Medifast Announces Second Quarter 2025 Financial Results
Second Quarter 2025
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Revenue:
$105.6 million , with revenue per active earning coach of$4,630 - Active Coaches: Independent active earning OPTAVIA coaches of 22,800
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Net Income:
$2.5 million or$0.22 per diluted share, which includes a gain on investment in (Nasdaq: LFMD) common stock ofLifeMD $2.0 million (net of tax) -
Strong Balance Sheet:
$162.7 million in cash, cash equivalents, and investment securities with no debt
“We are working diligently to transform our business as we look to help more people achieve optimal metabolic health,” said
Chard added, “Science will continue to guide our strategy and innovation. With 9 out of 10 U.S. adults metabolically unhealthy12, recent analysis of data from a clinical study we commissioned led our scientists to discover that people who follow the OPTAVIA 5 & 1 Plan preserve 98% of their lean mass3, a benefit that goes beyond weight loss. Preserving lean mass is a critical component of metabolic health. Building on this momentum, we will continue to leverage scientific findings from our team of experts to strengthen our core offering and unlock new areas of growth, including an upcoming scientific advancement that we believe will further solidify OPTAVIA’s role in helping people combat and reverse the effects of metabolic dysfunction.”
Second Quarter 2025 Results
Second quarter 2025 revenue decreased 37.4% to
Gross profit decreased 37.9% to
Selling, general, and administrative expenses (“SG&A”) decreased 40.8% to
The company's loss from operations for the period was
Other income increased
The effective tax rate was 13.7% for the second quarter of 2025 compared to 23.4% in the prior-year period. The change in the effective tax rate for the three months ended
In the second quarter of 2025, the company's net income was
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1 O'Hearn M, et al. Trends and Disparities in Cardiometabolic Health Among |
2 Nichols GA, et al. Cardiometabolic Risk Factors Among 1.3 Million Adults With Overweight or Obesity, but Not Diabetes, in 10 Geographically Diverse Regions of |
3 Arterburn LM, et al. Randomized controlled trial assessing two commercial weight loss programs in adults with overweight or obesity. Obes Sci Pract. 2018;5(1):3-14. doi: 10.1002/osp4.312. In a clinical study, individuals on the OPTAVIA 5&1 Plan, retained 98% of lean mass at 16 weeks. |
Capital Allocation and Balance Sheet
The company’s balance sheet remains strong with
Outlook
The company expects third quarter 2025 revenue to be in the range of
Conference Call Information
The conference call is scheduled for today,
A telephonic playback will be available from
About
MED-F
Forward Looking Statements
Please Note: This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by use of phrases or terminology such as “intend,” “anticipate,” “expect” or other similar words or the negative of such terminology. Similarly, descriptions of Medifast’s objectives, strategies, plans, goals, outlook or targets contained herein are also considered forward-looking statements. These statements are based on the current expectations of the management of
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
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( |
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Three months ended |
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Six months ended |
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2025 |
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2024 |
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2025 |
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2024 |
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Revenue |
$ |
105,555 |
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|
$ |
168,558 |
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|
$ |
221,283 |
|
|
$ |
343,297 |
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Cost of sales |
|
28,911 |
|
|
|
45,120 |
|
|
|
60,395 |
|
|
|
92,567 |
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Gross profit |
|
76,644 |
|
|
|
123,438 |
|
|
|
160,888 |
|
|
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250,730 |
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Selling, general, and administrative |
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77,710 |
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131,314 |
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163,217 |
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250,666 |
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Income (loss) from operations |
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(1,066 |
) |
|
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(7,876 |
) |
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(2,329 |
) |
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|
64 |
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Other income (expense) |
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Interest income |
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1,369 |
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|
|
1,296 |
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|
|
2,671 |
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|
|
2,519 |
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Other income (expense) |
|
2,572 |
|
|
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(4,070 |
) |
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|
3,059 |
|
|
|
(1,647 |
) |
|
|
3,941 |
|
|
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(2,774 |
) |
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|
5,730 |
|
|
|
872 |
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|
|
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|
|
|
|
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Income (loss) before provision for income taxes |
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2,875 |
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|
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(10,650 |
) |
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|
3,401 |
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|
|
936 |
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|
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Provision (benefit) for income taxes |
|
395 |
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|
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(2,496 |
) |
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|
1,693 |
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|
|
773 |
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Net income (loss) |
$ |
2,480 |
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|
$ |
(8,154 |
) |
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$ |
1,708 |
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|
$ |
163 |
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Earnings (loss) per share - basic |
$ |
0.23 |
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|
$ |
(0.75 |
) |
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$ |
0.16 |
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$ |
0.01 |
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Earnings (loss) per share - diluted |
$ |
0.22 |
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$ |
(0.75 |
) |
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$ |
0.15 |
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$ |
0.01 |
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Weighted average shares outstanding |
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Basic |
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10,991 |
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10,937 |
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10,970 |
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|
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10,923 |
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Diluted |
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11,060 |
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10,937 |
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11,045 |
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10,967 |
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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
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( |
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ASSETS |
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Current Assets |
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Cash and cash equivalents |
$ |
101,694 |
|
$ |
90,928 |
Inventories, net |
|
30,201 |
|
|
42,421 |
Investments |
|
60,979 |
|
|
71,416 |
Income taxes, prepaid |
|
4,513 |
|
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— |
Prepaid expenses and other current assets |
|
9,054 |
|
|
9,639 |
Total current assets |
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206,441 |
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214,404 |
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Property, plant and equipment, net of accumulated depreciation |
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34,597 |
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|
37,527 |
Right-of-use assets |
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8,856 |
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|
11,155 |
Other assets |
|
7,979 |
|
|
9,667 |
Deferred tax assets |
|
11,460 |
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|
11,460 |
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TOTAL ASSETS |
$ |
269,333 |
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$ |
284,213 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current Liabilities |
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Accounts payable and accrued expenses |
$ |
40,260 |
|
$ |
56,494 |
Income taxes payable |
|
— |
|
|
1,485 |
Current lease obligations |
|
5,924 |
|
|
6,182 |
Total current liabilities |
|
46,184 |
|
|
64,161 |
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Lease obligations, net of current lease obligations |
|
7,144 |
|
|
9,943 |
Total liabilities |
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53,328 |
|
|
74,104 |
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Stockholders' Equity |
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Common stock, par value |
|
11 |
|
|
11 |
Additional paid-in capital |
|
37,323 |
|
|
33,136 |
Accumulated other comprehensive income |
|
179 |
|
|
180 |
Retained earnings |
|
178,492 |
|
|
176,782 |
Total stockholders' equity |
|
216,005 |
|
|
210,109 |
|
|
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
269,333 |
|
$ |
284,213 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250804529646/en/
Investor Contact:
InvestorRelations@medifastinc.com
(443) 379-5256
Source: