FitLife Brands (NASDAQ:FTLF) Posts Earnings Results

FitLife Brands (NASDAQ:FTLF) released its quarterly earnings results on Thursday. The company reported $0.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.18 by $0.02, FiscalAI reports. FitLife Brands had a net margin of 6.64% and a return on equity of 18.31%. The business had revenue of $26.55 million for the quarter.

Here are the key takeaways from FitLife Brands’ conference call:

• Revenue rose 65% year over year to $26.5 million, driven primarily by the Irwin acquisition, while net income increased to $2.0 million and adjusted EBITDA rose 10% to $3.7 million. Revenue also increased 4.8% sequentially, indicating some near-term stabilization.
• Irwin’s Amazon business exceeded management’s expectations, reaching nearly $1 million in monthly revenue in June and maintaining comparable sales in July without Prime Day support. The company also reported progress on supply-chain improvements, including reduced out-of-stocks and expanded three-year product dating, which it expects to support future margins.
• Legacy FitLife revenue declined 23% year over year to $12.4 million, with wholesale sales down 31% and online sales down 19%. Management attributed the weakness primarily to declining GNC sales and continued softness at MRC, while overall company gross margin fell to 37.0% from 42.8% because Irwin operates at lower margins.
• The company paid down approximately $3.7 million of debt during the quarter, reducing its term loan to $36.1 million and revolving credit balance to $2.0 million. Management plans to continue using excess free cash flow for debt reduction, with the $8.6 million paid down since the Irwin acquisition expected to save roughly $0.6 million annually in interest expense.
• FitLife is increasing off-Amazon marketing, developing new Irwin products, pursuing wholesale cross-selling, and reducing SG&A, but management acknowledged that these initiatives will take time. It aims to launch at least four products per quarter beginning in 2027, while specialty retail conditions and consumer weakness remain significant uncertainties.

FitLife Brands Stock Down 1.6%

Shares of FitLife Brands stock traded down $0.18 on Friday, reaching $11.01. 5,997 shares of the company were exchanged, compared to its average volume of 25,588. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.52 and a quick ratio of 0.49. FitLife Brands has a 1-year low of $8.67 and a 1-year high of $20.98. The company has a market cap of $103.35 million, a P/E ratio of 18.28 and a beta of 0.01. The stock’s 50 day moving average price is $10.73 and its 200-day moving average price is $11.74.

Institutional Investors Weigh In On FitLife Brands

Several institutional investors have recently modified their holdings of the company. Wells Fargo & Company MN lifted its holdings in FitLife Brands by 78.0% during the 4th quarter. Wells Fargo & Company MN now owns 4,271 shares of the company’s stock worth $69,000 after buying an additional 1,871 shares during the last quarter. O Shaughnessy Asset Management LLC acquired a new stake in shares of FitLife Brands during the 4th quarter worth about $263,000. Los Angeles Capital Management LLC purchased a new stake in FitLife Brands during the fourth quarter worth approximately $61,000. UBS Group AG boosted its holdings in FitLife Brands by 592.7% in the third quarter. UBS Group AG now owns 35,531 shares of the company’s stock valued at $707,000 after purchasing an additional 30,402 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its holdings in FitLife Brands by 107.0% in the third quarter. JPMorgan Chase & Co. now owns 3,819 shares of the company’s stock valued at $76,000 after purchasing an additional 1,974 shares in the last quarter. 2.32% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several analysts recently weighed in on the stock. Weiss Ratings downgraded shares of FitLife Brands from a “hold (c)” rating to a “hold (c-)” rating in a report on Thursday, June 4th. Zacks Research upgraded FitLife Brands from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 14th. Two investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $21.50.

About FitLife Brands

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.