BALTIMORE - Medifast, Inc. (NYSE:MED), the health and wellness company behind the OPTAVIA lifestyle solution, reported first-quarter 2025 results that fell short of analyst expectations, sending shares down 4.9% in after-hours trading.
The company posted a loss of $0.07 per share for the quarter, which was better than the analyst estimate of a $0.19 loss. However, revenue came in at $115.7 million, missing the consensus estimate of $130.75 million and representing a 33.8% YoY decline.
Medifast’s CEO Dan Chard attributed the revenue decline to "continued challenges in customer acquisition." The number of active earning OPTAVIA coaches decreased 32.8% YoY to 25,400, while revenue per active earning coach slightly declined to $4,556 from $4,623 in the same quarter last year.
Looking ahead, Medifast provided disappointing guidance for the second quarter of 2025, projecting revenue between $85 million and $105 million. This outlook falls significantly below the current quarter’s results, signaling continued headwinds for the company.
"This year, we are focused on revitalizing our coach and customer base by supporting them with enhanced tools, data, and new products," Chard stated. "Our business focus remains on reestablishing sustainable long-term growth while improving profitability."
Despite the challenges, Medifast maintained a strong balance sheet with $164.6 million in cash, cash equivalents, and investment securities, and no debt as of March 31, 2025.
The company’s gross profit margin remained steady at 72.8%, while selling, general, and administrative expenses decreased 28.4% YoY to $85.5 million, primarily due to lower OPTAVIA coach compensation and reduced employee costs.
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