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Jun 30, 2025
Medifast Q2 2025 Earnings Report
Medifast reported its financial results for the second quarter of 2025, showing a decrease in revenue and net income compared to the previous year, primarily due to a decline in active earning coaches.
Key Takeaways
Medifast experienced a challenging second quarter in 2025, with revenue decreasing by 37.4% to $105.6 million and net income falling to $2.5 million. The decline was largely attributed to a significant reduction in the number of active earning OPTAVIA coaches and lower average revenue per coach, reflecting broader market challenges including the impact of GLP-1 medications.
Revenue for Q2 2025 was $105.6 million, a 37.4% decrease from $168.6 million in Q2 2024.
Net income for the quarter was $2.5 million, or $0.22 per diluted share, which included a $2.0 million gain on investment in LifeMD.
The total number of active earning OPTAVIA coaches decreased by 32.7% to 22,800, down from 33,900 in the prior year.
The company's balance sheet remains strong with $162.7 million in cash, cash equivalents, and investment securities, and no debt.
Forward Guidance
Medifast expects third quarter 2025 revenue to be between $70 million and $90 million, with diluted income/(loss) per share ranging from ($0.60) to $0.00.
Positive Outlook
- Focus on new and impactful ways to reignite coach growth and productivity.
- Targeted initiatives to enhance offering and expand tailored client solutions.
- Strengthening coach success through various programs.
- Maintaining a disciplined balance sheet with strong cash reserves and no debt.
- Leveraging scientific findings to strengthen core offering and unlock new growth areas, including an upcoming scientific advancement.
Challenges Ahead
- Expected revenue decline for Q3 2025 compared to Q2 2025.
- Potential for a net loss per share in Q3 2025.
- Continued challenges with client acquisition impacting coach numbers and productivity.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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