Medifast (MED) investor relations material

Executive summary

• Q3 2025 revenue was $89.4 million, down 36.2% year-over-year, primarily due to a 35% decline in active earning coaches and client acquisition challenges.

• Net loss for Q3 2025 was $2.3 million, or $0.21 per diluted share, compared to net income of $1.1 million, or $0.10 per share, in Q3 2024.

• The company is transitioning from a weight-loss focus to a broader metabolic health strategy, leveraging clinical research and launching a next-generation product line in 2026.

• Coach productivity trends are stabilizing, with targeted programs like EDGE and new pricing models to drive growth and retention.

• Ended Q3 2025 debt-free with $173.5 million in cash, cash equivalents, and investments.

Financial highlights

• Gross profit was $62.2 million, down 41.2% year-over-year; gross margin declined to 69.5% from 75.4%.

• SG&A expenses fell 36% to $66.2 million, mainly due to lower coach compensation and reduced marketing.

• Loss from operations was $4.1 million (4.6% of revenue), compared to $2.1 million income (1.5% of revenue) in Q3 2024.

• Other income rose to $1.4 million, mainly due to the absence of prior year investment losses.

• Effective tax rate was 14.9% in Q3 2025, down from 28.5% in Q3 2024.

Outlook and guidance

• Q4 2025 revenue expected between $65–$80 million; diluted loss per share forecasted at $0.70–$1.25.

• Anticipates stabilization and potential growth in revenue per active earning coach in Q4 or within six months, with coach growth to follow.

• New product line to replace Essential line in 2026, expected to improve effectiveness in addressing metabolic health.

• Management continues to invest in coach development, digital tools, and product innovation to address market shifts, including the rise of GLP-1 medications.

• Future cash requirements expected to be funded from operating cash flow and financing activities as needed.