What factors drove the changes in Medifast's revenue and profit?

What guidance did Medifast's management provide for the next earnings period?

Did Medifast beat or miss consensus estimates last quarter?

What does Medifast do and what are its main business segments?

What is Medifast's gross profit margin?

What were the key takeaways from Medifast's earnings call?

What were the key takeaways from Medifast’s earnings call?

What is the market's earnings forecast for Medifast next quarter?

- **Strategic Shift to Metabolic Health**: Medifast is transitioning to a science-backed metabolic health solution, targeting visceral fat reduction (14% at 16 weeks) while preserving lean mass, complementing GLP-1 medications' limitations.
- **Coach-Centric Growth**: The EDGE program scales high-productivity coaches (average $6,000 revenue), with 61% of coaches supporting GLP-1 users and 22% of clients reporting GLP-1 usage.
- **Product Innovation**: A new 2026 product line using metabolic synchronization science will replace the Essential line, with initial coach feedback positive.
- **Financial Challenges**: Q3 2025 revenue down 36.2% YoY to $89.4 million, with gross margin at 69.5% (-590 bps YoY). Q4 guidance projects $65-70 million revenue and EPS loss $0.70-$1.25.
- **Economic Resilience**: Despite broader economic softness, clients prioritize health spending, with high retention rates and 22% GLP-1 client overlap.


**【Management Opening Remarks】**
- Steven Zenker introduced the call, emphasizing the company's strategic focus on metabolic health and the importance of the earnings release. He highlighted the risks of forward-looking statements and reminded investors of the webcast replay availability.

**【CEO Commentary】**
- **Strategic Shift to Metabolic Health**: CEO Daniel Chard outlined the company's transition from a weight loss focus to a comprehensive metabolic health solution. The program targets visceral fat reduction (14% at 16 weeks) while preserving lean mass (98% retention), complementing GLP-1 medications' limitations.
- **Coach-Centric Model**: 61% of coaches have worked with GLP-1 users, and 22% of clients report GLP-1 usage. Coaches drive 10x more weight loss and 17x more fat loss than self-directed clients. The EDGE leadership program aims to scale high-productivity coaches (average $6,000 revenue per coach).
- **Product Innovation**: A new product line using metabolic synchronization science will replace the Essential product line in 2026, with initial coach feedback positive.
- **Financial Highlights**: Q3 2025 revenue of $89.4 million (-36.2% YoY), EPS within guidance, and 19,500 active coaches (-35% YoY). Coach productivity stabilized at $4,585 (-1.9% YoY).

**【CFO Financial Commentary】**
- **Revenue Decline**: $89.4 million (-36.2% YoY) due to 35% active coach decline. Gross profit margin dropped to 69.5% (-590 bps YoY) due to fixed cost leverage loss and a $1.5 million Essential product reformulation charge.
- **Cost Management**: SG&A decreased 36% YoY to $66.2 million, driven by 35% coach reduction and $19.7 million lower compensation. The company maintains $173.5 million in cash with no debt.
- **Q4 Guidance**: Revenue $65-70 million, EPS loss $0.70-$1.25, reflecting ongoing stabilization efforts.

**【Q&A Highlights】**
- **Strategy Implementation**: Coaches are being trained on metabolic health science through leadership retreats, with EDGE program scaling high-productivity coaches.
- **Economic Impact**: Despite broader economic softness, clients prioritize health spending, evidenced by high retention rates and 22% GLP-1 client overlap.
- **Financial Alignment**: SG&A decline aligns with revenue, with 2024 one-time expenses (LifeMD collaboration) no longer recurring. Margins expected to improve with coach productivity recovery.


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