Cuộc họp báo cáo kết quả kinh doanh Quý 2/2026 của FitLife Brands (FTLF): Doanh thu tăng 65% nhờ sự tăng trưởng của Irwin

FitLife Brands (FTLF) đã báo cáo doanh thu và EBITDA điều chỉnh quý 2 năm tài chính 2026 tăng khi thương vụ thâu tóm Irwin mở rộng doanh số bán buôn và bán hàng trực tuyến. Tuy nhiên, doanh thu có biên lợi nhuận thấp hơn từ Irwin cùng sự suy yếu tiếp diễn tại mảng FitLife truyền thống (Legacy FitLife) đã làm giảm biên lợi nhuận gộp hợp nhất.

Các điểm chính

• Doanh thu quý 2 năm tài chính 2026 tăng 65% so với cùng kỳ năm trước lên 26,5 triệu USD, chủ yếu nhờ thương vụ thâu tóm Irwin, bị bù trừ một phần bởi doanh thu giảm ở mảng FitLife truyền thống.
• Doanh thu bán buôn tăng 156% lên 14,6 triệu USD, trong khi doanh thu trực tuyến tăng 14% lên 11,9 triệu USD.
• Biên lợi nhuận gộp giảm xuống 37,0% từ 42,8%, chủ yếu vì Irwin từ trước đến nay hoạt động với biên lợi nhuận thấp hơn mảng FitLife truyền thống.
• Lợi nhuận ròng tăng lên 2,0 triệu USD từ 1,7 triệu USD. EBITDA điều chỉnh tăng 10% lên 3,7 triệu USD.
• Doanh thu cải thiện 4,8% so với quý trước, bao gồm mức tăng trưởng 3,7% ở mảng bán buôn và 6,3% ở mảng trực tuyến. Lãi trên mỗi cổ phiếu pha loãng tăng so với quý trước trong quý thứ ba liên tiếp.
• Ban quản lý đã viện dẫn các rủi ro tiếp diễn từ nhu cầu tiêu dùng yếu hơn, sự thay đổi thuật toán của Amazon, sụt giảm doanh số tại một số đối tác bán lẻ và những thách thức vận hành tại MRC.

Dữ liệu tài chính quan trọng

Kết quả kinh doanh và vận hành

Mảng FitLife truyền thống tiếp tục chịu áp lực

Mảng FitLife truyền thống tạo ra 12,4 triệu USD doanh thu trong quý 2, giảm 23% so với cùng kỳ năm trước. Bán hàng trực tuyến chiếm 68% tổng doanh thu và bán buôn chiếm 32%.

Doanh thu bán buôn giảm 31%, chủ yếu do doanh số bán cho GNC sụt giảm. Doanh thu trực tuyến giảm 19%, chủ yếu do MRC. So với quý trước, tổng doanh thu mảng FitLife truyền thống gần như ổn định, giảm chưa đến 0,5%, khi mức tăng trưởng bán buôn 3,0% bù đắp một phần cho mức giảm 2,0% của kênh trực tuyến.

Biên lợi nhuận gộp của mảng FitLife truyền thống đạt 41,7%, so với 42,8% cùng kỳ năm ngoái và 41,2% trong quý 1 năm tài chính 2026. Điều này đánh dấu quý thứ ba liên tiếp biên lợi nhuận gộp cải thiện so với quý trước. Lợi nhuận đóng góp giảm 25,9% xuống 4,2 triệu USD, với tỷ lệ đóng góp giảm xuống 34,1% từ 35,4%.

Irwin thúc đẩy tăng trưởng và mở rộng trên Amazon

Irwin tạo ra 14,1 triệu USD doanh thu. Khách hàng bán buôn đóng góp 10,7 triệu USD, tương đương 76%, trong khi doanh số bán hàng trực tuyến chiếm 24%. Biên lợi nhuận gộp đạt 32,8% và tỷ lệ đóng góp đạt 29,2%.

Doanh thu hàng tháng trên Amazon của Irwin đã tăng từ khoảng 0,5 triệu USD vào tháng 12 năm 2025 lên khoảng 0,8 triệu USD vào tháng 3 năm 2026 và dưới 1 triệu USD vào tháng 6. Tháng 6 đã hưởng lợi từ Prime Day, nhưng doanh thu tháng 7 vẫn duy trì ở mức tương đương dù không có sự kiện này.

Ban quản lý cho biết kết quả kinh doanh trên Amazon của Irwin đã vượt kỳ vọng ban đầu. Họ thừa nhận rằng một số doanh số bán hàng trực tuyến có thể đã thay thế cho các đơn mua buôn, mặc dù công ty chưa thể định lượng được tác động này.

Tiến triển trong việc cải thiện chuỗi cung ứng

FitLife đã phê duyệt công thức hạn sử dụng 3 năm cho 85% sản phẩm của Irwin. Hàng tồn kho có hạn sử dụng 3 năm hiện có sẵn cho 12% sản phẩm, và các đơn đặt hàng còn đọng lại chiếm thêm 22%.

Sáng kiến này nhằm kéo dài thời gian bán hàng và giảm tình trạng hàng tồn kho bị lỗi thời. Irwin trước đây thường phải xóa sổ và tiêu hủy khoảng 2 triệu USD hàng tồn kho mỗi năm. Doanh thu bị tổn thất do hết hàng đã giảm hơn 50% so với quý trước trong quý 2.

MusclePharm chuyển dịch sang nguồn doanh thu chất lượng cao hơn

Doanh thu của MusclePharm giảm nhẹ so với cùng kỳ năm trước nhưng tăng đáng kể so với quý 1. Ban quản lý giải thích phần lớn mức giảm so với cùng kỳ là do quyết định rút khỏi sản lượng protein quốc tế nhạy cảm về giá và có biên lợi nhuận thấp hơn.

Biên lợi nhuận đã cải thiện hàng trăm điểm cơ bản so với quý 3 năm 2025, quý 4 năm 2025 và quý 1 năm 2026. Hai sản phẩm mới của MusclePharm đã xuất hiện tại hơn 700 địa điểm của Kroger vào cuối quý 2. Ban quản lý cũng báo cáo mức tăng trưởng hai chữ số trên Amazon vào cuối quý 2 cũng như trong tháng 7 và tháng 8 tính đến nay.

Tiếp tục giảm đòn bẩy trên bảng cân đối kế toán

FitLife đã thực hiện khoản thanh toán nợ vay có thời hạn theo kế hoạch khoảng 1,5 triệu USD, giảm dư nợ xuống còn 36,1 triệu USD. Công ty cũng đã trả 2,2 triệu USD cho khoản tín dụng tuần hoàn, còn lại dư nợ 2,0 triệu USD.

Kể từ khi hoàn tất thâu tóm Irwin cho đến quý 2 năm tài chính 2026, FitLife đã trả khoảng 8,6 triệu USD tiền nợ và thanh toán khoảng 2,0 triệu USD chi phí liên quan đến giao dịch. Với lãi suất bình quân gia quyền 6,5% của công ty, ban quản lý cho biết việc giảm nợ giúp tiết kiệm khoảng 0,6 triệu USD chi phí lãi vay hàng năm.

Triển vọng từ Ban quản lý

Ban quản lý kỳ vọng những cải thiện trong chuỗi cung ứng của Irwin, bao gồm thời hạn sử dụng sản phẩm dài hơn và quản lý kho vận tốt hơn, sẽ hỗ trợ biên lợi nhuận trong các quý tới. Quá trình chuyển đổi này sẽ mất thêm vài tháng nữa.

Ba sản phẩm của Irwin đang được sản xuất để ra mắt vào cuối quý 3 hoặc đầu quý 4, mặc dù hầu hết vẫn tập trung vào sức khỏe nam giới hoặc giảm cân. Bắt đầu từ năm 2027, mục tiêu của công ty là ra mắt ít nhất bốn sản phẩm mới mỗi quý, chú trọng hơn vào các ngành hàng mà ban quản lý đánh giá là hấp dẫn hơn và đang tăng trưởng.

FitLife cũng có kế hoạch cắt giảm thêm chi phí SG&A trong phần còn lại của năm tài chính 2026. Ban quản lý cho biết mức giảm so với quý trước trong quý 2 tương đương khoảng 0,8 triệu USD trên cơ sở tính theo năm, đồng thời đã xác định được thêm các cơ hội tiết kiệm chi phí.

Công ty dự định sử dụng dòng tiền tự do dư thừa để tiếp tục giảm nợ. Ban quản lý kỳ vọng số tiền tiết kiệm chi phí lãi vay cho cả năm thu được từ việc này sẽ tăng lên khi các khoản hoàn trả tiếp tục diễn ra.

Các rủi ro và điểm cần theo dõi

• Mảng FitLife truyền thống tiếp tục đối mặt với doanh số bán buôn thấp hơn cho GNC và kết quả hoạt động trực tuyến yếu hơn tại MRC.
• Ban quản lý mô tả ngành bán lẻ chuyên doanh tại Mỹ đang gặp thách thức do tình trạng đóng cửa cửa hàng, doanh số cùng cửa hàng giảm và lượng khách ghé thăm sụt giảm.
• Các thay đổi trong thuật toán của Amazon đã ảnh hưởng đến mảng kinh doanh trực tuyến của công ty và thúc đẩy việc gia tăng chi tiêu quảng cáo ngoài sàn Amazon.
• Theo ban quản lý, các ngành hàng mạnh nhất lịch sử của Irwin là giảm cân và sức khỏe nam giới đang sụt giảm đáng kể.
• Quá trình chuyển đổi chuỗi cung ứng của Irwin vẫn chưa hoàn tất, bao gồm thời hạn sử dụng sản phẩm, vấn đề hết hàng và chi phí kho vận.
• Chi phí quảng cáo và tiếp thị tăng 16,4% so với quý trước do FitLife chuyển nhiều ngân sách hơn sang nhận diện thương hiệu ngoài Amazon, nhưng ban quản lý cho biết sẽ cần thời gian để đánh giá kết quả.

Tóm tắt phần Hỏi & Đáp với chuyên gia phân tích

Ban quản lý cho biết việc mở rộng kênh trực tuyến của Irwin đã vượt kỳ vọng, với doanh số trên Amazon tăng trưởng vượt xa khối lượng trước đây do một bên bán thứ ba đảm nhận. Công ty đánh giá tích cực về sự chuyển dịch từ các đơn vị bán buôn sang các đơn vị bán lẻ trực tiếp vì tạo ra doanh thu và lợi nhuận gộp cao hơn, nhưng họ vẫn hướng tới việc tăng trưởng trực tuyến đóng vai trò bổ trợ cho các mối quan hệ đối tác bán lẻ.

Về GNC, ban quản lý cho biết kết quả hoạt động thấp hơn kỳ vọng. Họ lưu ý rằng mức so sánh với quý 1 và quý 2 năm 2025 là bất thường vì GNC từng bổ sung lại kho tại các trung tâm phân phối sau một tranh chấp vận chuyển trước đó.

Về MusclePharm, ban quản lý nhấn mạnh rằng sự suy yếu của doanh thu tổng thể phần lớn phản ánh việc rút khỏi sản lượng quốc tế ít có lợi nhuận hơn. Nếu không tính những khách hàng đó, họ cho biết mảng kinh doanh này đang tăng trưởng với biên lợi nhuận tốt hơn, bước đầu tiến triển tại Kroger và các xu hướng trên Amazon đang cải thiện.

Số lượng người đăng ký theo dõi hoạt động trên Amazon đối với các thương hiệu của FitLife đã chạm đáy ở mức hơn 90.000 một chút vào giữa tháng 4 và sau đó tăng gần như mỗi tuần lên khoảng 94.000.

Toàn văn Biên bản Cuộc họp Báo cáo Kết quả Kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

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.

Phần hỏi đáp

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.