FitLife Brands (FTLF -0.56%), a nutritional supplements company with products spanning sports nutrition, weight management, and general wellness, released its financial results for the second quarter of fiscal 2025 on August 14, 2025. The most notable news from the earnings release was a slight revenue and EPS beat, with GAAP revenue was $16.1 million versus analyst expectations of $16.08 million, and GAAP diluted EPS was $0.18 compared to an expected $0.17 (GAAP). However, these minor beats masked a weaker year-over-year performance due to headwinds in several business segments. Overall, the quarter highlighted declines in key financial metrics and continued pressure across several prominent brands, even as the company completed a transformative acquisition after quarter-end.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS – Diluted (GAAP) | $0.18 | $0.17 | $0.27 | (33.3%) |
| Revenue (GAAP) | N/A | $16.08 million | $16.93 million | -5.0% |
| Gross Margin | 42.8% | 44.8% | (2.0 pp) | |
| Net Income | N/A | N/A | N/A | |
| Adjusted EBITDA | $3.33 million | $3.83 million | (13.1%) |
Source: Analyst estimates for the quarter provided by FactSet.
Company Overview and Core Business Drivers
FitLife Brands operates as a marketer and distributor of nutritional supplements. Its broad product portfolio includes brands like NDS Nutrition for weight loss, PMD Sports for performance supplements, and MusclePharm for sports nutrition. The company sells to consumers through specialty retailers, online stores, and mass-market channels in the United States and select international markets.
FitLife's recent strategic focus has centered on expanding its market share through brand development, new product launches, and acquisitions. Key success factors include nurturing consumer trust, managing a diverse product mix, maintaining multi-channel distribution, and introducing innovative supplements to stay ahead in a competitive sector. Sustaining strong margins and effective online channel management are also vital elements for continued performance.
Quarterly Performance: Segment Results and Strategic Developments
During the quarter, Overall GAAP revenue fell by 5% compared to the same period last year. Online sales, which account for 65% of total sales, dropped 7%, while wholesale revenue remained unchanged. GAAP gross margin compressed by 2 percentage points to 42.8%, influenced by elevated costs of goods and tariff impacts, especially in the Mimi’s Rock segment.
The Legacy FitLife segment, which represents core brands like NDS Nutrition and PMD Sports, delivered a 7% revenue increase, with online revenues up 17%. Gross profit and contribution margin experienced slight declines, with gross margin dropping to 42.8% and non-GAAP contribution margin dipping from 42.8% in Q2 2024 to 42.0% in Q2 2025. These changes suggest that even the company’s healthiest brands are not immune to cost pressures.
The Mimi’s Rock (MRC) division, with brands such as Dr. Tobias (focused on general wellness) and skin care lines Maritime Naturals and All Natural Advice, continued to face challenges. Revenue for this segment fell 16% year-over-year, led by a drop in online sales and traffic declines to Amazon product listings. Tariffs of 25% on skin care product imports also impacted profitability, with gross margin reducing to 46.5%.
MusclePharm, FitLife’s sports nutrition supplement brand, saw total revenue decrease 6% in Q1 2025. Gross margin for the MusclePharm segment was 30.8%, mainly due to higher promotion costs and ongoing investments in marketing efforts such as The MusclePharm Pro Series, a collection of premium sports nutrition products launched in mid-March 2025, and new ready-to-drink (RTD) protein beverages. While management cited record wholesale revenue for MusclePharm in July 2025, these results came after quarter-end and were not reflected in the current results.
Acquisition and Operational Shifts
A key development was the post-quarter completion of the $42.5 million Irwin Naturals acquisition on August 8, 2025. According to management, Irwin Naturals produced approximately $60 million in revenue with a 35% gross margin in the trailing twelve months as of June 30, 2025, leading up to the acquisition, nearly quadrupling FitLife’s scale. The purchase was funded primarily through new debt, increasing FitLife's leverage but also bringing in a sizable revenue stream to the portfolio.
Management expects to improve Irwin’s margins over time by shifting revenue toward the higher-margin online channel and optimizing the supply chain. The acquisition is projected to lower annual selling, general, and administrative (SG&A) expenses by $1.5 million due to operational synergies, including changes to staffing levels. FitLife ended the quarter with $6.6 million in cash and $10.9 million outstanding on term loans; these leverage metrics are anticipated to rise in future periods because of the new acquisition financing.
The company continued to experience mixed results in channel performance. Online revenue as a percentage of total sales remains robust, but the decline in overall online revenue highlights a vulnerability to digital platform trends, notably algorithm changes and consumer traffic patterns on sites like Amazon. Wholesale was steady but not sufficient to counterbalance weakness in some online-driven brands.
Tariffs continue to pose a challenge, with management noting a 25% tariff imposed on certain skin care brands in the MRC segment. These tariffs have contributed directly to gross margin compression in that division. Channel disruptions and marketplace exposure, including traffic shortfalls to Amazon pages for Dr. Tobias, have yet to be resolved.
Looking Forward: Outlook and Watch Items
FitLife Brands does not provide formal financial guidance for future quarters or the full fiscal year.
Investors will want to monitor progress on several fronts. These include stabilization of traffic and sales for Dr. Tobias, evidence of sustained revenue rebound in MusclePharm (especially after strong July wholesale results), and tangible synergies or margin gains from the Irwin Naturals acquisition. Tariff exposure and overall margin trends also remain key risk factors. FTLF does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
