FitLife Brands (FTLF) Q2 2026 Earnings Report

Mixed results: strong consolidated revenue growth (+65% YoY) and improving sequential trends (total revenue +4.8% Q/Q), driven largely by the Irwin acquisition and Amazon scale-up, alongside profitability gains (net income and adjusted EBITDA up). However, margin compression (37.0% GM vs 42.8% prior), significant year-over-year declines at Legacy FitLife (total -23% YoY) and Legacy contribution (-25.9%) are notable concerns. Company progress on Irwin supply chain, Amazon traction, SG&A reductions, and debt paydown are encouraging, but channel risks (GNC), product mix issues, and near-term margin pressure keep the picture balanced.

The company's guidance focused on operational improvements and financial discipline to drive better margins and profitability: they expect supply‑chain fixes (85% of Irwin formulas approved for three‑year dating, 12% of SKUs on‑hand with three‑year dating and 22% with POs outstanding) and lower out‑of‑stock losses (down >50% Q2 vs Q1) to improve gross margin (company GM 37.0% in Q2; Legacy 41.7%; Irwin 32.8%); product cadence targets at least four new product launches per quarter beginning in 2027; marketing was increased (+16.4% sequentially) to boost off‑Amazon awareness and Amazon performance (Irwin Amazon monthly revenue: ~$0.5M Dec ’25, ~$0.8M Mar ’26, ~<$1.0M June; July comparable; active Amazon subscribers ~94k vs ~90k in mid‑April); SG&A was ~$4.8M (down 3.8% q/q, ~ $0.8M annualized) with further reductions planned; and excess free cash flow will be used to pay down debt (term loan $36.1M after $1.5M amortization; revolver $2.0M after $2.2M paydown; ~$8.6M repaid since the acquisition, saving ~ $0.6M annually at a 6.5% weighted interest rate), all of which management expects to translate into improved margins and profitability in coming quarters.