Medifast's Q1 2025 Earnings Call: Unraveling Contradictions in Coach Productivity, GLP-1 Impact, and Marketing Strategies

Coach productivity and marketing strategy, GLP-1 impact on customer retention, marketing strategy and impact on SG&A, GLP-1 impact and support market focus are the key contradictions discussed in Medifast's latest 2025Q1 earnings call.



Coach Productivity and New Coach Growth:
- Medifast reported a moderation in the year-over-year decline in revenue per active earning coach, with a decrease of 1.4% in Q1 2025 compared to a decrease of 22.8% in Q1 2024.
- This improvement is primarily driven by increased productivity of newer coach cohorts, which are exhibiting new customer growth ahead of last year.

OPTAVIA Coach Development:
- There was a double-digit increase in new coaches in Q1 2025 compared to the same period last year, marking the first meaningful year-over-year increase in three years.
- These improvements are attributed to Medifast's focus on reigniting the coach engine, streamlining the coach development path, and enhancing business tools and support for coaches.

GLP-1 Medications and Coach Support:
- Currently, half of OPTAVIA coaches have supported GLP-1 medication patients, with 25% of coaches having personal experience using GLP-1 medications.
- This growth in expertise is due to the increasing relevance of GLP-1 medications in weight loss and management, impacting both client needs and coach training.

ASCEND Product Line and GLP-1 Integration:
- The ASCEND product line, designed for those using GLP-1 medications or transitioning into weight management, represented mid-teens percentage of total orders at the end of Q1 2025.
- The increase in demand for GLP-1 medications and the need to preserve lean muscle mass have driven the adoption of these specialized products.