Here are 1-3 brief analogies for Medifast (MED):

• Herbalife for weight loss programs.
• Nutrisystem, but sold through a network of independent coaches.
• WeightWatchers, if it sold its own meal replacements through independent coaches.

• Optavia Fuelings: A diverse line of scientifically formulated, portion-controlled meal replacements, snacks, and desserts designed to support weight loss and healthy eating habits.
• Optavia Weight Management Programs: Structured plans that combine Optavia Fuelings with balanced "Lean & Green" meals and personalized support from independent coaches, guiding clients through weight loss and maintenance.

Medifast (symbol: MED) primarily sells its products and programs directly to individuals through its Optavia brand, leveraging a network of independent coaches.

The company serves the following categories of individual customers:

• Individuals seeking weight loss: This core customer segment includes people actively looking to achieve significant weight reduction and improve their health through structured meal plans and programs.
• Individuals focused on health maintenance and lifestyle change: Many customers continue to use Optavia products and programs after initial weight loss to maintain a healthy weight, establish sustainable healthy eating habits, and support overall wellness.
• Independent Optavia Coaches: While also business partners, these coaches are significant and regular consumers of Medifast's products for their own personal use, to demonstrate the program's effectiveness, and to stay deeply engaged with the product line they recommend to clients.

Dan Chard, Chairman and Chief Executive Officer

Mr. Chard has over 25 years of experience in direct selling, marketing, and consumer products. He previously served as President and Chief Operating Officer of PartyLite, an affiliate of a portfolio company of The Carlyle Group, a private equity firm. During his tenure at PartyLite, he was involved in taking a company from public to private and growing it. Prior to that, he spent 17 years at Nu Skin Enterprises, Inc., holding various leadership roles including President of Global Sales & Operations, where he managed over $2.5 billion in revenue across 53 countries. He also held marketing leadership roles at PUR Recovery Engineering and The Pillsbury Company.

Jim Maloney, Chief Financial Officer

Mr. Maloney was appointed Chief Financial Officer in July 2020. He is responsible for leading Medifast's finance function, including financial planning and analysis, capital allocation strategies, and investor relations. Before joining Medifast, he was the Senior Vice President Chief Financial Officer of L.B. Foster Company. He also served as Chief Financial Officer of First Insight, Inc., a privately held company, and continues to be a Board Advisor there. Mr. Maloney held multiple roles at H.J. Heinz Company, including Vice President of Global Financial Planning and Supply Chain Finance, Director of Finance for Supply Chain for Heinz North America, and Controller of Heinz North America. He also held roles at Ernst & Young LLP.

Tony Tyree, Chief Business Operations Officer

Mr. Tyree joined Medifast in 2018 as Chief Marketing Officer and was appointed Chief Business Operations Officer in 2022. He leads the company's supply chain, marketing, scientific and clinical affairs, nutrition support, product development, and program management teams. He brings more than 25 years of experience in global integrated marketing, brand strategy, product and platform innovation, and portfolio revitalization.

Nicholas Johnson, Chief Field Operations Officer

Mr. Johnson joined Medifast in 2018 as Market President of OPTAVIA USA, became President, Coach and Client Experience in 2020, and was appointed Chief Field Operations Officer in 2022. He is responsible for leading the OPTAVIA Field organization to create a high-quality Coach and Client program experience. He has over 10 years of experience in direct selling, marketing, and client relations.

Claudia Greninger, Chief Human Resources Officer

Mrs. Greninger joined Medifast in 2019 as Executive Vice President, Human Resources, and was appointed Chief Human Resources Officer in 2023. She has over 20 years of experience in Global Human Resources, with expertise in change management, compensation design, global mobility, and employee engagement. She previously served for over 10 years as Vice President, Human Resources at Laureate Education.

The key risks to Medifast's business include:

1. Competition from New Weight Loss Products (GLP-1 Medications): The emergence and rapid adoption of new weight loss medications, such as GLP-1 drugs (e.g., semaglutide injections), pose a significant threat to Medifast's business model. These medications have disrupted the weight loss market, impacting Medifast's client acquisition and the productivity of its OPTAVIA Coaches, leading to declining revenue.
2. Ability to Maintain and Grow the Network of Independent OPTAVIA Coaches: Medifast's business relies heavily on its direct-selling model and the recruitment, retention, and productivity of its independent OPTAVIA Coaches. Increased competition and declining revenue can negatively affect the motivation and ability of coaches to attract new clients and expand their networks, directly impacting the company's sales and overall growth.
3. Macroeconomic Headwinds and Consumer Spending Patterns: The company faces risks associated with broader macroeconomic challenges, including inflation, volatile market conditions, and adverse labor market conditions. These factors can influence consumer sentiment and spending patterns, potentially leading to reduced demand for Medifast's products and programs.

The most significant clear emerging threat for Medifast (MED) is the widespread adoption and increasing availability of GLP-1 agonist medications for weight loss, such as Ozempic, Wegovy, Mounjaro, and Zepbound.

These pharmaceutical treatments offer substantial and often rapid weight loss by reducing appetite and altering metabolic processes. The rapid uptake and demonstrated efficacy of these drugs threaten Medifast's core business model, which relies on individuals seeking structured meal replacement programs and coaching for weight management. As more people turn to these medications, the demand for traditional diet products and programs, like those offered by Optavia, is likely to diminish, fundamentally shifting the landscape of the weight loss industry.

Medifast (symbol: MED) operates in the weight management and meal replacement markets primarily through its OPTAVIA brand, which offers coach-guided lifestyle solutions and nutrient-dense products like bars, shakes, and soups.

Addressable Markets:

• Weight Management Programs and Services: The U.S. weight management market was estimated at approximately USD 37.86 billion in 2023 and is projected to grow to USD 76.9 billion by 2030, with a compound annual growth rate (CAGR) of 11.01% from 2024 to 2030. The total U.S. weight loss market, encompassing various segments, was estimated to have reached USD 90 billion in 2023.

• Meal Replacement Products: The U.S. market for meal replacement products was valued at USD 7.26 billion in 2024 and is projected to reach approximately USD 16.31 billion by 2034, demonstrating a CAGR of 8.43% from 2025 to 2034. Globally, the meal replacement products market was valued at USD 14.98 billion in 2024 and is expected to grow to USD 25.6 billion by 2033, with a CAGR of 6.1% during 2025-2033. North America held the largest share of the global meal replacement market, at 43.7% in 2024.

Here are 3-5 expected drivers of future revenue growth for Medifast (MED) over the next 2-3 years:

1. Shift to Metabolic Health and New Product Innovation: Medifast is strategically transitioning its focus from primarily weight loss to a broader metabolic health platform. The company plans to launch new product lines in 2026 specifically aimed at addressing metabolic dysfunction, which represents a significant opportunity to tap into a larger and more sustainable market beyond traditional weight management. This includes the introduction of next-generation products that build on the effectiveness of their current essential product line.
2. Enhancing and Expanding the OPTAVIA Coach Network: A core driver of Medifast's business model is its network of independent OPTAVIA Coaches. Future revenue growth is expected to be fueled by strengthening this network through improved digital tools, expanded training programs, and more intuitive incentives to boost coach attraction, engagement, and retention. The company is focused on increasing active coaches and improving their productivity to drive customer acquisition and retention.
3. Expansion of Product Portfolio and Holistic Wellness Offerings: Medifast is broadening its product portfolio beyond just nutritionally-balanced meals and supplements to redefine itself as a comprehensive health partner. This involves expanding its wellness platform to encompass areas such as healthy motion, hydration, sleep, and mental well-being. The introduction of new product lines like "ACTIVE" and "ASCEND" are part of this strategy to diversify revenue streams and expand the total addressable market.
4. Adaptation to GLP-1 Medications and Integrated Support: Medifast is proactively adapting to the growing availability and acceptance of GLP-1 medications in the weight loss sector. The company's strategy involves providing an integrated approach that combines the expertise of OPTAVIA coaches with LifeMD clinicians and a customer-centric strategy to offer comprehensive lifestyle support beyond medication alone. This holistic solution aims to differentiate Medifast and capture market share in this evolving landscape.

Share Repurchases

• Medifast executed an accelerated share repurchase (ASR) agreement with JPMorgan Chase on June 1, 2022, to repurchase $100 million of the company's common stock, equivalent to approximately 600,000 shares.
• Following the completion of the $100 million ASR, approximately 1.4 million shares remained available for repurchase under the existing authorization.
• In Q2 2020, Medifast repurchased 46,075 shares, with roughly 2,323,000 shares remaining under its buyback plan at that time.

Share Issuance

• No significant share issuances with dollar amounts were identified over the last 3-5 years. The number of shares outstanding has shown a slight decrease over the period, consistent with share repurchases.

Outbound Investments

• Medifast made an initial investment in LifeMD (LFMD) common stock to initiate a collaboration, which resulted in a $0.4 million (net of tax) unrealized gain in Q1 2025 and a $2.6 million gain in Q2 2025.
• The company sold its investment in LifeMD common stock during Q2 2025, stating it was not intended as a long-term investment.
• Despite the sale of the equity investment, the collaboration between Medifast and LifeMD continues.

Capital Expenditures

• Capital expenditures for the trailing twelve months (TTM) ending September 30, 2024, were -$6.12 million.
• Capital expenditures were -$14.60 million for the TTM ending September 30, 2023, and -$19.24 million for the TTM ending September 30, 2022.
• The company's current growth initiatives, focused on engaging and developing new coaches, do not require material contractual commitments or capital expenditures in future periods.