Medifast Q2 Earnings Call Highlights

Medifast (NYSE:MED) reported second-quarter 2026 revenue of $76.4 million, down 27.6% from a year earlier, as its active earning coach base continued to decline amid the rapid adoption of GLP-1 medications across the traditional weight-loss category. The company posted a net loss of $3.1 million, or $0.28 per diluted share, compared with net income of $2.5 million, or $0.22 per share, in the prior-year quarter.

Management said revenue met its guidance range and earnings per share exceeded guidance, supported by a third consecutive quarter of improvement in coach productivity. Medifast ended the quarter with about 11,700 active earning coaches, a 48.7% decrease from the second quarter of 2025. However, average revenue per active earning coach rose 41% year over year to $6,529 and increased 20% sequentially, reaching its highest level since the second quarter of 2022.

“We now have a clear trend of increasing coach productivity both year-over-year and sequentially,” Chief Financial Officer Jim Maloney said. The company views higher revenue per coach as an early indicator that could eventually lead to coach growth and revenue growth.

Trilivy Launch Anchors Metabolic Health Strategy

Chief Executive Officer Nicholas Johnson, speaking on his first earnings call in the role, said the company is pursuing a broader transition from weight loss toward metabolic health. Medifast launched its Trilivy consumer brand as the successor to OPTAVIA and described it as the first step in its “3.0 strategy,” a 10-year roadmap focused on expanding its offerings, geographic reach and demographic footprint.

Johnson said Trilivy is designed around three phases—reset, refine and renew—and positions the company’s coach-led nutrition programs as a comprehensive metabolic health system. The company also launched the Medifast Metabolic Health Institute in July, which will organize research, product development, scientific communications and education.

The company plans to introduce new Reset Fuelings later in August. The products include Medifast’s MetaVantage Technology Reset Formula, which the company said is intended to support normal fat metabolism, healthy insulin function and reduced waist circumference. Johnson said a spring pilot involving certain employees, coaches and clients generated “overwhelmingly positive” feedback.

Medifast also launched an enhanced coach compensation plan on Aug. 1, emphasizing the development of executive directors. Johnson said executive directors are the company’s highest-producing coaches and represent “the single greatest driver of sustainable growth” for the business. The percentage of active earning coaches at the executive director rank or above remained above the company’s 10% benchmark for a healthy and scalable field organization, he said.

Margins Pressured by Lower Volume

Gross profit declined 30.3% year over year to $53.4 million, while gross margin fell to 69.9% from 72.6%. Maloney attributed the margin decline primarily to a loss of leverage on fixed costs as sales volumes decreased.

Selling, general and administrative expense fell 25.7% to $57.7 million. The reduction included a $12.6 million decline in coach compensation, a $2.3 million reduction in employee salary and benefits expense, and a $2 million decrease in company-led marketing costs. Still, SG&A as a percentage of revenue increased by 200 basis points because of lower fixed-cost leverage and costs related to the Trilivy Reset product launch.

Medifast recorded an operating loss of $4.3 million, compared with an operating loss of approximately $1 million in the second quarter of 2025. Other income declined to $1.3 million from the prior-year period, primarily because the earlier quarter included gains on LifeMD common stock that Medifast sold during the second quarter of 2025.

Catalyst Cost Program and Profitability Target

Medifast launched its Catalyst program during the second quarter, with most execution expected in the third quarter. The initiative is intended to generate cost savings through facility rationalization, AI-related efficiencies and other streamlining measures.

Maloney said the company expects “millions of dollars of savings” but has not yet quantified the program because management is still determining which costs to reduce. He said Medifast expects to provide more detail during its third-quarter earnings call and stressed that the company does not intend to make cuts that would impair revenue growth.

Management reiterated its objective of returning to profitability in the fourth quarter of 2026, citing top-line stabilization, the new product rollout and cost reductions under Catalyst. Maloney said the company expects improved margins as revenue stabilizes and as the business gains operating leverage over time.

• Third-quarter revenue guidance: $60 million to $80 million.
• Third-quarter loss-per-share guidance: $0.15 to $0.65, excluding one-time Catalyst execution costs.
• Full-year 2026 revenue guidance: $270 million to $300 million.
• Full-year 2026 loss-per-share guidance: $0.25 to $1.75.
• Expected working capital at Dec. 31, 2026: More than $145 million.

Medifast held $169.8 million in cash equivalents and investments and had no debt as of June 30. Johnson said the company’s balance sheet provides financial flexibility as it rolls out Trilivy and works toward its fourth-quarter profitability target.

About Medifast (NYSE:MED)

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.