Optavia Parent Second Quarter Revenue Rises 15 Percent; Cuts Full-Year Outlook

Medifast, the parent of OPTAVIA, said second-quarter 2022 revenue rose 15.0 percent to 453.3 million dollars. Net income was 39.1 million dollars, or 3.42 dollars per diluted share. Adjusted net income was 44.3 million dollars, or 3.87 dollars per diluted share. Active earning OPTAVIA Coaches rose 14.9 percent to 68,000, and revenue per active earning coach was 6,667 dollars.

Chairman and chief executive Dan Chard said inflation and weaker customer retention would slow second-half growth. Full-year 2022 guidance was cut to revenue of 1.58 billion to 1.66 billion dollars from 1.78 billion to 1.84 billion dollars, and non-GAAP diluted EPS of 12.70 to 14.10 dollars from 14.60 to 16.05 dollars. The company had begun a 100 million dollar accelerated share repurchase and held 61.1 million dollars in cash and investments with 27.0 million dollars of debt at June 30.