5 Insightful Analyst Questions From Medifast’s Q3 Earnings Call

2 weeks ago 10

Radek Strnad

Sun, November 9, 2025 astatine 11:33 PM CST 4 min read

Medifast’s 3rd 4th results met Wall Street’s gross expectations, but the marketplace responded negatively arsenic income continued to diminution sharply year-over-year. Management attributed these results to ongoing headwinds successful the value nonaccomplishment industry—most notably, accrued contention from GLP-1 medications and declines successful the fig of progressive earning coaches. CEO Dan Chard highlighted that the company’s evolving science-backed attack to metabolic wellness aims to differentiate Medifast successful a changing landscape. Chard pointed to coach-led enactment and caller objective studies arsenic cardinal elements, portion besides acknowledging the request for further advancement successful reversing declining sales.

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Revenue: $89.41 cardinal vs expert estimates of $89.7 cardinal (36.2% year-on-year decline, successful line)
EPS (GAAP): -$0.21 vs expert estimates of -$0.36 (41.7% beat)
Adjusted EBITDA: -$2.22 cardinal vs expert estimates of -$4.1 cardinal (-2.5% margin, 45.9% beat)
Revenue Guidance for Q4 CY2025 is $72.5 cardinal astatine the midpoint, beneath expert estimates of $73.8 million
EPS (GAAP) guidance for Q4 CY2025 is $0.98 astatine the midpoint, beating expert estimates by 317%
Operating Margin: -4.6%, down from 1.5% successful the aforesaid 4th past year
Market Capitalization: $122.6 million

While we bask listening to the management's commentary, our favourite portion of net calls are the expert questions. Those are unscripted and tin often item topics that absorption teams would alternatively debar oregon topics wherever the reply is complicated. Here is what has caught our attention.

Jim Salera (Stephens) asked astir integrating metabolic wellness messaging crossed the manager network. CEO Dan Chard and Chief Field Operations Officer Nick Johnson described ongoing grooming and enactment retreats to guarantee accordant communication.
Jim Salera (Stephens) inquired astir the EDGE program’s inducement operation arsenic Medifast broadens its focus. Johnson elaborate however EDGE is designed to summation productivity by gathering and multiplying highly productive enforcement directors.
Jim Salera (Stephens) requested much item connected SG&A alignment with gross declines. CFO Jim Maloney explained caller one-time charges and ongoing outgo power measures, emphasizing efforts to rightsize the concern for aboriginal profitability.
Jim Salera (Stephens) probed user request amid economical softness. Chard responded that, contempt macro pressures, consumers proceed to prioritize wellness spending and spot worth successful Medifast’s offerings, particularly arsenic coaches accommodate to the changing landscape.
Jim Salera (Stephens) asked astir the presumption of the LifeMD partnership. Maloney clarified that collaboration continues, but the amortization of the archetypal concern has concluded, impacting SG&A comparisons.