Freshpet Inc (FRPT)

Net profit margin

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Net income (ttm)	US$ in thousands	15,626	46,925	44,093	25,032	9,774	-32,634	-50,079	-60,419	-63,336	-55,762	-62,872	-47,436	-35,042	-29,698	-23,731	-18,114	-10,486	-3,188	4,743	4,263
Revenue (ttm)	US$ in thousands	1,014,577	975,177	927,889	875,143	823,221	766,894	717,307	668,019	630,695	595,344	545,380	501,637	464,246	425,489	394,142	370,742	342,106	318,790	300,020	281,096
Net profit margin		1.54%	4.81%	4.75%	2.86%	1.19%	-4.26%	-6.98%	-9.04%	-10.04%	-9.37%	-11.53%	-9.46%	-7.55%	-6.98%	-6.02%	-4.89%	-3.07%	-1.00%	1.58%	1.52%

March 31, 2025 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $15,626K ÷ $1,014,577K
= 1.54%

The net profit margin for Freshpet Inc. exhibits significant fluctuations over the analyzed period, reflecting a transition from profitability to loss, and subsequently toward profitability again. Between June 30, 2020, and December 31, 2020, the company maintained positive net profit margins of approximately 1.52% and 1.58%, indicating a modest profitability position. However, starting from the fiscal quarter ending December 31, 2020, the net profit margin turned negative, reaching -1.00%. This negative trend intensified throughout 2021, with margins declining to -6.98% by the end of that year, indicating sustained losses and a deterioration in profitability.

The downward trajectory persisted into 2022 and early 2023, with margins reaching as low as -11.53% on September 30, 2022, before slight improvements began. By the end of March 2023, the margin was still negative at -10.04%, but a gradual narrowing ensued, culminating in a margin of -4.26% at the end of 2023.

A notable turnaround occurred starting in March 2024, when the net profit margin returned to positive territory at 1.19%. This upward trend continued throughout 2024, reaching 4.81% by December 31, 2024, and sustaining at 1.54% as of March 31, 2025.

Overall, the data reflects a period of significant operational challenges indicated by prior losses, followed by a recovery phase marked by positive profitability margins beginning in early 2024. This transition suggests improvements in cost management or revenue generation that have begun to positively impact the company's bottom line after several quarters of negative performance.