FitLife Brands (NASDAQ:FTLF) reported second-quarter 2026 revenue of $26.5 million, up 65% from a year earlier, as the company’s acquisition of Irwin Naturals more than offset declines in its Legacy FitLife business. Net income rose to $2.0 million from $1.7 million in the prior-year quarter, while adjusted EBITDA increased 10% to $3.7 million.
CEO Dayton Judd said revenue also improved sequentially, rising 4.8% from the first quarter. Wholesale revenue increased 3.7% sequentially and online revenue rose 6.3%. Diluted earnings per share has increased in each of the past three quarters, Judd said.
Irwin Acquisition Drives Growth, Pressures Margin
Wholesale revenue totaled $14.6 million, representing 55% of total revenue and rising 156% year over year. Online revenue was $11.9 million, or 45% of total revenue, up 14% from the prior-year period.
Gross margin declined to 37.0% from 42.8% a year earlier, primarily because Irwin has historically operated with a lower gross margin than Legacy FitLife. Contribution, defined by the company as gross profit less advertising and marketing expense, increased 46%, driven mainly by Irwin’s addition.
Irwin generated $14.1 million in second-quarter revenue, with $10.7 million, or 76%, coming from wholesale customers. Online sales accounted for the remaining 24%. The business reported a 32.8% gross margin and contribution equal to 29.2% of revenue.
FitLife began selling Irwin products directly on Amazon in mid-October. Monthly Amazon revenue for Irwin reached about $500,000 in December 2025, approximately $800,000 in March 2026 and just under $1 million in June. June results benefited from Prime Day, but Judd said July revenue was comparable to June without that event.
During the question-and-answer session, Judd said Irwin’s online sales progress had exceeded management’s expectations. He said FitLife previously sold Irwin products wholesale to a third party that served as an Amazon seller, producing roughly $2 million to $3 million annually in sales. The company has surpassed that level after taking over the channel, he said.
Judd acknowledged that some Amazon sales may have displaced wholesale volume, but said FitLife considers the shift favorable because direct retail sales generate higher revenue and gross profit. He added that the company does not intend to take volume from wholesale partners and instead wants online growth to be incremental.
Legacy Business Stabilizes Sequentially
Legacy FitLife revenue fell 23% year over year to $12.4 million. Online sales made up 68% of that total and wholesale represented 32%.
Wholesale revenue in the legacy business declined 31% from a year earlier, largely due to lower sales to GNC, while online revenue declined 19%, primarily attributable to MRC. However, total Legacy FitLife revenue was down less than 0.5% sequentially, as a 3% increase in wholesale revenue was mostly offset by a 2% decline in online revenue.
Legacy FitLife gross margin was 41.7%, down from 42.8% a year ago but up from 41.2% in the first quarter. Judd said the second quarter marked the third consecutive quarter of sequential gross-margin improvement for the legacy operation.
Contribution for Legacy FitLife declined 25.9% to $4.2 million, while contribution as a percentage of revenue fell to 34.1% from 35.4% a year ago. On a sequential basis, contribution and contribution margin were approximately flat.
Judd said the GNC situation was running below FitLife’s expectations and described specialty retail in the United States as challenged, with store closures and lower comparable-store sales. He also noted that the comparison with the first half of 2025 was affected by GNC restocking distribution centers following a prior shipment dispute.
Supply Chain, Product and Cost Initiatives
FitLife is working to improve Irwin’s supply chain, including extending product shelf life from two years to three years. Judd said Irwin historically wrote off and disposed of approximately $2 million of inventory annually, partly because retail partners require products to have at least 12 months of remaining shelf life when received.
The company has approved three-year formulas for 85% of Irwin products. It currently has inventory carrying three-year dating for 12% of products and purchase orders outstanding for an additional 22%, Judd said. Lost revenue from out-of-stock products declined by more than 50% in the second quarter compared with the first quarter.
FitLife also has three Irwin products in production for launch late in the third quarter or early in the fourth quarter. While most of those products are in men’s health or weight-loss categories, management said its longer-term pipeline is focused on growing supplement categories. The company aims to begin launching at least four new products per quarter in 2027.
Advertising and marketing expense increased 16.4% sequentially in the second quarter, with a greater portion directed to off-Amazon spending. Judd said average weekly Amazon sessions for the company’s portfolio, including Dr. Tobias, were higher during the five weeks following Prime Day than in the preceding 13-week period.
FitLife’s total Amazon subscriber count across brands bottomed at slightly above 90,000 in mid-April and has since increased almost every week, reaching approximately 94,000 active subscribers.
MusclePharm and Debt Reduction
Judd said MusclePharm revenue was down year over year but increased significantly from the first to the second quarter. The company has moved away from lower-margin, price-sensitive international protein customers, which contributed to the revenue decline but lifted margins by several hundred basis points versus recent quarters.
Two MusclePharm products were added to more than 700 Kroger locations late in the second quarter. Judd said sales increased each week during the initial weeks following the placement. He also said MusclePharm’s Amazon business was posting double-digit growth late in the second quarter and into July and August.
On the balance sheet, FitLife made a scheduled term-loan payment of approximately $1.5 million during the quarter, reducing the term-loan balance to $36.1 million. It also reduced its revolving credit balance by $2.2 million to $2.0 million.
Since completing the Irwin acquisition through the end of the second quarter, FitLife has repaid approximately $8.6 million of debt and paid about $2 million in transaction-related expenses. At the company’s 6.5% weighted average interest rate, Judd said the debt reduction translates to roughly $600,000 in annual interest-expense savings. The company intends to continue using excess free cash flow to reduce indebtedness.
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.
