BALTIMORE--(BUSINESS WIRE)--As part of its continued focus on improving metabolic health, Medifast® (NYSE: MED) today announced that OPTAVIA's comprehensive metabolic health system is available for reimbursement on select insurance plans using Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA). OPTAVIA clients may be able to save up to 40% on program costs by working with their medical provider and insurance administrator to use pre-tax medical funds, offering accessibility for. ...

Key Takeaways MED reported a $1.65 per share loss as revenue fell 36.9% to $75.1M, despite topping estimates.MED saw active OPTAVIA coaches drop 40.6%, pressuring sales and driving an operating loss.MED guided 2026 revenues of $270M-$300M with a projected full-year loss of $1.55-$2.75 per share.Medifast, Inc. (MED) delivered fourth-quarter 2025 results, with the top line surpassing the Zacks Consensus Estimate while the bottom line missing the same. Both metrics showed a year-over-year decline.Medifast’s Qu ...

Management said the company’s clinically supported system is intended to address metabolic dysfunction and improve body composition, energy, and overall health. Chard cited results from a 16-week clinical study of the company’s “5-in-1 metabolic plan,” saying participants reduced visceral fat by 14% while retaining 98% of lean mass and experienced clinically significant weight loss.Chard described the past two years as a period of transformation amid disruption in the weight loss industry driven by the rapi ...

Medifast (MED) came out with a quarterly loss of $0.55 per share versus the Zacks Consensus Estimate of a loss of $0.76. This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +27.63%. A quarter ago, it was expected that this weight-loss company would post a loss of $0.01 per share when it actually produced a loss of $0.21, delivering a surprise of -2000%.Over the last four quarters, the company has ...

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Medifast (NYSE:MED) Q4 2025 Earnings call February 17, 2026 04:30 PM ET Company ParticipantsDan Chard - Chairman and CEOJim Maloney - CFONick Johnson - PresidentSteven Zenker - VP of Investor RelationsConference Call ParticipantsJim Salera - Research AnalystOperatorGreetings, and welcome to the Medifast fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator ...

Medifast (NYSE:MED) Q4 2025 Earnings call February 17, 2026 04:30 PM ET Company ParticipantsDan Chard - Chairman and CEOJim Maloney - CFONick Johnson - PresidentSteven Zenker - VP of Investor RelationsConference Call ParticipantsJim Salera - Research AnalystOperatorGreetings, and welcome to the Medifast fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator ...

Financial Data and Key Metrics Changes - Fourth quarter 2025 revenue was $75.1 million, a decrease of 36.9% year-over-year, primarily due to a decrease in the number of active earning coaches [25] - Loss per share for the fourth quarter was $1.65, impacted by a $12.1 million non-cash valuation allowance against deferred tax assets, which represented $1.10 of the loss per share [24][31] - Revenue per active earning coach reached $4,664, a year-over-year increase of 6.2%, marking the first year-over-year growth since Q2 2022 [25][26] - Gross profit for Q4 2025 decreased 40.9% year-over-year to $52.1 million, with a gross profit margin of 69.4%, down 470 basis points [26] Business Line Data and Key Metrics Changes - The company ended the quarter with approximately 16,100 active earning coaches, a decrease of 40.6% from the fourth quarter of 2024 [25] - Coach productivity turned positive year-over-year for the first time since mid-2022, increasing by 6% in Q4 [12] Market Data and Key Metrics Changes - The rapid adoption of GLP-1 medications continues to impact the traditional weight loss category, contributing to the decline in active earning coaches [25] - A national survey indicated that nearly 94% of American adults express concern about at least one aspect of metabolic health, highlighting a large underserved market [9] Company Strategy and Development Direction - The company is transitioning to a metabolic health focus, emphasizing a scientific approach called Metabolic Synchronization to address metabolic dysfunction rather than just weight loss [6][8] - A new product line is being developed to support metabolic health, aiming to reduce visceral fat and improve body composition [10] - The company is committed to disciplined execution to regain profitability while maintaining financial flexibility for growth investments [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the direction of the company and the strength of the leadership team, indicating that foundational elements for future growth are now in place [11] - Early indicators of improved coach productivity and engagement are seen as signs of potential revenue growth in the future [12][20] - The company expects to see continued coach productivity growth in Q1 2026, with annual revenue guidance set between $270 million and $300 million [33] Other Important Information - The company executed a restructuring across all business functions, targeting future savings of over $30 million [28] - The balance sheet remains strong, with $167.3 million in cash and no debt as of December 31, 2025 [32] Q&A Session Summary Question: Can you provide details on coach productivity and the consumer demographics associated with them? - Management noted that the improvement in coach productivity reflects a new focus on metabolic health, attracting a different type of customer seeking health benefits beyond weight loss [36][38] Question: How do you see revenue trends progressing through 2026? - Management indicated that while they are not providing quarterly guidance, they expect stabilization and gradual improvement in revenue throughout the year, with a focus on the transition to metabolic health [41][43] Question: What insights can you share about the new product lineup and its alignment with consumer needs? - Management highlighted that there is a growing inflow of clients transitioning off GLP-1 drugs, which the company is well-positioned to attract with its new offerings [44][46]

Business Strategy and Growth - Medifast is transitioning from transformation to execution, focusing on a long-term growth strategy targeting the broader metabolic health market[22]. - The company plans to launch significant product innovations in 2026, incorporating next-generation ingredients for metabolic enhancement[28]. - The EDGE program launched in 2025 aims to help coaches grow their businesses and improve client acquisition[33]. - Medifast's Premier+ program offers tiered pricing discounts and a more predictable compensation structure for coaches[34]. - The company plans to unveil a new program structure and product innovations in 2026, utilizing the science of Metabolic Synchronization[65]. - The strategic transformation plan announced in October 2025 aims to focus on holistic metabolic health, requiring significant investments in new products and marketing initiatives[125]. - The company emphasizes the need for continuous development of innovative products to meet evolving consumer demands, as failure to do so could negatively impact client attraction and retention[130]. Market and Consumer Insights - Over 90% of Americans are metabolically unhealthy, highlighting the need for effective weight loss solutions[29]. - Nearly three-quarters of U.S. adults are classified as overweight or obese, with over 40% classified as obese between August 2021 and August 2023[44]. - Independent research shows that 96% of individuals recognize the need for lifestyle changes for weight loss, yet only 17% feel confident managing it on their own[48]. - The addressable market for weight loss is estimated to be over $30 billion, with 93% of U.S. adults categorized as metabolically unhealthy[47]. - The company continues to face intense competition in the metabolic health and weight management industry, impacting demand for its services and products[123]. - The company faces risks related to changing consumer preferences in the metabolic health and weight management industry, particularly with the rise of drug therapies perceived as easier than traditional meal plans[168]. Coaching and Client Support - The company has approximately 16,100 active earning independent coaches, impacting over 3 million lives[23]. - The company's coaching model is client-centric, with about 90% of coaches having been clients first, promoting a holistic wellness program rather than focusing solely on product sales[49]. - The company emphasizes a holistic approach to metabolic health, combining coaching, community support, and scientifically developed products[35]. - The OPTAVIA Optimization Plan helps clients maintain long-term weight management through personalized strategies, including two OPTAVIA ASCEND mini meals and two Lean & Green+ meals daily[71]. - The OPTAVIA GLP-1 Nutrition Support Plan is designed to complement GLP-1 medications, guiding clients to consume three OPTAVIA ASCEND mini meals and one Lean & Green+ meal daily[71]. Employee Engagement and Culture - In 2025, over 90% of team members were actively engaged on the new intranet platform, Mediverse, which facilitates communication and access to business strategy[105]. - The AcedIt recognition program saw over 90% participation in 2025, promoting a culture of gratitude and recognition among team members[108]. - The company achieved over 93% engagement with its wellness program, LiveWell, with more than 2,000 preventive health challenges completed in 2025[108]. - The company received the Platinum Well Workplace Award in 2024 and 2025, recognizing its commitment to employee wellness[112]. - The organization modified its in-office work requirement to three days to enhance collaboration while allowing up to two days of remote work[104]. - The company introduced a Summer Friday Program to provide additional flexibility during the summer months[104]. - The Level Up shadow program was extended to high-potential team members in the supply chain to enhance internal mobility and skill development[110]. Financial Performance and Capital Management - The company has discontinued its quarterly cash dividend as of December 13, 2023, following a review of its capital allocation priorities[178]. - The Company announced the discontinuation of dividends in December 2023 to support investments in technology and future growth[204]. - As of February 10, 2026, there were approximately 65 record holders of the Company's common stock[205]. - The Company has a stock repurchase plan with 1,323,568 shares eligible for repurchase as of December 31, 2025[208]. Regulatory and Compliance Challenges - The company is subject to extensive regulations regarding food safety, advertising, and direct selling practices, which may impact its operations and compensation plans[76][78]. - The company is subject to regulatory scrutiny regarding its direct selling model, which could lead to legal challenges and impact business operations[134]. - The company faces inherent risks of product liability claims, which could divert management attention and incur significant costs if claims are made against its products[175]. - The company is subject to stringent regulations from agencies like the FTC and FDA, and any non-compliance could result in liability and operational restrictions[171]. - New data privacy laws, such as the California Privacy Rights Act effective January 1, 2023, impose significant penalties for non-compliance, which could require substantial modifications to data processing practices[160]. Technology and Cybersecurity - The Company has established processes for assessing and managing cybersecurity risks, integrating them into its overall risk management strategy[186]. - The Board of Directors is responsible for overseeing cybersecurity risk management processes and receives quarterly updates from senior executives[194]. - The Company has a Vice President of Information Security who oversees cybersecurity strategies and has over a decade of security experience[196]. - The Company engages third parties to assess and enhance its cybersecurity risk management strategies[189]. - The company relies on complex technology systems, and any failures could adversely impact business operations, including potential interruptions from cyber-attacks[157]. Supply Chain and Operational Risks - Supply chain disruptions, including reliance on third-party manufacturers, could adversely affect revenue and reputation if not managed effectively[143]. - The company sources approximately 40% of its products from its manufacturing facility in Maryland, making it vulnerable to operational disruptions[145]. - The company maintains sufficient inventory levels to ensure high service levels for clients, balancing its roles as both manufacturer and distributor[99]. Marketing and Advertising - The company’s marketing strategy emphasizes the role of coaches in client acquisition and retention, with a renewed focus on scaling best practices in 2025[74]. - The effectiveness of advertising and marketing programs, particularly through social media, is crucial for client acquisition and retention, with potential negative impacts from improper use or public perception[131]. - Seasonal demand patterns indicate that sales typically increase in January and February, aligning with the "diet season" and "resolution season"[70].

Medifast Announces Fourth Quarter and Full Year 2025 Financial Results Fourth Quarter 2025 Results Fourth quarter 2025 revenue decreased 36.9% to $75.1 million from $119.0 million for the fourth quarter of 2024 primarily driven by a decrease in the number of active earning coaches. The total number of active earning coaches decreased 40.6% to 16,100 compared to 27,100 for the fourth quarter of 2024. The decrease in the number of active earning coaches was driven by continued pressure with client acquisition ...