Medifast Q2 2025 slides: Coach productivity improves amid revenue challenges

Medifast Inc (NYSE:MED) shared its second quarter 2025 earnings presentation on August 4, revealing modest improvements in coach productivity despite continued revenue challenges. The health and wellness company reported earnings that exceeded guidance while outlining strategic initiatives focused on metabolic health and adapting to the growing GLP-1 medication market.

Quarterly Performance Highlights

Medifast reported Q2 2025 revenue of $106 million, which exceeded the company’s guidance range but still represents a significant decline from previous quarters. The company posted earnings per share of $0.22, also above guidance and marking an improvement from the $0.07 loss reported in Q1 2025.

"Revenue and EPS came in above our guidance range for the quarter," the company noted in its presentation, while acknowledging ongoing challenges in maintaining volume.

The company’s gross profit margin stood at 72.6%, down 60 basis points compared to Q2 2024. However, operating margin increased primarily due to the absence of non-recurring items that affected previous quarters, though this was partially offset by loss of leverage on fixed costs from lower volumes.

As shown in the following financial summary:

Medifast maintained a strong balance sheet with $163 million in cash and investments as of June 30, 2025, and remains debt-free. This financial position provides the company with flexibility as it navigates its transformation strategy.

Strategic Initiatives

Medifast’s presentation emphasized three core strategic pillars: science-driven innovation, coach tools for growth, and a scalable business model. The company is positioning itself to address what it calls "the health challenge of our time" – metabolic dysfunction, which it claims affects nine out of ten U.S. adults.

The company’s strategic framework is illustrated here:

A key focus of Medifast’s strategy involves adapting to the growing popularity of GLP-1 medications while highlighting potential drawbacks of these drugs when used without proper lifestyle changes. The company noted that 60% of its coaches have had at least one client on GLP-1 medications, indicating the significance of this market segment.

The presentation highlighted concerning statistics about GLP-1 medications:

To address these challenges, Medifast is emphasizing its OPTAVIA 5&1 Plan, which according to the company’s clinical trial data, helps users retain 98% of lean mass during weight loss – positioning this as an advantage over GLP-1 medications that can result in significant lean mass loss.

The company has also introduced Premier+, a streamlined pricing and process program designed to improve client retention and aid coach recruitment:

Coach (NYSE:TPR) Productivity Improvements

A central theme of the presentation was Medifast’s focus on improving coach productivity. The company reported that revenue per active earning coach was $4,630 in Q2, which while down 6.9% year-over-year, has increased sequentially for the second consecutive quarter. The company also noted that new coach productivity exceeded the same period last year.

To further boost coach effectiveness, Medifast introduced the OPTAVIA EDGE Program, designed to drive productivity, increase client acquisition, and improve leadership development:

The company outlined specific actions targeting coach productivity improvement:

Forward-Looking Statements

Medifast provided guidance for Q3 2025, projecting revenue between $70 million and $90 million, with earnings per share ranging from a loss of $0.60 to breakeven. This guidance suggests continued challenges ahead as the company works through its transformation.

The projected Q3 revenue range represents a potential further decline from Q2’s $106 million, indicating that Medifast’s turnaround efforts have not yet translated into revenue growth.

Market reaction to the presentation was muted, with Medifast’s stock declining 1.75% during regular trading hours to close at $13.75, and falling an additional 1.38% in after-hours trading. The stock remains near its 52-week low of $11.57, reflecting investor concerns about the company’s ongoing challenges.

Despite the positive messaging around coach productivity and strategic initiatives, Medifast continues to face significant headwinds as it works to stabilize its business in a rapidly evolving health and wellness market increasingly influenced by prescription weight loss medications.

Full presentation:

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