Medifast earnings for the third quarter of 2026 showed a widening loss as declining coach numbers reduced sales and restructuring costs weighed on profitability. The metabolic health and wellness company reported revenue of $72.0 million, down 19.4% from a year earlier, and a net loss of $17.5 million, or $1.57 per diluted share, in results announced October 26.
Key Takeaways
- Active earning coaches fell 47.7% to 10,200, although average revenue per coach increased.
- Excluding Catalyst restructuring expenses, the adjusted quarterly net loss was $2.1 million.
- Management forecasts fourth-quarter revenue of $55 million to $75 million and earnings ranging from breakeven to $0.25 per share.
Medifast earnings separate restructuring costs from operations
Medifast’s third-quarter 2026 financial results cover the three months ended September 30. The reported net loss widened from $2.3 million, or $0.21 per share, in the same quarter of 2025. The non-GAAP adjusted loss, which excludes Catalyst restructuring expenses, was $2.1 million, or $0.19 per diluted share.
Gross profit declined to $50.0 million from $62.2 million, while gross margin remained unchanged at 69.5%. Selling, general and administrative expenses rose 4.8% to $69.4 million, primarily because of $13.8 million in Catalyst restructuring charges.
The contrast between reported and adjusted expenses shows the restructuring’s effect: adjusted selling, general and administrative expenses fell 16.0% to $55.6 million. Even after excluding those charges, however, Medifast remained loss-making.
| Item | Details |
|---|---|
| Q4 2026 revenue guidance | $55 million to $75 million |
| Q4 2026 income per share guidance | $0.00 to $0.25 |
| Full-year 2026 revenue guidance | $280 million to $300 million |
| Full-year 2026 loss per share guidance | $1.80 to $2.05 |
| Full-year 2026 adjusted loss per share guidance | $0.45 to $0.70, non-GAAP |
Fewer coaches outweigh higher revenue per coach
The company attributed the revenue decline primarily to its smaller active earning coach network, which fell to 10,200 from 19,500 a year earlier. Medifast cited continued difficulty acquiring clients amid broader operating challenges, including rapid adoption of GLP-1 weight-loss medications.
Average revenue per active earning coach increased 54.1% to $7,064 from $4,585. Medifast said that increase reflected the smaller coach base and its efforts to create a more efficient, productive network. Higher revenue per remaining coach did not offset the overall network contraction.
Chief Executive Nick Johnson said Trilivy, Reset Fuelings, a new compensation plan and Coach Hub were now in the market. Most execution of the Catalyst cost program took place during the quarter, including work to resize the distribution network, streamline internal software and align staffing resources with revenue levels.
Despite those changes, Medifast expects active earning coach numbers to continue declining through the end of 2026.
Fourth-quarter outlook targets breakeven or profit
Management’s fourth-quarter earnings forecast ranges from breakeven to a profit, rather than guaranteeing a return to profitability. The full-year outlook still calls for a loss on both reported and non-GAAP adjusted bases.
Medifast ended September with $172.5 million in cash, cash equivalents and investment securities and no debt. That compares with $167.3 million and no debt at December 31, 2025.
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