Third Quarter 2026
Filed Oct 26, 2026Medifast Announces Third Quarter 2026 Financial Results
Third-quarter revenue declined 19.4% and active earning coaches declined 47.7%, while Catalyst restructuring charges drove a $17.5 million GAAP net loss. Coach productivity rose 54.1%, adjusted EBITDA excluding interest income improved to $1.9 million, and management guided to fourth-quarter income per share of $0.00 to $0.25.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30GAAP | $72M | – | decreased 19.4% |
| Revenue, nine months ended September 30GAAP | $224.5M | – | – |
| Cost of sales, three months ended September 30GAAP | $22.01M | – | – |
| Cost of sales, nine months ended September 30GAAP | $69.28M | – | – |
| Gross profit, three months ended September 30GAAP | $50M | – | decreased 19.5% |
| Gross profit margin, three months ended September 30GAAP | 69.5% | – | – |
| Non-GAAP adjusted gross profit, three months ended September 30non-GAAP | $51.7M | – | decreased 16.9% |
| Non-GAAP adjusted gross profit margin, three months ended September 30non-GAAP | 71.7% | – | increased 220 basis points year-over-year |
| Gross profit, nine months ended September 30GAAP | $155.2M | – | – |
| Selling, general, and administrative expenses, three months ended September 30GAAP | $69.4M | – | increased 4.8% |
| Selling, general, and administrative expenses as a percentage of revenue, three months ended September 30GAAP | 96.3% of revenue | – | increased 22 percentage points year-over-year |
| Non-GAAP adjusted selling, general, and administrative expenses, three months ended September 30non-GAAP | $55.6M | – | decreased 16.0% |
| Non-GAAP adjusted selling, general, and administrative expenses as a percentage of revenue, three months ended September 30non-GAAP | 77.2% | – | increased 310 basis points year-over-year |
| Selling, general, and administrative expenses, nine months ended September 30GAAP | $182.2M | – | – |
| Loss from operations, three months ended September 30GAAP | $19.4M | – | – |
| Loss from operations as a percentage of revenue, three months ended September 30GAAP | 26.9% | – | – |
| Non-GAAP adjusted loss from operations, three months ended September 30non-GAAP | $4M | – | improved by 3.2% |
| Non-GAAP adjusted loss from operations as a percentage of revenue, three months ended September 30non-GAAP | 5.5% | – | a change of 90 basis points from 4.6% in the year-ago period |
| Loss from operations, nine months ended September 30GAAP | −$26.98M | – | – |
| Other income, three months ended September 30GAAP | $1.5M | – | increased $0.1 million |
| Interest income, three months ended September 30GAAP | $1.51M | – | – |
| Other income, nine months ended September 30GAAP | $1.52M | – | – |
| Income tax benefit, three months ended September 30GAAP | $300K | – | – |
| Effective tax rate, three months ended September 30GAAP | 1.8% | – | – |
| Net loss, three months ended September 30GAAP | $17.5M | – | – |
| Loss per diluted share, three months ended September 30GAAP | $1.57 | – | – |
| Non-GAAP adjusted net loss, three months ended September 30non-GAAP | $2.1M | – | – |
| Non-GAAP adjusted loss per diluted share, three months ended September 30non-GAAP | $0.19 | – | – |
| Net loss, nine months ended September 30GAAP | −$22.73M | – | – |
| Loss per diluted share, nine months ended September 30GAAP | $ (2.05) | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $400K | – | – |
| Adjusted EBITDA excluding interest income, three months ended September 30non-GAAP | $1.9M | – | – |
| Stock-based compensation expense, three months ended September 30other | 1,850 | – | – |
| Depreciation and amortization expense, three months ended September 30other | 4,276 | – | – |
| Restructuring and related charges (Catalyst Restructuring), excluding depreciation and stock compensation, three months ended September 30other | 13,579 | – | – |
| Active earning coachesother | 10,200 | – | decreased 47.7% |
| Average revenue per active earning coachother | $7,064 | – | increase of 54.1% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth quarter 2026 and full year 2026 outlook
- Revenuefourth quarter 2026 revenue to be in the range of $55 million to $75 million; full year 2026 revenue to be in the range of $280 million to $300 million
- Notefourth quarter 2026 income per share to be in the range of $0.00 to $0.25
- Notefull year 2026 loss per share to range from $1.80 to $2.05
- NoteFor the full year 2026, on a non-GAAP basis, we expect loss per share between $0.45 and $0.70.
- Notefourth quarter Adjusted EBITDA excluding interest income to range from $2 million to $6 million
- NoteFor the full year 2026, we are expecting Adjusted EBITDA excluding interest income to range from $10 million to $14 million.
What drove it
- Revenue declined primarily because the number of active earning coaches decreased.
- The decrease in active earning coaches reflected continued pressure with client acquisition and broader operating-environment challenges, including rapid adoption of GLP-1 medications for weight loss.
- Average revenue per active earning coach increased due to fewer active earning coaches and the company's focus on efficient and more productive coach network structures.
- Catalyst Restructuring was intended to simplify the business and reduce costs by reducing the size and reassessing geographic locations of the distribution network, streamlining internal-use software, and aligning organizational resources with current revenue levels.
- Gross profit reflected lower sales volumes and Catalyst Restructuring charges, partly offset by prior-year Essential product-line reformulation costs.
- SG&A reflected a $13.8 million increase for Catalyst Restructuring charges, partly offset by a $6.6 million decrease in coach compensation and a $1.4 million decrease in IT consulting spend.
Concerns
- The company expects the number of active earning coaches to continue to decline through the end of 2026.
- Revenue declined 19.4% and active earning coaches declined 47.7% year over year.
- Catalyst Restructuring charges contributed to the $17.5 million GAAP net loss and to SG&A reaching 96.3% of revenue.
- The company cited continued pressure with client acquisition and rapid adoption of GLP-1 medications for weight loss.
- The full-year outlook calls for loss per share to range from $1.80 to $2.05 and non-GAAP loss per share between $0.45 and $0.70.
What to watch
- Whether active earning coach declines continue through the end of 2026 as management expects.
- Fourth-quarter revenue against the guided range of $55 million to $75 million.
- Fourth-quarter income per share against the guided range of $0.00 to $0.25.
- Fourth-quarter Adjusted EBITDA excluding interest income against the guided range of $2 million to $6 million.
- The benefit from the Catalyst cost program following the majority of its execution in the third quarter.
- Coach productivity following the fourth consecutive quarter of year-over-year improvement.
Balance sheet and cash flow
- Cash, cash equivalents and investment securities of $172.5 million and no debt as of September 30, 2026, compared to $167.3 million in cash, cash equivalents and investment securities and no debt at December 31, 2025.
- Cash and cash equivalents: $ 58,372 at September 30, 2026, compared with $ 89,303 at December 31, 2025.
- Investments: $ 114,162 at September 30, 2026, compared with $ 77,970 at December 31, 2025.
- Inventories, net: $ 21,202 at September 30, 2026, compared with $ 20,228 at December 31, 2025.
- Total assets: $ 239,763 at September 30, 2026, compared with $ 247,973 at December 31, 2025.
- Total liabilities: $ 59,486 at September 30, 2026, compared with $ 49,053 at December 31, 2025.
- Total stockholders' equity: $ 180,277 at September 30, 2026, compared with $ 198,920 at December 31, 2025.
Analysis
Medifast reported third-quarter revenue of $72.0 million, down 19.4% from $89.4 million. The principal demand constraint remained the coach network: active earning coaches declined 47.7% to 10,200, which the company attributed to continued client-acquisition pressure and broader operating-environment challenges including rapid adoption of GLP-1 medications for weight loss. Management expects the coach count to continue declining through the end of 2026.
Network productivity moved in the opposite direction. Average revenue per active earning coach rose 54.1% to $7,064 from $4,585, which Medifast attributed to the smaller coach base and its focus on more efficient and productive coach network structures. The CEO said this was the fourth consecutive quarter of year-over-year productivity improvement and characterized it as an indicator that has historically preceded coach and revenue growth.
GAAP profitability was heavily affected by Catalyst Restructuring charges. Gross profit fell 19.5% to $50.0 million, while gross margin was unchanged at 69.5%; Catalyst charges accounted for 230 basis points and were substantially offset by 220 basis points of prior-year Essential line reformulation costs. SG&A increased 4.8% to $69.4 million despite lower revenue, with a $13.8 million increase in Catalyst Restructuring charges partly offset by reduced coach compensation and IT consulting spend. GAAP net loss was $17.5 million, or $1.57 per diluted share, versus $2.3 million, or $0.21 per diluted share.
Excluding Catalyst restructuring effects, non-GAAP adjusted gross profit was $51.7 million and non-GAAP adjusted gross margin was 71.7%. Non-GAAP adjusted SG&A declined 16.0% to $55.6 million, but represented 77.2% of revenue. Non-GAAP adjusted net loss was $2.1 million, or $0.19 per diluted share. Adjusted EBITDA was $0.4 million, and adjusted EBITDA excluding interest income was $1.9 million, compared with $1.7 million in the prior-year period.
The balance sheet carried $172.5 million of cash, cash equivalents and investment securities and no debt at September 30, 2026. Looking ahead, management guided fourth-quarter revenue to $55 million to $75 million, income per share to $0.00 to $0.25, and Adjusted EBITDA excluding interest income to $2 million to $6 million. Full-year guidance calls for revenue of $280 million to $300 million, loss per share of $1.80 to $2.05, non-GAAP loss per share of $0.45 to $0.70, and Adjusted EBITDA excluding interest income of $10 million to $14 million.
Management, verbatim
The third quarter was about execution. With Trilivy now live, Reset Fuelings in our coaches’ hands, and our new compensation plan and Coach Hub launched, the major pieces of our 3.0 strategy are now in market. Revenue came in line with our guidance, and coach productivity improved year-over-year for the fourth consecutive quarter. Those are the kinds of indicators that have historically come before coach growth and revenue growth.
Nick Johnson, Chief Executive Officer
With our launches complete and most of our Catalyst cost program executed, our focus has shifted to delivering returns on our foundational work. Coaches are embracing the new brand, our new compensation plan, our comprehensive metabolic health system--supported by the new Reset Fueling product line, and their conversations with clients are increasingly focused on metabolic health markers like visceral fat, lean mass and protecting and building healthy muscle. With enthusiasm high in the Field, we believe we are on track to deliver profitability in the fourth quarter.
Nick Johnson, Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported operating metrics.
- Operating cash flow.
- Free cash flow.
- Capital expenditures.
- Share repurchases.
- Dividend declarations or payments.
- Segment revenue disclosures.
- Prior outlook for comparison.
- Prior-year non-GAAP adjusted net loss and non-GAAP adjusted diluted loss per share.
- Prior-year non-GAAP adjusted gross profit margin.
- Prior-year non-GAAP adjusted SG&A and non-GAAP adjusted SG&A as a percentage of revenue.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.