Executive Summary

Q3 2025 revenue of $89.4M came in at the high end of guidance ($70–$90M) and roughly in line with consensus ($89.7M*), while diluted EPS of -$0.21 beat consensus (-$0.36*) and landed within guidance (-$0.60 to $0.00) .
Ongoing headwinds from GLP-1 adoption weighed on active earning OPTAVIA coaches (-35% YoY to 19,500), though revenue per active coach fell just ~2% YoY to $4,585, continuing a trend of moderating declines .
Gross margin compressed to 69.5% (vs. 75.4% YoY) due to loss of fixed-cost leverage and a reserve tied to reformulation of the Essential line; SG&A fell 36% YoY but rose to 74.1% of revenue on deleverage .
Management reinforced a strategic pivot from weight loss to “metabolic health,” highlighted new pricing/auto-ship (Premier Plus), Edge leadership development, and plans to launch a next-gen product line leveraging Metabolic Synchronization science in 2026; balance sheet remains strong with $173.5M cash/investments and no debt .

What Went Well and What Went Wrong

What Went Well

Revenue and EPS at the high end/in-range of guidance; CFO: “third-quarter 2025 results for both revenue and EPS were at the high end of our guidance ranges” .
Strategic repositioning toward metabolic health, with clinical claims: 98% lean mass retention and 14% visceral fat reduction at 16 weeks; CEO: “transforming…into a leader in promoting metabolic health” .
Strong liquidity: $173.5M cash/investments and no debt; continued cost actions and right-sizing to support margins going forward .

What Went Wrong

Active earning coaches declined 35% YoY to 19,500, driving a 36.2% YoY revenue drop; management continues to cite GLP-1-driven client acquisition challenges .
Gross margin fell 590 bps YoY to 69.5% on fixed-cost deleverage and a reformulation reserve; SG&A as % of revenue rose 20 bps on deleverage despite absolute SG&A down 36% YoY .
Operating swung to loss (-4.6% margin) vs. +1.5% YoY; net loss was -$2.3M vs. +$1.1M YoY, reflecting volume pressure and deleverage .

Financial Results

Quarterly sequential trajectory

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$115.7	$105.6	$89.4
Diluted EPS ($)	-$0.07	$0.22	-$0.21
Gross Margin %	72.8%	72.6%	69.5%
SG&A % of Revenue	73.9%	73.6%	74.1%
Operating Income Margin %	-1.1%	-1.0%	-4.6%

Year-over-year comparison

Metric	Q3 2024	Q3 2025
Revenue ($USD Millions)	$140.2	$89.4
Diluted EPS ($)	$0.10	-$0.21
Gross Margin %	75.4%	69.5%
SG&A % of Revenue	73.9%	74.1%
Operating Income Margin %	1.5%	-4.6%

KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Active earning OPTAVIA coaches (#)	25,400	22,800	19,500
Revenue per active earning coach ($)	$4,556	$4,630	$4,585
Cash + Investments ($USD Millions)	$164.6	$162.7	$173.5
Net Debt	None	None	None

Consensus vs actuals (Q3 2025)

Metric	Actual	Consensus*	Surprise ($)
Revenue ($USD Millions)	$89.4	$89.7*	-$0.3 (computed from actual vs consensus) *
Diluted EPS ($)	-$0.21	-$0.36*	+$0.15 (computed from actual vs consensus) *

Values retrieved from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	Q3 2025	$70–$90	Actual: $89.4	Delivered at high end
Diluted EPS ($)	Q3 2025	(-$0.60) to $0.00	Actual: -$0.21	Within guided range
Revenue ($USD Millions)	Q4 2025	—	$65–$80	New
Diluted loss per share ($)	Q4 2025	—	-$0.70 to -$1.25	New

Consensus context: Q4 2025 revenue consensus $71.4M* sits mid-range of guidance .
Values retrieved from S&P Global.

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 and Q1)	Current Period (Q3 2025)	Trend
GLP-1 impact & strategic pivot	Q1: Collaboration with LifeMD for access to GLP-1s; client acquisition challenges noted . Q2: Continued GLP-1 adoption pressure on acquisition; wider operating environment challenges .	Deeper pivot to metabolic health; Metabolic Synchronization science; 61% of coaches have GLP-1 clients; 22% of clients used/tried GLP-1 in past year .	Pivot intensifying; program positioned as complement/alternative to GLP-1.
Coach base & productivity	Q1 coaches 25.4k, revenue/coach $4,556 ; Q2 coaches 22.8k, revenue/coach $4,630 .	Q3 coaches 19.5k; revenue/coach $4,585 with moderating YoY decline; management cites stabilization .	Coach count declining; productivity stabilizing.
Pricing/auto-ship & retention	Not highlighted in Q1/Q2 press releases.	Premier Plus pricing + auto-ship introduced; early uptick in baseline client retention beyond first month .	Commercial model simplification; early positive signs.
Edge leadership program	Not emphasized in Q1/Q2 PRs.	Edge program to drive rank composition (Executive Director ~ $6k revenue); leadership training cascaded network-wide .	Field enablement scaling; aimed at productivity lift.
Product roadmap	Q1: “new products” to support growth . Q2: supply chain optimization and convention cancellation reduced SG&A .	New product line expected next year to replace Essential fuelings and improve metabolic outcomes; $1.5M charge for reformulation in Q3 .	Innovation pipeline building; near-term margin impact from reformulation.
LifeMD collaboration	Q1/Q2: collaboration continues; investment gains/losses flowed through other income; investment sold in Q2 .	Clarified $2M amortization in Q3’24 was last; collaboration ongoing; investment exited in Q2’25 .	Collaboration stable; de-risked investment exposure.

Management Commentary

CEO Dan Chard: “We’re transforming Medifast from a weight-loss company into a leader in promoting metabolic health… This strategic evolution positions us in a larger, more durable market” .
CEO Dan Chard: “We are evolving with purpose to become a science-backed, coach-led leader in metabolic health… reducing visceral fat while preserving lean mass” .
CFO Jim Maloney: “Revenue for the third quarter was $89.4 million… Active earning coach productivity… down just 2% year over year, continuing a trend of moderating declines… Gross profit margin… decreased… attributable to… loss of leverage… and… reserve for the reformulation of the Essential product line” .
CFO: “We did some actions in October… to right-size the business… We are expecting fourth-quarter revenue to range from $65–$80 million and a loss per share… -$0.70 to -$1.25” .

Q&A Highlights

Coach training & unified messaging: Leadership retreat in Sundance; cascading training on Metabolic Synchronization; aim to have all coaches trained through year-end .
Edge program mechanics: Focus on creating/duplicating/multiplying Executive Directors (~$6,000 revenue per ED) to improve rank composition and productivity .
Margin dynamics & one-time items: ~$1.5M Essential reformulation charge in Q3; fixed-cost deleverage cited; right-sizing actions in October to support future margins .
Trajectory to growth: Targeted first “green shoot” of revenue per coach growth in Q4 or within six months; historically coach count growth follows 6–9 months after sustained revenue/coach growth .
GLP-1 and consumer behavior: Despite macro pressures, management sees consumers prioritizing health; program positioned for those on/off GLP-1s with coaching and lifestyle support .
LifeMD collaboration: Amortization in Q3’24 was last; collaboration continues; investment was sold in Q2’25 .

Estimates Context

Q3 2025: Revenue $89.4M was essentially in line with consensus $89.7M*, while EPS -$0.21 beat consensus -$0.36*; both metrics were at the high end/in range of company guidance * .
Q4 2025: Revenue guidance $65–$80M brackets consensus $71.4M*. EPS consensus not available; company guided to a quarterly diluted loss per share of -$0.70 to -$1.25 .
Values retrieved from S&P Global.

Implications: EPS beat alongside in-line revenue suggests cost controls and mix effects amid deleverage; Q4 guide implies continued revenue pressure and a wider EPS loss, likely prompting estimate fine-tuning toward the mid/lower half of the revenue range .

Key Takeaways for Investors

Revenue and EPS at guidance high end/in-range; EPS beat vs consensus highlights disciplined cost management despite deleverage * .
Coach count decline remains the primary headwind; productivity declines moderating with early stabilization signals, supported by Premier Plus and Edge initiatives .
Gross margin compression driven by fixed-cost leverage loss and Essential line reformulation reserve; expect near-term pressure with potential improvement as right-sizing actions take hold .
Strategic pivot to metabolic health supported by clinical claims (98% lean mass retention; 14% visceral fat reduction), positioning MED as complementary to GLP-1 journeys and standalone lifestyle solutions .
Liquidity and no debt provide flexibility to invest in product innovation (new line expected next year) and digital enhancements to support coach/client engagement .
Q4 guide ($65–$80M revenue; -$0.70 to -$1.25 diluted loss per share) suggests continued near-term pressure; watch for revenue per coach growth in Q4 as an early stabilization indicator .
LifeMD investment risks reduced (investment sold Q2); collaboration remains intact, removing amortization drag seen in Q3’24 .

Bolded surprise points for traders:

EPS beat: -$0.21 vs -$0.36 consensus*; revenue in line (slight miss of ~$0.3M) * *.
Guidance tightness: Q4 revenue guidance brackets consensus $71.4M*, signaling cautious outlook *.