Core Viewpoint - Medifast, Inc. (NYSE: MED) is initiated with a Strong Buy rating and a price target of $56, focusing on its weight management and nutritional products under the OPTAVIA brand [1] Company Overview - Medifast, Inc. manufactures and distributes weight management products and nutritional products, primarily under the OPTAVIA brand [1] Research Methodology - Moretus Research employs a structured, repeatable framework to identify companies with durable business models, mispriced cash flow potential, and intelligent capital allocation [1] - The research combines rigorous fundamental analysis with a high-signal, judgment-driven process, avoiding noise and overly complex forecasting [1] - Valuation is based on sector-relevant multiples tailored to each company's business model and capital structure, emphasizing comparability, simplicity, and relevance [1] Investment Focus - Research coverage favors underappreciated companies undergoing structural change or temporary dislocation, where dispassionate analysis can lead to asymmetric returns [1] - Moretus Research aims to provide professional-grade insights, actionable valuation, and a strong filter for what truly matters in modern equity analysis [1]

It has been about a month since the last earnings report for Medifast (MED) . Shares have added about 10.9% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Medifast due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It turns out ...

Medifast® Q1 2025 Earnings Supplement © 2025 Medifast, Inc. All Rights Reserved. This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by use of phrases or terminology such as "intend," "anticipate," "expect" or other similar words or the negative of ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $115.7 million, a decrease of 33.8% year over year, primarily due to a decrease in the number of active earning OPTAVIA Coaches [19] - Net loss for Q1 2025 was $800,000 or $0.07 per share, compared to net income of $8.3 million or $0.76 per diluted share in the prior year [22] - Gross profit decreased 33.8% year over year to $84.2 million, with a gross profit margin of 72.8%, consistent with the previous year [20] Business Line Data and Key Metrics Changes - The number of active earning OPTAVIA Coaches decreased by 32.8% year over year to approximately 25,400 [19] - Average revenue per active earning OPTAVIA Coach for Q1 was $4,556, a year-over-year decrease of 1.4%, showing a moderation compared to a 22% decrease in Q1 2024 [20] Market Data and Key Metrics Changes - The company noted that a weaker economy could present consumer demand headwinds, but historically, economic slowdowns have increased coach recruitment as more individuals seek additional income opportunities [16] Company Strategy and Development Direction - The company is focusing on empowering coaches to be more productive and successful, with a strategy that includes streamlining coach development, enhancing tools and insights for coaches, and broadening product offerings [10][12][13] - The introduction of the OPTAVIA Ascend line aims to support individuals using GLP-1 medications, helping preserve lean muscle mass [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for growth, citing early positive indicators and a focus on coach-led strategies [17] - The company expects to see clearer signs of a turnaround by the end of 2025, with a focus on improving coach productivity and customer acquisition [17] Other Important Information - The company is currently developing studies to evaluate the efficacy of the new Ascend line and the established Essential line, which will support the business transformation over the next 12 to 18 months [14] - The financial position remains strong with $164.6 million in cash and no interest-bearing debt as of March 31, 2025 [22] Q&A Session Summary Question: Clarification on second quarter top line guidance - Management explained that the guidance reflects the timing of promotions and that the absence of a planned promotion in Q2 could lead to an acceleration in the year-over-year rate of decline [26][28] Question: Impact of GLP-1 on coaching community - Management indicated that the introduction of GLP-1 medications has created training opportunities rather than controversy, allowing coaches to better support clients on and off these medications [50][55] Question: Monthly cost of GLP-1 and supporting nutritional programs - The monthly cost for the OPTAVIA program is approximately $400, which covers 80% of daily meals, while LifeMD charges less than $20 for their telehealth service [57][59]

Medifast (MED) Q1 2025 Earnings Call April 28, 2025 04:30 PM ET Company Participants Steven Zenker - Vice President of Investor RelationsDan Chard - Chairman & Chief Executive OfficerJim Maloney - Chief Financial OfficerNicholas Johnson - Chief Field Operations OfficerDouglas Lane - Head of Consumer Products Conference Call Participants Jim Salera - Research Analyst Operator Greetings, and welcome to the Medifast First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are i ...

Medifast (MED) Q1 2025 Earnings Call April 28, 2025 04:30 PM ET Company Participants Steven Zenker - Vice President of Investor RelationsDan Chard - Chairman & Chief Executive OfficerJim Maloney - Chief Financial OfficerNicholas Johnson - Chief Field Operations OfficerDouglas Lane - Head of Consumer Products Conference Call Participants Jim Salera - Research Analyst Operator Greetings, and welcome to the Medifast First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are i ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________ to ________. Commission File Number: 001-31573 Medifast, Inc. (Exact name of registrant as specified in its charter) | Delaware | 13-3714405 | ...

Medifast Announces First Quarter 2025 Financial Results BALTIMORE – (BUSINESS WIRE)--Medifast (NYSE: MED), the health and wellness company known for its habit-based and coach-guided lifestyle solution, OPTAVIA®, today reported results for the first quarter ended March 31, 2025. First Quarter 2025 "In today's health and wellness landscape, more people than ever are seeking guidance not just for weight loss but for learning how to lead a healthier lifestyle," said Dan Chard, CEO of Medifast. "However, researc ...

Core Viewpoint - Medifast, Inc. is expected to report a decline in both revenue and earnings for the first quarter of 2025, with revenues projected at $119.9 million, reflecting a 31.4% decrease year-over-year [1] Revenue Outlook - The Zacks Consensus Estimate for Medifast's first-quarter revenues is $119.9 million, indicating a significant decline from the previous year's figure [1] - Management previously projected revenues between $100 million and $120 million for the first quarter, highlighting ongoing challenges in customer acquisition and engagement [4] Earnings Outlook - The consensus estimate for Medifast's bottom line has narrowed to a loss of 7 cents, down from a profit of 66 cents in the same quarter last year [2] - The company anticipates a bottom line between break-even and a loss of 50 cents, reflecting financial strain from declining sales and high customer acquisition costs [5] Market Challenges - Medifast faces a challenging macroeconomic environment, including increased competition in the health and wellness sector, the impact of GLP-1 weight loss medications, and a general decline in consumer discretionary spending [3] - The evolving dynamics of the weight loss market, particularly the rapid adoption of GLP-1 therapies, are altering consumer preferences and behavior, further complicating Medifast's performance [4] Strategic Initiatives - Despite the challenges, Medifast is pursuing strategic initiatives aimed at growth, including expanding its product portfolio and enhancing customer experience [6] - The "Fuel for the Future" program is an enterprise-wide cost optimization initiative that aims to improve operational efficiency and may provide some buffer against broader market pressures [6] Earnings Prediction Model - The Zacks model does not predict an earnings beat for Medifast this quarter, as it currently holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [7]

Core Viewpoint - Medifast, Inc. has experienced a significant decline in stock price, dropping 28.2% over the past six months, underperforming both the industry and broader market indices [1][3][15] Financial Performance - In Q4 2024, Medifast reported revenues of $119 million, a 37.7% year-over-year decline, despite being at the upper end of guidance [4] - The company ended Q4 with a coach base down more than 34% from the previous year, and average revenue per coach declined by over 5% [5] - Projected revenues for Q1 2025 are expected to be between $100 million and $120 million, indicating ongoing challenges [7] Cost and Profitability Challenges - Rising SG&A expenses have significantly pressured profitability, with increased marketing efforts and reduced efficiency leading to higher expenses as a percentage of revenues [6] - The company's operating income has deteriorated sharply, reflecting the escalating costs amid declining revenues [6] Market Dynamics and Strategic Initiatives - The adoption of GLP-1 medications is reshaping consumer preferences in the weight loss market, impacting customer acquisition for Medifast [5] - Medifast is launching OPTAVIA ASCEND in early 2025 to cater to the nutritional needs of GLP-1 users, aiming to enhance customer acquisition and experience [11][12] - The company is pursuing a long-term growth strategy focused on innovation, market expansion, and operational excellence, with initiatives to improve the coach and client experience [13] Cost Optimization Efforts - The "Fuel for the Future" program has delivered $21 million in cost savings in 2024, with expectations of an additional $15 million to $20 million in 2025 [14] Consensus Estimates - The Zacks Consensus Estimate for fiscal 2025 has seen a downward revision, with a projected loss of 1 cent for the current fiscal year and earnings of 2 cents for the next fiscal year [10]