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Can Medifast's Better Client Retention Support Revenue Stabilization?
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Key Takeaways
MED's second-quarter revenues fell 27.6% to $76.4 million as active earning coaches declined 48.7%.
MED's revenue per active earning coach rose 41% to $6,529, marking a third straight quarter of growth.
MED's referral program exceeded expectations as renewed coach enthusiasm supported its new product rollout.
Medifast, Inc. (MED - Free Report) continues to see signs of stabilization in its business, with sequential revenue trends holding relatively steady even as the company faces pressure from a declining coach base. At its second-quarter 2026 earnings call, management said revenue has stabilized sequentially in recent quarters, aided by higher coach productivity, while improved client retention trends were another encouraging operating indicator. In the second quarter, the company reported revenues of $76.4 million, down 27.6% year over year, primarily due to a 48.7% decline in active earning coaches to approximately 11,700.
Despite the lower coach count, average revenue per active earning coach increased 41% year over year to $6,529, marking a third consecutive quarter of productivity growth. Management also said that the client referral program continues to exceed expectations as the company launches its new product line and seeks to capitalize on renewed coach enthusiasm. Management highlighted renewed energy across the coach base as coaches engage with clients around the new metabolic health narrative.
This momentum was also evident at the company’s sold-out coach convention in July, which provided a clear indication of strong coach engagement. The strong referral program performance and renewed coach enthusiasm come as the company rolls out the new product line.
Medifast’s near-term outlook follows a period of relative sequential revenue stability but continues to reflect pressure on the coach base. Management anticipates revenues of $60-$80 million in the third quarter of 2026, and they expect the active earning coach count to continue declining in the short term, while coach productivity continues to improve both year over year and sequentially. Overall, improved client retention trends and rising coach productivity are positive operating indicators as Medifast focuses on stabilizing its business.
The Zacks Rundown for MED
The Zacks Rank #2 (Buy) company's shares have gained 14.4% in the past six months against the industry’s decline of 2.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, MED trades at a forward price-to-sales ratio of 0.47, lower than the industry’s average of 0.73.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MED’s current fiscal year bottom line calls for a year-over-year decline of 26.8%, whereas the same for next fiscal year earnings suggests 54.8% growth year over year.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks have been discussed below:
The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.8% and 33.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Mama’s Creations, Inc. (MAMA - Free Report) , together with its subsidiaries, manufactures and markets fresh deli-prepared foods in the United States. MAMA currently carries a Zacks Rank of 1.
The Zacks Consensus Estimate for MAMA's current fiscal-year sales & earnings implies growth of 30.3% and 66.7%, respectively, from the year-ago actuals. MAMA delivered a trailing four-quarter negative earnings surprise of 121.7%, on average.
Utz Brands, Inc. (UTZ - Free Report) , together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. UTZ currently carries a Zacks Rank 2.
The Zacks Consensus Estimate for UTZ’s current fiscal-year sales implies growth of 3.7%, and the same for earnings implies a decline of 2.4% from the year-ago actuals. UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.
View the Zacks #1 Rank List
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Can Medifast's Better Client Retention Support Revenue Stabilization?
Key Takeaways
Medifast, Inc. (MED - Free Report) continues to see signs of stabilization in its business, with sequential revenue trends holding relatively steady even as the company faces pressure from a declining coach base. At its second-quarter 2026 earnings call, management said revenue has stabilized sequentially in recent quarters, aided by higher coach productivity, while improved client retention trends were another encouraging operating indicator. In the second quarter, the company reported revenues of $76.4 million, down 27.6% year over year, primarily due to a 48.7% decline in active earning coaches to approximately 11,700.
Despite the lower coach count, average revenue per active earning coach increased 41% year over year to $6,529, marking a third consecutive quarter of productivity growth. Management also said that the client referral program continues to exceed expectations as the company launches its new product line and seeks to capitalize on renewed coach enthusiasm. Management highlighted renewed energy across the coach base as coaches engage with clients around the new metabolic health narrative.
This momentum was also evident at the company’s sold-out coach convention in July, which provided a clear indication of strong coach engagement. The strong referral program performance and renewed coach enthusiasm come as the company rolls out the new product line.
Medifast’s near-term outlook follows a period of relative sequential revenue stability but continues to reflect pressure on the coach base. Management anticipates revenues of $60-$80 million in the third quarter of 2026, and they expect the active earning coach count to continue declining in the short term, while coach productivity continues to improve both year over year and sequentially. Overall, improved client retention trends and rising coach productivity are positive operating indicators as Medifast focuses on stabilizing its business.
The Zacks Rundown for MED
The Zacks Rank #2 (Buy) company's shares have gained 14.4% in the past six months against the industry’s decline of 2.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, MED trades at a forward price-to-sales ratio of 0.47, lower than the industry’s average of 0.73.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MED’s current fiscal year bottom line calls for a year-over-year decline of 26.8%, whereas the same for next fiscal year earnings suggests 54.8% growth year over year.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks have been discussed below:
The Chef’s Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.8% and 33.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Mama’s Creations, Inc. (MAMA - Free Report) , together with its subsidiaries, manufactures and markets fresh deli-prepared foods in the United States. MAMA currently carries a Zacks Rank of 1.
The Zacks Consensus Estimate for MAMA's current fiscal-year sales & earnings implies growth of 30.3% and 66.7%, respectively, from the year-ago actuals. MAMA delivered a trailing four-quarter negative earnings surprise of 121.7%, on average.
Utz Brands, Inc. (UTZ - Free Report) , together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. UTZ currently carries a Zacks Rank 2.
The Zacks Consensus Estimate for UTZ’s current fiscal-year sales implies growth of 3.7%, and the same for earnings implies a decline of 2.4% from the year-ago actuals. UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.