Medifast (Optavia) Revenue 2023 Down 32.9% To $1.1 Billion

Medifast (NYSE: MED), the health and wellness company known for its habit-based and Coach-guided lifestyle solution, OPTAVIA, today reported results for the fourth quarter and full year ended December 31, 2023.

Fourth Quarter 2023

• Revenue of $191.0 million, with revenue per active earning Coach of $4,648
• Independent active earning OPTAVIA Coaches of 41,100
• Net income of $6.0 million (non-GAAP adjusted net income of $11.9 million)
• Earnings per diluted share (“EPS”) of $0.55 (non-GAAP adjusted EPS of $1.09)

Full Year 2023

• Revenue of $1.1 billion
• Net income of $99.4 million (non-GAAP adjusted net income of $105.2 million)
• EPS of $9.10 (non-GAAP adjusted EPS of $9.64)
• Cash, Cash Equivalents, and Investments of $150.0 million and no interest-bearing debt

“We are realigning our business to respond to the evolving dynamics of the weight loss industry and to aggressively execute on bold initiatives to transform our business model,”

said Dan Chard, Chairman & CEO of Medifast.

“We are broadening our customer acquisition activities significantly, launching a broad-based national marketing effort and leaning into the medically-supported weight loss market through our collaboration with LifeMD.” Chard continued,

“This remains a challenging market, and it will take time to navigate the transformational path that we are on. However, I believe that the investments we’re making in our business will broaden our addressable market and strengthen our ability to drive future growth.”

Fourth Quarter 2023 Results

Fourth quarter 2023 revenue decreased 43.4% to $191.0 million from $337.2 million for the fourth quarter of 2022, primarily driven by a decrease in the number of active earning OPTAVIA Coaches and the decline in the productivity per active earning OPTAVIA Coach.

The average revenue per active earning OPTAVIA Coach was $4,648, compared to $5,538 for the fourth quarter last year, a decline of 16.1%, primarily driven by continued pressure on customer acquisition. The total number of active earning OPTAVIA Coaches decreased 32.5% to 41,100 compared to 60,900 for the fourth quarter of 2022.