Optavia Parent Medifast Fourth Quarter Revenue Plunges 43 Percent Amid Coach Decline

BALTIMORE, February 20, 2024 --

Medifast, the parent of Optavia, reported fourth-quarter 2023 revenue of 191.0 million dollars, down 43.4 percent from 337.2 million dollars a year earlier. Net income fell to 6.0 million dollars, or 0.55 dollars per diluted share, from 26.5 million dollars, or 2.41 dollars. Active earning Optavia Coaches declined 32.5 percent to 41,100, and revenue per active earning Coach fell 16.1 percent to 4,648 dollars.

Full-year 2023 revenue was 1.072 billion dollars, down 32.9 percent from 1.599 billion dollars, with net income of 99.4 million dollars, or 9.10 dollars per diluted share. Chairman and Chief Executive Dan Chard said the company was realigning for an evolving weight-loss market, expanding national marketing and leaning into medically supported weight loss through its LifeMD collaboration.

Medifast guided first-quarter 2024 revenue to 155 million to 175 million dollars and diluted EPS to 0.25 to 0.95 dollars, excluding LifeMD collaboration costs and mark-to-market effects on its LifeMD stake. Cash, cash equivalents and investments were 150.0 million dollars with no interest-bearing debt at year end.