Optavia Parent Third Quarter Revenue Falls 6 Percent; Cuts Full-Year Outlook

Medifast, parent of the OPTAVIA coach-based weight management brand, reported third-quarter 2022 revenue of 390.4 million dollars, down 5.6 percent from a year earlier. Net income was 36.2 million dollars, or 3.27 dollars per diluted share, compared with 3.56 dollars, and adjusted EPS was 3.32 dollars. Gross margin was 72.5 percent.

Active earning OPTAVIA coaches rose 8.5 percent to 66,200, but average revenue per active earning coach fell 12.9 percent to 5,897 dollars as customer acquisition slowed. The company held 69.7 million dollars in cash with no debt after completing a 100 million dollar accelerated share repurchase.

Medifast cut its full-year outlook to revenue of 1.51 billion to 1.59 billion dollars from 1.58 billion to 1.66 billion dollars, and EPS of 11.61 to 13.05 dollars from 12.70 to 14.10 dollars. Chairman and chief executive Dan Chard said economic disruption was weighing on consumer spending and customer acquisition, which would affect coach productivity in the fourth quarter.