Medifast, parent company of OPTAVIA, reported its third quarter 2024 financial results. Revenue for the quarter was $140.2 million, a 40.6% year-over-year decline. This decrease was primarily driven by lower OPTAVIA coach productivity and fewer active earning OPTAVIA coaches, which decreased by 36.3% from the same period last year.
Gross profit during the quarter declined 40.4% to $105.7 million from $177.4 million in the same quarter last year. Income from operations was $2.1 million, a 91.7% decrease from the prior year period, and was 1.5% as a percentage of revenue. Net income during the quarter was $1.1 million, or $0.10 per diluted share, down significantly from $23.1 million and $2.12 per diluted share in the third quarter of 2023.
The company reported a balance sheet of $170 million in cash, cash equivalents and investment securities with no debt, up from $150 million at the end of 2023. Guidance for fourth quarter 2024 includes revenue between $100 million and $120 million with a diluted loss per share in the range of $0.10 to $0.65.
“Medical innovation has transformed the weight loss industry, so at Medifast we’re creating a health and wellness business of the future by meeting the unique needs of customers regardless of their approach to their health goals,” said Dan Chard, Medifast Chairman & CEO. “We offer comprehensive support for medication users including access to clinicians through LifeMD, as well as programs and products to help maintain muscle and minimize side effects. We’re developing customized solutions for those looking to maintain their weight and build a healthier lifestyle beyond medication usage. Importantly, our clinically-studied coach-led program remains a powerful solution for those not using medications at all, combining the community support, a habit-based approach and nutritional products that are a hallmark of all our OPTAVIA programs, having already helped over 3 million people achieve improved health. With tailored plans, personal solutions and a focused approach to driving customer acquisition, we believe that our strategy can drive sustainable growth in the quarters and years ahead.”
