Medifast (NYSE:MED) Releases Quarterly Earnings Results, Beats Estimates By $0.36 EPS

Medifast (NYSE:MED) released its quarterly earnings results on Monday. The specialty retailer reported ($0.19) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.55) by $0.36, FiscalAI reports. The company had revenue of $76.04 million during the quarter, compared to analysts’ expectations of $69.20 million. Medifast had a negative return on equity of 4.73% and a negative net margin of 5.78%. Medifast updated its FY 2026 guidance to -2.750–1.550 EPS and its Q2 2026 guidance to -1.000–0.500 EPS.

Here are the key takeaways from Medifast’s conference call:

• Coach productivity rose meaningfully, up ~19% year?over?year and 16% sequentially, driven by more clients per coach and stronger referral activity — management framed this as an early leading indicator of future growth.
• Active earning coaches fell ~44.9% year?over?year to ~14,000, contributing to a 34.3% decline in Q1 revenue to $76.0M and a net loss of $2.1M, underscoring near?term top?line pressure.
• The company has completed a strategic repositioning toward “metabolic health” anchored by its Metabolic Synchronization science (e.g., 14% visceral fat reduction and 98% lean mass retention in 16 weeks) and plans a new proprietary metabolic product system to be launched to coaches later in 2026.
• Management expects >$30M in cost savings from a realigned cost structure, reconfirmed full?year 2026 guidance ($270M–$300M revenue) and said improvements toward re?attaining profitability should begin in Q4 2026 and continue into 2027.
• Financial position is solid with ~$169M in cash and investments, no debt and healthy working capital, but near?term guidance remains wide (Q2 $60M–$80M) and company still expects quarterly losses before the planned Q4 inflection.

Medifast Stock Performance

NYSE MED opened at $13.01 on Wednesday. The business has a fifty day moving average price of $10.46 and a 200 day moving average price of $11.10. The company has a market cap of $143.49 million, a P/E ratio of -7.11 and a beta of 0.55. Medifast has a one year low of $9.22 and a one year high of $15.46.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on MED. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Medifast in a research note on Thursday, January 22nd. Wall Street Zen raised shares of Medifast from a “sell” rating to a “hold” rating in a report on Saturday, March 21st. Finally, Stephens reduced their price objective on shares of Medifast from $15.00 to $12.00 and set an “equal weight” rating for the company in a research report on Thursday, February 19th. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Medifast currently has a consensus rating of “Reduce” and a consensus price target of $12.00.

Insider Transactions at Medifast

In other Medifast news, CEO Daniel R. Chard bought 17,678 shares of the company’s stock in a transaction dated Friday, March 20th. The stock was acquired at an average price of $10.11 per share, with a total value of $178,724.58. Following the completion of the acquisition, the chief executive officer directly owned 17,678 shares of the company’s stock, valued at $178,724.58. This represents a ? increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 3.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Medifast

A number of institutional investors and hedge funds have recently bought and sold shares of MED. BNP Paribas Financial Markets grew its stake in Medifast by 103.1% during the 3rd quarter. BNP Paribas Financial Markets now owns 2,338 shares of the specialty retailer’s stock valued at $32,000 after acquiring an additional 1,187 shares in the last quarter. Quantbot Technologies LP purchased a new position in Medifast in the 3rd quarter worth approximately $37,000. Intesa Sanpaolo Wealth Management acquired a new position in shares of Medifast during the 4th quarter worth approximately $47,000. State of Wyoming acquired a new position in shares of Medifast during the 4th quarter worth approximately $59,000. Finally, Strs Ohio purchased a new stake in shares of Medifast in the first quarter valued at approximately $78,000. 95.51% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Medifast

Here are the key news stories impacting Medifast this week:

• Positive Sentiment: Q1 beat on both EPS and revenue — reported a loss of ($0.19) vs. consensus ($0.55) and revenue of $76.0M vs. est. $69.2M, showing better-than-expected operating performance this quarter. Read More.
• Positive Sentiment: Company announced an explicit $30M cost-cutting plan to accelerate margin recovery — a concrete expense reduction program can materially improve cash flow and investor confidence. Read More.
• Positive Sentiment: Management reconfirmed 2026 revenue guidance of $270M–$300M and said it’s targeting profitability improvements beginning Q4 2026 — revenue stability plus a defined timeline for margin improvement supports a recovery thesis. Read More.
• Positive Sentiment: Operational signs: coach productivity rose and revenue per active earning coach was reported at $5,432 (14,000 active coaches) — suggests core salesforce is more efficient and new product launches may support recovery. Read More.
• Positive Sentiment: Strong balance sheet — roughly $168.9M cash and investments and no debt, giving the company runway to execute cost cuts and invest in recovery initiatives. Read More.
• Neutral Sentiment: Earnings call tone was cautious but highlighted productivity gains and plans; the market is parsing detail for credibility and timing of margin fixes. Read More.
• Negative Sentiment: Near-term EPS guidance was lowered — Q2 EPS guided to -1.00 to -0.50 (vs. consensus ~ -0.43) and FY EPS guided to -2.75 to -1.55 (worse than consensus), signaling continued profitability pressure this year. Read More.
• Negative Sentiment: Q1 still produced a net loss and negative margins/ROE, underscoring that turnaround will take time and that near-term results remain weak. Read More.

About Medifast

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.