FitLife Brands Announces Second Quarter 2025 Results

Core Insights - FitLife Brands, Inc. reported a 5% decrease in total revenue for Q2 2025, amounting to $16.1 million compared to $16.9 million in Q2 2024 [3][19] - The decline in online revenue was 7%, totaling $10.4 million, which represented 65% of total revenue for the quarter [3][19] - Gross margin decreased to 42.8% from 44.8% year-over-year, primarily due to increased merger and acquisition-related expenses [4][5][19] Financial Performance - Net income for Q2 2025 was $1.7 million, down from $2.6 million in Q2 2024, with basic and diluted earnings per share at $0.19 and $0.18, respectively [5][19] - Adjusted EBITDA decreased by 13% to $3.3 million compared to the same period in 2024, with trailing twelve months adjusted EBITDA at $13.4 million [6][19] - The company ended the quarter with $10.9 million in term loans and $6.6 million in cash, resulting in total net debt of $4.3 million, approximately 0.3x adjusted EBITDA [7][19] Brand Performance - Legacy FitLife revenue increased by 7% year-over-year, driven by a 17% increase in online revenue and a 1% increase in wholesale revenue [11][12] - MRC revenue decreased by 16% compared to Q2 2024, with significant declines in the Dr. Tobias brand and skin care brands due to reduced traffic and tariffs [13][14][15] - MusclePharm revenue decreased by 4%, with wholesale revenue down 6% and online revenue down 3%, although the company is investing in advertising to drive growth [17][18][24] Acquisition Activity - The company completed the acquisition of Irwin Naturals for $42.5 million on August 8, 2025, funded primarily through a new term loan and available cash [20][26] - Irwin Naturals generated approximately $60 million in revenue with a gross margin of about 35% for the trailing twelve months as of June 30, 2025 [25][26] - Management expects to achieve cost savings and improved gross margins as they integrate Irwin Naturals into their operations [26][27]