FitLife Brands (FTLF) Q4 2024 earnings summary

Executive summary

• Full year 2024 revenue grew 22% year-over-year to $64.5 million, with online sales up 29% and representing 67% of total revenue; wholesale revenue up 11%.

• Gross profit increased 31% and gross margin expanded to 43.6% for the year, up from 40.7% in 2023.

• Net income rose 70% to $9 million, with basic EPS up 66% to $0.98 and diluted EPS up 69% to $0.91.

• Adjusted EBITDA for 2024 increased 39% to $14.1 million.

Financial highlights

• Fourth quarter 2024 revenue increased 13% year-over-year to $15 million; online revenue up 12% to $10.1 million, representing 67% of total revenue.

• Q4 gross profit rose 16% to $6.2 million, with gross margin up to 41.4% from 40.3% in Q4 2023.

• Q4 net income increased 40% to $2.1 million; basic EPS up 44% to $0.23, diluted EPS up 40% to $0.21.

• Q4 adjusted EBITDA increased 31% to $3.1 million.

• Ended year with $13.1 million in term loans, no revolver balance, $4.5 million cash, and net debt of $8.6 million (0.6x LTM adjusted EBITDA).

Outlook and guidance

• Q1 2025 consolidated revenue expected to decline 4%-6% year-over-year, mainly due to tough MRC and leap year comparisons.

• Adjusted EBITDA for Q1 2025 expected to be roughly flat despite revenue decline; full-year 2025 expected to deliver organic revenue and EBITDA growth.

• Legacy FitLife Q1 2025 expected to be strong, with wholesale likely down slightly but online up.

• MRC online revenue expected down 10%-13% in Q1 2025 due to lapping prior year’s subscription discount surge.

• MusclePharm Q1 2025 wholesale revenue expected down, but strong double-digit online growth anticipated.