Nov. 4, 2025
Management reported the foillowing:
- Revenue: $89.4 million, with revenue per active earning coach of $4,585
- Active Coaches: Independent active earning OPTA VIA ® coaches of 19,500
- Net Loss: $2.3 million or $0.21 loss per diluted share
- Strong Balance Sheet: $173.5 million in cash, cash equivalents, and investment securities with no debt
“We’re transforming Medifast from a weight-loss company into a leader in promoting metabolic health,” said Dan Chard, Chairman and Chief Executive Officer of Medifast. “Our clinically proven, coach-guided system does more than help people lose weight—it addresses the underlying metabolic dysfunction that drives most health challenges. This strategic evolution positions us in a larger, more durable market with strong consumer tailwinds. It’s a transformation founded in proven science that creates meaningful health outcomes.”
Third quarter 2025 revenue decreased 36.2% to $89.4 million from $140.2 million for the third quarter of 2024 primarily driven by a decrease in the number of active earning OPTAVIA coaches. The total number of active earning OPTAVIA coaches decreased 35.0% to 19,500 compared to 30,000 for the third quarter of 2024. The number of active earning OPTAVIA coaches has been trending downward year-over-year since the first quarter of 2023, driven by continued challenges with client acquisition due to the growing acceptance of GLP-1 medications for weight loss. The average revenue per active earning OPTAVIA coach was $4,585, compared to $4,672 for the third quarter last year, as the company experiences continued pressure with client acquisition associated with the rapid adoption of GLP-1 medications for weight loss. The company continues to see moderating year-over-year declines in this key metric.
Gross profit decreased 41.2% to $62.2 million from $105.7 million for the third quarter of 2024. The decrease in gross profit was due to lower revenue, partially offset by lower cost of sales. Gross profit margin was 69.5% compared to 75.4% in the third quarter of 2024, attributable to 450 basis points of loss of leverage on fixed costs and 180 basis points of reserve for the reformulation of the Essential product line.
The company expects fourth quarter 2025 revenue to be in the range of $65 million to $80 million and fourth quarter 2025 diluted loss per share to be in the range of $0.70 to $1.25.
Based upon results for the first three quarters of the year ($310.7 million), coupled with guidance for the 4th quarter, Medifast’s 2025 revenues should come in at $383 million (vs. $602 million in 2024). That’s a 36% decline.
Conference Call Information
Management reported that the company’s strategy will be shifting toward helping clients with their long-term metabolic health, rather than just weight loss. Toward that end, the firm will launch new products next year that aim for improvements in body composition. No mention about the company’s planned marketing spend or programs. No mention about any expansion into foreign markets.
Commentary
Medifast’s slide continues, looking at a 36% decline in sales this year, as the number of coaches falls to less than 20,000. The shift to metabolic health sounds reasonable, but we wonder just what Medifast plans to offer clients, other than some new food products. How will they evaluable a person’s metabolic health? Who will do that – a coach or an MD? What will health coaches do differently? And, why would a person who is concerned about their metabolic health go to a Medifast coach rather than a certified and already-trained health coach with experience (coaches certified by Wellcoaches, the Institute for Functional Medicine, etc.? The main issue as we see it, is whether Medifast can hold onto the 19,500 coaches it still has, and train them in the new protocol. The number of coaches working for the firm continues to fall, now less than one-third of the staff of several years ago (60,000+). In addition, will Medifast back up the new program and strategy shift with a national marketing/ad campaign (long overdue)? Will this strategy be enough to return the firm to growth? It’s going to be a tough and a long road.
LEARN MORE: About The Commercial Weight Loss Market – Report by Marketdata LLC
Marketdata LLC has just published a new report: “The U.S. Weight Loss Market: Commercial (non-medical) Programs & Products”, March 2025. This is a 220-page analysis of commercial weight loss programs/companies and how they have been affected by and respond to the onslaught of the GLP-1 drugs competition.
The $38 billion U.S. commercial weight loss market is 15% larger than in 2020, but has had to pivot to adjust to huge competition from the popular GLP-1 drugs. The large commercial chains have been hurt the most since 2022. The business has gone virtual, and some competitors have added the GLP-1 drugs to their programs to position themselves for a new future.
However, some commercial markets have held up well. Diet soft drinks have shown surprising strength, and high protein meal replacements have been positioned as an adjunct to the weight loss drugs. The weight loss apps market is growing strongly. The ranks of commercial weight loss centers have been thinned, and franchising is all but dead as a growth model.
Some Report Findings::
- Marketdata estimates that the U.S. commercial (non-medical) weight loss market, for programs, products and services, was worth $38.4 billion in 2024, down slightly from $38.8 billion in 2022. Commercial services represent 53% of the $72.2 billion total market now, down from 82% in 2020, prior to the GLP-1 boom.
- The commercial weight loss programs market segment contracted by 29.2% in 2023, to $3.24 billion, and another 23.7% to $2.47 billion in 2024, due to competition from GLP-1s drugs. This amounts to a 56% decline in just two years.
- Commercial weight loss companies have lost $2 billion in revenues since 2022 due to the competition from GLP-1 drugs. Jeny Craig went bankrupt, Profile Plan closed, and NutriSystem’s private equity parent Wellful is having debt issues.
- The “average” weight loss center had annual receipts of $646,250 in 2022. But, sales have fallen since then, to $484,000 per center in 2024.
- There may be an opportunity for commercial weight loss firms to post some growth in the second half of 2025. The GLP-1s shortage is over, and the compounding pharmacies have to stop making these meds as of May 22. Consumers will then have to pay full price for the brand name meds. Many will opt for less costly (non-medical) diet programs.
- The business has gone virtual. Operating a retail, brick & mortar weight loss center or franchise has become too difficult in this era, with rising real estate and staff costs. Many businesses have pivoted to a virtual delivery model, which can be scaled larger and quicker, and is more profitable.
Purchase The Report:
The report’s description and Table of Contents are found at this website, see home page, Off The Shelf Market Reports, red link for Diet Market – Our Specialty, or contact us at 813-971-8080 and we’ll email them to you. The report contains 62 tables and charts. Price: $995. A 25-page, $99 Overview Summary report is also available.
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Included… dollar value & growth rates of all major commercial weight loss market segments (early 1980s to 2024 and 2025 & 2028 forecasts), latest market trends and company developments, status reports for: diet soft drinks, artificial sweeteners, commercial weight loss centers, multi-level marketing diet plans, retail and MLM meal replacements and weight loss supplements, and low-cal frozen entrees. Analysis of the medical weight loss programs market and competition from MDs, hospitals, medical clinic chains, and telehealth.
The report includes a 35-year revenue analysis of the market through past recessions and fad diet cycles, plus weight loss center franchising, and extensive national/state commercial centers’ operating ratios. Rankings & revenues of top commercial chains, brand sales, and a Reference Directory. Competitor profiles for: Weight Watchers, Jenny Craig, NutriSystem, Medifast, Herbalife, Noom, MyFitness Pal, Slim-Fast (Glanbia), Simply Good Foods (Atkins Nutritionals), Slimgenics, Profile by Sanford, BeachBody, Metabolic Research, Visalis Life Sciences, Isagenix, Shaklee, AMWAY (Quixtar), and Nu-Skin.