Medifast ( (MED) ) has released its Q4 earnings. Here is a breakdown of the information Medifast presented to its investors.
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Medifast, a prominent player in the health and wellness sector, offers a coach-guided lifestyle solution known as OPTAVIA®, providing a comprehensive approach to weight loss and healthy living. The company recently announced its financial results for the fourth quarter and full year of 2024, highlighting a challenging year marked by significant revenue declines. In the fourth quarter of 2024, Medifast reported a revenue of $119.0 million, a 37.7% decrease from the previous year, driven largely by a reduction in the number of active earning OPTAVIA coaches and lower coach productivity. Despite these setbacks, the company maintained a strong balance sheet with $162.3 million in cash and no debt.
Key financial metrics showed a decrease in net income to $0.8 million for the fourth quarter, compared to $6.0 million in the previous year. Earnings per share also dropped to $0.07 from $0.55. For the full year, revenue fell by 43.8% to $602.5 million, with net income dropping significantly to $2.1 million from $99.4 million in 2023. Despite these declines, Medifast’s gross profit margin slightly improved, maintaining a strong position at 74.1% of revenue.
Medifast’s strategic focus remains on adapting to the evolving health and wellness market, particularly with the rise of GLP-1 medications. The company plans to reestablish growth through enhanced coach productivity and increased customer acquisition, aiming to restore revenue and profitability growth while delivering long-term value to stakeholders.
Looking forward, Medifast is cautiously optimistic about the future, with expectations for the first quarter of 2025 revenue to range between $100 million and $120 million. The company is committed to navigating market challenges and continuing its mission of providing comprehensive, habit-based health and wellness solutions.
