and social media channels. While many competitors rely on larger scale marketing budgets Freshpet leverages its in store fridge network and targeted campaigns to build brand loyalty and drive repeat purchases.

Freshpet serves a broad base of pet owners across demographic segments in the United States Canada and Europe. The company’s largest individual customers include Walmart and Costco which accounted for approximately 25 percent and 10 percent of net sales respectively in 2025. In addition Freshpet sells through a variety of retail channels including grocery chains mass merchants pet specialty stores club stores and online platforms. The company also works with regional and national distributors none of which individually exceeded 10 percent of net sales in 2025. Freshpet’s products are also available through its own direct to consumer e commerce site which offers subscription and one time purchase options. Overall the customer base consists of mass market retailers pet specialty retailers e commerce platforms and distributors that stock Freshpet products for end consumer purchase.