Medifast Reports 37.4% Revenue Decline in Q2 2025, Net Income Recovery Achieved

Medifast, Inc. reported a significant decline in financial performance for the second quarter of 2025, with revenues falling to $105.6 million, a decrease of 37.4% from $168.6 million in the same period of 2024. For the first half of 2025, revenue totaled $221.3 million, down 35.5% from $343.3 million year-over-year. The decline was primarily attributed to a reduction in the number of active earning OPTAVIA coaches, which decreased by 32.7% to 22,800 from 33,900 in the previous year. The average revenue per active coach also fell by 6.9% to $4,630, reflecting ongoing challenges in client acquisition.

Despite the revenue drop, Medifast reported a net income of $2.5 million, or $0.22 per diluted share, for the second quarter, a notable recovery from a net loss of $8.2 million, or $0.75 per diluted share, in the same quarter of 2024. The company’s loss from operations improved to $1.1 million, compared to a loss of $7.9 million in the prior year, largely due to a 40.8% reduction in selling, general, and administrative (SG&A) expenses, which fell to $77.7 million from $131.3 million. This decrease was driven by lower OPTAVIA coach compensation and the absence of certain non-recurring costs incurred in the previous year.

Operationally, Medifast has been focusing on enhancing its business model in response to the competitive landscape, particularly the rising popularity of GLP-1 weight loss medications. The company continues to support its network of approximately 22,800 active earning OPTAVIA coaches, who play a crucial role in client engagement and retention. The company’s strategic initiatives include the launch of new programs aimed at improving coach performance and client acquisition, as well as the introduction of Premier+, a refreshed autoship program designed to enhance client retention.

As of June 30, 2025, Medifast's total assets stood at $269.3 million, a decrease from $284.2 million at the end of 2024. The company reported stockholders' equity of $216.0 million, up from $210.1 million, driven by share-based compensation and net income for the period. The company’s cash and cash equivalents increased to $101.7 million, reflecting a strong liquidity position despite the operational challenges. Looking ahead, Medifast aims to navigate the evolving weight loss market by leveraging its integrated coach-supported model and enhancing its product offerings to meet diverse client needs.