FitLife Brands NASDAQ: FTLF reported sharply higher first-quarter 2026 revenue, driven by the acquisition of Irwin, while profitability declined as the company absorbed lower Irwin margins and higher acquisition-related expenses.
Chief Executive Officer Dayton Judd said total revenue for the quarter was $25.3 million, up 59% from the same period last year. Wholesale revenue was $14.1 million, or 56% of total revenue, increasing 166% year over year. Online revenue was $11.2 million, or 44% of revenue, up 6% from the first quarter of 2025.
Gross margin fell to 37.6% from 43.1% a year earlier, which Judd attributed primarily to the Irwin acquisition. Irwin has historically operated at lower gross margins than Legacy FitLife, he said. However, gross margins improved sequentially for both Legacy FitLife and Irwin from the fourth quarter of 2025 to the first quarter of 2026.
Net income was $1.7 million, down from $2.0 million in the prior-year period. Judd said the decline was driven mainly by higher amortization expense and interest expense tied to the Irwin acquisition. Adjusted EBITDA was $3.3 million, down 3% from the first quarter of 2025.
Irwin Acquisition Lifts Sales, Pressures Margins
Irwin generated $12.8 million in first-quarter revenue, with $10.3 million, or 80%, coming from wholesale customers and 20% from online sales. Irwin’s gross margin was 34.0%, and contribution as a percentage of revenue was 31.3%.
Judd said FitLife began selling Irwin products on Amazon in mid-October and saw the business scale throughout the fourth quarter. Irwin Amazon revenue reached almost $500,000 in December 2025, approximately $800,000 in March 2026 and approximately $900,000 in April 2026. He said the account continued to grow sequentially in May month to date, though the pace of growth had slowed.
FitLife said Irwin’s organic revenue declined approximately 13% year over year after adjusting for the loss of Costco U.S. and Rite Aid as customers before the acquisition and excluding CBD products because the company decided to exit the CBD market. Judd estimated that $1 million to $1.5 million, or more than half of the decline, was tied to previously discussed out-of-stock issues.
Judd said the company expects Irwin to have additional growth opportunities on Amazon as it resolves out-of-stock situations, sets up listings for products not yet available on the platform and launches Canadian products on Amazon Canada later in the second quarter. He also said Irwin’s Amazon subscriber count increased from roughly 500 at the beginning of the first quarter to approximately 3,600 at quarter-end and more than 5,700 at the time of the call.
Legacy FitLife Revenue Declines
Legacy FitLife revenue was $12.5 million, with 70% from online sales and 30% from wholesale customers. Judd said wholesale revenue declined 28% year over year and online revenue fell 18%, producing a 22% decline in total revenue.
The declines were primarily tied to lower online revenue for MRC and lower wholesale revenue from GNC. Judd said the year-over-year wholesale comparison was particularly difficult because the first quarter of 2025 included restocking of GNC distribution centers following the resolution of a previously disclosed commercial dispute that had caused FitLife to stop shipments to GNC.
Legacy FitLife gross margin declined to 41.2% from 43.1% a year earlier, but improved from 40.7% in the fourth quarter of 2025. Contribution declined 27% to $4.3 million, and contribution as a percentage of revenue fell to 34.1% from 36.5%. Sequentially, contribution was approximately flat, while contribution margin improved from 32.5% in the fourth quarter.
Company Reduces Debt
FitLife made a scheduled amortization payment of approximately $1.5 million during the quarter, reducing its term loan balance to $37.6 million. The company also paid down an additional $1.4 million on its revolving line of credit, bringing that balance to $4.2 million.
Judd said FitLife intends to continue using excess free cash flow to reduce indebtedness.
Q&A Focuses on Amazon, MusclePharm and Kroger Launch
In response to a question from Ryan Meyers of Lake Street Capital Markets, Judd said revenue improved sequentially through the quarter. January was “kind of tough,” February was similar to January but stronger on a revenue-per-day basis, and March was above 9% in terms of revenue, he said. April revenue was higher than January and February but lower than March, though Judd said April was the company’s highest sales order month of the year. He noted that shipment timing affected revenue recognition.
Asked about Irwin’s Amazon potential, Judd said he did not see a reason the business would not reach at least $1 million per month. He cited roughly 20 Irwin products not yet set up for Amazon sales, out-of-stock products that have limited sales on the platform, the opening of Amazon Canada and increased advertising as potential tailwinds.
Sean McGowan of Roth Capital asked about MusclePharm. Judd said MusclePharm revenue was down “by choice,” as FitLife opted not to sell to some large international protein buyers at very low margins. He said online performance had improved from earlier double-digit declines to being down only slightly, and he expects MusclePharm margins to improve because the company is selling less to lower-margin international customers.
Judd also said FitLife is working to adapt to changes in Amazon’s marketplace dynamics by shifting more marketing dollars off Amazon and toward Google Ads, Meta Ads and TikTok. He said the company was “absolutely not declaring victory” but was seeing some positive trends.
FitLife also announced the launch of two MusclePharm liquid L-carnitine SKUs in several hundred Kroger stores nationwide beginning in June. In response to Samir Patel of Askeladden Capital, Judd said the products will be sold in roughly 700 to 800 stores across multiple Kroger banners, including Kroger, Fred Meyer and Smith’s. He said the company plans marketing support including connected TV advertising, possible direct mail and neck-band coupons to encourage trial.
Judd said the Kroger opportunity began before the Irwin acquisition, though FitLife expects synergies from Irwin’s existing relationships and broker network. He said the initiative has been a major focus for the company’s new chief marketing officer and consolidated marketing team.
About FitLife Brands NASDAQ: FTLF
FitLife Brands, Inc provides nutritional supplements for health-conscious consumers in the United States and internationally. The company provides weight loss, sports nutrition, and general health products; sports nutrition products; weight loss and sports nutrition products; sports nutrition and general wellness formulations with an emphasis on natural, vegan, and organic ingredients; and male health and weight loss products, as well as other diet, health, and sports nutrition supplements and related products; and value-oriented sports nutrition and weight loss products.
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