Optavia Parent Medifast Swings to Second Quarter Loss as Revenue Falls 43 Percent

BALTIMORE, August 5, 2024 --

Medifast, parent of the Optavia coach-guided weight-loss system, reported second-quarter 2024 revenue of 168.6 million dollars, down 43.1 percent from 296.2 million dollars a year earlier. Active earning Optavia coaches fell 36.2 percent to 33,900, and average revenue per coach dropped 10.9 percent to 4,972 dollars.

The company posted a net loss of 8.2 million dollars, or 0.75 dollars per diluted share, compared with net income of 30.3 million dollars a year earlier. Adjusted EPS was 0.92 dollars. Costs included supply chain restructuring, investments tied to medically supported weight loss, and fees to exit hotel commitments for future Optavia conventions.

Chairman and CEO Dan Chard said Medifast is transforming its business around new customer acquisition and support for people using GLP-1 weight-loss medications through its telehealth collaboration with LifeMD. Medifast guided third-quarter revenue of 125 million to 145 million dollars and a diluted loss of 0.05 to 0.70 dollars per share. It held 163.5 million dollars in cash and investments with no debt.