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Sep 30, 2025
Medifast Q3 2025 Earnings Report
Medifast reported a decrease in revenue and a net loss for the third quarter of 2025, primarily due to a decline in active earning coaches.
Key Takeaways
Medifast experienced a significant decline in its third-quarter 2025 financial results, with revenue decreasing by 36.2% to $89.4 million and reporting a net loss of $2.3 million. This downturn was largely attributed to a 35.0% decrease in active earning OPTAVIA coaches, impacted by the growing acceptance of GLP-1 medications for weight loss. Despite the challenges, the company maintains a strong balance sheet with $173.5 million in cash and no debt, and is strategically shifting its focus towards metabolic health.
Revenue for Q3 2025 decreased by 36.2% to $89.4 million compared to $140.2 million in Q3 2024.
The company reported a net loss of $2.3 million, or $0.21 loss per diluted share, in Q3 2025, a decline from a net income of $1.1 million in Q3 2024.
The number of active earning OPTAVIA coaches decreased by 35.0% to 19,500, down from 30,000 in the prior year.
Medifast maintains a strong balance sheet with $173.5 million in cash, cash equivalents, and investment securities, and no debt.
Forward Guidance
Medifast expects fourth quarter 2025 revenue to be between $65 million and $80 million, with a diluted loss per share ranging from $0.70 to $1.25.
Positive Outlook
- Strategic evolution to focus on metabolic health, positioning the company in a larger, more durable market.
- Strong balance sheet with no debt provides financial stability.
- Clinically proven, coach-guided system addresses underlying metabolic dysfunction.
- Company believes it is well-positioned to become a trusted partner for metabolic health.
- Moderating year-over-year declines in average revenue per active earning coach.
Challenges Ahead
- Expected fourth quarter 2025 revenue range of $65 million to $80 million indicates continued decline.
- Anticipated diluted loss per share for Q4 2025 is projected to be between $0.70 and $1.25, indicating further losses.
- Continued challenges with client acquisition due to the growing acceptance of GLP-1 medications for weight loss.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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