We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Medifast's Q3 Loss Wider Than Expected, Sales Decline 36% Y/Y
Read MoreHide Full Article
Key Takeaways
Medifast posted a Q3 loss of $0.21 per share, wider than the expected $0.01 loss.
Revenues fell 36.2% to $89.4M, caused by a 35% drop in active OPTAVIA coaches.
The company is pivoting from weight loss to a broader metabolic health strategy.
Medifast, Inc. ((MED - Free Report) ) delivered third-quarter 2025 results, with the top line surpassing the Zacks Consensus Estimate while the bottom line missing the same. Both the metrics showed a year-over-year decline.
Management is shifting its strategy from being a weight-loss company to becoming a leader in metabolic health. The company believes its coach-guided, clinically proven system can address underlying metabolic issues, positioning it in a larger and more sustainable market.
Medifast’s Quarterly Performance: Key Insights
MED reported a quarterly loss of 21 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. The result also marks a sharp reversal from the prior-year quarter’s earnings of 10 cents per share.
Net revenues of $89.4 million declined 36.2% year over year due to a drop in the number of active earning OPTAVIA coaches. However, the metric exceeded the Zacks Consensus Estimate of $86 million. The average revenue per active earning OPTAVIA Coach was $4,585, down from $4,672, mainly caused by pressure in client acquisition associated with the rapid adoption of GLP-1 medications for weight loss.
The number of active earning OPTAVIA Coaches has been going downward year over year since the first quarter of 2023, reflecting continued challenges in client acquisition due to the growing acceptance of GLP-1 medications for weight loss. The total number of active earning OPTAVIA coaches declined 35% to 19,500 from 30,000 seen in the year-earlier quarter.
MED’s Margin & Cost Details
Gross profit was $62.2 million, down 41.2% year over year on lower revenues, partially offset by reduced cost of sales. The gross margin was 69.5%, down 590 basis points (bps) year over year. The decline reflects 450 bps of loss of leverage on fixed costs and 180 bps related to reserves for the reformulation of the Essential product line. We expected gross profit to be $64.3 million in the third quarter.
Selling, general and administrative expenses (SG&A) fell 36% year over year to $66.2 million. This decrease was primarily caused by a $19.7 million reduction in OPTAVIA coach compensation due to lower volume and fewer active earning coaches. In addition, SG&A for the quarter also included decreases of $5.6 million in company-led marketing, $2.9 million in convention costs and $2 million related to the company’s collaboration with LifeMD, Inc., all of which did not recur in the period.
As a percentage of revenues, SG&A increased 20 bps year over year to 74.1%. The increase was primarily due to 520 bps associated with the loss of leverage on fixed costs and other smaller increases, partially offset by a 360-bps reduction related to company-led marketing and a 210-bps reduction related to convention costs incurred in the prior-year period that did not recur in the third quarter of 2025.
The loss from operations was $4.1 million in contrast to the operating income of $2.1 million in the year-ago quarter. As a percentage of revenues, this represented a loss from operations of 4.6% of revenues versus an operating margin of 1.5% in the prior-year period.
Medifast’s Financial Health Snapshot
MED concluded the quarter with cash, cash equivalents and investment securities of $173.5 million, no debt (as of Sept. 30, 2025) and total shareholders’ equity of $214.7 million.
Sneak Peek Into MED’s 2025 Outlook
The company expects fourth-quarter 2025 revenues between $65 million and $80 million, with loss per share expected to be between 70 cents and $1.25.
This Zacks Rank #3 (Hold) company’s shares have lost 12.1% in the past three months compared with the industry’s 7.6% decline.
Image Source: Zacks Investment Research
Stocks to Consider
United Natural Foods, Inc. ((UNFI - Free Report) ) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 2.5% and 167.6%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 416.2%, on average.
Lamb Weston Holdings, Inc. ((LW - Free Report) ) engages in the production, distribution and marketing of frozen potato products in the United States, Canada, Mexico and internationally. It sports a Zacks Rank #1 at present. Lamb Weston delivered a trailing four-quarter earnings surprise of 16%, on average.
The Zacks Consensus Estimate for Lamb Weston's current fiscal-year sales indicates growth of 1.3% from the prior-year levels.
Vital Farms ((VITL - Free Report) ) packages, markets and distributes shell eggs, butter and other products in the United States. It carries a Zacks Rank #2 (Buy) at present. Vital Farms delivered a trailing four-quarter earnings surprise of 35.8%, on average.
The Zacks Consensus Estimate for Vital Farms’ current fiscal-year sales and earnings implies an increase of 27.2% and 16.1%, respectively, from the prior-year levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Medifast's Q3 Loss Wider Than Expected, Sales Decline 36% Y/Y
Key Takeaways
Medifast, Inc. ((MED - Free Report) ) delivered third-quarter 2025 results, with the top line surpassing the Zacks Consensus Estimate while the bottom line missing the same. Both the metrics showed a year-over-year decline.
Management is shifting its strategy from being a weight-loss company to becoming a leader in metabolic health. The company believes its coach-guided, clinically proven system can address underlying metabolic issues, positioning it in a larger and more sustainable market.
Medifast’s Quarterly Performance: Key Insights
MED reported a quarterly loss of 21 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. The result also marks a sharp reversal from the prior-year quarter’s earnings of 10 cents per share.
MEDIFAST INC Price, Consensus and EPS Surprise
MEDIFAST INC price-consensus-eps-surprise-chart | MEDIFAST INC Quote
Net revenues of $89.4 million declined 36.2% year over year due to a drop in the number of active earning OPTAVIA coaches. However, the metric exceeded the Zacks Consensus Estimate of $86 million. The average revenue per active earning OPTAVIA Coach was $4,585, down from $4,672, mainly caused by pressure in client acquisition associated with the rapid adoption of GLP-1 medications for weight loss.
The number of active earning OPTAVIA Coaches has been going downward year over year since the first quarter of 2023, reflecting continued challenges in client acquisition due to the growing acceptance of GLP-1 medications for weight loss. The total number of active earning OPTAVIA coaches declined 35% to 19,500 from 30,000 seen in the year-earlier quarter.
MED’s Margin & Cost Details
Gross profit was $62.2 million, down 41.2% year over year on lower revenues, partially offset by reduced cost of sales. The gross margin was 69.5%, down 590 basis points (bps) year over year. The decline reflects 450 bps of loss of leverage on fixed costs and 180 bps related to reserves for the reformulation of the Essential product line. We expected gross profit to be $64.3 million in the third quarter.
Selling, general and administrative expenses (SG&A) fell 36% year over year to $66.2 million. This decrease was primarily caused by a $19.7 million reduction in OPTAVIA coach compensation due to lower volume and fewer active earning coaches. In addition, SG&A for the quarter also included decreases of $5.6 million in company-led marketing, $2.9 million in convention costs and $2 million related to the company’s collaboration with LifeMD, Inc., all of which did not recur in the period.
As a percentage of revenues, SG&A increased 20 bps year over year to 74.1%. The increase was primarily due to 520 bps associated with the loss of leverage on fixed costs and other smaller increases, partially offset by a 360-bps reduction related to company-led marketing and a 210-bps reduction related to convention costs incurred in the prior-year period that did not recur in the third quarter of 2025.
The loss from operations was $4.1 million in contrast to the operating income of $2.1 million in the year-ago quarter. As a percentage of revenues, this represented a loss from operations of 4.6% of revenues versus an operating margin of 1.5% in the prior-year period.
Medifast’s Financial Health Snapshot
MED concluded the quarter with cash, cash equivalents and investment securities of $173.5 million, no debt (as of Sept. 30, 2025) and total shareholders’ equity of $214.7 million.
Sneak Peek Into MED’s 2025 Outlook
The company expects fourth-quarter 2025 revenues between $65 million and $80 million, with loss per share expected to be between 70 cents and $1.25.
This Zacks Rank #3 (Hold) company’s shares have lost 12.1% in the past three months compared with the industry’s 7.6% decline.
Image Source: Zacks Investment Research
Stocks to Consider
United Natural Foods, Inc. ((UNFI - Free Report) ) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 2.5% and 167.6%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 416.2%, on average.
Lamb Weston Holdings, Inc. ((LW - Free Report) ) engages in the production, distribution and marketing of frozen potato products in the United States, Canada, Mexico and internationally. It sports a Zacks Rank #1 at present. Lamb Weston delivered a trailing four-quarter earnings surprise of 16%, on average.
The Zacks Consensus Estimate for Lamb Weston's current fiscal-year sales indicates growth of 1.3% from the prior-year levels.
Vital Farms ((VITL - Free Report) ) packages, markets and distributes shell eggs, butter and other products in the United States. It carries a Zacks Rank #2 (Buy) at present. Vital Farms delivered a trailing four-quarter earnings surprise of 35.8%, on average.
The Zacks Consensus Estimate for Vital Farms’ current fiscal-year sales and earnings implies an increase of 27.2% and 16.1%, respectively, from the prior-year levels.