FITLIFE BRANDS, INC. Q4 FY2025 earnings call

2025 was strong for most brand groupings except MRC. Legacy FitLife excluding MRC and MusclePharm had organic revenue growth. MusclePharm had organic growth. MRC revenue declined. Erwin acquisition in August 2025. Full year 2025: Legacy FitLife excluding MRC and MusclePharm organic revenue growth ~6%, MusclePharm ~5%, MRC ~15% decline. Fourth quarter 2025: Total revenue $25.9M, increase due to Erwin acquisition. Legacy FitLife had revenue decline, gross margin decline. Erwin had organic growth in Q4. 2026 first quarter: Erwin's Amazon business continued growth. Balance sheet: Paid down debt in fourth quarter and first quarter. Five priorities to address soft performance: improve Erwin's supply chain (transition to 3-year shelf life to reduce obsolete inventory), new product development at Erwin, drive awareness and demand generation off Amazon, leverage Erwin's sales team to cross-sell other FitLife products, operate more efficiently with SG&A.

For full year 2025: Legacy FitLife, excluding MRC and MusclePharm, delivered organic revenue growth of approx. 6%, wholesale revenue flat, online revenue up approx. 16%; MusclePharm delivered organic revenue growth of approx. 5%; MRC revenue declined approx. 15%. For fourth quarter 2025: Total revenue $25.9 million, increase of 73%. Wholesale revenue $15.5 million (60% of revenue), increase of 213% y-o-y; Online revenue $10.5 million (40% of total revenue), increase of 4% y-o-y. Excluding inventory step-up amortization, gross margin 37.0% vs 41.4% in Q4 2024. Contribution increased 47%. Net income $1.6 million vs $2.1 million in Q4 2024. Adjusted EBITDA $3.5 million, 14% increase y-o-y. Erwin in fourth quarter 2025 had organic growth of approx. 6%, total revenue $12.6 million, 89% from wholesale, 11% from online, gross margin 28.0%, contribution as % of revenue 26.6%.

Management is holding off on providing formal guidance for the full year given weakness in the first quarter and uncertainty about how long exogenous challenges will persist and how quickly internal efforts will bear fruit.

Macro environment with economic and political volatility causing consumer confidence concerns and declining discretionary spending. Amazon algorithm changes impacting traffic for brands. Erwin's supply chain issues like inventory obsolescence and stockouts. Legal challenges with CBD business. Protein market cost上涨 impacting MusclePharm's margin and sales.

Q: Ryan Myers from Lake Street asked about revenue headwinds and gross margin.

A: Dayton Judd said hard to bifurcate Amazon and macro pressures, adjusted gross margin for Irwin likely to mid to high 30s.

Q: Samir Patel from Ascalon Capital asked about guidance and CBD exit.

A: Dayton Judd said no formal guidance, CBD exit due to legal complexity.

Q: Sean McGowan from Roth Capital asked about inventory step-up and gross margin opportunity.

A: Inventory step-up amortization complete, Erwin can improve gross margin.

Q: James Bogan from Legends Capital asked about MusclePharm.

A: MusclePharm is a challenge, plan to grow but not dramatic.

Q: Mays Han from 2x2 Capital asked about Erwin's Costco SKUs and online sales.

A: No plan to relist Costco US SKUs, online sales still growing with potential upside.

Q: Tyler Hill asked about social media strategy and MRC retention.

A: Focus on off Amazon marketing like TikTok, no recent updates on MRC retention.