Medifast, Inc. (MED)

Medifast's stock has experienced a significant decline over the past year. As of October 16, 2025, the share price had fallen by 28.16% compared to October 17, 2024. Earlier in the year, around February 21, 2025, the stock saw an 11% drop, contributing to a 64% loss for stockholders over the preceding year. In the second quarter of 2025, Medifast reported a surprising earnings per share (EPS) of $0.22, exceeding analyst predictions of -$0.22, however, revenue for the same quarter was $105.6 million, marking a 37.4% decline year-over-year. In the first quarter of 2025, Medifast missed Wall Street's revenue expectations, with sales falling 33.8% year-on-year to $115.7 million. The company's third-quarter 2024 results showed revenue falling 40.6% year-on-year to $140.2 million, although this beat analyst expectations. On October 27, 2025, Medifast announced a transformation from focusing solely on weight loss to a more holistic metabolic health approach, introducing "Metabolic Synchronization."

Demand for weight management products and programs, including those offered by Medifast, is typically seasonal. Historically, sales tend to be lower during the fourth quarter due to the holiday season, as customers often refrain from initiating weight loss programs. Conversely, January and February generally see sequential increases in sales, coinciding with the "diet season" and "resolution season" when individuals are more inclined to pursue health and wellness goals. Medifast's 2023 annual report stated, "We believe our sales pattern does not follow the seasonality of our industry, but rather..." without completing the statement, suggesting a potential divergence from typical industry seasonality.

Medifast, Inc. is an American health and wellness company specializing in habit-based and coach-guided lifestyle solutions for weight management and healthy living, operating primarily within the Pharmaceuticals and Healthcare sector. Its core business is in the Weight Loss Services and Online Weight Loss Services industries. Medifast's main product offering is its OPTAVIA brand, which includes a range of scientifically developed products known as OPTAVIA Fuelings, alongside comprehensive lifestyle plans. The company also markets products under the OPTAVIA Active and Optimal Health brand names and has expanded into medically supported weight loss, offering GLP-1 support plans through a partnership with LifeMD.

Medifast, Inc. is headquartered in Baltimore, Maryland, United States. The company's operations extend internationally, with a geographic footprint that includes the United States, Singapore, and Hong Kong.

Medifast has previously received positive recognition for its trustworthiness, being named one of Forbes's 100 Most Trustworthy Companies in America in both 2016 and 2017. The company has undertaken a significant strategic shift towards metabolic health with the introduction of "Metabolic Synchronization," which could positively influence its brand image. However, the company's annual report acknowledges "adverse publicity associated with Medifast's products" as a potential risk factor. A Reddit discussion from July 2024 also mentioned a lawsuit, "Zeller vs Optavia LLC," as a potential reputation event.

The ownership structure of Medifast, Inc. is primarily held by institutional investors, standing at 78.52% according to GuruFocus. Other sources provide varying figures, with MarketBeat reporting 95.51% and TipRanks offering several percentages including 35.21%, 15.17%, and 0.14% for institutional investors, alongside 60.09% for retail investors. Insiders hold approximately 23.74% of the company's stock, with CEO Daniel Chard owning 1.4%. Major institutional shareholders include BlackRock, Inc., Vanguard Group Inc, Renaissance Technologies Llc, Susquehanna International Group, Llp, Morgan Stanley, Charles Schwab Investment Management Inc, Acadian Asset Management Llc, Bank Of America Corp /de/, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, and D. E. Shaw & Co., Inc.