FitLife Brands Announces First Quarter 2025 Results

Core Insights - FitLife Brands, Inc. reported a total revenue of $15.9 million for Q1 2025, a decrease of 4% compared to $16.5 million in Q1 2024 [3][9] - Online revenue accounted for 67% of total revenue, amounting to $10.6 million, which is a 2% decline from the previous year [3][9] - The company's gross margin for the quarter was 43.1%, down from 44.0% in the same period last year [4][9] - Net income for Q1 2025 was $2.0 million, compared to $2.2 million in Q1 2024, with basic and diluted earnings per share at $0.22 and $0.20, respectively [5][9] - Adjusted EBITDA for the quarter was $3.4 million, a 6% decrease from the previous year, bringing the trailing twelve months adjusted EBITDA to $13.9 million [6][9] Revenue Breakdown - Total revenue for the first quarter was $15.9 million, a 4% decrease year-over-year [3][9] - Online sales were $10.6 million, representing 67% of total revenue, down 2% from the previous year [3][9] - Wholesale revenue was $5.3 million, a 7% decrease compared to the same period last year [3][9] Profitability Metrics - Gross margin for Q1 2025 was 43.1%, compared to 44.0% in Q1 2024 [4][9] - Net income decreased to $2.0 million from $2.2 million year-over-year [5][9] - Adjusted EBITDA was $3.4 million, a 6% decrease from the same period in 2024 [6][9] Brand Performance - Legacy FitLife revenue increased by 5% year-over-year, driven by an 11% increase in online revenue and a 2% increase in wholesale revenue [10][11] - MRC revenue decreased by 11% year-over-year, with the largest brand, Dr. Tobias, also seeing an 11% decline [12][13] - MusclePharm revenue decreased by 6%, with wholesale revenue down 41% but online revenue up 33% [15][16] Management Commentary - The CEO noted that the first quarter was strong for Legacy FitLife but challenging for MRC and MusclePharm [20] - The decline in MusclePharm's wholesale revenue was attributed to reduced purchases from a large customer [21] - The company is optimistic about cash flow generation and has a net debt of approximately 0.4x adjusted EBITDA, indicating financial flexibility for potential acquisitions [24]