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]