On this page of StockholderLetter.com we present the latest annual shareholder letter from MEDIFAST INC — ticker symbol MED. Reading current and past MED letters to shareholders can bring important insights into the investment thesis.

 •  5/5/2025 Letter Continued (Full PDF)
 •  5/1/2023 MED Stockholder Letter
 •  5/8/2024 MED Stockholder Letter
 •  More "Consumer Goods" Category Stockholder Letters
 •  MED Benford's Law Stock Score = 66

MED Shareholder/Stockholder Letter Transcript:

2024 ANNUAL REPORT


Our holistic and scientifically
developed approach is backed by
personalized plans, science-formulated
products, and the one-on-one
support of a coach. This enhanced
health and wellness solution helps
address the complexity of today   s
weight loss journey by providing
simplicity, structure, and support.
Chairman & Chief Executive Officer

Dear Fellow Stockholder:
2024 was a year of continued disruption and evolution across
the health and wellness landscape. The market has become
increasingly dynamic and competitive, with the rapid rise of
GLP-1 medications driving major shifts in how people think about
weight loss and related health benefits, shifting the conversation
from willpower and healthy lifestyle to prescriptions and biology.
In response, we have entered a period of purposeful
transformation, guided by a clear direction and confidence
in the steps we are taking to build a strong runway for future
growth. This past year required us to fundamentally rethink
customer support, redefine our product and service offerings,
and reposition our business to stabilize in 2025 and return
key metrics to growth in the back half of 2026. This work is
supported by our efficient, scalable business model and by a
renewed focus on our differentiator: our coach community.
I   m proud of the way our team has worked with speed and
intention to respond to changing customer needs while staying
true to our foundational belief: that sustainable health begins
with healthy habits, proper nutrition, and the support of a coach
and a community of like-minded individuals.
Medifast has spent more than four decades at the forefront of
evidence-based weight loss and lifestyle improvement. We know
that lasting change comes not just from what people eat, but
from how they live. We also recognize that people are far more
successful in achieving their health goals when they are part of a
structured program, integrated into a supportive community of
people who have faced similar challenges in the past or who are
on the same journey as them today.
GLP-1 medications have proven highly
effective in initiating weight loss, but
the science around them is making
it increasingly clear that they   re
not a silver bullet or a complete
solution. Studies show that using
GLP-1 medications can result in
significant lean muscle loss of up
to 40% in just 12 to 18 months1.
Additionally, two-thirds of the
weight lost is often regained within
a year of stopping the medication,
with cardiometabolic benefits also
sometimes reversing2.
Addressing important
shortcomings with
GLP-1 medications
is an area in which
Medifast plays a
key role.
Our holistic and scientifically developed approach is backed
by personalized plans, science-formulated products, and the
one-on-one support of a coach. This enhanced health and
wellness solution helps address the complexity of today   s weight
loss journey by providing simplicity, structure, and support.
Together, these components are fundamental building blocks of
lifelong transformation, whether with or without the support of
medication. Our offerings align with the science of weight loss,
meeting customers where they are while empowering them
to adopt healthy habits that can lead to long-term
transformative results.
OPTAVIA   coaches remain at the center of our model. These
independent, experienced and incredible individuals walk
alongside their customers, providing not just support, but
inspiration, accountability, and guidance that is fundamentally
rooted in real-life experience. As the common denominator in
customer success, coaches help deliver the four core elements
of our offering: personalized coaching, community, the Habits of
Health, and scientifically developed products and tailored plans.
Coaches are often former customers themselves, and they bring
invaluable credibility and empathy to those looking to create
lasting change.
In 2024, we focused on strengthening our coach community.
While the broader weight loss market has been disrupted,
we   ve seen encouraging trends emerge. Revenue per active
earning coach declined just 5.5% year-over-year in Q4, a marked
improvement over the course of the year. As coach productivity
begins to improve, we believe broader network growth will
follow, positioning us well as we look ahead to 2026.
At the beginning of 2025, we launched OPTAVIA ASCEND   ,
a new product line designed for individuals on or transitioning
off GLP-1 medications and for those looking for help to keep the
weight off. The line includes high-protein, fiber-rich mini meals
and daily nutrient packs designed to provide essential nutrients
to promote muscle health, digestive health, and bone health, and
fill a critical gap in the weight management market through their
incorporation into our new plans and OPTAVIA   s holistic offer.
Early customer reaction to these products has been very
favorable and coaches report that ASCEND gives them a
powerful tool to reengage customers and better serve those
navigating complex weight journeys.
We have also introduced a new two-week starter kit to lower
barriers for new customers, and made enhancements to our
core offering through OPTAVIA ACTIVE  , launched in 2023, to
support those incorporating physical activity into their routines.
These new products are customized to extend customer
lifetime value and meet a wide range of health goals, whether
Wilding JPH, Batterham RL, Calanna S, Davies M, Van Gaal LF, Lingvay I, McGowan BM, Rosenstock J, Tran MTD, Wadden TA, Wharton S,
Yokote K, Zeuthen N, Kushner RF; STEP 1 Study Group. Once-Weekly Semaglutide in Adults with Overweight or Obesity. N Engl J Med.
2021 Mar 18;384(11):989-1002. doi: 10.1056/NEJMoa2032183.
2
Wilding JPH, Batterham RL, Davies M, Van Gaal LF, Kandler K, Konakli K, Lingvay I, McGowan BM, Oral TK, Rosenstock J, Wadden TA,
Wharton S, Yokote K, Kushner RF; STEP 1 Study Group. Weight regain and cardiometabolic effects after withdrawal of semaglutide:
The STEP 1 trial extension. Diabetes Obes Metab. 2022 Aug;24(8):1553-1564. doi: 10.1111/dom.14725.
1

customers are using GLP-1 medications, transitioning off them, or seeking
a medication-free path. They represent our commitment to strengthening
program and plan positioning, and to delivering simple, tailored, sciencebacked solutions meet the needs of a broader spectrum of customers.
Our strategy for 2025 is focused on stabilization and reigniting the flywheel
of our model by aligning around five priorities:
1. Accelerating Customer Acquisition     Reigniting coach-led acquisition is our
most efficient path to new customers. Learnings from full-funnel marketing
and re-engage lapsed users will continue to inform targeted campaigns that
act as tailwinds to coach success.
2. Enhancing Coach Productivity     We will continue investing in education, tools,
and incentives that help coaches build stronger businesses.
3. Advancing Clinical Research     We are now developing studies that examine the
outcomes of combining our OPTAVIA programs with GLP-1 medications, with
a focus on weight loss, muscle retention, weight maintenance, and other relevant
health outcomes.
4. Strengthening Product Offerings     Building on the success of OPTAVIA ASCEND and
OPTAVIA ACTIVE, we   re continuing to enhance our product offering and to reach
more customers with tailored solutions, broadening our reach and impact.
5. Maintaining Financial Discipline     We remain debt-free with a strong balance sheet
and ended the year with more than $162 million in cash and investment securities. In
2024, our Fuel for the Future initiative delivered $21 million in savings, and we expect
another $15   $20 million in 2025.
This is an important period of transformation for Medifast, but adapting to market dynamics
is something we have never shied away from throughout our history. Our business has faced
pressure, and it has not always been easy, but we are emerging more focused, more aligned
with consumer trends, and more confident in our strategy.
Our long-term vision remains unchanged: to make a healthy lifestyle second nature for millions
of people. With a well-capitalized business, a renewed sense of clarity and focus, and a
proven, coach-led model, we believe we are positioned to succeed in this competitive and
rapidly evolving market.
Thank you for your continued support of Medifast. I   m grateful for your belief in our mission,
and I look forward to sharing continued progress in the year ahead.
Sincerely,
Dan Chard
Chairman & Chief Executive Officer
FORWARD-LOOKING STATEMENTS
Certain information included in this Annual Report, such as descriptions of Medifast   s objectives or goals, constitute    forward
looking statements    within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements give expectations
of future events and are not guarantees of future performance and are subject to certain risks, uncertainties, and other factors
reflected in the Risk Factors section of Medifast   s Form 10-K for fiscal year 2024 and in Medifast   s other filings with the U.S.
Securities and Exchange Commission. Although Medifast believes that these statements are reasonable, actual results could
differ materially from those expressed or implied in the forward-looking statements; therefore, the reader should not place
undue reliance upon these statements, which speak only as of the date of this Annual Report. Unless legally required,
Medifast undertakes no obligation to update publicly any forward-looking statements, whether as a result of the new
information, future events, or otherwise.



 5/5/2025 Letter Continued (Full PDF)