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]

© 2023 Medifast, Inc. All Rights Reserved. $236M REVENUE $158M CASH & CASH EQUIVALENTS AND INVESTMENTS 2 Continue to invest in growth initiatives that are expected to benefit results in 2024 and beyond | --- | --- | --- | --- | |-----------------------------------------------------------|--------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|------------------------------------------------------ ...

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 ...

Medifast, Inc. (NYSE:MED) Q2 2023 Earnings Conference Call August 7, 2023 4:30 PM ET Company Participants Steve Zenker - VP of IR Dan Chard - Chairman and CEO Jim Maloney - CFO Conference Call Participants Linda Bolton-Weiser - D.A. Davidson Operator Good afternoon, and welcome to the Medifast Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would ...

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 ...

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 June 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 ________. | Title of each class | Trading Symbol | Name of each exchange on which registered | | --- | --- | --- | | Common Stock, par value ...

Financial Data and Key Metrics Changes - Revenue decreased 16.4% year-over-year to $349 million, primarily due to a lower number of active earning OPTAVIA Coaches and lower average revenue per active earning OPTAVIA Coach [67] - Gross profit decreased 18.5% year-over-year to $246.4 million, with gross profit margin declining 180 basis points to 70.6% [29] - Net income for Q1 2023 was $40 million or $3.67 per diluted share, compared to $41.8 million or $3.59 per diluted share in the prior year [52] - Cash flows from operations increased 46.7% to $64.1 million during the first quarter [53] Business Line Data and Key Metrics Changes - The number of active earning OPTAVIA Coaches decreased by 8.1% year-over-year to approximately 58,700 [49] - Average revenue per active earning OPTAVIA Coach was $5,945, a year-over-year decline of 9% but an increase from the previous two quarters [49] - SG&A expense decreased 22% year-over-year to $192.9 million, reflecting progress on cost reduction initiatives [68] Market Data and Key Metrics Changes - Customer retention levels have returned to historical norms, but customer acquisition remains challenging due to changes in spending and social media algorithms [11] - The Hispanic market has shown encouraging growth, with new Hispanic coach enrollments up 30% year-over-year [44] Company Strategy and Development Direction - The company aims for 15% annualized revenue growth and a 15% sustainable operating margin by 2025 as part of the 15x25 initiative [10] - Focus on enhancing customer acquisition through coach-led training, programming composition, and unique positioning [37] - Plans to expand into adjacent product categories and explore international markets, particularly in Latin America [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging operating environment due to macroeconomic factors and competitive landscape changes [34] - The company is optimistic about reestablishing growth and improving customer acquisition through strategic initiatives [15][27] - Future growth initiatives will require time to gain traction, and the company is not providing full-year guidance yet [73] Other Important Information - The company declared a quarterly cash dividend of $1.65 per share, representing a 0.6% increase compared to the prior year [71] - The effective tax rate for Q1 2023 was 25.1%, higher than the previous year's 24% [70] Q&A Session Summary Question: What are the expectations for growth initiatives spending? - Management expects that spending on growth initiatives will be concentrated in the latter half of 2023, with quarterly results likely below the previous year [57] Question: How is the company addressing the pressure on customer acquisition? - Management highlighted the focus on reestablishing coach productivity metrics and customer acquisition through new incentive structures [60] Question: Is the dividend at risk given the EPS guidance? - Management reassured that the dividend is not at risk and that excess cash flows will continue to support it [62] Question: How does the company view the new GLP-1 weight loss drugs? - Management emphasized that coaching remains central to their model and that they are exploring ways to remain relevant alongside these new drugs [64][96] Question: What were the operating cash flow and CapEx numbers for the quarter? - Operating cash flow was $64 million, an increase of 47%, and CapEx was $2 million for the quarter [86]

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, 2023 OR Table of Contents 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 | ...