Optavia Parent Medifast Third Quarter Revenue Falls 40 Percent to 235.9 Million as Coach Count Drops

BALTIMORE, November 6, 2023 --

Medifast, Inc., parent of OPTAVIA, reported third-quarter 2023 revenue of 235.9 million dollars, down 39.6 percent from 390.4 million dollars a year earlier. Independent active earning OPTAVIA coaches fell 28.9 percent to 47,100 from 66,200, and average revenue per active earning coach declined 15.1 percent to 5,008 dollars as customer acquisition remained under pressure.

Net income was 23.1 million dollars, or 2.12 dollars per diluted share, compared with 36.2 million dollars, or 3.27 dollars, a year earlier. The company ended the quarter with 157.8 million dollars in cash, cash equivalents and investment securities and no interest-bearing debt. It guided full-year 2023 revenue to 1.05 billion to 1.07 billion dollars and diluted EPS to 8.65 to 9.55 dollars.

Management said customer acquisition was being hurt by inflation, interest rates and the growing popularity of weight-loss medications. The company said it was piloting a telehealth program to support customers using or considering GLP-1 drugs alongside the OPTAVIA plan and had launched an OPTAVIA ACTIVE sports nutrition line in September.