FitLife Brands NASDAQ: FTLF executives said the company’s fourth quarter and full-year fiscal 2025 results were shaped by the August 2025 acquisition of Irwin Naturals, while also acknowledging broad-based demand softness that intensified late in the fourth quarter and has persisted into the first quarter of 2026.
CEO Dayton Judd said the fourth quarter was the first full quarter to include Irwin Naturals’ financial results. CFO Jakob York joined the call; EVP Ryan Hansen was on vacation.
Full-year 2025: Growth in most brand groupings, except MRC
Judd said 2025 was “a strong year for all of our brand groupings other than MRC.” He reported that Legacy FitLife (excluding MRC and MusclePharm) delivered approximately 6% organic revenue growth, with wholesale revenue flat and online revenue up about 16% for the year. MusclePharm delivered about 5% organic revenue growth in 2025, with growth in both wholesale and online channels, while MRC revenue declined approximately 15%.
Judd also provided historical context for Irwin Naturals, noting that the brand’s results prior to FitLife’s ownership were affected by several factors that no longer reflect the go-forward business, including the discontinuation of the final Irwin product at Costco U.S. in early 2025, Rite Aid’s bankruptcy and liquidation, and FitLife’s post-acquisition decision to exit CBD.
Judd said Irwin historically generated meaningful CBD revenue, totaling about $4.8 million in gross revenue in the 12 months prior to the acquisition, but FitLife decided to discontinue all CBD products after the deal. The company expects to be fully out of CBD inventory “later in 2026,” he said.
After adjusting for Costco U.S., Rite Aid, and CBD, Judd said Irwin’s net revenue would have been $54 million for full-year 2024 and $54 million for full-year 2025—flat year over year on a normalized basis.
Fourth quarter results: Revenue jumps on Irwin acquisition, margins pressured
For the fourth quarter of 2025, FitLife reported total revenue of $25.9 million, up 73% year over year, “primarily as a result of the acquisition of Irwin,” Judd said, partially offset by weakness in Legacy FitLife. Wholesale revenue rose to $15.5 million, or 60% of revenue, up 213%, while online revenue was $10.5 million, or 40% of revenue, up 4%.
Excluding amortization of the inventory step-up related to the Irwin acquisition, gross margin was 37.0%, down from 41.4% a year earlier. Judd attributed the decline primarily to Irwin’s historically lower margin profile, while adding that management expects improvement over time. Contribution (gross profit less advertising and marketing expense) increased 47%, driven mainly by Irwin, but was partially offset by lower contribution from Legacy FitLife.
Net income was $1.6 million, down from $2.1 million in the year-ago quarter, which Judd said was driven primarily by transaction-related expenses and the inventory step-up amortization. Adjusted EBITDA was $3.5 million, up 14% year over year.
During Q&A, Judd said the inventory step-up amortization ended in the fourth quarter: “In the Q1 numbers and beyond, you will not see any amortization of inventory step-up.”
Brand performance: Legacy FitLife softness; Irwin shows early Amazon momentum
Judd said the company began seeing “broad-based weakness across our portfolio of brands” around mid-November, and that weakness accelerated late in the fourth quarter and into the first quarter. He pointed to consumer confidence concerns and weaker discretionary spending, adding that consumer sentiment “remains near all-time lows.”
Total Legacy FitLife revenue in the fourth quarter was $13.3 million, with 68% from online sales and 32% from wholesale customers. Judd said wholesale revenue declined 14% year over year and online revenue fell 10%, for a total decline of 12%. The declines were primarily attributable to MRC and MusclePharm; excluding those two, the other Legacy FitLife brands delivered 4% organic growth in the quarter, he said.
Legacy FitLife gross margin declined to 40.7% from 41.4%, and contribution fell 18% to $4.3 million. Excluding MRC and MusclePharm, Judd said the remaining brands delivered higher revenue, higher gross margin, and higher contribution as a percentage of revenue compared with the prior-year quarter.
Irwin produced $12.6 million of revenue in the quarter, with $11.2 million (89%) from wholesale and 11% from online. Reported gross margin was 28.0% and contribution margin was 26.6%. Adjusting for the inventory step-up amortization, Judd said Irwin gross margin would have been 33.2% and contribution margin would have been 31.8%.
Judd highlighted accelerating momentum on Amazon after FitLife began selling Irwin products there in mid-October. He said Amazon revenue for Irwin scaled from about $60,000 in October to $300,000 in November and nearly $500,000 in December. He added that growth continued into the first quarter of 2026, with Irwin’s monthly Amazon revenue now approximately $0.8 million, implying a $9 million to $10 million annualized run rate.
Judd also said Irwin’s subscriber growth has been strong, with subscribers increasing from about 500 at the beginning of 2026 to over 3,600 “today,” contrasting that with declines in subscriber counts across most other brands. He attributed the broader subscriber declines to an Amazon change made around late September that switched the default buy box from Subscribe & Save to one-time purchase.
Balance sheet and 2026 priorities: Supply chain fixes, marketing shift, and no guidance
On the balance sheet, Judd said FitLife began scheduled amortization on its term loan in the fourth quarter and paid down about $1.9 million of debt during the quarter, ending with a $44.7 million debt balance. He added that the company reduced its revolver balance by $1.4 million during the first quarter and made another scheduled term-loan amortization payment of about $1.5 million “yesterday,” saying FitLife is “ahead of schedule” on debt reduction and intends to continue using excess free cash flow to pay down debt.
Judd said management has identified five priorities to address weak performance and improve revenue and costs over time:
- Improve Irwin’s supply chain, including reducing roughly $2 million of annual obsolete inventory disposal. Judd said moving products from two-year to three-year dating could potentially lift Irwin gross margin by 300 to 400 basis points, with a “dollar-for-dollar impact on EBITDA.” FitLife hired a new VP of operations for Irwin in February and expects meaningful supply chain improvements through 2026.
- Increase Irwin new product development, with three new products currently in production that FitLife expects to launch in the third quarter.
- Drive off-Amazon awareness and demand generation, as Judd said FitLife believes Amazon’s evolving algorithms increasingly reward listings that bring external traffic. He cited Irwin as the fastest-growing FitLife Amazon account and described efforts to build off-Amazon presence for Dr. Tobias, including TikTok brand ambassadors and a partnership with competitive eater Joey Chestnut tied to Dr. Tobias’s Hero Colon Cleanse product.
- Cross-sell into wholesale using Irwin’s sales team, noting FitLife recently gained placement of six MusclePharm SKUs in a regional grocery chain beginning in the second quarter, with additional retailer conversations underway.
- Continue SG&A efficiency efforts, including exiting MRC’s Toronto-area office lease and expecting Irwin’s lease renewal later in the year to be for a smaller space at a lower cost per square foot.
Asked about the relative impact of macro pressure versus Amazon-specific headwinds, Judd said he could not confidently bifurcate the two. He noted that point-of-sale data shows supplement category growth has been declining for about six months and recently turned negative, but he also pointed to additional variables such as out-of-stocks that are “hard to quantify.”
On gross margin expectations, Judd said returning to 40% may be difficult given Irwin’s historical margin profile, but he expects improvement. He told one analyst that a consolidated gross margin “closer to high 30s% is reasonable” over time as supply chain issues are addressed.
FitLife declined to provide formal guidance for 2026. Judd said the company is holding off due to continued weakness in the first quarter and uncertainty about how long exogenous challenges will persist and how quickly internal initiatives will translate into results. He told investors that “Q1 looks a whole lot like Q4,” indicating the company is not seeing a typical seasonal lift so far.
Judd also addressed questions about MusclePharm, noting the brand continues to face elevated protein input costs and broader protein category dynamics. He said FitLife declined a roughly $1.5 million purchase order from an international customer in the first quarter due to what would have been the lowest gross margin the company had ever sold at, emphasizing the company’s intent to protect profitability rather than chase revenue.
On Irwin and Costco U.S., Judd said FitLife has held discussions but does not expect to regain Costco U.S. distribution “anytime soon.” He noted Irwin continues to sell in Costco Canada and said there have been no SKU losses there since FitLife acquired the business.
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.
Read More
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider FitLife Brands, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and FitLife Brands wasn't on the list.
While FitLife Brands currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead.
This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.
Get This Free Report
