Medifast Q2 2025 Earnings Call Transcript: Revenue Down 3.7%, Digital Sales Growth Amidst Pandemic

Medifast Inc. (MED) reported Q2 2025 earnings with a focus on the principal points. The company's CEO, Dan Chard, and CFO, Jim Maloney, discussed the results during a conference call. The earnings release is available on Medifast's website. The call was webcast and a replay will be available. The company made forward-looking statements, which may differ from actual performance.

Medifast Inc. (MED) reported its second-quarter 2025 earnings, with a focus on key financial metrics and strategic initiatives. The earnings call, held on August 4, 2025, was led by CEO Dan Chard and CFO Jim Maloney, and a replay will be available on the company's website.

Financial Highlights

Revenue for the second quarter of 2025 was $105.6 million, a decrease of 37.4% year-over-year [2]. Gross profit was $76.6 million, down 37.9% year-over-year, resulting in a gross profit margin of 72.6% [2]. The company reported a net income of $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 [2]. SG&A expense was $77.7 million, a reduction of 40.8% year-over-year [2].

Operational Changes

Medifast introduced the Premier Plus auto-ship program, which aims to simplify the value proposition for clients and make it easier for coaches to attract and retain clients [2]. The company also launched the Edge program to provide integrated coach incentives and best practices, aiming to simplify onboarding and enhance coach productivity [2].

Market and Client Trends

The number of active earning OPTAVIA coaches decreased by 32.7% from the previous year to 22,800 [2]. The average revenue per active earning OPTAVIA Coach decreased by 6.9% year-over-year to $4,630 [2]. The company experienced a loss from operations of $1.1 million in the second quarter of 2025 [2].

Forward Guidance

Medifast provided guidance for the third quarter of 2025, expecting revenue to range from $70 million to $90 million and earnings per share potentially resulting in a loss [2]. The new Premier Plus auto-ship program is expected to have a neutral impact on margins [2].

Market Focus

Medifast is focusing on metabolic health, addressing a significant market need with 93% of US adults being metabolically unhealthy [2]. The company is adapting to the rise of GLP-1 medications, with 60% of coaches now supporting clients who use these drugs [2].

Conclusion

Medifast Inc. reported a decline in revenue and active earning coaches in the second quarter of 2025, but the company maintains a strong financial position with $162.7 million in cash and no interest-bearing debt as of June 30, 2025 [2]. The company's focus on metabolic health and strategic initiatives, such as the Premier Plus program, positions it for growth in the third quarter and beyond.

References

[1] https://www.marketscreener.com/news/transcript-medifast-inc-q2-2025-earnings-call-aug-04-2025-ce7c5edbd98ef02c
[2] https://finance.yahoo.com/news/medifast-inc-med-q2-2025-070226851.html