Medifast, Inc. (MED) is actively advancing various initiatives to broaden its presence in the expansive health and wellness market. The company is on track with several key initiatives, which include product and program innovation, refinement of coach and client experiences and streamlining operational efficiency, among others. However, management is encountering difficulties in attracting customers, mainly due to macroeconomic elements.Let’s discuss on details.What’s Working in Medifast’s Favor?The Zacks R ...

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Medifast, Inc. (MED) delivered fourth-quarter 2023 results, with the top and bottom lines declining year over year. However, both earnings and net revenues beat the Zacks Consensus Estimate.Medifast is strategically adjusting its operations to meet the changing demands of the weight loss industry. This involves expanding its customer outreach through enhanced marketing efforts and entering the medically supported weight loss domain in partnership with LifeMD.These steps are designed to increase its market p ...

Financial Performance (Q4 2023) - Revenue for Q4 2023 was within the guidance range[2] - Gross margin for Q4 2023 was 740%[6] - Medifast had $150 million in cash and cash equivalents and investments[8, 25] - Revenue was $1072 million[9] - GAAP diluted EPS was $910, while adjusted diluted EPS was $964[9] Financial Performance (FY 2023) - Revenue was $191 million[26] - GAAP diluted EPS was $055, while adjusted diluted EPS was $109[26] - Gross profit as a percentage of sales was 724%[27] - Operating cash flow was $148 million[28] Strategic Initiatives - Dividend was discontinued to redirect capital to customer acquisition and experience through marketing and technology[11] - Collaboration with LifeMD to target the medically supported weight loss market[6]

Medifast (MED) came out with quarterly earnings of $1.09 per share, beating the Zacks Consensus Estimate of $0.99 per share. This compares to earnings of $3.70 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.10%. A quarter ago, it was expected that this weight-loss company would post earnings of $1.02 per share when it actually produced earnings of $2.12, delivering a surprise of 107.84%.Over the last four quarters, the com ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ 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, Inc. (MED) is likely to register a top-and-bottom-line decline when it reports fourth-quarter 2023 earnings on Feb 20. The Zacks Consensus Estimate for revenues is pegged at nearly $174 million, suggesting a decrease of 48.4% from the prior-year quarter’s reported figure.The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 99 cents per share, which indicates a decline of 73.2% from the year-ago quarter’s reported figure. MED has a trailing four-quarter earnings s ...

Financial Data and Key Metrics Changes - Revenues for Q3 2023 were $235.9 million, down 39.6% year-over-year, but at the high end of guidance [17][49] - Gross profit decreased 37.3% year-over-year to $177.4 million, while gross profit margin improved by 270 basis points to 75.2% due to efficiencies in inventory management and lower supply chain costs [24][43] - Net income for Q3 2023 was $23.1 million, or $2.12 per diluted share, compared to $36.2 million, or $3.27 per diluted share, in the prior year [76] Business Line Data and Key Metrics Changes - The average revenue per active earning OPTAVIA Coach for Q3 was $5,008, a decline of 15.1% year-over-year, reflecting challenges in customer acquisition [50] - The number of active earning OPTAVIA Coaches decreased by 28.9% from the previous year, impacting overall revenue [23] Market Data and Key Metrics Changes - The company is focusing on expanding its customer base, particularly in the U.S. Hispanic market, with over 70% of core materials translated into Spanish [18][44] - The entry into the sports nutrition market with the OPTAVIA ACTIVE line aims to attract a new demographic and expand the addressable market significantly [41] Company Strategy and Development Direction - The company is transitioning into a total lifestyle company, integrating medical weight loss solutions with lifestyle modifications [16] - The launch of the OPTAVIA ACTIVE product line is part of a strategy to enhance customer lifetime value and attract new demographics [15][41] - The company is exploring partnerships and acquisitions in the telehealth space to incorporate weight loss medications into its offerings [12][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in customer acquisition due to macroeconomic factors, including inflation and interest rates [21][23] - The company expects to see improvements in customer acquisition and revenue trends in 2024, driven by new initiatives and product offerings [17][21] Other Important Information - The effective tax rate for Q3 was 12.9%, significantly lower than the previous year's 24.5%, due to various tax benefits [25] - The company has a strong financial position with $157.8 million in cash and no interest-bearing debt as of September 30, 2023 [52] Q&A Session Summary Question: What is the sustainability of the gross margin level? - Management indicated that while the gross margin improvement is notable, lower revenues will impact gross margin due to fixed costs [55] Question: What trends are observed in October regarding customer acquisition? - Customer acquisition metrics are below historical norms, but retention and average revenue per order have remained steady [58] Question: What is the guidance for the tax rate in Q4? - The projected tax rate for Q4 is expected to be closer to 20%, following a one-time adjustment in Q3 [59] Question: What are the reasons for consumer hesitation towards medically-supported weight loss? - Consumers may feel confident in their ability to lose weight independently, with interest in medical solutions increasing as weight loss needs grow [65][86] Question: How is the company testing digital marketing methods? - The company is in the early stages of testing digital marketing to generate prospects, which may complement the existing coach-driven model [80][81]

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 September 30, 2023 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 | 13-371440 ...

1 Q3 Guidance reflects continued customer acquisition challenges from the macro economic environment and GLP-1 drugs 2 Continue to invest in growth initiatives that are expected to benefit results in 2024 and beyond 3 Continue to reduce expenses through F4F initiative - optimization of procurement, distribution, co-manufacturing, and R&D activities 4 Launch of OPTAVIA ACTIVE™ product line in September to Customers will tap into a much larger addressable market than the current structured weight loss market ...