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SEC filingRevenue accelerated 58.9% to $25.3M from the Irwin acquisition, driving gross profit growth of 38.4% while operating income rose modestly 3.5%; net income declined 14.8% amid integration pressures.
FitLife Brands delivered strong Q1 2026 results anchored by the Irwin acquisition, which fueled revenue growth to $25.3 million, a 58.9% increase from $15.9 million in the prior year. This topline surge, primarily attributed to Irwin's contribution as noted in management discussion, expanded gross profit to $9.5 million, up 38.4% from $6.9 million, though gross margin compressed slightly to 37.6% from the prior period's level due to portfolio mix effects.
Operating income advanced modestly to $3.1 million, a 3.5% improvement over $3.0 million last year, as revenue leverage was tempered by elevated expenses. Management highlights that the significant increase in selling, general, and administrative costs stems directly from Irwin integration, pressuring overall profitability. Despite this, the company maintained a solid operating margin of 12.1%, demonstrating resilience in core operations amid expansion.
Net income totaled $1.7 million, down 14.8% from $2.0 million, with diluted EPS at $0.17 versus $0.20 prior year. This decline reflects the balance between revenue gains and acquisition-driven cost inflation, underscoring the short-term trade-offs of inorganic growth.
Cash generation strengthened meaningfully, with net cash provided by operating activities reaching $2.5 million, up from $2.3 million, driven by favorable working capital fluctuations compared to Q1 2025. Capital expenditures fell to zero from $24 thousand, resulting in free cash flow of $2.5 million. Management notes the decrease in investing cash usage ties to lower capex, preserving liquidity.
Operationally, Irwin's e-commerce momentum built post its mid-October 2025 Amazon launch, achieving an approximate $9.5 million annual run rate by quarter-end, enhancing distribution through channels like GNC stores domestically and internationally. Looking ahead, management anticipates operational cash flows, existing reserves, and credit line availability will support liquidity needs for the next twelve months, positioning FitLife to navigate integration while capitalizing on acquired growth drivers.