FitLife Brands Q2 2026 Earnings Call: Complete Transcript

FitLife Brands (NASDAQ: FTLF ) reported second-quarter financial results on Thursday. The transcript from the company's second-quarter earnings call has been provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

5 million for Q2 2026, driven by the acquisition of Irwin, despite a decline in revenue from legacy FitLife. 7 million. Strategic initiatives include improvements in Irwin's supply chain, product development, off-Amazon marketing, leveraging Irwin's sales team for cross-selling, and operating more efficiently with SG&A reductions. Irwin's Amazon sales have exceeded expectations with strong growth, while challenges remain in the wholesale channel, particularly with GNC and MRC impacting legacy FitLife sales.

6 million since the Irwin acquisition, and expects further interest savings from continued debt reduction. Full Transcript OPERATOR It is now my pleasure to turn the floor over to your host, Dayton Judd, CEO of FitLife Brands. Sir, please go ahead. Dayton Judd, CEO Good afternoon.

I'd like to welcome everyone to FitLife's second quarter 2026 earnings call. We appreciate you taking the time to join us this afternoon. Joining me on the call is FitLife's President, Ryan Hanson, and FitLife's CFO, Jacob York. 5 million, an increase of 65% compared to the same quarter last year, with the increase driven primarily by the acquisition of Irwin, partially offset by lower revenue for legacy FitLife.

6 million, or 55% of revenue, an increase of 156% compared to the second quarter of 2025. 9 million, or 45% of total revenue, an increase of 14% compared to the second quarter of 2022. 8% during the second quarter of 2025. The decline in gross margin is primarily due to the acquisition of Irwin, which has historically operated at a lower gross margin than legacy FitLife.

Contribution, which we define as gross profit less advertising and marketing expense, increased 46%, driven primarily by the addition of Irwin, partially offset by lower contribution from legacy FitLife. 7 million during the second quarter of 2025. 7 million, a 10% increase compared to the second quarter of 2025. In addition to the year-over-year numbers, I would like to highlight some sequential comparisons.

3%. And diluted earnings per share has increased sequentially in each of the past three quarters. So although we have been working through a number of challenges in the business over the past three quarters, we are pleased with the progress the team is making with regard to brand-level performance. I'll start with legacy FitLife.

4 million, of which 68% was from online sales and 32% was from wholesale customers. This represents a 31% year-over-year decrease in wholesale revenue and a 19% year-over-year decrease in online revenue, or a 23% decrease in total revenue. The online revenue decline was primarily attributable to MRC, and the wholesale revenue decline was primarily attributable to reduced sales to GNC. 0%.

So, although the year-over-year declines are still high, we were happy to see the sequential stability during the quarter. 7% in the second quarter of 2026. 7% in the second quarter of 2026. In fact, the second quarter of 2026 represents the third quarter in a row that gross margin for legacy FitLife has increased sequentially, so we are encouraged by that trend.

4% in the same quarter of 2025. Sequentially, contribution and contribution as a percentage of revenue were approximately flat from the first quarter of 2026 to the second quarter of 2026. 7 million, or 76%, came from wholesale customers and 24% came from online sales. 2%.

As previously mentioned, we began selling Irwin products on Amazon in mid-October and the business has scaled nicely for the past several months. 8 million in March of 2026, and just under $1 million in June of 2026. Although June revenue was helped by Prime Day, which took place June 23rd through the 26th, sales for Irwin on Amazon have remained strong since the end of the second quarter, with July revenue comparable to June but without the benefit of Prime Day.

On our fourth quarter earnings call, I outlined five initiatives we were focused on to drive improved performance, and I thought it would be productive to provide a brief update on our progress against each of those. The first initiative was to significantly improve Irwin's supply chain. This is a project that will take several more months before we can declare victory, but I'm pleased with the tangible progress we have made. More specifically, the biggest opportunity was to transition as many of our products as possible to three-year dating compared to the two-year dating the products had at the time of the acquisition.

As a reminder, Irwin has historically written off and disposed of approximately $2 million worth of inventory each year largely because of a combination of high MOQs and a short 12-month selling window. Since retail partners require 12 months of shelf life on incoming products, increasing the shelf life to three years doubles the selling period, resulting in lower inventory obsolescence. As of today, we have approved three-year formulas for 85% of Irwin's products. We have inventory on hand with three-year dating for 12% of Irwin's products, with POs outstanding for an additional 22%.

We will continue to transition more and more of our formulas to three years as we reach reorder points. Another supply chain improvement opportunity is to reduce the number of out-of-stock situations. While we don't have this fully behind us yet, I am pleased that lost revenue due to out-of-stocks declined over 50% in the second quarter of 2026 compared to the first quarter of 2026. Additionally, we are working on other supply chain initiatives around better managing logistics expense, which we expect to favorably impact cost of goods sold.

Bottom line, we are making progress improving Irwin's supply chain, which we expect to translate into improved margins in the coming quarters. The second initiative was to improve new product development at Irwin. New product launches are important to maintaining relevance in the nutritional supplement industry. When we bought Irwin, the new product pipeline was almost non-existent.

A related problem was that Irwin has historically focused on the nutritional supplement categories where it was the strongest. Unfortunately, its two strongest categories—weight loss and men's health—are declining significantly. In other words, Irwin was previously focused primarily on defending share in declining categories rather than strengthening its presence in growing categories. We have three new products currently in production and slated for launch late during the third quarter or early in the fourth quarter, although unfortunately most of those are in men's health or weight loss.

For future product launches, however, we have a robust pipeline of products in development that are more focused on attractive and growing nutritional supplement categories. Our goal is to launch at least four of these new products each quarter beginning in 2027. The third initiative was to drive off-Amazon awareness for our products, which we expect to translate into strength on Amazon as well. This strategic shift is in response to the Amazon algorithm changes that we have previously highlighted.

4% sequentially compared to the first quarter of 2026 and, importantly, off-Amazon spend is a much higher percentage of that number than it has ever been. Like many of our other initiatives, it is going to take some time before we know the outcome, but we are beginning to see some recent encouraging metrics. For example, average weekly sessions on Amazon for our portfolio of brands, including Dr. Tobias, is higher in the last five weeks compared to the 13-week period prior to Prime Day at the end of June.

The fourth initiative was to leverage Irwin's sales team to cross-sell other FitLife products into the wholesale channel. The sales process in wholesale is long, with many retailers resetting planograms only once or potentially twice a year. We previously announced the two MusclePharm SKUs that were added to over 700 Kroger locations late during the second quarter. We also previously announced the placement of six MusclePharm SKUs in a regional grocery chain, which was supposed to happen in the second quarter but has been delayed until later this year.

We continue to have productive discussions with a number of retailers and hope to have other updates on this initiative in the coming quarters. The fifth initiative was to operate more efficiently with regard to SG&A. 0 million in the first quarter of 2026. 8 million.

In addition, since the end of the second quarter we have acted on other SG&A reductions and have identified other improvement opportunities we intend to implement over the remainder of this year. As previously indicated, we don't believe any individual SG&A reduction opportunity will be material on its own, but in total we expect them to be compelling. Now let me provide a few additional high-level comments, and then we can move into Q&A.

We have previously fielded questions and provided commentary about subscriber counts on Amazon, particularly when subscriber counts started declining after Amazon made one-time purchase the default buying option about a year ago rather than Subscribe & Save. Following this change, our subscriber counts declined for several months, with our weakness on Amazon over the past several months probably contributing to the decline. Our total subscriber count on Amazon across all brands bottomed in mid-April, a little above 90,000 subscribers, before starting to grow again, and it has increased almost every week since then.

Currently we have approximately 94,000 active subscribers on Amazon across all of our brands. 1 million. 0 million. 0 million of transaction-related expenses.

6 million in annual interest expense. We intend to continue to deploy excess free cash flow to further reduce indebtedness. So on a full-year basis, we expect the interest savings to be even greater. To conclude, we've been dealing with a number of challenges over the past three quarters.

Some of these challenges, such as general consumer weakness and changes in the Amazon algorithms, are out of our control and we have to figure out how to adapt. Other challenges, such as supply chain difficulties and new product development, are largely within our control. And although these challenges persist, we believe we are focused on the right priorities and we are encouraged by the sequential improvements in revenue and profitability during the second quarter. So that concludes my opening commentary, and we can go ahead and open it up for questions.

OPERATOR Thank you. At this time we'll be conducting a question and answer session. If you wish to ask a question, please press Star one on your phone at this time. We ask that while posing your question, you please pick up your handset if listening on speakerphone to provide optimum sound quality.

Once again, please press Star one on your phone at this time if you wish to ask a question. And please hold while we poll for questions. And the first question today is coming from Sean McGowan from Roth Capital Partners. Sean, your line is live.

Sean McGowan, Analyst at Roth Capital Partners Thank you. Hi Dayton. Hi Ryan. My first question is about the priority you placed on growing the share of Irwin sales online relative to wholesale.

Has that met your expectations so far? I know I would imagine that you have further to go, but so far has that met your expectations? And I guess related to that, has it eaten into Irwin's wholesale sales or has it been largely incremental? Dayton Judd, CEO Yeah.

Hey Sean, thanks for the questions. In terms of expectations, I think it's exceeded our expectations. I think early in the process we, you know, shortly after the acquisition—I can't remember the number off the top of my head—but you all may remember that we sold products wholesale to a third party that was kind of like the exclusive seller on Amazon, but that was kind of in the range of $2 to $3 million a year. And if you looked at the total kind of dollars paid for those products, it was quite a bit lower than what we're getting right now.

Right. So you know, an easy expectation would have been for us just to take over what they were selling. But in a matter of a few months, we not only did that, but we've grown it significantly. And there's a number of products that have a lot of momentum and continue to grow.

We've got kind of one product in particular that we're having a hard time keeping in stock, and it's just one product on its own out of 250, 300 that we sell on Amazon under the Irwin brands. 5 to $2 million a year kind of pacing right now. So we're pleased, right, with the results, and it certainly exceeded our expectations. As far as your second question, it's really hard to determine how much that is cannibalized wholesale, although I think it would be indefensible to argue that it hasn't at all, that it's entirely incremental.

Like, certainly some of those sales that we're getting on Amazon are people that used to buy the products in the store. So unfortunately, we can't quantify it. We're obviously very happy to trade a wholesale unit for a retail unit, right. It's higher revenue for us.

It's higher gross profit for us. And so it's a trade we're happy to make. But that said, we wouldn't be where we are without our wholesale partners, and so we want to grow with them. We're not looking to take volumes out of the wholesale channels and move them to online.

We want it to be incremental. Sean McGowan, Analyst at Roth Capital Partners Thank you. And follow-up then on GNC. You know, this has been a subject for every conference call, it seems like.

But relative to your expectations, how is that situation evolving? Dayton Judd, CEO Yeah, so that one, I would say, is lower than our expectations. It's not—you know, I'm probably not—it would not be appropriate for me to comment on someone else's business. S.

right now. There is significant store closures that are happening, and for the stores that remain open, there's significant drops in kind of comps, comp store sales, traffic, however you want to look at it. So as we kind of try and get a sense for what those numbers are, we think our declines are in excess of that right now. Another thing to remember, though, if you go back and look historically, Q1 and Q2 of 2025 was very strong for the legacy FitLife wholesale channel, in particular GNC.

You may recall we had a dispute with them late '24 that resulted in us stopping shipments to them, and Q1 in particular—and it probably bled a little bit into Q2—they were kind of restocking their DC. So it's a little bit of a not apples-to-apples comp. But that said, I mean, this is—if you look, as I look at my business, the things I worry the most about are, number one, declining sales with some of those retail partners where we really can't do much about it. Right.

There's nothing I can do that's going to reverse course for a GNC or any of our other retail partners that are struggling. So that's kind of one thing.