Is FitLife Brands “the little supplement brand portfolio” that could? For those unaware, the supplement brands that are within the FitLife Brands portfolio are now categorized in three segments: Legacy FitLife Brands, which is broken into two sub-segments…NDS Products (which are a collection of brands mostly sold in the GNC franchise system), iSatori Products (which are a collection of brands sold through a diversified retail mix), and then Mimi’s Rock Corporation Products (which are a collection of brands mostly sold on Amazon), and MusclePharm. In total, the FitLife Brands portfolio is sold through more than 20,000 retail locations globally. In the second quarter of 2024, FitLife Brands Inc. (NASDAQ: FTLF) had revenues of $16.9 million…which was up 15% YoY. But though that YoY growth rate obviously looks strong, it’s important to remember that those reported results were greatly impacted by the MusclePharm acquisition that closed in October 2023. While there's strategic initiatives going on at legacy FitLife Brands and Mimi's Rock, the most intriguing segment within FitLife Brands is also currently its smallest...MusclePharm. In the second quarter of 2024, MusclePharm segment revenue was $2.7 million. And if you were wondering about YoY comparatives, let’s just say the Eric Hilman run MusclePharm bankrupt version outsold this current version. But that’s probably an apples-to-oranges comparison because Eric Hillman was focused on survival by any means necessary, and FitLife Brands is attempting to make strategic business decisions that support and optimize long-term growth. Though the most notable aspect of this earnings report didn’t come from the increased segment-level financial data provided by FitLife Brands, but because of what CEO Dayton Judd didn’t say about MusclePharm. Maybe everyone didn’t catch it, but he had a much more cautious (even reserved) vibe when talking about the MusclePharm outlook (and associated strategic plan). That being said, I’d rather leadership share “lower ambitions” publicly and drive higher ambitions internally to outperform expectations…compared to talking about launching “high risk, high reward” product categories like RTD beverages that FitLife Brands has zero applicable knowledge of historically and would honestly be a corporate strategic misalignment without major shifts. MusclePharm is currently the “most significant organic growth opportunity” at FitLife Brands, but it can also be what creates unnecessary burden (especially margin wise) on the entire company. Investing in brand growth through promotional offers or increased digital advertising spend is necessary, but FitLife Brands needs to ensure it doesn’t get overly aggressive trying to restore MusclePharm back to a level it will never reach again. That being said, I’m quite confident FitLife Brands understands it’s a marathon (and not a sprint) with MusclePharm. So, where can FitLife Brands find “easy growth” in the next 12 to 18 months? Even with two sizable acquisitions in the last year, FitLife Brands has already publicly stated its currently electing to build cash as it continues to evaluate M&A opportunities.

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