Medifast (NYSE:MED) Announces Earnings Results

Medifast (NYSE:MED) issued its quarterly earnings results on Monday. The specialty retailer reported ($0.28) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.65) by $0.37, FiscalAI reports. Medifast had a negative return on equity of 6.63% and a negative net margin of 8.08%.The firm had revenue of $76.38 million during the quarter, compared to the consensus estimate of $72.70 million. Medifast updated its FY 2026 guidance to -1.750–0.250 EPS and its Q3 2026 guidance to -0.650–0.150 EPS.

Here are the key takeaways from Medifast’s conference call:

• Revenue and coach counts continued to decline: Q2 revenue fell 27.6% year over year to $76.4 million, while active earning coaches dropped 48.7% to approximately 11,700, reflecting ongoing pressure from GLP-1 medication adoption. The company reported a $3.1 million net loss, or $0.28 per share, versus net income of $2.5 million a year earlier.
• Coach productivity improved for a third consecutive quarter. Revenue per active earning coach increased 41% year over year and 20% sequentially to $6,529, the highest level since Q2 2022; management views this as an early indicator of eventual coach and revenue growth.
• Medifast launched its new Trilivy metabolic-health brand, replacing OPTAVIA as its primary consumer brand, alongside new Reset Fuelings and the Medifast Metabolic Health Institute. Management said coach and client reception has been highly positive and expects the initiatives to support growth through the remainder of 2026.
• Management is targeting a return to profitability in Q4 2026. The Catalyst cost-savings program, expected to ramp in Q3, is intended to generate millions of dollars in savings through facility rationalization, AI efficiencies, and other streamlining actions, although the company has not yet quantified the savings or implementation costs.
• Medifast ended Q2 with $169.8 million in cash and investments and no debt, but expects continued near-term coach-count declines. Q3 guidance calls for revenue of $60 million to $80 million and a loss of $0.15 to $0.65 per share, excluding one-time Catalyst costs; full-year revenue guidance remains $270 million to $300 million.

Medifast Stock Performance

Shares of NYSE MED traded down $0.15 during trading on Wednesday, hitting $12.93. 70,896 shares of the company traded hands, compared to its average volume of 238,112. The firm has a market capitalization of $143.78 million, a price-to-earnings ratio of -7.07 and a beta of 0.65. The business’s fifty day moving average is $11.06 and its 200 day moving average is $11.05. Medifast has a fifty-two week low of $9.22 and a fifty-two week high of $14.67.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Weiss Ratings restated a “sell (e+)” rating on shares of Medifast in a research report on Monday. Zacks Research raised Medifast from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $12.00.

Insider Activity at Medifast

In other news, Director Scott Schlackman bought 2,500 shares of Medifast stock in a transaction dated Monday, May 11th. The stock was bought at an average cost of $12.53 per share, for a total transaction of $31,325.00. Following the purchase, the director directly owned 30,549 shares in the company, valued at approximately $382,778.97. This represents a 8.91% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 3.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Charles Schwab Investment Management Inc. raised its position in shares of Medifast by 30.5% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 776,829 shares of the specialty retailer’s stock worth $8,297,000 after purchasing an additional 181,618 shares during the period. Bank of America Corp DE grew its position in Medifast by 14.2% in the 3rd quarter. Bank of America Corp DE now owns 452,543 shares of the specialty retailer’s stock valued at $6,186,000 after purchasing an additional 56,174 shares during the period. Lido Advisors LLC acquired a new stake in Medifast in the 3rd quarter valued at $4,521,000. Dimensional Fund Advisors LP increased its stake in Medifast by 9.3% during the 4th quarter. Dimensional Fund Advisors LP now owns 326,240 shares of the specialty retailer’s stock valued at $3,484,000 after purchasing an additional 27,871 shares in the last quarter. Finally, Steamboat Capital Partners LLC bought a new stake in Medifast during the 4th quarter valued at $2,952,000. Institutional investors own 95.51% of the company’s stock.

Medifast Company Profile

Medifast, Inc (NYSE: MED) is a health and wellness company specializing in clinically supported weight-loss, weight-management and healthy living products and services. Through its OPTAVIA brand, the company offers a range of meal replacement products, snacks, supplements and coaching programs designed to support metabolic health and sustainable lifestyle changes. Medifast markets its products directly to consumers via a network of independent distributors—known as OPTAVIA Coaches—who provide personalized guidance and support throughout the client’s weight‐loss journey.

Founded in 1980 by William Vitale and headquartered in Baltimore, Maryland, Medifast has grown into a nationally recognized provider of nutrition and weight‐management solutions.