FitLife Brands 2025 Q3 Earnings Misses Targets as Net Income Drops 56.7%

FitLife Brands (FTLF) reported Q3 2025 results marked by a 47% revenue surge driven by the Irwin Naturals acquisition, but net income fell sharply due to margin compression and integration costs. The stock declined post-earnings, reflecting investor concerns over profitability challenges.

Revenue

Total revenue surged 47% to $23.48 million, with Legacy FitLife ($12.86 million) and the newly acquired Irwin ($6.82 million) driving growth. MusclePharm added $3.81 million, though its online sales dipped 3%. The integration of Irwin, which contributed $6.8 million of the $7.5 million revenue increase, offset declines in the MRC segment.

Earnings/Net Income

Net income plummeted 56.7% to $921,000, with EPS dropping 56.5% to $0.10. Despite four years of consistent profitability, margin pressures from rising whey protein costs and acquisition-related expenses weighed heavily.

Post-Earnings Price Action Review

The stock price of FitLife Brands has edged down 1.95% during the latest trading day, has edged down 1.53% during the most recent full trading week, and has tumbled 9.74% month-to-date. The decline reflects investor concerns over margin compression, integration costs from the Irwin acquisition, and broader consumer weakness. Analysts noted that the company’s gross margin dropped to 37.2% from 43.8% year-over-year, with CEO Dayton Judd attributing the decline to inventory step-up amortization and higher input costs.

CEO Commentary

Dayton Judd highlighted a 47% YoY revenue increase to $23.5 million, driven by the Irwin acquisition, which contributed $6.8 million of the $7.5 million growth. He acknowledged challenges, including MRC headwinds and MusclePharm’s online sales decline due to rising whey protein costs. Strategic priorities include shifting Irwin’s wholesale sales to higher-margin online channels and addressing Amazon algorithm impacts on Dr. Tobias.

Guidance

Judd outlined expectations for continued whey protein cost inflation, with prices reaching $7/lb in 2026, prompting planned January 2026 price increases for MusclePharm. He anticipates Irwin’s gross margins improving to mid- to high-30s as online sales expand and supply chains optimize.

Additional News

FitLife Brands completed the acquisition of Irwin Naturals on August 8, 2025, which contributed $6.8 million in revenue during the 53-day period from August 9 to September 30. The company emphasized a strategic shift for Irwin to prioritize online sales over wholesale, ceasing partnerships with third-party sellers on Amazon. CEO Judd also highlighted ongoing consumer weakness, including declining Amazon subscriber counts and reduced wholesale replenishment orders, though he expects these trends to stabilize. The acquisition is expected to diversify product offerings and generate future synergies, with debt reduction projected from Q4 2025 onward.