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Wellness company Medifast (NYSE:MED) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 33.8% year on year to $115.7 million. Next quarter’s revenue guidance of $95 million underwhelmed, coming in 15.4% below analysts’ estimates. Its GAAP loss of $0.07 per share was 72% above analysts’ consensus estimates.

Is now the time to buy Medifast? Find out in our full research report.

Medifast (MED) Q1 CY2025 Highlights:

• Revenue: $115.7 million vs analyst estimates of $116.4 million (33.8% year-on-year decline, 0.6% miss)

• EPS (GAAP): -$0.07 vs analyst estimates of -$0.25 (72% beat)

• Revenue Guidance for Q2 CY2025 is $95 million at the midpoint, below analyst estimates of $112.3 million

• EPS (GAAP) guidance for Q2 CY2025 is -$0.28 at the midpoint, missing analyst estimates by 293%

• Operating Margin: -1.1%, down from 5.3% in the same quarter last year

• Market Capitalization: $131.5 million

"In today's health and wellness landscape, more people than ever are seeking guidance not just for weight loss but for learning how to lead a healthier lifestyle," said Dan Chard, CEO of Medifast.

Company Overview

Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE:MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods.

Sales Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $543.5 million in revenue over the past 12 months, Medifast is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers.

As you can see below, Medifast’s demand was weak over the last three years. Its sales fell by 30.3% annually, a tough starting point for our analysis.

This quarter, Medifast missed Wall Street’s estimates and reported a rather uninspiring 33.8% year-on-year revenue decline, generating $115.7 million of revenue. Company management is currently guiding for a 43.6% year-on-year decline in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to decline by 27.8% over the next 12 months. While this projection is better than its three-year trend, it's tough to feel optimistic about a company facing demand difficulties.

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