FitLife Brands Inc (NASDAQ:FTLF) Reports Mixed Q2 2025 Results: Revenue Misses, EPS Beats Estimates

FitLife Brands Inc (NASDAQ:FTLF) reported its second-quarter 2025 financial results, missing revenue expectations while narrowly beating earnings per share (EPS) estimates. The nutritional supplements provider posted $16.1 million in revenue, a 5% year-over-year decline, falling short of analyst expectations of $16.4 million. Adjusted EPS came in at $0.18, slightly above the consensus estimate of $0.1785.

Key Financial Highlights

• Revenue Performance: The $16.1 million in Q2 revenue represents a 5% drop from the prior year’s $16.9 million, driven primarily by a 7% decline in online sales, which accounted for 65% of total revenue. Wholesale revenue remained flat at $5.7 million.
• Profitability Pressures: Gross margin contracted to 42.8% from 44.8% in Q2 2024, attributed to higher costs in the Mimi’s Rock (MRC) segment, including tariff impacts on skincare brands. Net income fell to $1.7 million from $2.6 million, with merger-related expenses weighing on results.
• Segment Breakdown:
  • Legacy FitLife: Revenue grew 7% year-over-year, supported by a 17% increase in online sales.
  • MRC Brands: Revenue declined 16%, with gross margin dropping to 46.5% due to tariffs and reduced traffic for the Dr. Tobias brand.
  • MusclePharm: Revenue dipped 4%, though management noted improving wholesale performance in July.

Market Reaction

The stock has gained 8.6% over the past week and 30.5% over the last two weeks, suggesting investor optimism ahead of earnings. However, the muted pre-market movement (0.0%) post-announcement indicates a neutral reaction to the mixed results. The revenue miss may be offset by relief that EPS met expectations and the company’s progress in integrating recent acquisitions.

Outlook vs. Analyst Estimates

Management did not provide explicit forward guidance in the press release, but analysts project Q3 2025 revenue of $17.3 million and full-year revenue of $67.5 million. The company highlighted growth initiatives, including the launch of MusclePharm’s Pro Series line and the recent acquisition of Irwin Naturals, which is expected to contribute approximately $60 million in annual revenue (adjusted for lost Costco distribution).

Strategic Developments

FitLife completed the $42.5 million acquisition of Irwin Naturals post-quarter, funded through a new term loan and cash reserves. CEO Dayton Judd emphasized cost-saving opportunities and margin improvements for Irwin, though the transaction’s near-term impact on profitability remains a watchpoint.

For further details on FitLife’s earnings and estimates, visit the earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.