FitLife Brands sets ambitious revenue goal of over $120 million after securing acquisition of Irwin Naturals
In a strategic move, FitLife Brands has announced the acquisition of Irwin Naturals for $42.5 million in Q2 2025. This deal is expected to have a positive impact on FitLife's financials, significantly expanding the company's size.
Prior to the closing of the Irwin acquisition, FitLife reported a 4.7% decline in revenue to $16.13 million in Q2 2025, compared to the previous year. The decline was partly due to integration challenges and costs related to the Irwin deal. However, the company's legacy segment was the main revenue driver, while other segments like MRC and MusclePharm underperformed.
Despite the standalone results showing a revenue decrease, FitLife Brands projects substantial revenue growth in the upcoming period. The combined annual revenue of the FitLife and Irwin businesses is expected to exceed $120 million.
Regarding EBITDA, the combined adjusted EBITDA is expected to be between $20 million and $25 million for the first full year of operation post-acquisition. This implies a notable uplift from the $3.9 million adjusted EBITDA Irwin generated alone in H1 2025 on $33.1 million revenue. FitLife anticipates operational synergies and efficiency gains from the integration.
The acquisition was financed primarily through a new $40.625 million term loan and a $10 million revolving credit facility. Post-acquisition leverage is expected to be under 2.25x EBITDA, with ongoing covenant monitoring.
In the trailing 12 months as of June 30, 2025, Irwin Naturals generated revenue of approximately $60 million at a gross margin of approximately 35%. However, the company faces integration risk and must manage incremental transaction expenses.
Despite the challenges, FitLife Brands remains confident in realizing online and distribution synergies, addressing brand-specific challenges, and executing cost efficiencies in the coming quarters. The company also acknowledges ongoing brand-level performance concerns and the need to focus on solving the biggest opportunities or pain points.
In summary, while Q2 2025 standalone results showed revenue and net income decreases partly due to acquisition costs and integration challenges, FitLife Brands projects substantial revenue growth, improved margins, and a strong EBITDA boost in the upcoming period driven by the Irwin Naturals acquisition.
Table: Aspect | Before Acquisition (Q2 2025) | Post-Acquisition Outlook |----------------------|----------------------------------|--------------------------------------------| | Revenue | $16.13 million in Q2; declined 4.7% YoY | >$120 million combined annual revenue (full year projection) | | EBITDA (Adjusted) | Irwin H1 2025: $3.9 million; FitLife legacy lower | $20-25 million combined adjusted EBITDA (first full year) | | Gross Margin | Declined with FitLife standalone | Expected margin improvement post-integration | | Financing | Existing debt | $42.5 million acquisition funded by $40.625M term loan + $10M revolver | | Leverage | Moderate | Below 2.25x post-acquisition EBITDA |
Investing in the Irwin Naturals acquisition is expected to significantly enhance FitLife's business, as the combined annual revenue is projected to exceed $120 million. The financing for the deal was primarily through a new term loan and a revolving credit facility.
The positive financial impact is also evident in the projected adjusted EBITDA, which is expected to be between $20 million and $25 million for the first full year of operation post-acquisition, indicating a notable uplift from Irwin's performance alone.
