Shares of Freshpet Inc. (NASDAQ: FRPT), a leading producer of refrigerated pet food, plummeted over 5% in pre-market trading on Thursday, following the company's mixed fourth-quarter earnings report and lower-than-expected revenue guidance for the full year 2025.

In its Q4 2024 results, Freshpet reported net sales of $262.7 million, up 22% year-over-year but slightly missing analysts' consensus estimate of $264.1 million. However, the company's adjusted EBITDA for the quarter came in at $52.6 million, surpassing expectations of $47.8 million, driven by lower input costs, reduced quality costs, and improved leverage on plant expenses.

While Freshpet's fourth-quarter performance was solid, the company's outlook for 2025 revenue disappointed investors. Freshpet projected net sales in the range of $1.18 billion to $1.21 billion for the full year 2025, falling short of the consensus estimate of $1.22 billion. Nonetheless, the company raised its long-term adjusted gross margin and adjusted EBITDA margin targets, providing an optimistic outlook on profitability.