Weight loss products maker Medifast Q3 revenue declines amid challenges in client acquisition

Reuters
Nov 04
Weight loss products maker Medifast Q3 revenue declines amid challenges in client acquisition

Overview

  • Medifast Q3 revenue falls 36.2% yr/yr due to fewer active earning coaches

  • Company reports Q3 net loss of $2.3 mln, compared to net income last year

  • Medifast maintains strong balance sheet with $173.5 mln in cash, no debt

Outlook

  • Company expects Q4 2025 revenue between $65 mln and $80 mln

  • Company projects Q4 2025 diluted loss per share between $0.70 and $1.25

Result Drivers

  • COACH DECLINE - Revenue decrease primarily driven by 35% drop in active earning OPTAVIA coaches

  • GLP-1 IMPACT - Challenges in client acquisition due to acceptance of GLP-1 medications for weight loss

  • STRATEGIC TRANSFORMATION - Co is shifting focus to metabolic health, aiming for larger market

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$89.40 mln

Q3 EPS

-$0.21

Q3 Net Income

-$2.26 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the food processing peer group is "buy."

  • Wall Street's median 12-month price target for Medifast Inc is $15.00, about 19.9% above its October 31 closing price of $12.02

Press Release: ID:nBw4xsXfHa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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