Medifast ( (MED) ) has released its Q1 earnings. Here is a breakdown of the information Medifast presented to its investors.
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Medifast, a health and wellness company, is renowned for its OPTAVIA® program, which offers a habit-based and coach-guided lifestyle solution aimed at promoting healthy living. In the first quarter of 2025, Medifast reported a revenue of $115.7 million, a significant decrease from the previous year, alongside a net loss of $0.8 million. The company’s financial performance was impacted by a reduction in the number of active earning OPTAVIA coaches, which decreased by 32.8% compared to the same period last year. Despite these challenges, Medifast maintains a strong balance sheet with $164.6 million in cash and no debt.
The company’s gross profit for the quarter was $84.2 million, reflecting a 33.8% decline from the previous year, primarily due to decreased revenue. Selling, general, and administrative expenses also saw a reduction, dropping by 28.4% to $85.5 million. However, as a percentage of revenue, these expenses increased, highlighting the impact of lower sales volumes. Medifast’s loss from operations was $1.3 million, a stark contrast to the $7.9 million income from operations in the prior year.
Looking ahead, Medifast is focused on revitalizing its coach and customer base by enhancing tools, data, and introducing new products. The company aims to reestablish sustainable long-term growth while improving profitability. For the second quarter of 2025, Medifast anticipates revenue between $85 million and $105 million, with a potential loss per share ranging from $0.00 to $0.55.