Medifast (NYSE:MED) Releases Earnings Results, Beats Expectations By $0.37 EPS

Medifast (NYSE:MED) issued its quarterly earnings results on Monday. The specialty retailer reported ($0.28) earnings per share for the quarter, beating the consensus estimate of ($0.65) by $0.37, FiscalAI reports. The firm had revenue of $76.38 million during the quarter, compared to the consensus estimate of $72.70 million. Medifast had a negative return on equity of 4.80% and a negative net margin of 5.78%. 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

MED opened at $9.72 on Tuesday. The company’s 50-day simple moving average is $11.05 and its two-hundred day simple moving average is $11.04. The stock has a market capitalization of $108.13 million, a P/E ratio of -5.31 and a beta of 0.65. Medifast has a 52-week low of $9.22 and a 52-week high of $15.11.

Insider Activity at Medifast

In related news, Director Scott Schlackman acquired 2,500 shares of the firm’s stock in a transaction dated Monday, May 11th. The stock was purchased at an average cost of $12.53 per share, with a total value of $31,325.00. Following the completion of the acquisition, the director directly owned 30,549 shares of the company’s stock, valued at approximately $382,778.97. This trade represents a 8.91% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. 3.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Medifast

Several institutional investors and hedge funds have recently added to or reduced their stakes in MED. BNP Paribas Financial Markets raised its stake in Medifast by 103.1% during the 3rd quarter. BNP Paribas Financial Markets now owns 2,338 shares of the specialty retailer’s stock valued at $32,000 after buying an additional 1,187 shares during the last quarter. Quantbot Technologies LP bought a new stake in shares of Medifast in the third quarter worth $37,000. Intesa Sanpaolo Wealth Management bought a new stake in shares of Medifast in the fourth quarter worth $47,000. State of Wyoming purchased a new stake in Medifast during the fourth quarter valued at $59,000. Finally, Strs Ohio purchased a new stake in Medifast during the first quarter valued at $78,000. Hedge funds and other institutional investors own 95.51% of the company’s stock.

Key Medifast News

Here are the key news stories impacting Medifast this week:

• Positive Sentiment: Medifast reported a second-quarter loss of $0.28 per share, substantially better than the consensus estimate of a $0.65–$0.67 loss. Revenue of $76.4 million also exceeded estimates of approximately $72.7 million. Medifast Reports Q2 Loss, Beats Revenue Estimates
• Positive Sentiment: The company ended the quarter with $169.8 million in cash, cash equivalents and investments and no debt, providing financial flexibility as it implements its metabolic-health strategy and Catalyst initiatives. Medifast Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Full-year 2026 EPS guidance of a loss between $0.25 and $1.75 is better than the consensus estimate for a $1.87 loss, suggesting management expects losses to be narrower than previously anticipated. CEO Daniel Chard also purchased 17,678 shares, a potential confidence signal. Medifast Q2 Revenue Falls 28 Percent
• Neutral Sentiment: Management expects third-quarter revenue of $60 million to $80 million and an EPS loss of $0.15 to $0.65, broadly bracketing analyst expectations. The outlook excludes certain one-time Catalyst-related costs.
• Negative Sentiment: Underlying operating trends remain weak: quarterly revenue fell 27.6% year over year to $76.4 million, the company posted a $3.1 million net loss versus prior-year profit, and active earning coaches declined 48.7% to 11,700. Medifast Q2 Revenue Falls 28 Percent
• Negative Sentiment: Despite beating estimates, Medifast remains unprofitable, with negative net margin and return on equity. The wide guidance ranges also reflect uncertainty around the pace of its strategic turnaround.

Analysts Set New Price Targets

MED has been the topic of several analyst reports. Zacks Research upgraded shares of Medifast from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 13th. Weiss Ratings cut Medifast from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Wednesday, May 6th. One 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 company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $12.00.

About Medifast

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.