Medifast (NYSE: MED) revenue falls 36% in 2025, issues weaker 2026 guidance

Rhea-AI Filing Summary

Medifast, Inc. reported a sharp downturn in results for the fourth quarter and full year 2025 as its coach-guided weight-management model faced pressure from the rapid adoption of GLP-1 weight-loss drugs. Fourth quarter 2025 revenue fell 36.9% to $75.1 million, driven mainly by a 40.6% drop in independent active earning coaches to 16,100. Coach productivity improved, with revenue per active earning coach rising 6.2% to $4,664.

The company posted a fourth quarter net loss of $18.1 million, or $1.65 per diluted share, and a full year 2025 net loss of $18.7 million, or $1.70 per diluted share, including a $12.1 million non-cash valuation allowance on deferred tax assets. Gross margin compressed to 69.4% as fixed costs weighed on profitability despite lower selling, general and administrative expenses. Management emphasized a shift to a metabolic health-focused strategy and reinstated guidance.

For 2026, Medifast expects first quarter revenue of $65 million to $80 million and a loss per share of $0.15 to $0.70. Full year 2026 revenue is projected between $270 million and $300 million with a loss per share between $1.55 and $2.75. The company ended 2025 with $167.3 million in cash, cash equivalents and investment securities, no debt, and total stockholders’ equity of $198.9 million.

Positive

• Strong balance sheet and liquidity: Medifast ended 2025 with $167.3 million in cash, cash equivalents and investment securities, no interest-bearing debt, and $198.9 million of stockholders’ equity, providing a solid capital base to support its business transformation.
• Improving coach productivity: Revenue per active earning coach increased 6.2% year over year in Q4 2025 to $4,664, with management highlighting positive year-over-year productivity for the first time since 2022 and higher coach-led engagement activity.

Negative

• Significant revenue decline and loss of scale: Full year 2025 revenue fell 36.0% to $385.8 million, with Q4 revenue down 36.9% year over year as active earning coaches decreased 40.6%, indicating substantial contraction in the core distribution network.
• Shift from profitability to losses with weaker 2026 outlook: Medifast moved from 2024 net income of $2.1 million to a 2025 net loss of $18.7 million and now guides 2026 revenue down to $270–$300 million with a projected full year loss per share of $1.55–$2.75.

Insights

Equity research analyst

Medifast swings to losses on steep revenue declines and guides to a weaker 2026.

Medifast is experiencing a major reset as revenue dropped 36.0% in 2025 to $385.8 million and fourth quarter sales fell 36.9% to $75.1 million. The shift from net income in 2024 to a 2025 net loss of $18.7 million reflects both demand pressure and reduced operating leverage.

Coach count contraction is notable: active earning coaches declined 40.6% year over year to 16,100, even as revenue per coach rose 6.2%. Management links weaker client acquisition to broader industry challenges, including rapid GLP-1 adoption, while repositioning toward metabolic health and restructuring the cost base.

Guidance implies another step down in scale, with 2026 revenue expected between $270 million and $300 million and a full year loss per share of $1.55 to $2.75. However, the balance sheet shows $167.3 million in cash, cash equivalents and investment securities and no interest-bearing debt as of December 31, 2025, providing financial flexibility as the new strategy is implemented.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 17, 2026

MEDIFAST, INC.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation) 001-31573 (Commission File Number) 13-3714405 (I.R.S. Employer Identification No.)

100 International Drive, Baltimore, Maryland 21202

(Address of Principal Executive Offices) (Zip Code)

Registrant's telephone number, including area code: (410) 581-8042

N/A

(Former Name or Former Address, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol			Name of each exchange on which registered
Common Stock, par value $0.001 per share			MED			New York Stock Exchange

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company			☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			o

Item 2.02.    Results of Operations and Financial Condition.

On February 17, 2026, Medifast, Inc. (the "Company") issued a press release announcing its earnings for the fourth quarter and fiscal year ended December 31, 2025.

A copy of the press release is being furnished as Exhibit 99.1 attached hereto and is incorporated by reference herein. This information is being furnished in this report and shall not be deemed to be "filed" for any purpose, including for the purpose of Section 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1993, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01.    Financial Statements and Exhibits.

(d)			Exhibits.
			99.1			Medifast Announces Fourth Quarter and Full Year 2025 Financial Results
			104.1			Cover Page Interactive Data File (embedded within the Inline XBRL Document)

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			MEDIFAST, INC.
			By:			/s/ James P. Maloney
						James P. Maloney
						Chief Financial Officer
Dated: February 17, 2026

Medifast Announces Fourth Quarter and Full Year 2025 Financial Results

February 17, 2026

BALTIMORE--(BUSINESS WIRE)--Medifast (NYSE: MED), the health and wellness company known for its science-backed, coach-guided lifestyle system, today reported results for the fourth quarter and full year ended December 31, 2025.

Fourth Quarter 2025

•Revenue of $75.1 million, with revenue per active earning coach of $4,664

•Independent active earning coaches of 16,100

•Net loss of $18.1 million, or $1.65 per diluted share ("EPS"), which includes the tax provision charge to establish a non-cash valuation allowance on the Company's deferred tax balance of $12.1 million (or $1.10 per diluted share)

•Cash, cash equivalents, and investment Securities of $167.3 million and no debt

Full Year 2025

•Revenue of $385.8 million

•Net loss of $18.7 million, or $1.70 per diluted share, which includes the tax provision charge to establish a non-cash valuation allowance on the Company's deferred tax balance of $12.1 million (or $1.10 per diluted share)

“As we enter 2026, Medifast is moving from defining its business transformation strategy to executing on a new path to growth, leading to profitability as we become wholly focused on optimal metabolic health,” said Dan Chard, Chairman and Chief Executive Officer of Medifast.

“In the fourth quarter, we saw coach productivity turn positive year-over-year for the first time since 2022, which has historically been a lead indicator of broader improvement. We also saw a significant increase in coach-led meetings, an indication our coach base is energized and dialed-in to the opportunities ahead. Our foundational work of the past two years has established a direction for future growth, and with these plans in place, we are reinstating annual guidance as we execute against the path we are on to become a metabolic health company.”

Fourth Quarter 2025 Results

Fourth quarter 2025 revenue decreased 36.9% to $75.1 million from $119.0 million for the fourth quarter of 2024 primarily driven by a decrease in the number of active earning coaches. The total number of active earning coaches decreased 40.6% to 16,100 compared to 27,100 for the fourth quarter of 2024. The decrease in the number of active earning coaches was driven by continued pressure with client acquisition reflecting broader challenges in the operating environment, including rapid adoption of GLP-1 medications for weight loss. The average revenue per active earning coach was $4,664, compared to $4,391 for the fourth quarter last year, an increase of 6.2% which was driven by greater alignment of the company's network of coaches, prioritizing productive coaches and efficient coach network structures.

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Gross profit decreased 40.9% to $52.1 million from $88.2 million for the fourth quarter of 2024. The decrease in gross profit was primarily due to lower revenue. The company’s gross profit as a percentage of revenue was 69.4% compared to 74.1% in the fourth quarter of 2024. The decrease in gross profit as a percentage of revenue was primarily driven by the loss of leverage on fixed costs of 420 basis points and a one-time restructuring charge of 40 basis points.

Selling, general, and administrative expenses (“SG&A”) decreased 31.5% to $59.9 million compared to $87.5 million for the fourth quarter of 2024. The decrease in SG&A was primarily due to a $18.6 million decrease in coach compensation due to lower sales volumes and a decrease in the number of active earning coaches, a $5.8 million decrease in company-led marketing related expenses, and a $4.2 million decrease resulting from the realignment of the employee base to lower revenue levels, partially offset by a $1.9 million increase due to a one-time restructuring charge and a $1.6 million increase in coach events costs. As a percentage of revenue, SG&A increased 630 basis points year-over-year to 79.8% of revenue, as compared to 73.5% for the fourth quarter of 2024. The increase in SG&A as a percentage of revenue was primarily due to 370 basis points of loss of leverage on fixed costs, a 300 basis point increase for increased coach event costs, and a 250 basis point increase due to a one-time restructuring charge, partially offset by 440 basis points of reduced company-led marketing related expenses.

Loss from operations was $7.8 million compared to income from operations of $0.7 million in the prior year period. As a percentage of revenue, loss from operations was 10.4% for the fourth quarter of 2025 compared to income from operations of 0.6% in the prior-year period due to the factors described above impacting revenue and SG&A expenses.

Other income increased 151.1% to $1.4 million from $0.6 million for the fourth quarter of 2024. The increase in other income was primarily due to unrealized losses on the investment in LifeMD common stock in the prior period. The company sold its investment in LifeMD during the three months ended June 30, 2025.

The effective tax rate was negative 183.9% for the fourth quarter of 2025 compared to 37.3% in the prior-year period, primarily due to establishing a $12.1 million non-cash valuation allowance against the Company's deferred tax assets in the current period.

In the fourth quarter of 2025, net loss was $18.1 million, or $1.65 loss per diluted share, based on approximately 11.0 million shares of common stock outstanding. In the fourth quarter of 2024, net income was $0.8 million, or $0.07 per diluted share, based on approximately 10.9 million shares of common stock outstanding. The $12.1 million non-cash valuation allowance represents $1.10 of current period loss on a per share basis.

Full Year Fiscal 2025 Results

For the fiscal year ended December 31, 2025, revenue decreased 36.0% to $385.8 million compared to revenue of $602.5 million in 2024. Net loss for 2025 was $18.7 million, or $1.70 loss per diluted share, based on approximately 11.0 million shares outstanding. This compares to 2024 net income of $2.1 million, or $0.19 per diluted share, based on approximately 11.0 million shares outstanding. The $12.1 million non-cash valuation allowance represents $1.10 of current period loss on a per share basis.

Capital Allocation and Balance Sheet

The company’s balance sheet remains strong with cash, cash equivalents, and investment securities of $167.3 million and no interest-bearing debt as of December 31, 2025, compared to $162.3 million in cash

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and cash equivalents and no debt at December 31, 2024. Working capital as defined as current assets less current liability as of December 31, 2025 was 158.7 million, compared to $150.2 million of working capital at December 31, 2024.

Outlook

The company expects first quarter 2026 revenue to be in the range of $65 million to $80 million and first quarter 2026 loss per share to range from $0.15 to $0.70. The company expects full year 2026 revenue to be in the range of $270 million to $300 million and full year 2026 loss per share to range from $1.55 to $2.75.

Conference Call Information

The conference call is scheduled for today, Tuesday, February 17, 2026 at 4:30 PM ET. The call will be broadcast live over the Internet, hosted on the Investor Relations section of Medifast’s website at www.MedifastInc.com or directly at https://viavid.webcasts.com/starthere.jsp?ei=1749244&tp_key=cd37227dbd and will be archived online and available through May 17, 2026. In addition, listeners may dial (201) 389-0879 to join via telephone.

A telephonic playback will be available from February 17, 2026 at 7:30 PM ET through Tuesday, February 24, 2026 at 11:59 PM ET. Participants can dial (412) 317-6671 and enter passcode 13758136 to hear the playback.

About Medifast®: Medifast (NYSE: MED) is the health and wellness company known for its science-backed, coach-guided lifestyle system. Designed to help address the challenges of metabolic dysfunction, the company’s holistic approach integrates personalized plans, scientifically developed products and a framework for habit creation — all supported by a dedicated network of independent coaches.

Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization™, a breakthrough science that reverses metabolic dysfunction through a targeted reset. Research demonstrates the company’s comprehensive system activates strong and targeted fat burn to enhance metabolic health and body composition by reducing visceral fat, preserving lean mass and protecting muscle integrity.

Backed by more than 40 years of clinical heritage, Medifast continues to advance its mission of Lifelong Transformation, Making Healthy Lifestyle Second Nature®. For more information, visit Medifastinc.com.

MED-F

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Forward Looking Statements

Please Note: This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by use of phrases or terminology such as “intend,” “anticipate,” “expect” or other similar words or the negative of such terminology. Similarly, descriptions of Medifast’s objectives, strategies, plans, goals, outlook or targets contained herein are also considered forward-looking statements. These statements are based on the current expectations of the management of Medifast and are subject to certain events, risks, uncertainties and other factors. Some of these factors include, among others, Medifast's inability to maintain and grow the network of independent coaches; industry competition and new weight loss products, including weight loss medications such as GLP-1s, or services; Medifast’s health or advertising related claims by clients; Medifast's inability to continue to develop new products; effectiveness of Medifast's advertising and marketing programs, including use of social media by coaches; effectiveness of the Company's strategic pivot towards metabolic health; the departure of one or more key personnel; Medifast's inability to protect against online security risks and cyberattacks; competitors use of artificial intelligence to make their offer more competitive; risks associated with Medifast's direct-to-consumer business model; disruptions in Medifast's supply chain; product liability claims; adverse publicity associated with Medifast's products; the impact of existing and future laws and regulations on Medifast’s business; fluctuations of Medifast's common stock market price; increases in litigation; actions of activist investors; the consequences of other geopolitical events, overall economic and market conditions and the resulting impact on consumer sentiment and spending patterns; and Medifast's ability to prevent or detect a failure of internal control over financial reporting. Although Medifast believes that the expectations, statements and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other filings filed with the United States Securities and Exchange Commission, including its quarterly reports on Form 10-Q and current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.

Investor Contact:

Medifast, Inc.

Steven Zenker

InvestorRelations@medifastinc.com

(443) 379-5256

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MEDIFAST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(U.S. dollars in thousands, except per share amounts & dividend data)

			Three months ended December 31,												Year ended December 31,
			2025						2024						2025						2024
Revenue			$	75,096					$	119,003					$	385,788					$	602,463
Cost of sales			22,956						30,784						110,601						157,840
Gross profit			52,140						88,219						275,187						444,623
Selling, general, and administrative			59,943						87,510						289,400						441,745
Income (loss) from operations			(7,803)						709						(14,213)						2,878
Other income
Interest income			1,420						953						5,516						4,804
Other income (expense)			1						(387)						3,058						(3,895)
			1,421						566						8,574						909
Income (loss) from operations before income taxes			(6,382)						1,275						(5,639)						3,787
Provision for income taxes			11,737						475						13,033						1,696
Net income (loss)			$	(18,119)					$	800					$	(18,672)					$	2,091
Earnings (loss) per share - basic			$	(1.65)					$	0.07					$	(1.70)					$	0.19
Earnings (loss) per share - diluted			$	(1.65)					$	0.07					$	(1.70)					$	0.19
Weighted average shares outstanding
Basic			10,991						10,938						10,981						10,930
Diluted			10,991						10,983						10,981						10,963

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MEDIFAST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(U.S. dollars in thousands, except par value)

			December 31, 2025						December 31, 2024
ASSETS
Current Assets
Cash and cash equivalents			$	89,303					$	90,928
Inventories, net			20,228						42,421
Investments			77,970						71,416
Income taxes, prepaid			5,116						—
Prepaid expenses and other current assets			9,066						9,639
Total current assets			201,683						214,404
Property, plant and equipment - net of accumulated depreciation			31,230						37,527
Right-of-use assets			7,232						11,155
Other assets			7,828						9,667
Deferred tax assets, net			—						11,460
TOTAL ASSETS			$	247,973					$	284,213
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses			$	38,359					$	56,494
Income taxes payable			—						1,485
Current lease obligations			4,603						6,182
Total current liabilities			42,962						64,161
Lease obligations, net of current lease obligations			6,091						9,943
Total liabilities			49,053						74,104
Commitments
Stockholders' Equity
Common stock, par value 0.001 per share: 20,000 shares authorized;
10,991 and 10,938 issued and outstanding
at December 31, 2025 and December 31, 2024			11						11
Additional paid-in capital			40,406						33,136
Accumulated other comprehensive income			234						180
Retained earnings			158,269						176,782
Total stockholders' equity			198,920						210,109
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	247,973					$	284,213

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FAQ

How did Medifast (MED) perform financially in the fourth quarter of 2025?

Medifast reported Q4 2025 revenue of $75.1 million, down 36.9% from 2024, and a net loss of $18.1 million, or $1.65 per diluted share. Results were pressured by fewer active earning coaches and lower operating leverage.

What were Medifast’s full year 2025 results?

For full year 2025, Medifast generated revenue of $385.8 million, a 36.0% decline from 2024, and recorded a net loss of $18.7 million, or $1.70 per diluted share. Results include a $12.1 million non-cash valuation allowance on deferred tax assets.

How is Medifast’s coach network changing?

In Q4 2025, Medifast’s independent active earning coaches fell to 16,100, a 40.6% year-over-year decline. However, revenue per active earning coach rose 6.2% to $4,664 as the company focused on more productive coaches and network efficiency.

What is Medifast’s financial outlook for 2026?

For 2026, Medifast expects revenue between $270 million and $300 million and a full year loss per share between $1.55 and $2.75. First quarter 2026 revenue is projected at $65–$80 million with a loss per share of $0.15–$0.70.

What does Medifast’s balance sheet look like at year-end 2025?

As of December 31, 2025, Medifast held $167.3 million in cash, cash equivalents and investment securities and had no interest-bearing debt. Total stockholders’ equity was $198.9 million, supporting ongoing operations and strategic transformation efforts.

How did GLP-1 weight-loss medications affect Medifast’s 2025 results?

Medifast cited rapid adoption of GLP-1 medications as one factor behind pressure on client acquisition and the 40.6% decline in active earning coaches. This contributed to the 36.9% Q4 2025 revenue decline and overall contraction of its coach-driven business model.

Filing Exhibits & Attachments

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Press Releases

• EX-99.1 EX-99.1 96.7 KB

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• EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 2.1 KB
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