Adjusted EBITDA decreased 38% to $35.9 million, and adjusted net income declined 45% to $20.9 million.
Basic earnings per share decreased to $0.67, and adjusted EPS decreased 43% to $0.97 per share.
Branded Spirits sales declined 5%, with premium plus portfolio sales increasing 1%, while mid and value-tier brands experienced double-digit declines.
Capital expenditures were $10.6 million in Q2 and $18.7 million year-to-date, with full-year 2025 capex guidance reduced to approximately $32.5 million.
Consolidated sales decreased 24% to $145.5 million in Q2 2025 compared to the prior year, driven primarily by a 46% decline in Distilling Solutions segment sales.
Gross profit decreased 30% to $58.4 million, with gross margin declining 350 basis points to 40.1%.
Ingredient Solutions sales increased 5%, led by a 13% rebound in specialty protein sales and a 4% decline in Fibersym branded specialty wheat starch sales.
Net debt leverage remained stable at approximately 1.8x with a cash position of $17.3 million at quarter-end.
Year-to-date operating cash flow increased to $56.4 million from $29.6 million last year, driven by favorable working capital changes.
Average revenue per active earning coach decreased 6.9% year-over-year to $4,630, but increased sequentially for the second consecutive quarter.
Gross profit decreased 37.9% year-over-year to $76.6 million, with a gross profit margin of 72.6%, down 60 basis points from the prior year.
Loss from operations improved by $6.8 million to a loss of $1.1 million, representing 1% of revenue, a 370 basis point increase compared to the prior year.
Medifast reported second quarter 2025 revenue of $105.6 million, a 37.4% decrease year-over-year, primarily due to a 32.7% decline in active earning OPTAVIA coaches to approximately 22,800.
Net income was $2.5 million or $0.22 per diluted share, compared to a net loss of $8.2 million or $0.75 per share in the year earlier period.
Other income increased 242.1% to $3.9 million, primarily due to a $2.6 million gain on investment in LifeMD common stock, compared to a loss in the prior year.
SG&A expenses declined 40.8% year-over-year to $77.7 million, driven by lower coach compensation and nonrecurring costs in the prior year.
The company ended the quarter with $162.7 million in cash and cash equivalents and no interest-bearing debt.
Dafinchi