Medifast(US:MED)2025-04-28 20:50Financial Performance - Revenue for Q1 2025 was $115,728, a decrease of 33.8% compared to $174,739 in Q1 2024[12] - Gross profit for Q1 2025 was $84,245, down 33.8% from $127,292 in Q1 2024[12] - Net loss for Q1 2025 was $(772), compared to a net income of $8,316 in Q1 2024, representing a significant decline[12][14] - Earnings per share (EPS) for Q1 2025 was $(0.07), compared to $0.76 in Q1 2024[12] - The company reported a comprehensive loss of $(713) for Q1 2025, compared to a comprehensive income of $8,090 in Q1 2024[14] - Net income for the three months ended March 31, 2025 was a loss of $772,000, compared to a net income of $8.3 million for the same period in 2024, indicating a significant decline[35] - Basic and diluted earnings per share (EPS) for the three months ended March 31, 2025 were both $(0.07), down from $0.76 in 2024[35] Assets and Equity - Total assets as of March 31, 2025, were $280,011, a decrease from $284,213 as of December 31, 2024[16] - Total stockholders' equity rose to $210,959 as of March 31, 2025, compared to $210,109 at the end of 2024[17] - Cash and cash equivalents increased to $91,717 as of March 31, 2025, from $90,928 at the end of 2024[18] Cash Flow and Expenses - Operating cash flow for Q1 2025 was $3,406, down from $7,282 in Q1 2024[18] - The company incurred $85,507 in selling, general, and administrative expenses in Q1 2025, down from $119,352 in Q1 2024[12] - Advertising expenses for Q1 2025 were $4.6 million, up from $2.5 million in Q1 2024, representing an increase of 84%[26] - The total share-based compensation expense for the three months ended March 31, 2025 was $1.9 million, down from $2.2 million in the same period of 2024, representing a 11.1% decrease[44] Inventory and Tax - Total inventories as of March 31, 2025 amounted to $39.4 million, a decrease from $42.4 million as of December 31, 2024, reflecting a 7.2% decline[33] - The income tax expense for the three months ended March 31, 2025 was $1.3 million, with an effective tax rate of 246.8%, compared to $3.3 million and 28.2% for the same period in 2024[27] Segment Performance - The OPTAVIA segment reported revenue of $115.728 million for the three months ended March 31, 2025, a decrease of 33.8% compared to $174.739 million for the same period in 2024[66] - Segment net loss for the three months ended March 31, 2025, was $772 thousand, compared to a net income of $8.316 million for the same period in 2024[66] - The cost of sales for the OPTAVIA segment was $31.483 million, down from $47.447 million, reflecting a 33.7% reduction year-over-year[66] - The segment's selling, marketing, and after-sales support expenses were $59.855 million for the three months ended March 31, 2025, down from $87.279 million in 2024, a decrease of 31.4%[66] Lease and Compensation - Operating lease expense remained consistent at $1.2 million for both the three months ended March 31, 2025, and 2024[50] - The total lease payments due as of March 31, 2025, amounted to $15.056 million, with a weighted average remaining lease term of 3 years and a discount rate of 2.20%[52] - The company had $11.9 million of total unrecognized compensation cost related to restricted stock awards as of March 31, 2025, expected to be recognized over a weighted-average period of 2.3 years[46] Financial Reporting and Agreements - The company adopted ASU 2023-07 for segment reporting, effective for interim periods beginning after December 15, 2024, which may enhance financial reporting transparency[28][29] - The company is currently evaluating the impact of adopting ASU 2023-09 on its consolidated financial statements, which is effective for annual periods beginning after December 15, 2024[30] - The Company entered into an agreement to purchase shares of LifeMD for $10 million during the fourth quarter of 2023[58] - The Company had no borrowings under its Amended Credit Agreement as of October 30, 2024, when it was terminated[61]