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Medifast Inc Q2 2025 Earnings Call Highlights: Strategic Initiatives Amidst Challenges
ByAinvest
Wednesday, Aug 6, 2025 4:42 pm ET1min read
Medifast Inc reported Q2 2025 revenue and EPS above guidance despite a 37.4% YoY decline in revenue due to a decrease in active earning OPTAVIA coaches. The company introduced Premier Plus and the Edge program to simplify the value proposition for clients and enhance coach productivity. Medifast maintains a strong financial position with $162.7 million in cash and no interest-bearing debt. Guidance for Q3 expects revenue between $70-90 million and potentially negative earnings per share.
Medifast Inc (NYSE: MED) reported its second quarter 2025 earnings, revealing a mixed bag of results. The wellness company reported revenue of $105.6 million, a 37.4% year-on-year decline, but this figure beat Wall Street's expectations by 3.7% [1]. Despite the revenue drop, earnings per share (EPS) came in at $0.22, significantly above analysts' consensus estimates of -$0.19 [1]. The company's guidance for the third quarter 2025 expects revenue between $70 million and $90 million, with potentially negative EPS of -$0.30 [1].Medifast introduced two key programs to enhance its value proposition and operational efficiency: Premier Plus and the Edge program. Premier Plus aims to simplify discounts and shipping for over 90% of clients, while the Edge program focuses on boosting coach productivity and streamlining reporting [3]. The company also ended the quarter with $162.7 million in cash and no debt, indicating a strong financial position [3].
However, the company faces ongoing challenges, including a decline in active OPTAVIA coaches and a projected revenue decline over the next 12 months [1]. Wall Street analysts have upgraded Medifast to a "buy" rating, but the stock traded down 4.1% to $12.91 immediately after the report [2].
References:
[1] https://finance.yahoo.com/news/medifast-nyse-med-exceeds-q2-205124299.html
[2] https://www.marketbeat.com/instant-alerts/medifast-nysemed-issues-q3-2025-earnings-guidance-2025-08-04/
[3] https://www.marketbeat.com/earnings/reports/2025-8-4-medifast-inc-stock/
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