Medifast, the parent company of direct selling organization OPTAVIA, announced its financial results for the second quarter of 2024, posting $168.6 million in revenue, a 43.1% decrease from the same period in 2023. The total number of active earning OPTAVIA Coaches decreased by 36.2% year over year to 33,900, with a 10.9% decline in their average revenue.
Gross profit margin was up slightly to 73.2% from 71.1% in Q2 2023, primarily due to cost savings from the company’s Fuel for the Future initiatives and efficiencies in inventory management. Loss from operations was $7.9 million, a 120.3% decrease from the same period last year, when income from operations was $38.7 million. Net loss for the quarter was $8.2 million, or $0.75 per diluted share, compared to a net income of $30.3 million, or $2.77 per diluted share, in the second quarter of 2023.
“We are acting decisively to transform our business to position us for long-term growth, with a strong balance sheet free of debt, a clear focus on new customer acquisition, and a broader health and wellness offer to a significantly expanded target market,” said Dan Chard, Medifast Chairman and CEO. “Our holistic approach, encompassing nutrition, personalized coaching, a supportive community, and access to a clinician through our collaboration with telehealth provider, LifeMD, positions us uniquely to support those who are interested in weight loss medications as well as those who are transitioning off a medical regimen, or those who choose to pursue more traditional weight loss methods. Our mission today, much like it has been over the last 40 years, is to help our customers create lifestyle changes and establish healthy habits, and we are developing new plans and products to aid individuals in achieving healthier lifestyles. We believe we are more relevant than ever in today’s environment and are well positioned to shape the future of health and wellness, impacting millions of lives.”
The company ended the quarter with $163.5 million in cash, cash equivalents and investment securities with no interest-bearing debt.
