In This Article:
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Revenue: $115.7 million, a decrease of 33.8% year-over-year.
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Active Earning OPTAVIA Coaches: Approximately 25,400, a decrease of 32.8% from the previous year.
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Average Revenue per Active Earning Coach: $4,556, a year-over-year decrease of 1.4%.
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Gross Profit: $84.2 million, a decrease of 33.8% year-over-year.
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Gross Profit Margin: 72.8%, consistent with the previous year.
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SG&A Expense: $85.5 million, down 28.4% year-over-year.
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Loss from Operations: $1.3 million, down $9.2 million from the previous year.
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Net Loss: $0.8 million or $0.07 per share, compared to net income of $8.3 million or $0.76 per diluted share in the previous year.
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Cash and Cash Equivalents: $164.6 million with no interest-bearing debt as of March 31, 2025.
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Q2 2025 Revenue Guidance: Expected to range from $85 million to $105 million.
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Q2 2025 Loss per Share Guidance: Expected to range from $0.00 to $0.55.
Release Date: April 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Medifast Inc (NYSE:MED) reported that revenues and EPS were within guidance range for the first quarter of 2025.
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The company saw a meaningful year-over-year increase in new coaches for the first time in three years, with a double-digit increase compared to the same period last year.
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Medifast Inc (NYSE:MED) is focusing on empowering coaches by streamlining the coach development path and enhancing tools and insights available to them.
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The OPTAVIA program is designed to support long-term health goals, offering a holistic approach with science-backed products and personalized nutrition plans.
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The company maintains a strong balance sheet with $164.6 million in cash and no interest-bearing debt as of March 31, 2025.
Negative Points
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Revenue for the first quarter decreased by 33.8% compared to the previous year, primarily due to a decrease in the number of active earning OPTAVIA coaches.
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The number of active earning OPTAVIA coaches decreased by 32.8% from the first quarter of 2024.
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SG&A expenses as a percentage of revenue increased by 560 basis points due to lower sales volumes and company-led marketing efforts.
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Medifast Inc (NYSE:MED) reported a net loss of $0.8 million in the first quarter of 2025, compared to a net income of $8.3 million in the same period last year.
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The company anticipates potential consumer demand headwinds due to a weaker economy, which could impact future performance.
Q & A Highlights
Q: Can you explain the reasoning behind the second quarter top line guidance, which seems to imply an acceleration in the year-over-year rate of decline? A: Jim Maloney, CFO, explained that the guidance reflects the timing of promotions. A successful promotion in Q1 led to a year-over-year improvement in new coaches, which impacted Q2 projections. The company does not plan similar promotions in Q2, affecting the guidance. However, this does not imply a continued trend of acceleration in decline for future quarters.