Medifast® Q1 2025 Earnings Supplement © 2025 Medifast, Inc. All Rights Reserved. This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by use of phrases or terminology such as "intend," "anticipate," "expect" or other similar words or the negative of ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $115.7 million, a decrease of 33.8% year over year, primarily due to a decrease in the number of active earning OPTAVIA Coaches [19] - Net loss for Q1 2025 was $800,000 or $0.07 per share, compared to net income of $8.3 million or $0.76 per diluted share in the prior year [22] - Gross profit decreased 33.8% year over year to $84.2 million, with a gross profit margin of 72.8%, consistent with the previous year [20] Business Line Data and Key Metrics Changes - The number of active earning OPTAVIA Coaches decreased by 32.8% year over year to approximately 25,400 [19] - Average revenue per active earning OPTAVIA Coach for Q1 was $4,556, a year-over-year decrease of 1.4%, showing a moderation compared to a 22% decrease in Q1 2024 [20] Market Data and Key Metrics Changes - The company noted that a weaker economy could present consumer demand headwinds, but historically, economic slowdowns have increased coach recruitment as more individuals seek additional income opportunities [16] Company Strategy and Development Direction - The company is focusing on empowering coaches to be more productive and successful, with a strategy that includes streamlining coach development, enhancing tools and insights for coaches, and broadening product offerings [10][12][13] - The introduction of the OPTAVIA Ascend line aims to support individuals using GLP-1 medications, helping preserve lean muscle mass [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for growth, citing early positive indicators and a focus on coach-led strategies [17] - The company expects to see clearer signs of a turnaround by the end of 2025, with a focus on improving coach productivity and customer acquisition [17] Other Important Information - The company is currently developing studies to evaluate the efficacy of the new Ascend line and the established Essential line, which will support the business transformation over the next 12 to 18 months [14] - The financial position remains strong with $164.6 million in cash and no interest-bearing debt as of March 31, 2025 [22] Q&A Session Summary Question: Clarification on second quarter top line guidance - Management explained that the guidance reflects the timing of promotions and that the absence of a planned promotion in Q2 could lead to an acceleration in the year-over-year rate of decline [26][28] Question: Impact of GLP-1 on coaching community - Management indicated that the introduction of GLP-1 medications has created training opportunities rather than controversy, allowing coaches to better support clients on and off these medications [50][55] Question: Monthly cost of GLP-1 and supporting nutritional programs - The monthly cost for the OPTAVIA program is approximately $400, which covers 80% of daily meals, while LifeMD charges less than $20 for their telehealth service [57][59]

Medifast (MED) Q1 2025 Earnings Call April 28, 2025 04:30 PM ET Company Participants Steven Zenker - Vice President of Investor RelationsDan Chard - Chairman & Chief Executive OfficerJim Maloney - Chief Financial OfficerNicholas Johnson - Chief Field Operations OfficerDouglas Lane - Head of Consumer Products Conference Call Participants Jim Salera - Research Analyst Operator Greetings, and welcome to the Medifast First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are i ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $115.7 million, a decrease of 33.8% year over year, primarily due to a decrease in the number of active earning OPTAVIA Coaches [18] - The company ended the quarter with approximately 25,400 active earning OPTAVIA Coaches, a decrease of 32.8% from Q1 2024 [18] - Gross profit decreased 33.8% year over year to $84.2 million, with a gross profit margin of 72.8%, consistent with the previous year [19] - Net loss for Q1 2025 was $800,000 or $0.07 per share, compared to net income of $8.3 million or $0.76 per diluted share in the prior year [22] Business Line Data and Key Metrics Changes - Average revenue per active earning OPTAVIA Coach for Q1 was $4,556, a year-over-year decrease of 1.4%, showing a moderation compared to a 22% decrease in Q1 2024 [19] - The company saw lower year-over-year declines in revenue per active earning Coach, driven by increased productivity of newer coach cohorts [15] Market Data and Key Metrics Changes - The company is experiencing a shift in the coaching community due to the introduction of GLP-1 medications, which has created both opportunities and challenges [48][50] - Approximately 50% of OPTAVIA Coaches have supported clients using GLP-1 medications, with 25% having personal experience with these medications [11][54] Company Strategy and Development Direction - The company is focusing on empowering coaches to be more productive and successful, with a strategy that includes streamlining coach development, enhancing tools and insights, and broadening product offerings [9][10][12] - The introduction of the OPTAVIA Ascend line is aimed at those using GLP-1 medications, helping to preserve lean muscle mass [12] - The company plans to reduce company-led marketing costs while emphasizing the importance of the coach community for customer acquisition [14] Management's Comments on Operating Environment and Future Outlook - Management believes the health and wellness space is evolving rapidly, presenting significant opportunities for the company [5] - The company expects to see a clearer picture of resilience in early positive indicators as 2025 progresses, with a focus on delivering signs of a turnaround by the end of the year [17] - Management acknowledges that economic slowdowns could increase coach recruitment as more individuals seek additional income opportunities [16] Other Important Information - The company has a strong financial position with $164.6 million in cash and no interest-bearing debt as of March 31, 2025 [22] - Guidance for Q2 2025 revenue is expected to range from $85 million to $105 million, with a loss per share ranging from $0.00 to $0.55 [23] Q&A Session Summary Question: Clarification on Q2 top line guidance and sales decline - Management explained that the guidance reflects the timing of promotions and does not necessarily indicate a continued trend of decline [25][27] Question: Impact of GLP-1 medications on coaching community - Management noted that the introduction of GLP-1 medications has created training opportunities rather than controversy, as coaches adapt to the new environment [50][54] Question: Monthly costs associated with GLP-1 and supporting nutritional programs - The monthly cost for the OPTAVIA program is approximately $400, which includes most of the meals for clients [57] Question: Changes in company-led marketing and its impact on SG&A - Management indicated that while there will be some pullback in company-led marketing, it will not be dramatic, and reactivation efforts will continue [44][45]

Core Viewpoint - Medifast, Inc. has experienced a significant decline in stock price, dropping 28.2% over the past six months, underperforming both the industry and broader market indices [1][3][15] Financial Performance - In Q4 2024, Medifast reported revenues of $119 million, a 37.7% year-over-year decline, despite being at the upper end of guidance [4] - The company ended Q4 with a coach base down more than 34% from the previous year, and average revenue per coach declined by over 5% [5] - Projected revenues for Q1 2025 are expected to be between $100 million and $120 million, indicating ongoing challenges [7] Cost and Profitability Challenges - Rising SG&A expenses have significantly pressured profitability, with increased marketing efforts and reduced efficiency leading to higher expenses as a percentage of revenues [6] - The company's operating income has deteriorated sharply, reflecting the escalating costs amid declining revenues [6] Market Dynamics and Strategic Initiatives - The adoption of GLP-1 medications is reshaping consumer preferences in the weight loss market, impacting customer acquisition for Medifast [5] - Medifast is launching OPTAVIA ASCEND in early 2025 to cater to the nutritional needs of GLP-1 users, aiming to enhance customer acquisition and experience [11][12] - The company is pursuing a long-term growth strategy focused on innovation, market expansion, and operational excellence, with initiatives to improve the coach and client experience [13] Cost Optimization Efforts - The "Fuel for the Future" program has delivered $21 million in cost savings in 2024, with expectations of an additional $15 million to $20 million in 2025 [14] Consensus Estimates - The Zacks Consensus Estimate for fiscal 2025 has seen a downward revision, with a projected loss of 1 cent for the current fiscal year and earnings of 2 cents for the next fiscal year [10]