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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.
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%.
The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 10.8% and 34.2%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA holds a Zacks Rank of 2. Mama's Creations delivered a trailing four-quarter earnings surprise of 121.7%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30.3% and 66.7%, respectively, from the year-ago figures.
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. LW presently carries a Zacks Rank of 2. Lamb Weston delivered a trailing four-quarter earnings surprise of 22.1%, on average.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year earnings indicates 7.6% growth from the year-ago numbers.
View the Zacks #1 Rank List
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Medifast Q3 Loss Narrower Than Expected as Coach Productivity Rises
Key Takeaways
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-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%.
Image Source: Zacks Investment Research
Stocks to Consider
The Chefs' Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 10.8% and 34.2%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA holds a Zacks Rank of 2. Mama's Creations delivered a trailing four-quarter earnings surprise of 121.7%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30.3% and 66.7%, respectively, from the year-ago figures.
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. LW presently carries a Zacks Rank of 2. Lamb Weston delivered a trailing four-quarter earnings surprise of 22.1%, on average.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year earnings indicates 7.6% growth from the year-ago numbers.