Medifast announced its financial results for the fourth quarter and full year 2024. The parent company for direct selling organization OPTAVIA, Medifast reported fourth quarter revenue of $119 million, a 37.7% decrease from Q4 2023, with OPTAVIA Coaches decreasing in number from 41,100 to 27,100 year-over-year.
Gross profit during the fourth quarter declined 37.6% to $88.2 million from $141.4 million in Q4 2023, which the company attributes to a lower sales volume. Income from operations decreased 91.8% to $0.7 million from $8.7 million in Q4 2023. Earnings per diluted share during the quarter was $0.07.
Full year 2024 revenue decreased 43.8% to $602.5 million, compared to revenue of $1.1 billion last year. Net income was $2.1 million, or $0.19 per diluted share, a significant decline from $99.4 million and $9.10 per diluted share in 2023. Net income decreased 80.8% to $20.2 million.
The company maintains cash, cash equivalents and investment securities of $162.3 million with no interest-bearing debt, up from $150 million in 2023.
“This past year was a pivotal year for Medifast, as we continued to transform our business to meet the changing nature of a health and wellness market that has been revolutionized by the rising acceptance of GLP-1 medications,” said Dan Chard, Medifast Chairman & CEO. “Throughout the year, our team has shown resilience and adaptability as we navigated evolving market dynamics, enabling Medifast to remain positioned to be a leader in health and wellness in a GLP-1 world. We’re committed to offering solutions that meet the diverse needs of our customers, whether they are focusing solely on our habit-based approach to weight loss, using GLP-1 medications, or transitioning off them. As we look ahead, our top priorities center on reestablishing growth across all of our key metrics, including driving coach productivity through accelerated customer acquisition, and expanding the number of active earning coaches. These efforts should allow us to broaden our reach, restore revenue and profitability growth and deliver long-term value to all our stakeholders.”
The company now expects Q1 2025 to include revenue between $100 million to $120 million.
