Medifast (MED) investor relations material

Executive summary

• Q2 2025 revenue and EPS exceeded guidance, but revenue fell 37.4% year-over-year due to a 32.7% drop in active earning coaches and client acquisition challenges, largely driven by GLP-1 medication trends.

• Net income was $2.5M ($0.22 per diluted share), reversing a prior year loss, aided by cost controls and a $2.6M gain from the LifeMD investment sale.

• The company is transforming its business model, focusing on science, new product lines, and digital enhancements to address metabolic health and GLP-1 trends.

• New pricing and incentive programs (Premier Plus, EDGE) were launched to boost coach productivity, retention, and recruitment.

• The company maintains a strong balance sheet with $162.7M in cash and investments and no debt.

Financial highlights

• Q2 2025 revenue was $105.6M–$106M, down 37.4% year-over-year; gross profit was $76.6M, with gross margin at 72.6%, down 60 bps.

• SG&A expense dropped 40.8% to $77.7M, reflecting lower coach compensation and absence of prior year one-time costs.

• Net income was $2.5M ($0.22 per diluted share) versus a net loss of $8.2M ($0.75 per share) in Q2 2024.

• Loss from operations improved to $1.1M from a $7.9M loss in Q2 2024.

• Revenue per active earning coach was $4,630, down 6.9% year-over-year but increased sequentially.

Outlook and guidance

• Q3 2025 revenue is expected between $70M and $90M; EPS guidance ranges from $0.00 to a loss of $0.60.

• Management anticipates continued challenges in client acquisition and coach productivity due to GLP-1 trends and macroeconomic pressures.

• No significant margin impact is expected from new pricing, as changes are offset by other program actions.

• No material contractual commitments or capital expenditures are anticipated for current growth initiatives.