Medifast Reports Q1 2025 Financial Results

Medifast (NYSE: MED), the health and wellness company known for its habit-based and coach-guided lifestyle solution, OPTAVIA®, reported results for the first quarter ended March 31, 2025.

First Quarter 2025

• Revenue of $115.7 million, with revenue per active earning coach of $4,556
• Independent active earning OPTAVIA coaches of 25,400
• Net loss of $0.8 million, which includes an unrealized gain on investment in LifeMD (Nasdaq: LFMD) common stock of $0.4 million (net of tax)
• Loss per share of $0.07
• Cash, Cash Equivalents, and Investment Securities of $164.6 million with no debt

“In today’s health and wellness landscape, more people than ever are seeking guidance not just for weight loss but for learning how to lead a healthier lifestyle,”

said Dan Chard, CEO of Medifast.

“However, research we commissioned indicates that 83% of those looking to lose weight lack confidence in their ability to transition to a healthy lifestyle for long-term health and wellness improvements.”

Chard continued,

“Our OPTAVIA program is designed to provide this essential knowledge through personalized support and clinically studied, tailored plans. The journey begins with our OPTAVIA coaches, who guide and help our customers in achieving and maintaining a healthy weight while preserving lean muscle and improving overall health.

“This year, we are focused on revitalizing our coach and customer base by supporting them with enhanced tools, data, and new products. Our business focus remains on reestablishing sustainable long-term growth while improving profitability.”

First Quarter 2025 Results

First quarter 2025 revenue decreased 33.8% to $115.7 million from $174.7 million for the first quarter of 2024 primarily driven by a decrease in the number of active earning OPTAVIA coaches. The total number of active earning OPTAVIA coaches decreased 32.8% to 25,400 compared to 37,800 for the first quarter of 2024, primarily driven by continued challenges in customer acquisition. The average revenue per active earning OPTAVIA coach was $4,556, compared to $4,623 for the first quarter last year. The company continues to see lower year-over-year declines in revenue per active earning coach, driven in part by increased productivity of newer coach cohorts.

Gross profit decreased 33.8% to $84.2 million from $127.3 million for the first quarter of 2024. The decrease in gross pro t was primarily attributable to lower revenue. Gross profit margin was 72.8% for the first quarter of 2025 and the first quarter of 2024.

In the first quarter of 2025, the company’s net loss was $0.8 million, or $0.07 per share, based on approximately 10.9 million shares of common stock outstanding, and net income was $8.3 million, or $0.76 per diluted share, based on approximately 11.0 million shares of common stock outstanding.

To read the full Q1 press release, visit here

Outlook

The company expects second quarter 2025 revenue to be in the range of $85 million to $105 million and second quarter 2025 loss per share to be in the range of $0.00 to $0.55. The loss per share range excludes any gains or losses from changes in the market price of the company’s LifeMD common stock investment.

About Medifast

Medifast (NYSE: MED) is the 40+ year old health and wellness company known for its habit-based and coach-guided 3lifestyle solution OPTAVIA®, which provides people with a simple yet comprehensive approach to address obesity and support a healthy lifestyle. OPTAVIA provides unparalleled coaching support along with community, tailored nutrition and healthy habits, and empowers people to master their weight loss journey through each stage of life. Through the company’s collaboration with national virtual primary care provider LifeMD® (Nasdaq: LFMD) and its affiliated medical group, customers now have access to GLP-1 medications where clinically appropriate. Medifast remains committed to its mission of offering Lifelong Transformation, Making a Healthy Lifestyle Second Nature™.