FTLF · FitLife Brands, Inc.

FitLife Brands' Q4 2025 results reflect the transformative impact of the Irwin Naturals acquisition completed August 8, 2025, driving 73% total revenue growth to $25.9 million, with wholesale surging 213% due to Irwin's $12.6 million contribution (89% wholesale). Normalized for lost customers (Costco U.S., Rite Aid) and discontinued CBD ($4.8 million prior 12 months), Irwin showed 6% organic growth versus Q4 2024. Legacy FitLife declined 12% to $13.3 million amid broad weakness accelerated late Q4 into Q1 2026, led by MRC (-15% FY) and MusclePharm, though other brands grew 4%; online channels grew 16% FY but fell 10% Q4. Gross margins compressed to 37.0% (ex-step-up) from Irwin's lower 33.2% profile (28.0% reported), versus Legacy's 40.7%, with contribution margins at 26.6-31.8% for Irwin and 32.5% for Legacy (down from 34.9%). Adjusted EBITDA rose 14% to $3.5 million despite transaction costs and step-up amortization eroding net income to $1.6 million. Management highlights Q1 2026 softness tied to low consumer confidence and discretionary spending lows, but outlines five priorities: Irwin supply chain fixes to cut $2M annual inventory obsolescence (300-400 bps margin upside), new product launches Q3 2026, off-Amazon awareness via influencers (e.g., Joey Chestnut for Dr. Tobias), Amazon A10 algorithm adaptation favoring external traffic, and Irwin sales team cross-selling. Debt paydown ahead of schedule ($1.9M Q4 term loan amortization, $44.7M balance) signals deleveraging commitment using excess free cash flow.