FitLife Brands 2025 Q2 Earnings Misses Targets as Net Income Falls 33.5%

FitLife Brands reported its fiscal 2025 Q2 earnings on Aug 14, 2025. The company’s total revenue and net income both declined year-over-year. Management has not raised or adjusted its forward guidance based on the current results.

Revenue

FitLife Brands reported total revenue of $16.13 million in Q2 2025, representing a 4.7% decline from $16.93 million in the same period last year. The legacy FitLife segment generated $7.30 million, serving as the primary revenue driver. The MRC division contributed $6.27 million, while MusclePharm brought in $2.56 million. Together, these segments reflect the current mix of the company’s revenue streams amid ongoing integration efforts.

Earnings/Net Income

Earnings per share (EPS) for FitLife Brands fell to $0.19 in Q2 2025, a 34.5% drop from $0.29 in the prior year. The company’s net income also declined, falling to $1.75 million in Q2 2025 from $2.63 million in Q2 2024, a 33.5% decrease. Despite these challenges, FitLife Brands has maintained profitability for four consecutive years during the same quarter, underscoring a generally stable core business.

Price Action

The stock price of FitLife Brands edged down 0.49% during the latest trading day but showed a strong rebound with an 11.07% gain during the most recent full trading week and a 22.44% increase month-to-date.

Post-Earnings Price Action Review

The strategy of buying FitLife Brands shares on the day after earnings and holding for 30 days yielded a 38.36% return over the past three years, slightly underperforming the benchmark by 0.21%. The Sharpe ratio of 0.61 suggests a reasonable risk-adjusted return, and the maximum drawdown of 0.00% indicates the strategy effectively managed risk.

CEO Commentary

Dayton Judd, CEO of FitLife Brands, noted a mixed performance, with strong results from the legacy FitLife business and challenges in acquired brands like MRC and MusclePharm. He attributed a 5% revenue decline and much of the net income drop to M&A expenses related to the Irwin Naturals acquisition. Judd expressed optimism about the future, highlighting that the legacy business grew by 4% excluding MRC and outlined plans to improve Dr. Tobias performance through advertising and SEO initiatives. He also shared confidence in the Irwin acquisition and outlined strategies to leverage FitLife’s online capabilities for Irwin’s growth.

Guidance

Dayton Judd provided forward-looking expectations for the combined FitLife and Irwin businesses, projecting revenue exceeding $120 million and adjusted EBITDA between $20 million and $25 million in the first full year of operations. He emphasized ongoing efforts to refine forecasts as the integration progresses and outlined plans for gross margin improvement, advertising investments for Dr. Tobias and MusclePharm, and potential cost reductions through SG&A optimization.

Additional News

In recent weeks, FitLife Brands announced the acquisition of Irwin Naturals, a significant step in expanding its portfolio and market reach. The integration of Irwin is expected to drive growth through enhanced online capabilities and supply chain efficiencies. Additionally, the company outlined strategic plans to invest in advertising and promotional initiatives for its Dr. Tobias and MusclePharm brands to boost traffic and conversion rates. Management also highlighted ongoing efforts to realize cost synergies post-acquisition, though no specific CAPEX targets were disclosed. Transaction-related expenses are anticipated in Q3, but the company is optimistic about long-term cost reductions through operational efficiencies.