Free cash flow remains volatile, swinging from a negative 18.8% margin in 2023Q4 to a positive 38.4% in 2025Q4, reflecting the lumpy nature of capital expenditures which peaked at 36.0% of revenue.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 196.08M | 160.56M | 154.29M | 75.94M | -43.23M | 647K | 21.19M | 16.32M | 18.58M | 10.27M | 12.8M | 6.74M | -8.03M | -11.24M | -8.72M |
| Operating CF Margin % | - | 14.57% | 15.82% | 9.9% | -7.26% | 0.15% | 6.65% | 6.64% | 9.61% | 6.57% | 9.62% | 5.8% | -9.25% | -17.8% | -20.03% |
| Operating CF Growth % | 747.27% | 4.07% | 103.17% | 275.68% | -6781.14% | -96.95% | 29.88% | -12.16% | 80.86% | -19.76% | 89.94% | 183.96% | 28.6% | -28.97% | - |
| Net Income | 200.34M | 139.14M | 46.92M | -33.61M | -59.49M | -29.7M | -3.19M | -1.38M | -5.36M | -4.26M | -3.16M | -3.71M | -37.34M | -21.69M | -18.66M |
| Depreciation & Amortization | 91.83M | 89.72M | 73.61M | 58.52M | 34.55M | 30.47M | 21.13M | 15.92M | 14.07M | 12.69M | 9.89M | 7.57M | 6.42M | 5.95M | 4.73M |
| Stock-Based Compensation | 5.07M | 13.88M | 51.81M | 24.93M | 26.09M | 25M | 10.93M | 7.83M | 6.81M | 4.44M | 4.19M | 3.92M | 1.56M | 978.35K | 1.12M |
| Deferred Taxes | -52.71M | -68.8M | 0 | 0 | 0 | 0 | 0 | 0 | 126.94K | 455.69K | 233.44K | -397.04K | 654.17K | 706.09K | 490.18K |
| Other Non-Cash Items | -44.5M | 18.86M | -4.38M | 11.82M | 9.73M | 5.46M | 4.14M | 1.56M | 115.1K | 426.53K | 150.27K | 144.82K | 26.85M | 5.48M | 2.03M |
| Working Capital Changes | -3.95M | -32.24M | -13.68M | 14.28M | -54.11M | -30.58M | -11.81M | -7.61M | 2.82M | -3.48M | 1.5M | -795.54K | -6.18M | -2.67M | 1.57M |
| Change in Receivables | -2.68M | -6.88M | -12.23M | 820K | -32.99M | -16.37M | 166K | -8.02M | 410.04K | -3.85M | -1.85M | -1.68M | -1.87M | -921.77K | -1.6M |
| Change in Inventory | 3.63M | 3.82M | -15.48M | -1.21M | -26.17M | -16.8M | -6.81M | -3.34M | 701.87K | -5.01M | 1.57M | 565.73K | -1.69M | -1.84M | -758.43K |
| Change in Payables | -11.39M | 1.31M | 12.48M | 3.54M | -3.06M | 14.96M | -5.92M | 2.78M | 195.24K | 2.68M | 853.85K | 192.58K | -1.61M | 290.77K | 2.75M |
| Cash from Investing | -53.83M | -148.18M | -187.09M | -239.09M | -233.36M | -322.1M | -162.46M | -70.63M | -16.27M | -13M | -26.69M | -35.26M | -16.88M | -24.64M | -26.31M |
| Capital Expenditures | -1.11M | -148.18M | -187.09M | -239.09M | -230.07M | -322.1M | -134.57M | -70.63M | -16.27M | -13M | -29.95M | -32.04M | -17.13M | -24.64M | -26.4M |
| CapEx % of Revenue | 0.1% | 13.45% | 19.19% | 31.18% | 38.65% | 75.7% | 42.21% | 28.73% | 8.42% | 8.32% | 22.51% | 27.58% | 19.74% | 39.02% | 60.65% |
| Acquisitions | 0 | 0 | 0 | 0 | -3.29M | 0 | -27.89M | 0 | 0 | 0 | 13.44K | 27.02M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -148.18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -17.12B | -13M | 13.44K | -26.98M | 253.51K | 0 | 89.43K |
| Cash from Financing | -4.6M | -3.04M | 4.57M | 327.29M | 336.54M | 326.99M | 199.04M | 56.23M | 3.07M | 1.01M | 9.77M | 291.75K | 58.72M | 36.7M | 33.76M |
| Debt Issued (Net) | -471K | -2.12M | -1.98M | 392.41M | 0 | 0 | -55.07M | 53.79M | 0 | -7M | 7M | 0 | -76.5M | 32M | 33M |
| Equity Issued (Net) | 743K | 2.11M | 9.14M | 0 | 337.51M | 332.17M | 252.06M | 0 | 3.07M | 0 | 0 | 0 | 135.96M | 5.03M | 1.1M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -256.23K | 0 | 0 | 0 | -35M | 0 | 0 |
| Other Financing | -4.87M | -3.02M | -2.6M | -65.12M | -970K | -5.18M | 2.05M | 2.44M | 0 | 8.01M | 2.77M | 291.75K | -739.47K | -334.82K | -340.42K |
| Net Change in Cash | 137.65M | 9.34M | -28.24M | 164.14M | 59.95M | 5.54M | 57.77M | 1.92M | 5.37M | -1.72M | -4.12M | -28.23M | 33.81M | 811.5K | -1.23M |
| Free Cash Flow | 194.97M | 12.38M | -32.8M | -163.15M | -273.3M | -321.45M | -113.38M | -54.32M | 2.3M | -2.73M | -17.15M | -25.3M | -25.16M | -35.88M | -35.11M |
| FCF Margin % | 17.16% | 1.12% | -3.36% | -21.27% | -45.91% | -75.55% | -35.56% | -22.09% | 1.19% | -1.75% | -12.89% | -21.78% | -28.99% | -56.82% | -80.68% |
| FCF Growth % | 1552.76% | 137.73% | 79.89% | 40.3% | 14.98% | -183.53% | -108.73% | -2460.38% | 184.18% | 84.06% | 32.21% | -0.58% | 29.89% | -2.2% | - |
| FCF per Share | 3.48 | 0.22 | -0.65 | -3.39 | -5.92 | -7.49 | -2.85 | -1.51 | 0.07 | -0.08 | -0.51 | -0.75 | -1.85 | -1.73 | -3.38 |
| FCF Conversion (FCF/Net Income) | 0.97x | 1.15x | 3.29x | -2.26x | 0.73x | -0.02x | -6.65x | -11.80x | -3.46x | -2.41x | -4.05x | -1.82x | 0.21x | 0.52x | 0.47x |
| Interest Paid | -5.95M | 0 | 10.15M | 10.15M | 3.15M | 1.73M | 1.06M | 522K | 184K | 519.28K | 445.28K | 332.24K | 4.7M | 2.93M | 0 |
| Taxes Paid | 0 | 0 | 193K | 308K | 297K | 182K | 88K | 9K | 69K | 58.88K | 76.94K | 56.35K | 31.36K | 22.27K | 0 |
High Capital Intensity Exposure
As reported in recent financial filings, the relationship between net income and operating cash flow remains highly volatile, with the OCF/NI ratio fluctuating from a low of -25.04 in 2024Q2 to a high of 4.72 in 2024Q3, indicating significant non-cash adjustments and working capital timing impacts.
The wide variance between net income and operating cash flow suggests that reported earnings are currently an unreliable proxy for the company's underlying cash-generating capacity. Investors should monitor whether the recent stabilization in OCF reflects a permanent improvement in operational efficiency or merely temporary shifts in accruals and non-cash expenses.
Based on quarterly cash flow statements, free cash flow margins have exhibited extreme swings, ranging from a negative 18.8% in 2023Q4 to a positive 38.4% in 2025Q4, highlighting the lumpy nature of capital expenditures relative to the company's ongoing efforts to scale its refrigerated manufacturing footprint.
The erratic FCF trajectory appears to be a direct consequence of the company's aggressive investment cycle in new production kitchens. While the recent positive FCF margins suggest a potential inflection point, the sustainability of this trend remains contingent on the company's ability to manage capital intensity as it matures.
According to historical data, Freshpet's capital expenditure as a percentage of revenue has remained elevated, peaking at 36.0% in 2023Q4, which underscores the heavy financial burden of maintaining and expanding the proprietary fridge network and specialized manufacturing facilities required to support its unique cold-chain distribution model.
The high capital intensity suggests that the company is still in a heavy asset-build phase, which may continue to suppress free cash flow generation in the near term. Analysts should evaluate whether the current level of capex is primarily for growth or if maintenance requirements are beginning to consume a larger share of cash flow.
Financial disclosures reveal that working capital changes have been a significant source of cash flow volatility, with quarterly swings ranging from a $27.1M outflow in 2024Q1 to an $11.3M inflow in 2025Q3, reflecting the inherent challenges of managing inventory for perishable goods with short shelf lives.
The sensitivity of cash flow to working capital movements suggests that inventory management and the timing of payables are critical levers for the company's liquidity. Any disruption in the cold-chain logistics or a slowdown in fridge velocity could lead to inventory write-downs, further pressuring the company's cash position.
Quick answers to the most common questions about buying FRPT stock.
Freshpet, Inc. (FRPT) generated $160.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Freshpet, Inc. (FRPT) generated $12.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Freshpet, Inc. (FRPT) spent $148.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.