Medifast (MED) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $119 million, at the high end of guidance, with full-year revenue at $602.5 million, down 43.8% year-over-year.

• Net income for Q4 was $0.8 million ($0.07 per diluted share; adjusted: $0.10), with full-year net income at $2.1 million (adjusted: $20.2 million).

• Active earning OPTAVIA coaches declined 34.1% to 27,100 in Q4, with average revenue per coach at $4,391, down 5.5% year-over-year.

• Transformation initiatives and the launch of OPTAVIA ASCEND targeted both GLP-1 users and non-users, with strong initial reception.

• $21 million in cost savings achieved in 2024, with further $15–20 million targeted for 2025.

Financial highlights

• Q4 2024 gross profit was $88.2 million, with a gross margin of 74.1%, up 10 bps year-over-year.

• SG&A expense in Q4 decreased 34.1% to $87.5 million, but rose to 73.5% of revenue due to lower sales and higher marketing spend.

• Q4 2024 operating income was $0.7–$1 million; full-year GAAP operating income was $3 million (adjusted: $23 million).

• Operating cash flow for 2024 was $24.5 million; CapEx was $7.5 million.

• Ended 2024 with $162.3 million in cash and investments, and no debt.

Outlook and guidance

• Q1 2025 revenue expected between $100–$120 million, with EPS guidance from a loss of $0.50 to break-even, excluding LifeMD investment gains/losses.

• Additional $15–20 million in cost savings targeted for 2025.

• 2025 priorities include accelerating customer acquisition, improving coach productivity, advancing clinical research, and expanding product offerings.

• Visibility for the year remains limited; positive trends in coach productivity anticipated to precede growth in active coaches and revenue.