Medifast (MED) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue declined 37.4% year-over-year to $105.6 million, primarily due to a 32.7% drop in active earning coaches and client acquisition challenges amid rapid GLP-1 medication adoption.

• Net income was $2.5 million ($0.22 per diluted share), reversing a net loss of $8.2 million in Q2 2024, aided by a $2.6 million gain from the sale of LifeMD stock and lower SG&A expenses.

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

• Strategic focus is on transforming the business to address weight loss and metabolic health, leveraging science, coach productivity initiatives, and new programs like Premier Plus and EDGE.

• Emphasis on sustainable lifestyle changes and adapting offerings for both GLP-1 users and non-users.

Financial highlights

• Q2 2025 revenue was $105.6 million, down 37.4% year-over-year; gross profit was $76.6 million with a 72.6% margin.

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

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

• Ended the quarter with $162.7 million in cash, cash equivalents, and investments, and no interest-bearing debt.

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

Outlook and guidance

• Q3 2025 revenue is expected between $70 million and $90 million; 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 anticipated from Premier Plus pricing changes due to offsetting actions.

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