Medifast (MED) Q2 Revenue Falls 37%
(NYSE:MED), the nutrition and weight-loss company behind the OPTAVIA brand and its coach-based direct selling approach, reported its second quarter 2025 results on August 4, 2025. The company delivered revenue and earnings per share ahead of subdued Wall Street estimates, with GAAP revenue at $105.6 million and diluted GAAP earnings per share at $0.22 for Q2 2025. These results topped analyst expectations of $101.8 million for GAAP revenue. However, on a year-over-year basis, GAAP revenue fell sharply, down 37.4%, and the number of active earning coaches also continued to decline. The period saw margin resilience and effective cost-cutting, yet fundamental demand indicators such as active coach count and revenue per coach continued to slide. Management signaled caution for Q3 2025, forecasting further revenue declines and a possible return to net losses. Overall, while the results for Q2 2025 were slightly better than anticipated (GAAP revenue of $105.6 million exceeded the analysts' estimate of $101.8 million), the company continues to face heavy top-line pressure from industry shifts and structural headwinds.
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Medifast’s core business centers on weight management products, nutrition plans, and direct selling under its OPTAVIA brand. The heart of its model is a large network of independent coaches, most of whom were once customers themselves. These coaches deliver personalized support, encouraging clients to adopt healthier habits and stick with nutrition plans.
Source Fool.com
