Core Insights - Medifast has announced a strategic transformation focusing on holistic metabolic health [1] - The company introduced Metabolic Synchronization™, a new science aimed at reversing metabolic dysfunction [1] - Research indicates that the new system enhances targeted fat burn to improve metabolic health [1]

BALTIMORE--(BUSINESS WIRE)--Medifast (NYSE: MED), the 40+ year old health and wellness company known for its science-backed, coach-guided lifestyle system, will announce financial results for the quarter ended September 30, 2025 on Monday, November 3, 2025, after market close. The Company will host a conference call to discuss the results with additional comments and details. Company participants will be Dan Chard, Chairman and Chief Executive Officer, and Jim Maloney, Chief Financial Officer. ...

Core Insights - Medifast, Inc. (MED) is strategically focusing on health, nutrition, and lifestyle coaching, expanding its portfolio of nutritionally-balanced meals and supplements tailored to diverse consumer needs [1][10] - The company is enhancing its OPTAVIA coaching network to improve customer acquisition, retention, and re-engagement, streamlining coach development and introducing intuitive incentives [2][10] - Medifast is adopting an integrated approach by launching new product lines (ACTIVE and ASCEND) and enhancing its digital platforms to modernize coach economics and product pricing [3][10] - The company aims to revitalize its coach and customer base through enhanced tools and data-driven support, positioning itself as a holistic partner in lifestyle transformation [4] Financial Performance - Medifast's shares have declined by 17.3% year to date, compared to a 7.2% dip in the industry [7] - The forward price-to-sales ratio for MED is 0.36X, significantly lower than the industry average of 1.03X [8] - The Zacks Consensus Estimate for MED's 2025 earnings per share (EPS) indicates a year-over-year decline of 126.6%, while the 2026 estimate shows growth of 17.4% [9][11] - Current estimates for EPS in 2025 and 2026 have decreased over the past 30 days [9]

Core Insights - Over 90% of U.S. adults are classified as metabolically unhealthy, indicating a growing crisis of metabolic dysfunction [1] - Metabolic dysfunction is associated with various challenges, including being overweight and difficulties in maintaining energy and long-term health [1] - Medifast, a health and wellness company with over 40 years of experience, is focusing on addressing this issue through its science-backed, coach-guided lifestyle system [1]

Core Insights - Medifast's Q2 2025 results showed both net sales and earnings beating estimates, despite year-over-year declines in both metrics [2][3] - The company reported a significant drop in the number of active earning OPTAVIA coaches, impacting revenues [4][5] Financial Performance - Quarterly earnings were reported at 22 cents per share, with adjusted earnings at four cents per share, surpassing the Zacks Consensus Estimate of break-even earnings [3] - Net revenues totaled $105.6 million, a decline of 37.4% year-over-year, but exceeded the Zacks Consensus Estimate of $95 million [4] - Gross profit was $76.6 million, down 37.9% year-over-year, with a gross margin of 72.6%, a decrease of 60 basis points [6] - Selling, general and administrative expenses (SG&A) fell 40.8% year-over-year to $77.7 million, primarily due to reduced OPTAVIA coach compensation [7] - The loss from operations improved to $1.1 million, representing 1% of revenues compared to 4.7% in the previous year [8] Financial Health - As of June 30, 2025, Medifast had cash, cash equivalents, and investment securities totaling $162.7 million, with no debt and total shareholders' equity of $216 million [9] Future Outlook - The company anticipates third-quarter 2025 revenues between $70 million and $90 million, with expected losses ranging from 60 cents to break-even [10] - There has been a downward trend in estimates, with a consensus estimate shift of -116.67% [11][12] Industry Context - Medifast operates within the Zacks Food - Miscellaneous industry, where competitor Lamb Weston reported a revenue increase of 4% year-over-year [15] - Lamb Weston is also experiencing a downward trend in earnings estimates, with a Zacks Rank of 4 (Sell) [16]

Core Insights - Medifast, Inc. is strategically positioning itself at the intersection of health, nutrition, and lifestyle coaching, emphasizing personalized support through its OPTAVIA program amid growing consumer demand for health and wellness solutions [1][11] - The company is redefining itself as a comprehensive health partner by expanding its wellness platform to include areas such as healthy motion, hydration, sleep, and mental well-being [2][5] Product and Service Expansion - Medifast continues to expand its portfolio of nutritionally-balanced meals and supplements, offering options tailored to diverse consumer needs [2] - The introduction of the ACTIVE and ASCEND product lines is part of the company's integrated approach to broaden its product offerings [4] Technology and Engagement - Technology and personalization are core pillars of Medifast's strategy, enhancing customer engagement through improved digital tools and apps that connect consumers with independent OPTAVIA coaches [3][11] - The company is modernizing its coach economics and product pricing models while simplifying coach reporting through enhancements to its mobile app and web platform [4] Financial Performance and Estimates - Medifast's shares have lost 22.1% year to date, compared to the industry's 6.7% dip [7] - The forward price-to-sales ratio for Medifast is 0.33X, significantly lower than the industry average of 1.11X [8] - The Zacks Consensus Estimate for Medifast's 2025 earnings per share (EPS) indicates a year-over-year decline of 125.5%, while the estimate for 2026 shows growth of 40.4% [9]

Core Insights - Medifast, Inc. reported second-quarter 2025 results with both net sales and earnings exceeding Zacks Consensus Estimates, despite year-over-year declines in both metrics [1][11] - The company is focusing on personalized support through its OPTAVIA program to meet growing consumer demand for long-term health and wellness solutions [1] Financial Performance - Quarterly earnings were reported at 22 cents per share, benefiting from an investment in LifeMD, with adjusted earnings at 4 cents per share, surpassing break-even estimates [3][11] - Net revenues fell to $105.6 million, a decline of 37.4% year over year, attributed to a decrease in active earning OPTAVIA coaches, although it exceeded the Zacks Consensus Estimate of $95 million [4][11] - The average revenue per active earning OPTAVIA Coach decreased by 6.9% year over year to $4,630, influenced by challenges in client acquisition and the rise of GLP-1 medications for weight loss [4][11] Coach and Customer Base - The number of active earning OPTAVIA Coaches decreased by 32.7% year over year, dropping to 22,800 from 33,900 [5] - The company is prioritizing the revitalization of its coach and customer base by introducing enhanced tools, data-driven support, and new products [2] Margin and Cost Analysis - Gross profit was reported at $76.6 million, down 37.9% year over year, with a gross margin of 72.6%, reflecting a decrease of 60 basis points [6] - Selling, general and administrative expenses (SG&A) fell by 40.8% year over year to $77.7 million, primarily due to a reduction in OPTAVIA coach compensation [7] Operational Loss and Financial Health - The loss from operations improved by 86.5% to $1.1 million, representing 1% of revenues compared to 4.7% in the previous year [8] - As of June 30, 2025, the company had cash, cash equivalents, and investment securities totaling $162.7 million, with no debt and total shareholders' equity of $216 million [9] Future Outlook - For the third quarter of 2025, Medifast expects revenues between $70 million and $90 million, with potential losses ranging from 60 cents to break-even [12]

Core Viewpoint - Medifast reported Q2 2025 results that exceeded Wall Street estimates, but the company continues to face significant year-over-year revenue declines and challenges in its coach network [1][5][11] Financial Performance - Q2 2025 GAAP revenue was $105.6 million, surpassing the estimate of $101.8 million but down 37.4% from $168.6 million in Q2 2024 [2][5] - Diluted GAAP earnings per share were $0.22, a significant improvement from a loss of $0.75 in Q2 2024 [2][7] - Gross profit for Q2 2025 was $76.6 million, down 37.9% year-over-year, with a gross margin of 72.6%, slightly lower than 73.2% in Q2 2024 [2][6] - Net income for Q2 2025 was $2.5 million, reversing a loss of $8.2 million in the same quarter last year, although this included a one-time gain of $2.0 million from the sale of stock in LifeMD [2][8] Business Model and Strategy - Medifast's core business focuses on weight management products and nutrition plans through its OPTAVIA brand, leveraging a network of independent coaches [3] - The company is integrating medically-supported solutions, such as GLP-1 weight-loss medications, in collaboration with telehealth provider LifeMD [4] - The decline in the number of active earning coaches, which fell 32.7% to 22,800, is a primary driver of revenue contraction [5][6] Operational Insights - Average revenue per active earning coach decreased by 6.9% year-over-year to $4,630, attributed to challenges in attracting new clients [6] - Selling, general, and administrative expenses fell 40.8% to $77.7 million, improving SG&A as a share of revenue to 73.6% from 77.9% in Q2 2024 [6] - The company remains debt-free with $162.7 million in cash and equivalents and $30.2 million in inventory as of June 30, 2025 [8] Future Outlook - For Q3 2025, management expects GAAP revenue between $70 million and $90 million, indicating a potential return to net losses [11] - The company did not provide a full-year outlook but emphasized the need to stabilize and potentially reverse the decline in its coach network [12]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $105.6 million, a decrease of 37.4% year-over-year, primarily due to a decrease in the number of active earning OPTAVIA Coaches [19] - Net income for Q2 2025 was $2.5 million or $0.22 per diluted share, compared to a net loss of $8.2 million or $0.75 per share in the prior year [24] - Gross profit decreased 37.9% year-over-year to $76.6 million, with a gross profit margin of 72.6%, down 60 basis points from the previous year [20] - SG&A expenses decreased 40.8% year-over-year to $77.7 million, primarily due to a decrease in OPTAVIA Coach compensation [21] Business Line Data and Key Metrics Changes - The total number of active earning OPTAVIA Coaches was approximately 22,800, a decrease of 32.7% from the previous year [19] - Average revenue per active earning OPTAVIA Coach was $4,630, a year-over-year decrease of 6.9% [20] - Coach productivity improved sequentially for the second consecutive quarter, with a year-over-year decline in productivity improving from a 10.9% decrease in Q2 2024 [20] Market Data and Key Metrics Changes - The company noted that 93% of U.S. adults are metabolically unhealthy, indicating a significant market opportunity for health and wellness solutions [9] - There is a growing need for effective long-term solutions to help individuals maintain weight loss progress, especially in the context of the rising use of GLP-1 medications [7] Company Strategy and Development Direction - The company is focused on transforming its business to capitalize on opportunities related to weight loss and metabolic health, emphasizing coach productivity and growth [5] - A new pricing and incentive structure named Premier Plus was launched to simplify client offers and enhance coach compensation predictability [12][13] - The introduction of the EDGE program aims to support coach growth and align behaviors that drive success [15] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of addressing metabolic health as a key driver of health conditions, with a focus on supporting clients using GLP-1 medications and those transitioning off them [30] - The company expects third-quarter revenue to range from $70 million to $90 million, with earnings per share projected between $0.00 and a loss of $0.60 [25] Other Important Information - The effective tax rate for Q2 2025 was 13.7%, down from 23.4% in the prior year, primarily due to changes in executive compensation limitations [24] - The company liquidated its position in LifeMD common stock, realizing a gain of $2.6 million, compared to a loss of $4.2 million in the prior year [23] Q&A Session Summary Question: Changes in Coach Composition - Management noted that 60% of coaches support clients using GLP-1 drugs, with 23% of the client base reflecting individuals who have used or are using these medications [30] Question: Update on ASCEND Sales - ASCEND continues to meet expectations, supporting clients using GLP-1 drugs and those transitioning to maintenance phases [33] Question: Company Supported Marketing - Management indicated that while company-supported marketing is effective for re-engaging past clients, personal stories from coaches are more effective for acquiring new clients [35]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $105.6 million, a decrease of 37.4% year-over-year, primarily due to a decrease in the number of active earning OPTAVIA Coaches [18] - Net income for Q2 2025 was $2.5 million or $0.22 per diluted share, compared to a net loss of $8.2 million or $0.75 per share in the prior year [23] - Gross profit decreased 37.9% year-over-year to $76.6 million, with a gross profit margin of 72.6%, down 60 basis points from the previous year [19][20] - SG&A expenses decreased 40.8% year-over-year to $77.7 million, primarily due to a decrease in OPTAVIA Coach compensation [20] Business Line Data and Key Metrics Changes - The total number of active earning OPTAVIA Coaches was approximately 22,800, a decrease of 32.7% from the previous year [18] - Average revenue per active earning OPTAVIA Coach was $4,630, a year-over-year decrease of 6.9% [19] - Coach productivity improved sequentially for the second consecutive quarter, despite a year-over-year decline [19] Market Data and Key Metrics Changes - The company noted that 93% of U.S. adults are metabolically unhealthy, indicating a significant market opportunity for OPTAVIA's programs [9] - There is a growing trend of clients using GLP-1 medications, with 60% of coaches supporting clients who have used these drugs [28] Company Strategy and Development Direction - The company is focused on transforming its business to capitalize on opportunities related to weight loss and metabolic health [5] - A new pricing and incentive structure named Premier Plus was launched to simplify client offers and improve coach compensation predictability [12][13] - The introduction of the EDGE program aims to support coach growth and align behaviors that drive success [14] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of sustainable lifestyle changes alongside medication for long-term health [6] - The company is optimistic about addressing the challenges of poor metabolic health and believes its programs can significantly impact this issue [9] - Future guidance for Q3 revenue is expected to range from $70 million to $90 million, with EPS ranging from breakeven to a loss of $0.60 [24] Other Important Information - The effective tax rate for Q2 2025 was 13.7%, down from 23.4% in the prior year [22] - The company has $162.7 million in cash and cash equivalents and no interest-bearing debt as of June 30, 2025 [23] Q&A Session Summary Question: Changes in Coach Composition - Management noted that 60% of coaches support clients using GLP-1 drugs, and 23% of the client base reflects individuals who have used these medications [28][29] Question: Update on ASCEND Sales - ASCEND continues to meet expectations, supporting both clients using GLP-1 drugs and those transitioning to maintenance phases [33] Question: Company-Supported Marketing Strategy - The company found that coach-led personal messages are more effective for client acquisition than company-supported marketing, leading to a more focused budget on coach-driven initiatives [36]