Medifast : MED Q1 2024 Earnings Supplement

Medifast® Q1 2024

Earnings Supplement

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This presentation contains "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 forward-looking statements generally can be identified by use of phrases or terminology such as "intend," "anticipate," "expect" or other similar words or the negative of such terminology. Similarly, descriptions of Medifast's objectives, strategies, plans, goals, outlook or targets contained herein are also considered forward-looking statements. These statements are based on the current expectations of the management of Medifast and are subject to certain events, risks, uncertainties and other factors. Some of these factors include, among others, Medifast's inability to maintain and grow the network of independent OPTAVIA Coaches; Industry competition and new weight loss products, including weight loss medications, or services; Medifast's health or advertising related claims by our OPTAVIA customers; Medifast's inability to continue to develop new products; effectiveness of Medifast's advertising and marketing programs, including use of social media by OPTAVIA Coaches; the departure of one or more key personnel; Medifast's inability to protect against online security risks and cyberattacks; risks associated with Medifast's direct-to-consumer business model; disruptions in Medifast's supply chain; product liability claims; Medifast's planned growth into domestic markets including through its collaboration with LifeMD, Inc.; adverse publicity associated with Medifast's products; the impact of existing and future laws and regulations on Medifast's business; fluctuations of Medifast's common stock market price; increases in litigation; actions of activist investors; the consequences of other geopolitical events, overall economic and market conditions and the resulting impact on consumer sentiment and spending patterns; and Medifast's ability to prevent or detect a failure of internal control over financial reporting. Although Medifast believes that the expectations, statements and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and other filings filed with the United States Securities and Exchange Commission, including its quarterly reports on Form 10-Q and current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this presentation.

© 2024 Medifast, Inc. All Rights Reserved.

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Revenue and EPS within guidance range

Gross margin of 72.8% increased 220 basis points versus Q1 2023, aided by Fuel for the Future savings

Began new company-ledadvertising initiative ($2.5M) with significant ramp up expected in second half of the year

Operating margin declined primarily from loss of leverage on fixed costs. Investments in marketing and other activities around the medically-supported weight loss market were also factors

Debt-free, with $156 million of cash & investments

© 2024 Medifast, Inc. All Rights Reserved.

$175M

REVENUE

Q1 2024

By The Numbers

$4,623

REVENUE PER ACTIVE

EARNING COACH

* Non-GAAP measure. See reconciliation on page 13

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44

$8M GAAP	$0.76 GAAP
$9M Adjusted*	$0.66 Adjusted*
OPERATING INCOME	DILUTED EPS

37,800	$156M
ACTIVE EARNING	CASH & CASH EQUIVALENTS
COACHES	AND INVESTMENTS

55

LEGACY MODEL

Structured Weight Loss Market:

$8B*

TRANSFORMED MODEL

Structured Weight Loss Market:

$8B* and U.S. GLP-1 support market could grow to $50B or more by 2030**

Customers attracted through one channel:

Coach-led

Customers attracted through three channels:

Coach-led

Company-led

LifeMD collaboration

Higher average monthly customer $ per	Anticipated reduction in average monthly
customer $ per order offset by longer
order, with shorter customer retention period
customer retention period

*The U.S. Weight Loss and Diet Control Market (A Market Research Analysis), 17th Edition, 3/23, Marketdata LLC

** BCG market research, 2/24, commissioned by Medifast

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66

Medifast's unique offer brings together nutrition, healthy habits, access to

clinical care, and robust coach and community support to build a sustainable, healthy lifestyle

Coaching

Clinical Care

Coach who understands the journey to a heathier lifestyle, helps educate, and facilitates accountability

Nutrition

Access to LifeMD doctors and experts who can provide medications and medical opinions.

Digital Experience

Losing weight the right way, helping to maintain lean muscle mass and instilling healthy nutritional habits

Ability to track progress and chart a clear path to goals

Support System

Community and tools that provide support throughout the

journey of weight loss and healthier living

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77

Two new acquisition channels

• Significant company-led marketing started in Q1 and ramping up throughout the year. Expected to spend $30M in 2024 to drive customer acquisition, elevate brand awareness, and foster engagement
• Strategic collaboration with LifeMD provides their patients a lifestyle modification solution

Existing Coach led acquisition efforts are bolstered by a stronger offer

• Access to medications through LifeMD relationship
• OPTAVIA ACTIVE products launched late 2023 to provide key nutritional support for medication users and aid in retention of lean muscle mass as they lose weight
• Additional products tailored to GLP-1 medication users expected by end of 2024

Holistic GLP-1 support offer expected in May

• LifeMD subscription - special discounts for longer commitments
• New GLP-1 Nutrition Support Kit
• Personalized support through a dedicated Coach and like-mindedcommunity
• Simple roadmap for habit creation
• As low as $282 a month for a 6-month commitment

Enhanced customer experience is projected to roll out in Q3

• Increased integration and functionality with LifeMD around sign-up, billing, and payments

© 2024 Medifast, Inc. All Rights Reserved.

Total Pop. Size

of GLP-1 Patients for

T2D & Obesity

~5.2M

~2.7M (of T2D w/ BMI >25) + 2.5M Obesity

Source: BCG market research, 2/24 commissioned by Medifast

© 2024 Medifast, Inc. All Rights Reserved.

Annual Spend

on GLP-1 Support Goods & Services

~$2,500

(Not Incl. Meds)

88

Total

Addressable

Market

of GLP-1 Support

~$13B

(Not Incl. Meds)

Total Pop. Size of GLP-1 Patients for T2D & Obesity

Accelerated Adoption

30M

Continued Momentum

20M

Moderate Adoption

10M

Source: BCG market research, 2/24, commissioned by Medifast

© 2024 Medifast, Inc. All Rights Reserved.

Approximate Annual

Spend on GLP-1 Support

Goods & Services

$2,500

$2,500

$2,500

99

Total Addressable Market

of GLP-1 Support

$75B

$50B

$25B

1010

Description of the Area of Focus:

• Continue to drive efficiency across core operations through a mix of projects across all key functions

Significant milestones accomplished so far:

• $45M in savings for 2023
• Major procurement wins across the entire business
• Smart efficiency plays within Supply Chain network
• Automation in contact center underway

What's next?

• Continue to execute on roadmap across the business
• Look at next wave of opportunities

Significant milestones for 2024:

• Major procurement efforts with raw materials, tech
• Rebalancing volume across network to optimize costs
• AI in the contact center - more automated interactions (chat, SMS, etc.)

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