Teleconferência de Resultados da FitLife Brands (FTLF) do 2T26: Receita Sobe 65% com Crescimento da Irwin

A FitLife Brands (FTLF) relatou maior receita e EBITDA ajustado no 2º trimestre de 2026, com a aquisição da Irwin expandindo as vendas no atacado e online. No entanto, a receita de menor margem da Irwin e o enfraquecimento contínuo da Legacy FitLife reduziram a margem bruta consolidada.

Principais destaques

• A receita do 2º trimestre de 2026 aumentou 65% na comparação anual, para US$ 26,5 milhões, impulsionada principalmente pela aquisição da Irwin, parcialmente compensada pela menor receita da Legacy FitLife.
• A receita de atacado subiu 156%, para US$ 14,6 milhões, enquanto a receita online aumentou 14%, para US$ 11,9 milhões.
• A margem bruta caiu de 42,8% para 37,0%, principalmente porque a Irwin tem historicamente operado com uma margem menor do que a Legacy FitLife.
• O lucro líquido aumentou de US$ 1,7 milhão para US$ 2,0 milhões. O EBITDA ajustado subiu 10%, para US$ 3,7 milhões.
• A receita avançou 4,8% na comparação trimestral, incluindo um crescimento de 3,7% no atacado e de 6,3% no segmento online. O lucro diluído por ação aumentou na comparação trimestral pelo terceiro trimestre consecutivo.
• A administração citou riscos contínuos decorrentes da demanda mais fraca dos consumidores, alterações no algoritmo da Amazon, queda nas vendas em certos parceiros de varejo e desafios operacionais na MRC.

Principais dados financeiros

Desempenho operacional e dos negócios

Legacy FitLife segue sob pressão

A Legacy FitLife gerou US$ 12,4 milhões em receita no 2º trimestre, uma queda de 23% na comparação anual. As vendas online responderam por 68% do total e o atacado representou 32%.

A receita de atacado recuou 31%, principalmente devido à redução das vendas para a GNC. A receita online caiu 19%, em grande parte por conta da MRC. Na comparação trimestral, a receita total da Legacy FitLife permaneceu quase estável, caindo menos de 0,5%, já que o crescimento de 3,0% no atacado compensou parcialmente o recuo de 2,0% no canal online.

A margem bruta da Legacy FitLife foi de 41,7%, em comparação com 42,8% no mesmo período do ano anterior e 41,2% no 1º trimestre de 2026. Isso marcou o terceiro trimestre consecutivo de expansão trimestral da margem bruta. A contribuição caiu 25,9%, para US$ 4,2 milhões, com a margem de contribuição caindo de 35,4% para 34,1%.

Irwin impulsiona o crescimento e se expande na Amazon

A Irwin gerou US$ 14,1 milhões em receita. Os clientes do atacado contribuíram com US$ 10,7 milhões, ou 76%, enquanto as vendas online representaram 24%. A margem bruta foi de 32,8% e a margem de contribuição foi de 29,2%.

A receita mensal da Irwin na Amazon aumentou de aproximadamente US$ 0,5 milhão em dezembro de 2025 para cerca de US$ 0,8 milhão em março de 2026 e pouco menos de US$ 1 milhão em junho. O mês de junho se beneficiou do Prime Day, mas a receita de julho permaneceu em nível comparável sem o evento.

A administração afirmou que o desempenho da Irwin na Amazon superou suas expectativas iniciais. A empresa reconheceu que algumas vendas online podem ter substituído compras no atacado, embora não tenha conseguido quantificar esse efeito.

Avançam as melhorias na cadeia de suprimentos

A FitLife aprovou fórmulas com validade de três anos para 85% dos produtos da Irwin. Estoques com datação de três anos estão disponíveis atualmente para 12% dos produtos, com pedidos de compra em aberto para outros 22%.

A iniciativa visa estender o período de comercialização e reduzir a obsolescência do estoque. Historicamente, a Irwin dava baixa e descartava aproximadamente US$ 2 milhões em estoque anualmente. A receita perdida decorrente de produtos fora de estoque diminuiu mais de 50% na comparação trimestral no 2º trimestre.

MusclePharm muda o foco para receitas de maior qualidade

A receita da MusclePharm caiu ligeiramente na comparação anual, mas aumentou significativamente em relação ao 1º trimestre. A administração atribuiu grande parte da queda na comparação anual à decisão de se afastar do volume internacional de proteínas, mais sensível a preços e de menor margem.

As margens melhoraram em centenas de pontos-base em comparação com o 3º trimestre de 2025, o 4º trimestre de 2025 e o 1º trimestre de 2026. Dois novos produtos da MusclePharm chegaram a mais de 700 lojas da Kroger no final do 2º trimestre. A administração também relatou crescimento de dois dígitos na Amazon no final do 2º trimestre e ao longo de julho e agosto até o momento.

Continua a desalavancagem do balanço patrimonial

A FitLife realizou um pagamento programado de empréstimo a prazo de aproximadamente US$ 1,5 milhão, reduzindo o saldo para US$ 36,1 milhões. A empresa também quitou US$ 2,2 milhões de sua linha de crédito rotativo, deixando um saldo de US$ 2,0 milhões.

Desde o fechamento da aquisição da Irwin até o 2º trimestre de 2026, a FitLife amortizou aproximadamente US$ 8,6 milhões em dívidas e pagou cerca de US$ 2,0 milhões em despesas relacionadas à transação. Considerando a taxa de juros média ponderada de 6,5% da empresa, a gestão afirmou que a redução da dívida gera uma economia de aproximadamente US$ 0,6 milhão em despesas anuais com juros.

Perspectivas da administração

A administração espera que as melhorias na cadeia de suprimentos da Irwin, incluindo maior prazo de validade dos produtos e melhor gestão logística, sustentem as margens nos próximos trimestres. A transição levará mais alguns meses.

Três produtos da Irwin estão em produção para lançamento no final do 3º trimestre ou início do 4º trimestre, embora a maioria continue focada na saúde masculina ou na perda de peso. A partir de 2027, a meta da empresa é lançar pelo menos quatro novos produtos por trimestre, com maior ênfase em categorias que a administração considera mais atrativas e em expansão.

A FitLife também planeja reduções adicionais de SG&A durante o restante de 2026. A administração informou que a redução trimestral no 2º trimestre representa aproximadamente US$ 0,8 milhão em uma base anualizada, com oportunidades adicionais de economia identificadas.

A empresa pretende usar o excesso de fluxo de caixa livre para reduzir ainda mais a dívida. A administração prevê que a economia de juros resultante para o ano todo aumentará à medida que as amortizações continuarem.

Riscos e pontos de atenção

• A Legacy FitLife continua a enfrentar menores vendas no atacado para a GNC e desempenho online mais fraco na MRC.
• A administração descreveu o varejo especializado dos EUA como desafiado pelo fechamento de lojas, menor crescimento de vendas no conceito mesmas lojas e fluxo de clientes mais fraco.
• Mudanças no algoritmo da Amazon afetaram os negócios online da empresa e incentivaram maiores gastos com publicidade fora da plataforma.
• As categorias historicamente mais fortes da Irwin, perda de peso e saúde masculina, estão em queda significativa, segundo a administração.
• A transição da cadeia de suprimentos da Irwin permanece incompleta, incluindo a datação de validade dos produtos, problemas de falta de estoque e custos logísticos.
• As despesas com publicidade e marketing aumentaram 16,4% na comparação trimestral, com a FitLife direcionando mais gastos para conscientização da marca fora da Amazon, mas a administração afirmou que o resultado levará tempo para ser avaliado.

Destaques das perguntas e respostas dos analistas

A administração afirmou que a expansão online da Irwin superou as expectativas, com as vendas na Amazon crescendo bem além do volume anteriormente operado por um vendedor parceiro. A empresa vê com bons olhos a transição de vendas do atacado para vendas diretas ao consumidor no varejo por gerar maior receita e lucro bruto, mas ainda visa que o crescimento online seja incremental às parcerias com varejistas.

Sobre a GNC, a administração declarou que o desempenho ficou abaixo das expectativas. Destacou que as comparações com o 1º e 2º trimestres de 2025 foram atipicamente fortes porque a GNC vinha reabastecendo os centros de distribuição após uma disputa anterior sobre remessas.

Em relação à MusclePharm, a administração enfatizou que a fraqueza da receita bruta reflete em grande parte a saída de volumes internacionais menos lucrativos. Excluindo esses clientes, afirmou que o negócio estava crescendo, com margens mais fortes, progresso inicial na Kroger e melhora nas tendências na Amazon.

O número de assinantes ativos na Amazon nas marcas da FitLife atingiu seu ponto mínimo em pouco acima de 90.000 em meados de abril e subsequentemente aumentou quase todas as semanas para aproximadamente 94.000.

Transcrição completa da teleconferência de resultados

Transcrição completa da teleconferência de resultados

Comentários da administração

Operator

Good day, and welcome to the FitLife Brands Second Quarter 2026 Earnings Call. [Operator Instructions]

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

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 Hansen; and FitLife's CFO, Jakob York.

For the second quarter of 2026, total revenue was $26.5 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. Wholesale revenue was $14.6 million or 55% of revenue, an increase of 156% compared to the second quarter of 2025.

Online revenue was $11.9 million or 45% of total revenue, an increase of 14% compared to the second quarter of 2025.

Gross margin was 37.0% compared to 42.8% 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 Fit life. -- 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.

Net income for the second quarter of 2026 was $2.0 million compared to $1.7 million during the second quarter of 2025.

Adjusted EBITDA was $3.7 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. Total revenue increased 4.8% sequentially compared to the first quarter of 2026, with wholesale revenue increasing 3.7% and online revenue increasing 6.3%.

And diluted earnings per share has increased sequentially in each of the past 3 quarters. So although we have been working through a number of challenges in the business over the past 3 quarters, we are pleased with the progress the team is making.

With regard to brand level performance, I'll start with Legacy FitLife. Total Legacy FitLife revenue for the second quarter of 2026 was $12.4 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.

Sequentially, total revenue for Legacy FitLife for the second quarter of 2026 declined less than 0.5% compared to the first quarter of 2026, with wholesale revenue increasing 3.0% and online revenue declining 2.0%. So although the year-over-year declines are still high, we were happy to see the sequential stability during the quarter.

Gross margin for Legacy FitLife declined from 42.8% in the second quarter of 2025 to 41.7% in the second quarter of 2026. However, gross margin for Legacy FitLife increased sequentially from 41.2% in the first quarter of 2026 to 41.7% 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.

Contribution for Legacy FitLife in the second quarter of 2026 declined 25.9% to $4.2 million, and contribution as a percentage of revenue decreased to 34.1% compared to 35.4% 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.

Moving on now to Irwin. Total Irwin revenue for the second quarter was $14.1 million, of which $10.7 million or 76% came from wholesale customers and 24% came from online sales. Gross margin for Irwin for the second quarter was 32.8% and contribution as a percentage of revenue was 29.2%. As previously mentioned, we began selling Irwin products on Amazon in mid-October, and the business has scaled nicely for the past several months. Monthly revenue for Irwin on Amazon reached approximately $0.5 million in December of 2025, approximately $0.8 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 23 through the 26.

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.

In early April on our fourth quarter earnings call, I outlined 5 initiatives we were focused on to drive improved performance in our business. 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 3-year dating compared to the 2-year dating the products had at the time of the acquisition. As a reminder, Irwin has historically written off and disposed off 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 required 12 months of shelf life on incoming products. Increasing the shelf life to 3 years doubles the selling period, resulting in lower inventory obsolescence.

As of today, we have approved 3-year formulas for 85% of Irwin's products. We have inventory on hand with 3-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 3 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-stock 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 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 nonexistent. A related problem was that Irwin has historically focused on the nutritional supplement categories where it was the strongest. Unfortunately, its 2 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 3 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 4 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. During the second quarter, we increased our advertising and marketing expense by 16.4% 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 5 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 2 muscle farm SKUs that were added to over 700 Kroger locations late during the second quarter. We also previously announced the placement of 6 muscle farm 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. SG&A for the second quarter of 2026 was approximately $4.8 million, down 3.8% sequentially from approximately $5.0 million in the first quarter of 2026. On an annualized basis, this improvement is equivalent to approximately $0.8 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 count started declining after Amazon made onetime purchase, the default buying option about a year ago rather than subscribe and safe. 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.

Regarding the balance sheet, we made a scheduled amortization payment of approximately $1.5 million during the second quarter, bringing our term loan balance to $36.1 million. We also paid down an additional $2.2 million on our revolving line of credit during the second quarter, bringing the balance to $2.0 million. Since closing the Irwin acquisition through the end of the second quarter of 2026, we have paid off approximately $8.6 million of indebtedness in addition to paying approximately $2.0 million of transaction-related expenses.

At the company's current 6.5% weighted average interest rate, this $8.6 million debt reduction over a period of roughly 3 quarters saves us approximately $0.6 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 3 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

[Operator Instructions] And the first question today is coming from Sean McGowan from ROTH Capital Partners.

Perguntas e respostas

Sean McGowan

My first question is about the priority you placed on getting -- 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 is it been largely incremental?

Dayton Judd

Yes. Sean, thanks for the questions. In terms of expectations, I think it's exceeded our expectations. I think early in the process, we -- 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 million 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 an easy expectation would have been for us just to take over what they were selling. 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 -- I mean, just one product on its own out of 250, 300 that we sell on Amazon under the Irwin brands that's probably $1.5 million 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, that we can't quantify it. We're obviously very happy to trade a wholesale unit for a retail unit, right? That'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

And a follow-up then on GNC. This has been a subject for every conference call, it seems like. But relative to your expectations, how is that situation evolving?

Dayton Judd

Yes. So that one, I would say, is lower than our expectations. It's not -- I'm probably not -- it would not be appropriate for me to comment on other -- someone else's business. But suffice it to say, specialty retail is quite challenged in the U.S. right now. There is significant store closures that are happening. And for the stores that remain open, there are significant drops in kind of 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 DCs. So it's a little bit of a not apples-to-apples comp.

But that said, I mean, this is -- if you look at -- as I look at my business, right, 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 where in some ways, we're along for the ride.

The second is, and we've talked about this quite a bit, is MRC where we have been struggling for about 1.5 years. And we think we are -- I don't want to say we even inflected or we're nearing an inflection point, but we're certainly seeing some positive indications. So both of those now roll up into Legacy FitLife and GNC for the most part, explains the declines on the wholesale side. And MRC, for the most part, explains the declines on the online side. The rest of the business, I'm quite content with how things are going.

Operator

[Operator Instructions] We did have another question coming from Sean from ROTH Capital Partners.

Sean McGowan

It just might be the first car headway haven't mentioned muscle farm we any kind of details. So what are you seeing in that line?

Dayton Judd

Yes. Yes. Happy to talk about that. It's -- I think it's -- I mean, things -- look, I'm happy about MusclePharm right now. Revenue, I would say, is down a bit year-over-year, but up significantly Q1 to Q2. We've talked about the challenges with protein pricing in the past. If you look at our -- the numbers we historically reported for MusclePharm, of course, it now rolls into Legacy FitLife, but we started discounting significantly in the third quarter of last year and investing in advertising to try and kind of grow the brand. We got a lot of uptake with very margin-sensitive primarily international protein companies or people that wanted to take the protein internationally. And then when protein prices went up and we tried raising our prices, all of a sudden they went away.

So the bulk of the decline for MuscleFarm revenue has been there in those types of customers. If you take those out, the business is actually growing very nicely. And the other benefit is margins are up significantly, like Q2, for example, relative to Q3, Q4, Q1, margins are several hundred basis points higher for MuscleFarm, right, as we've moved away from the very price-sensitive large kind of international customers.

We launched the 2 new SKUs in Kroger stores or in Kroger as well as a number of their other banners. Those didn't hit the shelves until late during the second quarter, but for the first several weeks, kind of every week was an uptick. So we're continuing to see decent growth there, and we're pleased with where we are and have some additional marketing initiatives to try and continue to drive volume there. So all things considered, pretty happy.

I'll also add MusclePharm on Amazon. It may be right now our best performing Amazon account, right? So where Dr. Tobias is struggling and declining double digits. MusclePharm right now is growing double -- it was growing in 2025, kind of flip negative like a lot of our accounts did late '25, early '26 and was probably down a bit even for Q2 overall. But late in Q2 and then in July and thus far in August, we're seeing kind of some very nice double-digit growth.

So all things considered -- the numbers might look bad on a headline basis or on a revenue basis because we're walking away from less profitable volume. But in terms of profitability, margins and all the other accounts, right, we're seeing everything going in the right direction.

Sean McGowan

Which is consistent with what you've said.

Operator

[Operator Instructions] As there were no other questions from the lines at this time, I will now hand the call back to Dayton Judd for closing remarks.

Dayton Judd

All right. Thank you all for your participation in the call. If any of you have additional questions, feel free to reach out to me or to our investor@fitlifebrands.com e-mail. And we look forward to talking to you on our next earnings call in November. Thank you.

Operator

Thank you. This concludes today's conference. You may disconnect at this time, and have a wonderful day. Thank you for your participation.