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Medifast Q3 Loss Narrower Than Expected as Coach Productivity Rises

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Key Takeaways

  • MED reported a narrower-than-expected Q3 loss as higher coach productivity supported revenue per coach.
  • Coach productivity up 54.1% despite a 47.7% drop in active earning coaches amid client acquisition challenges.
  • MED raised its 2026 revenue outlook to $280-$300 million and expects adjusted EBITDA of $10-$14 million.

Medifast, Inc. MED reported third-quarter 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate. However, revenues declined year over year.

Medifast’s Quarterly Performance: Key Insights

The company posted an adjusted loss per share of 19 cents, narrower than the Zacks Consensus Estimate of a loss of 40 cents. Medifast reported a loss of 21 cents per share in the prior-year period.

MEDIFAST INC Price, Consensus and EPS Surprise

MEDIFAST INC Price, Consensus and EPS Surprise

MEDIFAST INC price-consensus-eps-surprise-chart | MEDIFAST INC Quote

Revenues declined 19.4% year over year to $72 million from $89.4 million, exceeding the Zacks Consensus Estimate of $68 million.

Medifast ended the quarter with approximately 10,200 active earning coaches, down 47.7% from 19,500 a year earlier. Management attributed the decline primarily to continued challenges in client acquisition, including broader industry pressures stemming from the rapid adoption of GLP-1 weight-loss medications.

Average revenue per active earning coach increased 54.1% year over year to $7,064 from $4,585. This marks the fourth consecutive quarter of year-over-year productivity improvement. Management attributed the increase partly to its focus on developing more efficient and productive coach network structures.

Medifast's Margin & Cost Performance

Adjusted gross profit, excluding Catalyst restructuring expenses, declined 16.9% to $51.7 million. However, adjusted gross margin expanded 220 basis points year over year to 71.7%.

Adjusted SG&A expenses declined 16% to $55.6 million, although adjusted SG&A as a percentage of revenues increased 310 basis points to 77.2%.

Adjusted EBITDA, which excludes stock-based compensation and Catalyst charges, increased to approximately $0.4 million from $0.3 million.

MED's Other Financial Information

Medifast ended September 2026 with $172.5 million in cash, cash equivalents and investment securities compared with $167.3 million at Dec. 31, 2025. The company remained debt-free.

Sneak Peek Into MED's Outlook

For the fourth quarter of 2026, Medifast expects revenues between $55 million and $75 million. The company anticipates earnings per share in the range of breakeven to 25 cents.

Management expects adjusted EBITDA excluding interest income between $2 million and $6 million during the fourth quarter.

For 2026, Medifast expects revenues of $280-$300 million compared with its previous outlook of $270-$300 million. The company projects a reported loss of $1.80-$2.05 per share.

On an adjusted basis, management anticipates a full-year loss of 45-70 cents per share. Adjusted EBITDA excluding interest income is expected to be between $10 million and $14 million.

Shares of this Zacks Rank #3 (Hold) company have risen 24.2% over the past three months against the industry’s decline of 3.2%.

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