Medifast Financials
This page shows Medifast (MED) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Medifast’s high gross margin model has been overwhelmed by a sales-cost base that shrank slower than demand.
From FY2023 to FY2025, gross margin stability near72% alongside a swing in operating margin from11.8% to a loss shows the core product economics held up better than the selling platform around them. That pattern points to weak cost absorption in sales and support spending rather than a product-level margin collapse.
Even with a FY2025 net loss, operating cash flow stayed positive at
The company still carries a cash-heavy balance sheet, with
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Medifast's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Medifast has an operating margin of -3.7%, meaning the company retains $-4 of operating profit per $100 of revenue. This results in a moderate score of 38/100, indicating healthy but not exceptional operating efficiency. This is down from 0.5% the prior year.
Medifast's revenue declined 36% year-over-year, from $602.5M to $385.8M. This contraction results in a growth score of 2/100.
Medifast carries a low D/E ratio of 0.25, meaning only $0.25 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 72/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 4.69, Medifast holds $4.69 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 89/100.
While Medifast generated $6.9M in operating cash flow, capex of $5.6M consumed most of it, leaving $1.2M in free cash flow. This results in a low score of 42/100, reflecting heavy capital investment rather than weak cash generation.
Medifast's ROE of -9.6% shows moderate profitability relative to equity, earning a score of 55/100. This is down from 0.9% the prior year.
Medifast scores 4.53, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Medifast passes 3 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Medifast generates $-0.36 in operating cash flow ($6.9M OCF vs -$19.0M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Key Financial Metrics
Earnings & Revenue
Medifast generated $385.8M in revenue in fiscal year 2025. This represents a decrease of 36.0% from the prior year.
Medifast's EBITDA was $29K in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 99.8% from the prior year.
Medifast reported -$19.0M in net income in fiscal year 2025. This represents a decrease of 1050.0% from the prior year.
Medifast earned $-1.70 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 994.7% from the prior year.
Cash & Balance Sheet
Medifast generated $1.2M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 92.7% from the prior year.
Medifast held $89.3M in cash against $0 in long-term debt as of fiscal year 2025.
Medifast paid $0.00 per share in dividends in fiscal year 2025.
Medifast had 11M shares outstanding in fiscal year 2025. This represents an increase of 0.5% from the prior year.
Margins & Returns
Medifast's gross margin was 71.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 2.5 percentage points from the prior year.
Medifast's operating margin was -3.7% in fiscal year 2025, reflecting core business profitability. This is down 4.2 percentage points from the prior year.
Medifast's net profit margin was -4.9% in fiscal year 2025, showing the share of revenue converted to profit. This is down 5.3 percentage points from the prior year.
Medifast's ROE was -9.6% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 10.5 percentage points from the prior year.
Capital Allocation
Medifast invested $4.3M in research and development in fiscal year 2025. This represents a decrease of 6.5% from the prior year.
Medifast spent $0 on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
Medifast invested $5.6M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 24.7% from the prior year.
MED Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $76.0M+1.3% | $75.1M-16.0% | $89.4M-15.3% | $105.6M-8.8% | $115.7M-2.8% | $119.0M-15.1% | $140.2M-16.8% | $168.6M |
| Cost of Revenue | $24.3M+5.8% | $23.0M-15.8% | $27.3M-5.7% | $28.9M-8.2% | $31.5M+2.3% | $30.8M-10.7% | $34.5M-23.6% | $45.1M |
| Gross Profit | $51.8M-0.7% | $52.1M-16.1% | $62.2M-18.9% | $76.6M-9.0% | $84.2M-4.5% | $88.2M-16.5% | $105.7M-14.4% | $123.4M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $55.1M-8.2% | $59.9M-9.5% | $66.2M-14.8% | $77.7M-9.1% | $85.5M-2.3% | $87.5M-15.5% | $103.6M-21.1% | $131.3M |
| Operating Income | -$3.3M+57.8% | -$7.8M-91.2% | -$4.1M-282.8% | -$1.1M+15.5% | -$1.3M-278.2% | $708K-66.4% | $2.1M+126.7% | -$7.9M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $181K-98.5% | $11.7M+3063.6% | -$396K-200.3% | $395K-69.6% | $1.3M+173.8% | $474K+5.6% | $449K+118.0% | -$2.5M |
| Net Income | -$2.1M+88.5% | -$18.4M-715.9% | -$2.3M-191.2% | $2.5M+421.2% | -$772K-208.9% | $709K-37.2% | $1.1M+113.8% | -$8.2M |
| EPS (Diluted) | $-0.19 | N/A | $-0.21-195.5% | $0.22+414.3% | $-0.07 | N/A | $0.10+113.3% | $-0.75 |
MED Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $252.0M+1.6% | $248.0M-7.5% | $268.2M-0.4% | $269.3M-3.8% | $280.0M-1.5% | $284.2M-2.4% | $291.2M-0.8% | $293.5M |
| Current Assets | $202.6M+0.5% | $201.7M-3.0% | $207.8M+0.7% | $206.4M-3.3% | $213.5M-0.4% | $214.4M-4.7% | $225.0M+0.3% | $224.3M |
| Cash & Equivalents | $71.5M-19.9% | $89.3M-10.3% | $99.5M-2.1% | $101.7M+10.9% | $91.7M+0.9% | $90.9M-21.1% | $115.3M+6.7% | $108.0M |
| Inventory | $21.4M+5.8% | $20.2M-12.8% | $23.2M-23.2% | $30.2M-23.3% | $39.4M-7.2% | $42.4M+5.8% | $40.1M+1.2% | $39.6M |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $54.4M+10.8% | $49.1M-8.3% | $53.5M+0.3% | $53.3M-22.8% | $69.1M-6.8% | $74.1M-11.7% | $83.9M-4.9% | $88.2M |
| Current Liabilities | $42.2M-1.8% | $43.0M-8.0% | $46.7M+1.1% | $46.2M-23.8% | $60.6M-5.6% | $64.2M-11.4% | $72.4M-3.7% | $75.2M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $197.7M-0.6% | $198.9M-7.4% | $214.7M-0.6% | $216.0M+2.4% | $211.0M+0.4% | $210.1M+1.3% | $207.3M+1.0% | $205.3M |
| Retained Earnings | $156.1M-1.3% | $158.3M-10.2% | $176.2M-1.3% | $178.5M+1.4% | $176.0M-0.4% | $176.8M+0.5% | $176.0M+0.6% | $174.8M |
MED Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $260K+104.9% | -$5.3M-143.6% | $12.1M+458.6% | -$3.4M-199.2% | $3.4M+168.8% | -$4.9M-154.5% | $9.1M-30.6% | $13.1M |
| Capital Expenditures | $1.1M-18.9% | $1.4M-0.9% | $1.4M-1.1% | $1.4M-9.5% | $1.5M-33.4% | $2.3M+64.4% | $1.4M-28.3% | $1.9M |
| Free Cash Flow | -$836K+87.4% | -$6.6M-161.7% | $10.8M+326.0% | -$4.8M-352.4% | $1.9M+126.1% | -$7.2M-194.1% | $7.7M-31.0% | $11.1M |
| Investing Cash Flow | -$17.1M-246.1% | -$5.0M+65.3% | -$14.3M-206.9% | $13.4M+750.3% | -$2.1M+89.4% | -$19.4M-990.4% | -$1.8M+29.6% | -$2.5M |
| Financing Cash Flow | -$901K-90200.0% | $1K | $0+100.0% | -$2K+99.6% | -$563K-56200.0% | -$1K+66.7% | -$3K+85.0% | -$20K |
| Dividends Paid | $87K | $0 | $0-100.0% | $1K-99.5% | $194K | $0-100.0% | $1K-75.0% | $4K |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | $0 | $0 | $0 |
MED Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 68.1%-1.4pp | 69.4%-0.1pp | 69.5%-3.1pp | 72.6%-0.2pp | 72.8%-1.3pp | 74.1%-1.3pp | 75.4%+2.2pp | 73.2% |
| Operating Margin | -4.3%+6.1pp | -10.4%-5.8pp | -4.6%-3.6pp | -1.0%+0.1pp | -1.1%-1.7pp | 0.6%-0.9pp | 1.5%+6.2pp | -4.7% |
| Net Margin | -2.8%+21.8pp | -24.6%-22.0pp | -2.5%-4.9pp | 2.4%+3.0pp | -0.7%-1.3pp | 0.6%-0.2pp | 0.8%+5.6pp | -4.8% |
| Return on Equity | -1.1%+8.2pp | -9.3%-8.2pp | -1.1%-2.2pp | 1.1%+1.5pp | -0.4%-0.7pp | 0.3%-0.2pp | 0.5%+4.5pp | -4.0% |
| Return on Assets | -0.8%+6.6pp | -7.4%-6.6pp | -0.8%-1.8pp | 0.9%+1.2pp | -0.3%-0.5pp | 0.3%-0.1pp | 0.4%+3.2pp | -2.8% |
| Current Ratio | 4.80+0.1 | 4.69+0.2 | 4.45-0.0 | 4.47+0.9 | 3.52+0.2 | 3.34+0.2 | 3.11+0.1 | 2.98 |
| Debt-to-Equity | 0.28+0.0 | 0.250.0 | 0.250.0 | 0.25-0.1 | 0.33-0.0 | 0.35-0.1 | 0.40-0.0 | 0.43 |
| FCF Margin | -1.1%+7.7pp | -8.8%-20.9pp | 12.0%+16.5pp | -4.5%-6.1pp | 1.6%+7.7pp | -6.1%-11.6pp | 5.5%-1.1pp | 6.6% |
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Frequently Asked Questions
What is Medifast's annual revenue?
Medifast (MED) reported $385.8M in total revenue for fiscal year 2025. This represents a -36.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Medifast's revenue growing?
Medifast (MED) revenue declined by 36% year-over-year, from $602.5M to $385.8M in fiscal year 2025.
Is Medifast profitable?
No, Medifast (MED) reported a net income of -$19.0M in fiscal year 2025, with a net profit margin of -4.9%.
What is Medifast's EBITDA?
Medifast (MED) had EBITDA of $29K in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Medifast's gross margin?
Medifast (MED) had a gross margin of 71.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Medifast's operating margin?
Medifast (MED) had an operating margin of -3.7% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Medifast's net profit margin?
Medifast (MED) had a net profit margin of -4.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Medifast's return on equity (ROE)?
Medifast (MED) has a return on equity of -9.6% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Medifast's free cash flow?
Medifast (MED) generated $1.2M in free cash flow during fiscal year 2025. This represents a -92.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Medifast's operating cash flow?
Medifast (MED) generated $6.9M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Medifast's total assets?
Medifast (MED) had $248.0M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Medifast's capital expenditures?
Medifast (MED) invested $5.6M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Medifast spend on research and development?
Medifast (MED) invested $4.3M in research and development during fiscal year 2025.
What is Medifast's current ratio?
Medifast (MED) had a current ratio of 4.69 as of fiscal year 2025, which is generally considered healthy.
What is Medifast's debt-to-equity ratio?
Medifast (MED) had a debt-to-equity ratio of 0.25 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Medifast's return on assets (ROA)?
Medifast (MED) had a return on assets of -7.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Medifast's Altman Z-Score?
Medifast (MED) has an Altman Z-Score of 4.53, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Medifast's Piotroski F-Score?
Medifast (MED) has a Piotroski F-Score of 3 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Medifast's earnings high quality?
Medifast (MED) has an earnings quality ratio of -0.36x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Medifast?
Medifast (MED) scores 50 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.