Medifast ( (MED) ) has released its Q2 earnings. Here is a breakdown of the information Medifast presented to its investors.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Medifast, Inc. is a health and wellness company known for its OPTAVIA® lifestyle solution, which offers a coach-guided approach to weight management and healthy living. The company operates in the health sector, focusing on habit-based lifestyle changes supported by scientific research.
In the second quarter of 2025, Medifast reported a revenue of $105.6 million, reflecting a significant decrease from the previous year. Despite the revenue drop, the company maintained a strong balance sheet with $162.7 million in cash and no debt, while net income improved to $2.5 million, or $0.22 per diluted share.
Key financial metrics showed a 37.4% decline in revenue year-over-year, primarily due to a decrease in the number of active earning OPTAVIA coaches. Gross profit also fell by 37.9%, and selling, general, and administrative expenses decreased by 40.8% due to reduced coach compensation and non-recurring costs from the previous year. The company recorded a gain from its investment in LifeMD, contributing positively to its financial performance.
Looking ahead, Medifast’s management remains committed to leveraging scientific findings to enhance its offerings and drive growth. The company anticipates third-quarter revenue to range between $70 million and $90 million, with a focus on expanding client solutions and improving coach productivity.
Overall, Medifast is navigating a challenging market environment with strategic initiatives aimed at reigniting growth and maintaining financial discipline.