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Medifast Inc (MED)
NYSE:MED
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Medifast
(NYSE:MED)
Rating:48Neutral
Price Target:
$13.00
▼(-1.44% Downside)
Medifast (MED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$143.21M
Dividend YieldN/A
Average Volume (3M)200.18K
Price to Earnings (P/E)39.5
Beta (1Y)0.42
Revenue Growth-37.62%
EPS Growth-87.69%
CountryUS
Employees504
SectorConsumer Cyclical
Sector Strength75
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)0.40
Shares Outstanding10,991,064
10 Day Avg. Volume211,836
30 Day Avg. Volume200,175
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.04
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.02
Enterprise Value/Ebitda0.41
Forecast
1Y Price Target
$13.00Price Target Upside-1.44% Downside
Rating ConsensusHold
Number of Analyst Covering1
Medifast Business Overview & Revenue Model
Company DescriptionMedifast, Inc., through its subsidiaries, manufactures and distributes weight loss, weight management, healthy living products, and other consumable health and nutritional products in the United States and the Asia-Pacific. The company offers bars, bites, pretzels, puffs, cereal crunch, drinks, hearty choices, oatmeal, pancakes, pudding, soft serves, shakes, smoothies, soft bakes, and soups under the OPTAVIA, Optimal Health by Take Shape for Life, and Flavors of Home brands. It markets its products through point-of-sale transactions over ecommerce platform. The company was founded in 1980 and is headquartered in Baltimore, Maryland.
How the Company Makes MoneyMedifast generates revenue through multiple channels, primarily by selling its meal replacement products and nutritional supplements directly to consumers via its OPTAVIA platform. The company has a unique revenue model that includes the sale of products through a network of independent health coaches who earn commissions on product sales and can build their own client bases. This multi-level marketing approach not only drives product sales but also encourages customer loyalty and community engagement. Additionally, Medifast benefits from subscription services and recurring orders, allowing for consistent revenue flow. Strategic partnerships with healthcare providers and wellness organizations also contribute to Medifast's earnings by expanding its reach and enhancing brand credibility.
Medifast Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: -2.37%|
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a challenging quarter for Medifast, with significant declines in revenue and active coaches contributing to a negative outlook. However, the company maintains a strong financial position and has introduced new programs aimed at improving client retention and coach growth, which provides some optimism for future performance.Q2-2025 Updates
Positive Updates
Revenue and EPS Above Guidance
Revenue for the second quarter was $105.6 million, and EPS was above guidance ranges, showcasing better-than-expected performance.
Strong Financial Position
Despite challenges, Medifast maintains a strong financial position with $162.7 million in cash and cash equivalents and no interest-bearing debt as of June 30, 2025.
Launch of New Premier+ Program
Premier+ integrates discounts beyond the first order and simplifies the client value proposition, which is expected to enhance client retention and recruitment.
Introduction of EDGE Program
The EDGE program introduces integrated coach incentives and best practices to support coach growth and business alignment.
Negative Updates
Significant Revenue Decline
Revenue decreased by 37.4% compared to the year earlier period, largely due to a decrease in the number of active earning OPTAVIA coaches.
Decrease in Active Coaches
The total number of active earning OPTAVIA coaches was down 32.7% from the second quarter of 2024, impacting overall sales.
Decline in Coach Productivity
Year-over-year coach productivity declined by 7%, reflecting challenges in client acquisition and reduced promotional activities.
Loss of Leverage on Fixed Costs
SG&A expenses decreased, but lower sales volumes resulted in a loss of leverage on fixed costs, impacting profitability.
Company Guidance
During Medifast's second quarter 2025 earnings call, the company provided detailed guidance on its evolving business strategy and financial performance metrics. Medifast reported revenue of $105.6 million, a 37.4% decrease from the previous year, primarily due to a 32.7% decline in active earning OPTAVIA coaches, totaling 22,800. Average revenue per coach decreased by 6.9% year-over-year, but showed sequential improvement for the second consecutive quarter. Despite these declines, the company exceeded its revenue and EPS guidance, achieving a net income of $2.5 million or $0.22 per diluted share, compared to a net loss in the previous year. Medifast emphasized its focus on metabolic health, particularly in response to the growing use of GLP-1 medications, and outlined its new initiatives such as the Premier+ auto ship program and the EDGE program to enhance coach productivity and client engagement. The company anticipates third-quarter revenue to range from $70 million to $90 million, with earnings per share ranging from $0.00 to a loss of $0.60.Medifast Financial Statement Overview
Summary
Medifast faces financial headwinds with declining revenue and profitability, as well as cash flow challenges. Despite a strong gross profit margin and low leverage, the company needs to address operational inefficiencies and improve cash flow management to enhance financial stability.Income Statement
Medifast's income statement shows declining revenue with a negative growth rate of -11.59% in the TTM period. Gross profit margin remains strong at 73.84%, but net profit margin is low at 0.76%, indicating profitability challenges. The EBIT and EBITDA margins have significantly decreased, reflecting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet is relatively stable with a low debt-to-equity ratio of 0.06, suggesting low leverage. However, return on equity has decreased to 1.72%, indicating reduced profitability from equity. The equity ratio is not provided, but overall, the company maintains a conservative financial structure.65
Positive
Cash Flow
Cash flow analysis reveals significant challenges, with a free cash flow growth rate of -117.99% in the TTM period. Operating cash flow to net income ratio is low at 0.09, and free cash flow to net income is negative, indicating cash flow issues and potential liquidity concerns.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 480.45M | 602.46M | 1.07B | 1.60B | 1.53B | 934.84M |
| Gross Profit | 354.78M | 444.62M | 775.85M | 1.14B | 1.13B | 697.82M |
| EBITDA | 14.19M | 15.59M | 139.51M | 201.84M | 223.05M | 134.16M |
| Net Income | 3.64M | 2.09M | 99.42M | 143.57M | 164.03M | 102.86M |
Balance Sheet | ||||||
| Total Assets | 269.33M | 284.21M | 309.91M | 316.21M | 398.33M | 276.08M |
| Cash, Cash Equivalents and Short-Term Investments | 162.67M | 162.34M | 150.04M | 87.69M | 109.54M | 174.47M |
| Total Debt | 13.07M | 16.13M | 22.01M | 26.05M | 32.54M | 11.16M |
| Total Liabilities | 53.33M | 74.10M | 108.43M | 161.17M | 195.85M | 118.84M |
| Stockholders Equity | 216.00M | 210.11M | 201.48M | 155.04M | 202.47M | 157.25M |
Cash Flow | ||||||
| Free Cash Flow | -2.42M | 17.02M | 141.17M | 177.89M | 60.34M | 139.31M |
| Operating Cash Flow | 4.15M | 24.48M | 147.66M | 194.57M | 94.55M | 145.20M |
| Investing Cash Flow | -9.91M | -26.52M | -61.05M | -11.41M | -29.06M | -1.28M |
| Financing Cash Flow | -569.00K | -1.51M | -79.79M | -199.58M | -125.13M | -57.14M |
Medifast Technical Analysis
Negative
13.19
Price Trends
13.79
Negative
13.46
Negative
15.14
Negative
Market Momentum
-0.26
Positive
42.54
Neutral
27.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MED, the sentiment is Negative. The current price of 13.19 is below the 20-day moving average (MA) of 13.75, below the 50-day MA of 13.79, and below the 200-day MA of 15.14, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 42.54 is Neutral, neither overbought nor oversold. The STOCH value of 27.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MED.
Medifast Risk Analysis
Medifast disclosed 27 risk factors in its most recent earnings report. Medifast reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Medifast Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Performance Comparison
MED
Medifast
13.19
-5.14
-28.04%
WGHTQ
WW International
0.31
-0.60
-65.93%
MRM
MEDIROM Healthcare Technologies
2.12
-0.73
-25.61%
Medifast Corporate Events
Executive/Board ChangesShareholder Meetings
Medifast Stockholders Approve Key Proposals at Annual Meeting
Neutral
Jun 20, 2025
On June 18, 2025, Medifast held its Annual Meeting where stockholders voted on several proposals. All directors nominated for re-election were successfully re-elected to the Board. The stockholders also ratified the appointment of RSM US LLP as the Independent Registered Public Accounting Firm for the fiscal year ending December 31, 2025. Additionally, the compensation of the company’s named executive officers was approved on an advisory basis, and the Amended 2012 Plan was also approved.
The most recent analyst rating on (MED) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Medifast stock, see the MED Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.