FitLife Brands Reports 5% Revenue Decline in Q2 2025, Acquires Irwin Naturals

FitLife Brands, Inc. reported a decline in financial performance for the second quarter of 2025, with revenues totaling $16.1 million, a decrease of 5% from $16.9 million in the same period last year. For the first half of 2025, total revenue was $32.1 million, down 4% from $33.5 million in the first half of 2024. The company's net income also fell, reaching $1.7 million for the quarter, down 34% from $2.6 million in the prior year, and $3.8 million for the six months, a 21% decrease from $4.8 million in 2024. The decline in revenue was primarily attributed to lower sales from the MRC product line, which saw a 16% drop in the second quarter, partially offset by a 7% increase in revenue from the Legacy FitLife brand.

The company's cost of goods sold (COGS) decreased slightly to $9.2 million for the second quarter, down 1% from $9.4 million in the previous year. Gross profit also fell to $6.9 million, resulting in a gross margin of 42.8%, down from 44.8% in the same quarter of 2024. The decrease in gross margin was attributed to product mix changes and promotional investments in the MusclePharm brand, as well as tariffs affecting certain products sold in Canada. Operating expenses increased by 12% to $4.4 million, driven by higher merger and acquisition-related costs associated with the recent acquisition of Irwin Naturals.

FitLife Brands has made significant strategic moves, including the acquisition of Irwin Naturals, which was finalized on August 8, 2025, for approximately $42.5 million. This acquisition was funded through a combination of a new term loan and a revolving line of credit. The company also executed a 2-for-1 stock split in February 2025, increasing the number of authorized shares. As of June 30, 2025, FitLife Brands had a total of 9,391 shares outstanding, up from 9,210 at the end of 2024.

Operationally, the company reported that online sales accounted for approximately 65% of total revenue in the second quarter, consistent with the previous year. Sales to U.S. customers remained strong, representing about 96% of total sales. The company continues to focus on enhancing its online presence and expanding its product offerings, including the recent launch of the MusclePharm Pro Series in select retail locations.

Looking ahead, FitLife Brands anticipates that the integration of Irwin Naturals will enhance its product portfolio and market reach. However, the company acknowledges potential risks related to market conditions and the impact of promotional investments on profitability. Management remains committed to improving operational efficiencies and driving revenue growth through strategic marketing and product development initiatives.