FitLife Brands 2025 Q3 Earnings 47% Revenue Growth, 56.5% EPS Drop

FitLife Brands (FTLF) reported mixed results for Q3 2025, with revenue surging 47% year-over-year but net income and EPS declining sharply. The earnings release highlighted margin compression and integration challenges post-Irwin Naturals acquisition, while analysts questioned sustainability amid consumer weakness.

Revenue

FitLife Brands’ total revenue rose 47% to $23.48 million in Q3 2025, driven by the Irwin Naturals acquisition, which contributed $6.82 million. Legacy FitLife accounted for $12.86 million, reflecting stable performance, while MusclePharm added $3.81 million. The acquisition’s short-term impact included a wholesale-heavy revenue mix for Irwin, with online sales contributing minimally.

Earnings/Net Income

The company’s EPS plunged 56.5% to $0.10, and net income fell 56.7% to $921,000. Elevated merger costs, margin pressures, and higher tax expenses were primary drivers. Despite four consecutive years of profitability, the decline signals near-term operational challenges.

Post-Earnings Price Action Review

Following the earnings report, FitLife’s stock slipped 1.95% in a single trading day, 1.53% over the subsequent week, and 9.74% month-to-date. The decline reflects investor concerns over margin compression and integration risks, though the revenue growth outperformed expectations.

CEO Commentary

Dayton Judd emphasized the 47% revenue surge, attributing it to the Irwin acquisition and organic gains. Challenges included MRC’s performance and MusclePharm’s margin decline due to rising whey costs. Strategic shifts, like transitioning Irwin’s wholesale sales to Amazon, aim to boost long-term margins despite short-term trade-offs.

Guidance

The company provided no formal guidance but signaled cautious optimism. Judd noted ongoing cost pressures and consumer weakness but highlighted integration progress and planned price adjustments for MusclePharm to offset rising protein costs.

Additional News

FitLife’s acquisition of Irwin Naturals on August 8, 2025, remains a focal point. The deal contributed $6.8 million to Q3 revenue, though integration challenges, including inventory amortization and supply chain costs, persist. CEO Judd announced a strategic shift to prioritize Amazon sales for Irwin, despite short-term revenue sacrifices. Additionally, MusclePharm’s 19.8% gross margin drop underscored the need for pricing adjustments. Analysts remain skeptical about margin recovery, citing elevated costs and soft demand.

Conclusion

FitLife’s Q3 results highlight a delicate balance between growth and profitability. While the Irwin acquisition drove revenue, margin pressures and integration costs weigh on near-term performance. Investors will closely monitor strategic execution and pricing actions to gauge long-term resilience.