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Aug 13, 2026, 8:30 AM ETConsumer Defensive

FitLife Brands — Second Quarter 2026 Earnings Summary

FTLFFITLIFE BRANDS INC
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Financial Performance

  • Total revenue reached $26.5 million for the quarter ended June 30, 2026, a 65% year-over-year increase from $16.1 million in Q2 2025.
  • Net income was $2.0 million for the quarter, a 12% increase compared to $1.7 million in Q2 2025.
  • Basic earnings per share were $0.21 and diluted earnings per share were $0.20, compared to $0.19 and $0.18 respectively in Q2 2025.
  • Adjusted EBITDA was $3.7 million, representing a 10% increase from Q2 2025.
  • Gross margin decreased to 37.0% in Q2 2026 from 42.8% in Q2 2025, primarily due to the lower-margin Irwin Naturals acquisition.
  • Wholesale revenue was $14.6 million, up 156% year-over-year, accounting for 55% of total revenue.
  • Online revenue was $11.9 million, up 14% year-over-year, accounting for 45% of total revenue.
  • Cash on hand was $1.1 million at quarter-end.
  • Total net debt was $37.0 million, consisting of $36.1 million in term loans and $2.0 million on the revolving line of credit.
  • Since the Irwin acquisition on August 8, 2025, the company paid off approximately $8.6 million of indebtedness and $2.0 million in transaction-related expenses.

Business Segments and Product Lines

  • Irwin Naturals contributed $14.1 million in revenue during Q2 2026, an increase of approximately 10% sequentially from Q1 2026.
  • Irwin's wholesale revenue grew 4% sequentially, while online revenue grew 35% sequentially, driven by Amazon sales which reached an annual run rate of approximately $11 million by the end of Q2 2026.
  • Irwin's online sales represented 24% of its total revenue in Q2 2026, up from 4% at the time of acquisition.
  • Irwin generated a gross margin of 32.8% and contribution as a percentage of revenue of 29.2% in Q2 2026.
  • Legacy FitLife revenue decreased 23% year-over-year to $12.4 million, driven by a 31% decline in wholesale revenue and a 19% decline in online revenue.
  • Legacy FitLife wholesale revenue decline was primarily attributed to lower sales to large specialty retail partners, specifically GNC.
  • Legacy FitLife online revenue decline was primarily attributable to the MRC brand.
  • Legacy FitLife gross margin was 41.7% in Q2 2026, down from 42.8% in Q2 2025.
  • Legacy FitLife contribution as a percentage of revenue was 34.1% in Q2 2026, down from 35.4% in Q2 2025.
  • Legacy FitLife consists of thirteen brands including MRC and MusclePharm; Irwin consists of three brands.

Risks and Challenges

  • The company faces consumer weakness and changes in Amazon algorithms, which are outside of its control.
  • Supply chain difficulties and new product development challenges are identified as areas within the company's control.
  • Gross margin compression is a risk due to the acquisition of Irwin Naturals, which historically operates at a lower gross margin than Legacy FitLife.
  • Legacy FitLife faces headwinds from declining sales to specific retail partners.

Management Commentary and Tone

  • Chairman and CEO Dayton Judd noted that while challenges persist, the company experienced sequential growth in both wholesale and online revenue during the second quarter.
  • Management expressed confidence that focusing on the right priorities will drive continued long-term improvement.
  • Management highlighted that the $8.6 million debt reduction saves approximately $0.6 million in annual interest expense at the current 6.5% weighted average interest rate.
  • Management intends to continue deploying excess free cash flow toward debt reduction to further reduce interest expense.
  • Management stated that Irwin's revenue mix is expected to shift further toward online over time, consistent with patterns seen with other brands.

Other Key Points

  • The company acquired Irwin Naturals on August 8, 2025.
  • Irwin Naturals began selling products on Amazon in mid-October 2025.
  • Management intends to disclose performance metrics for acquired brands for approximately two years following a transaction.
  • The company held an investor conference call on August 13, 2026, at 4:30 pm ET.
  • The company markets more than 500 different products online and through various retail locations.
  • The company is headquartered in Omaha, Nebraska.