Q1 2026 revenue down 34.3% as Medifast (NYSE: MED) guides to full-year loss
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Medifast reported a weak first quarter 2026 as revenue fell sharply while the company remained debt-free with strong liquidity. Revenue was $76.0 million, down 34.3% from $115.7 million a year earlier, mainly because independent active earning coaches dropped 44.9% to 14,000.
Productivity per coach improved, with average revenue per active earning coach up 19.2% to $5,432, but not enough to offset volume declines. Medifast posted a net loss of $2.1 million, or $0.19 per diluted share. Cash, cash equivalents and investments totaled $168.9 million with no debt. The company expects ongoing losses in 2026, guiding to second-quarter revenue of $60–$80 million and a full-year 2026 loss per share between $1.55 and $2.75 on revenue of $270–$300 million.
Positive
- None.
Negative
- Revenue and profitability deterioration: Q1 2026 revenue fell 34.3% year over year to $76.0 million and net loss widened to $2.1 million, with full‑year 2026 guidance calling for continued losses on $270–$300 million of revenue.
Insights
Medifast faces steep revenue decline, shrinking coach base and loss-making 2026 outlook.
Medifast’s Q1 2026 revenue dropped 34.3% to $76.0 million, driven by a 44.9% decline in independent active earning coaches to 14,000. Although revenue per coach rose 19.2% to $5,432, the smaller network outweighed productivity gains, pushing the business into a deeper operating loss.
Loss from operations widened to $3.3 million, and net loss reached $2.1 million, or $0.19 per diluted share. Management links coach declines partly to rapid adoption of GLP‑1 weight-loss medications and expects coach counts to keep falling in 2026 as it pivots to metabolic health.
The balance sheet remains a relative strength with $168.9 million in cash, cash equivalents and investments and no debt as of March 31, 2026. However, guidance signals a challenging year: Q2 2026 revenue is projected at $60–$80 million, and full‑year 2026 revenue at $270–$300 million with a loss per share of $1.55–$2.75, indicating continued pressure on profitability as the strategic transition unfolds.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $76.0 million
Net loss Q1 2026: $2.1 million
Active earning coaches: 14,000
+5 more
8 metrics
Q1 2026 Revenue
$76.0 million
Down 34.3% from $115.7 million in Q1 2025
Net loss Q1 2026
$2.1 million
Loss per diluted share of $0.19
Active earning coaches
14,000
Down 44.9% from 25,400 in Q1 2025
Revenue per active coach
$5,432
Up 19.2% from $4,556 in Q1 2025
Cash and investments
$168.9 million
Cash, cash equivalents and investment securities; no debt as of March 31, 2026
Q2 2026 revenue guidance
$60–$80 million
Company outlook for second quarter 2026 revenue range
Full-year 2026 revenue guidance
$270–$300 million
Company outlook for full year 2026 revenue
Full-year 2026 EPS guidance
Loss $1.55–$2.75 per share
Projected loss per share for 2026
Key Terms
GLP-1 medications, valuation allowance, Metabolic Synchronization®, working capital, +1 more
5 terms
GLP-1 medications medical
"including rapid adoption of GLP-1 medications for weight loss."
GLP-1 medications are drugs that copy a natural gut hormone to help the body release insulin, lower blood sugar and reduce appetite by slowing how quickly the stomach empties. For investors, they matter because their strong clinical benefits have driven rapid sales growth, reshaped demand for diabetes and weight-loss treatments, and created regulatory, patent and pricing dynamics that can significantly affect healthcare companies’ revenues and profitability.
valuation allowance financial
"Due to the existence of a full valuation allowance against its deferred tax assets"
A valuation allowance is a reserve set aside to reduce the value of certain assets on a company's financial records when there is uncertainty about whether they will generate the expected benefits. It acts like a caution sign, indicating that some assets might not be fully recoverable or worth their recorded amount. This matters to investors because it provides a more realistic picture of a company's financial health and potential risks.
Metabolic Synchronization® technical
"Medifast has introduced Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction"
working capital financial
"Working capital as defined as current assets less current liabilities as of March 31, 2026 was $160.4 million"
Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.
loss from operations financial
"The company's loss from operations for the period was $3.3 million"
Loss from operations is the money a company loses from its main business activities, like selling products or services, before considering other expenses or income. It shows whether the company's core business is making or losing money. This figure matters because it helps investors understand if the business is running efficiently or struggling to earn enough to cover its costs.
Earnings Snapshot
Revenue: $76.0 million · Guidance included
Q1 2026
Revenue
$76.0 million
-34.3% year over year
Net loss
$2.1 million
vs. $0.8 million net loss in Q1 2025
Loss per diluted share
$0.19
vs. $0.07 loss per diluted share in Q1 2025
Gross margin
68.1%
down from 72.8% in Q1 2025
Guidance
For Q2 2026, revenue is expected at $60–$80 million with a loss per share of $0.50–$1.00. For full year 2026, revenue is projected at $270–$300 million and loss per share between $1.55 and $2.75.
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): May 4, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(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 | ||||||
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 May 4, 2026, Medifast, Inc. (the "Company") issued a press release announcing its earnings for the first quarter ended March 31, 2026.
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 First Quarter 2026 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: May 4, 2026 | ||||||||
Medifast Announces First Quarter 2026 Financial Results
May 4, 2026
BALTIMORE – (BUSINESS WIRE)--Medifast (NYSE: MED), the metabolic health and wellness company known for its science-backed, coach-guided lifestyle system, today reported results for the first quarter ended March 31, 2026.
First Quarter 2026
•Revenue of $76.0 million, with revenue per active earning coach of $5,432
•Independent active earning coaches of 14,000
•Net loss of $2.1 million, or $0.19 per diluted share ("EPS")
•Cash, Cash Equivalents, and Investment Securities of $168.9 million with no debt
"We are encouraged by the continued progress we are seeing as we execute our metabolic health strategy, including a second consecutive quarter of year-over-year coach productivity growth, strong coach leadership advancement, and high field engagement. These are metrics that have historically been leading indicators of future growth. Backed by our differentiated science, coach-led model, and a disciplined approach to managing costs, we believe we are well positioned to drive improved performance through the remainder of 2026 and a return to sustainable, long-term growth in the years ahead,” said Dan Chard, CEO of Medifast.
First Quarter 2026 Results
First quarter 2026 revenue decreased 34.3% to $76.0 million from $115.7 million for the first quarter of 2025 primarily driven by a decrease in the number of active earning coaches. The total number of active earning coaches decreased 44.9% to 14,000 compared to 25,400 for the first quarter of 2025, primarily driven by continued pressure with client acquisition reflecting broader challenges in the operating environment, including rapid adoption of GLP-1 medications for weight loss. While the company continues its transformation to focus on metabolic health, it expects the number of active earning coaches to continue to decline in 2026. The average revenue per active earning coach was $5,432, compared to $4,556 for the first quarter last year, an increase of 19.2% which was driven by greater alignment of the company's network of coaches, prioritizing productive coaches and efficient coach network structures.
Gross profit decreased 38.6% to $51.8 million from $84.2 million for the first quarter of 2025. The decrease in gross profit was primarily attributable to lower sales volumes. The company's gross profit as a percentage of revenue was 68.1% compared to 72.8% for the first quarter of 2025. The decrease in gross profit as a percentage of revenue was primarily driven by the loss of leverage on fixed costs.
Selling, general, and administrative expenses (“SG&A”) decreased 35.6% to $55.1 million compared to $85.5 million for the first quarter of 2025. The decrease in SG&A was primarily due to a $16.2 million decrease in coach compensation on lower volume and fewer active earning coaches, a $5.6 million decrease in company-led marketing related expenses, a one-time $2.2 million gain on the sale of the company's Maryland Distribution Center building and land previously classified as held for sale, and a $2.0 million decrease in employee compensation resulting from the realignment of the employee base to lower revenue levels. As a percentage of revenue, SG&A decreased 150 basis points year-over-year to 72.4% of revenue, as compared to 73.9% for the first quarter of 2025. The decrease in SG&A as a percentage of revenue was primarily due to approximately 470 basis points of decreased company-led marketing related expenses and 240 basis points of one-time gain on the sale of the company's Maryland Distribution Center building and land previously classified as held for sale, partially offset by 620 basis points of loss of leverage on fixed costs due to lower sales volume.
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The company's loss from operations for the period was $3.3 million compared to $1.3 million in the prior year period. As a percentage of revenue, loss from operations was 4.3% for the first quarter of 2026 compared to 1.1% in the prior year comparable period due to the factors described above impacting revenue and SG&A expenses.
Other income decreased 24.3% to $1.4 million from $1.8 million for the first quarter of 2025 primarily due to unrealized gains on the company's investment in LifeMD common stock in the prior year period. The company sold its investment in LifeMD during the quarter ended June 30, 2025.
Income tax expense for the period was $0.2 million, an effective rate of negative 9.3%, as compared to $1.3 million for the first quarter of 2025, an effective rate of 246.8%. Due to the existence of a full valuation allowance against its deferred tax assets recorded as of December 31, 2025, the Company calculated income tax expense for the current period based on actual results for the quarter. As a result, the Company’s income tax provision for the quarter reflects discrete items, primarily state income taxes. The decrease in the effective tax rate was primarily driven by the increased loss incurred in the March 31, 2026 period and the valuation allowance on the net deferred tax assets.
In the first quarter of 2026, the company's net loss was $2.1 million, or $0.19 per share, based on approximately 11.0 million shares of common stock outstanding compared to a net loss of $0.8 million, or $0.07 per diluted share, based on approximately 10.9 million shares of common stock outstanding in the prior year period.
Capital Allocation and Balance Sheet
The company’s balance sheet remains strong with cash, cash equivalents and investment securities of $168.9 million and no debt as of March 31, 2026, compared to $167.3 million in cash, cash equivalents and investment securities and no debt at December 31, 2025. Working capital as defined as current assets less current liabilities as of March 31, 2026 was $160.4 million, compared to $158.7 million of working capital at December 31, 2025.
Outlook
The company expects second quarter 2026 revenue to be in the range of $60 million to $80 million and second quarter 2026 loss per share to be in the range of $0.50 to $1.00. 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, Monday, May 4, 2026 at 4:30 p.m. 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=1759153&tp_key=64a2fbe076 and will be archived online and available through August 4, 2026. In addition, listeners may dial (201) 389-0879 to join via telephone.
A telephonic playback will be available from 7:30 p.m. ET, May 4, 2026 through May 11, 2026. Participants can dial (412) 317-6671 and enter passcode 13759893 to hear the playback.
About Medifast®:
Medifast (NYSE: MED) is the metabolic 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.
Medifast (NYSE: MED) is the metabolic 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
2
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
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; Medifast's planned growth into domestic markets including through its collaboration with LifeMD, Inc.; 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
3
MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(U.S. dollars in thousands, except per share amounts)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenue | $ | 76,044 | $ | 115,728 | |||||||
| Cost of sales | 24,288 | 31,483 | |||||||||
| Gross profit | 51,756 | 84,245 | |||||||||
| Selling, general, and administrative | 55,051 | 85,507 | |||||||||
| Loss from operations | (3,295) | (1,262) | |||||||||
| Other income | |||||||||||
| Interest income | 1,379 | 1,301 | |||||||||
| Other income (expense) | (25) | 487 | |||||||||
| 1,354 | 1,788 | ||||||||||
| Income (loss) before provision for income taxes | (1,941) | 526 | |||||||||
| Provision for income taxes | 181 | 1,298 | |||||||||
| Net loss | $ | (2,122) | $ | (772) | |||||||
| Loss per share - basic | $ | (0.19) | $ | (0.07) | |||||||
| Loss per share - diluted | $ | (0.19) | $ | (0.07) | |||||||
| Weighted average shares outstanding | |||||||||||
| Basic | 11,006 | 10,948 | |||||||||
| Diluted | 11,006 | 10,948 | |||||||||
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MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(U.S. dollars in thousands, except par value)
| March 31, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | $ | 71,529 | $ | 89,303 | |||||||
| Inventories, net | 21,403 | 20,228 | |||||||||
| Investments | 97,417 | 77,970 | |||||||||
| Prepaid expenses and other current assets | 6,965 | 9,066 | |||||||||
| Total current assets | 202,630 | 201,683 | |||||||||
| Property, plant and equipment, net of accumulated depreciation | 29,643 | 31,230 | |||||||||
| Right-of-use assets | 12,921 | 7,232 | |||||||||
| Other assets | 6,852 | 7,828 | |||||||||
| TOTAL ASSETS | $ | 252,046 | $ | 247,973 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current Liabilities | |||||||||||
| Accounts payable and accrued expenses | $ | 38,264 | $ | 38,359 | |||||||
| Current lease obligations | 3,920 | 4,603 | |||||||||
| Total current liabilities | 42,184 | 42,962 | |||||||||
| Lease obligations, net of current lease obligations | 12,181 | 6,091 | |||||||||
| Total liabilities | 54,365 | 49,053 | |||||||||
| Stockholders' Equity | |||||||||||
| Common stock, par value $.001 per share: 20,000 shares authorized; | |||||||||||
| 11,119 and 10,991 issued and outstanding | |||||||||||
| at March 31, 2026 and December 31, 2025, respectively | 11 | 11 | |||||||||
| Additional paid-in capital | 41,488 | 40,406 | |||||||||
| Accumulated other comprehensive income | 33 | 234 | |||||||||
| Retained earnings | 156,149 | 158,269 | |||||||||
| Total stockholders' equity | 197,681 | 198,920 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 252,046 | $ | 247,973 | |||||||
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FAQ
How did Medifast (MED) perform financially in Q1 2026?
Medifast reported Q1 2026 revenue of $76.0 million, down 34.3% from $115.7 million a year earlier. The company posted a net loss of $2.1 million, or $0.19 per diluted share, reflecting lower sales volumes and reduced leverage on fixed costs.
What happened to Medifast (MED) coach metrics in Q1 2026?
Independent active earning coaches fell to 14,000, a 44.9% decline from 25,400 in Q1 2025, mainly due to client acquisition pressure and GLP-1 adoption. However, revenue per active coach increased 19.2% to $5,432, helped by focusing on more productive coaches and network efficiency.
What guidance did Medifast (MED) give for Q2 2026 and full year 2026?
For Q2 2026, Medifast expects revenue of $60–$80 million and a loss per share of $0.50–$1.00. For full year 2026, it projects revenue of $270–$300 million with a loss per share between $1.55 and $2.75, indicating continued pressure on earnings.
What is Medifast’s (MED) profitability and margin profile in Q1 2026?
Medifast’s gross profit was $51.8 million in Q1 2026, down from $84.2 million, and gross margin slipped to 68.1% from 72.8%, mainly from lost leverage on fixed costs. Loss from operations was $3.3 million, or 4.3% of revenue, compared to 1.1% a year earlier.
What does Medifast’s (MED) balance sheet look like after Q1 2026?
As of March 31, 2026, Medifast held $168.9 million in cash, cash equivalents and investment securities and had no debt. Working capital was $160.4 million, slightly above $158.7 million at December 31, 2025, providing financial flexibility despite current operating losses.
How is Medifast (MED) managing expenses in response to lower revenue?
Selling, general and administrative expenses fell 35.6% to $55.1 million, helped by lower coach compensation, reduced company-led marketing, a one-time $2.2 million gain on a property sale, and lower employee compensation. SG&A dropped to 72.4% of revenue from 73.9% despite lower sales.