Medifast (NYSE:MED) Issues Quarterly Earnings Results, Beats Expectations By $0.16 EPS

Medifast (NYSE:MED) posted its earnings results on Monday. The specialty retailer reported ($0.19) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.35) by $0.16, FiscalAI reports. Medifast had a negative return on equity of 6.69% and a negative net margin of 8.08%. The firm had revenue of $72.05 million for the quarter, compared to the consensus estimate of $71.30 million.

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

• Revenue and coach count continued to decline: Q3 revenue fell 19.4% year over year to $72 million, while active earning coaches dropped to approximately 10,200 from 19,500, largely due to GLP-1 adoption. Management expects coach count to decline further through year-end.
• Coach productivity improved materially: Revenue per active earning coach increased 54.1% year over year to $7,064, marking the fourth consecutive quarter of productivity growth. Management expects productivity to continue rising as the company focuses on building larger, more productive Executive Director organizations.
• Management remains on track for Q4 profitability: The company guided to fourth-quarter revenue of $55 million to $75 million, EPS of $0 to $0.25, and adjusted EBITDA excluding interest income of $2 million to $6 million. Catalyst cost reductions, process improvements, and AI initiatives are expected to support profitability and future operating leverage.
• Trilivy’s launch is gaining early field adoption: The new metabolic-health brand, Reset products, compensation plan, and coach-training platform were launched during the quarter, with 95% of active earning coaches offering the new Reset line in September. Management believes the platform can position the company alongside GLP-1 treatments and broaden its addressable market.
• The balance sheet remains strong: Medifast ended the quarter with $172.5 million of cash and investments and no debt, while Catalyst is intended to align the cost structure with current sales without impairing the company’s ability to scale.

Medifast Price Performance

Shares of Medifast stock opened at $12.12 on Tuesday. Medifast has a 1 year low of $9.22 and a 1 year high of $13.45. The firm has a market cap of $135.47 million, a PE ratio of -5.20 and a beta of 0.68. The company has a 50 day simple moving average of $11.93 and a two-hundred day simple moving average of $11.30.

Analyst Ratings Changes

Several research analysts have commented on the stock. Zacks Research raised shares of Medifast from a “hold” rating to a “strong-buy” rating in a report on Tuesday, October 13th. Weiss Ratings upgraded shares of Medifast from a “sell (e+)” rating to a “sell (d)” rating in a research report on Monday, August 17th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $12.00.

Medifast News Summary

Here are the key news stories impacting Medifast this week:

• Positive Sentiment: Medifast reported adjusted third-quarter EPS of -$0.19, better than the analyst consensus of approximately -$0.35 to -$0.40, while revenue of $72.05 million exceeded estimates of about $71.30 million. Medifast Reports Q3 Loss, Tops Revenue Estimates
• Positive Sentiment: Management expects fourth-quarter earnings per share of $0.00 to $0.25, signaling a possible return to profitability. The company is continuing its Trilogy/Trilivy strategic pivot and rollout to address changing demand in the weight-management market, including pressure from GLP-1 drugs. Medifast Earnings Call: Trilogy Pivot Amid GLP-1 Pressures
• Positive Sentiment: Medifast ended the quarter with approximately $172.5 million in cash, cash equivalents and investments and no debt, providing financial flexibility as it restructures and develops new products. Recent insider activity also included substantially more buying than selling.
• Neutral Sentiment: Fourth-quarter revenue guidance is broad at $55 million to $75 million. Full-year 2026 revenue is expected at $280 million to $300 million, but the company still projects a full-year loss of $1.80 to $2.05 per share. Medifast Targets Q4 Revenue as Trilivy Rollout Continues
• Negative Sentiment: Third-quarter revenue fell 19.4% year over year to roughly $72 million, while active earning coaches declined 47.7% to 10,200. GAAP results included a $17.5 million net loss, higher operating expenses and restructuring charges, underscoring the company’s ongoing operating challenges.

Insiders Place Their Bets

In other news, Director Parsa Kiai purchased 43,150 shares of the stock in a transaction on Wednesday, August 26th. The shares were acquired at an average price of $12.26 per share, for a total transaction of $529,019.00. Following the completion of the transaction, the director directly owned 707,492 shares of the company’s stock, valued at approximately $8,673,851.92. This trade represents a 6.50% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Also, Director Daniel Chard sold 9,545 shares of Medifast stock in a transaction dated Monday, September 28th. The stock was sold at an average price of $11.98, for a total value of $114,349.10. Following the sale, the director directly owned 140,153 shares of the company’s stock, valued at approximately $1,679,032.94. This trade represents a 6.38% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders bought a total of 119,966 shares of company stock worth $1,423,576 in the last three months. Insiders own 3.70% of the company’s stock.

Medifast Company Profile

Medifast, Inc (NYSE: MED) is a health and wellness company that provides weight-management products, programs and support services. Its primary brand, OPTAVIA, offers meal-replacement products, including shakes, bars, soups and other portion-controlled foods, along with structured plans intended to help customers establish healthier eating and lifestyle habits.

The company distributes its products primarily through an independent network of coaches who provide guidance, accountability and support to clients.