Highlights

  • Medifast reports third-quarter revenue of $72.0 million, down 19.4%.
  • Average revenue per active earning coach increases 54.1% to $7,064.
  • The company reports a $17.5 million net loss and $2.1 million adjusted net loss.
  • Management guides fourth-quarter revenue to $55 million–$75 million.

Medifast (NYSE:MED) has reported a quarter marked by declining revenue, fewer earning coaches and stronger productivity across its remaining network. Third-quarter 2026 revenue reached $72.0 million, down 19.4% from a year earlier, while average revenue per active earning coach rose 54.1% to $7,064. The company also advanced its Trilivy metabolic health offering and its Catalyst cost programme as it works toward its fourth-quarter profitability objective.

Revenue Falls as the Coach Network Contracts

The number of independent active earning coaches dropped 47.7% to 10,200 from 19,500 in the third quarter of 2025. Medifast attributed the decline primarily to ongoing challenges acquiring clients, including the rapid adoption of GLP-1 weight-loss medications. The company expects active earning coach numbers to continue declining through the end of 2026. Nevertheless, revenue per active earning coach increased from $4,585 a year earlier to $7,064, reflecting a smaller network and a focus on more productive coach structures.

Restructuring Weighs on Reported Earnings

Gross profit decreased to $50.0 million from $62.2 million, with reported gross margin unchanged at 69.5%. Adjusted gross margin rose to 71.7% after excluding Catalyst restructuring expenses. Selling, general and administrative expenses increased to $69.4 million from $66.2 million, reflecting restructuring charges partly offset by lower coach compensation and reduced IT consulting expenditure. The operating loss widened to $19.4 million from $4.1 million, while adjusted operating loss was approximately $4.0 million.

A Wider Net Loss, but Positive Adjusted EBITDA

Medifast posted a net loss of $17.5 million, or $1.57 per diluted share, compared with a $2.3 million loss, or $0.21 per share, a year earlier. Excluding Catalyst-related adjustments, the non-GAAP net loss was $2.1 million, or $0.19 per diluted share. Adjusted EBITDA was approximately $0.4 million, compared with $0.3 million in the previous-year quarter. Adjusted EBITDA excluding interest income was approximately $1.9 million, up from $1.7 million.

Trilivy and Catalyst Move Into Execution

The company has launched Trilivy, its Reset Fuelings product line, a new coach compensation plan and Coach Hub. Management says the principal components of its 3.0 strategy are now in market. Catalyst includes restructuring the distribution network, simplifying internal software and aligning resources with current revenue. Most of the programme’s execution occurred during the third quarter. Medifast ended September with $172.5 million in cash, cash equivalents and investment securities and no debt.

Fourth-Quarter Guidance Sets the Next Marker

Medifast expects fourth-quarter revenue of $55 million to $75 million and earnings per share of $0.00 to $0.25. It projects full-year revenue of $280 million to $300 million and a loss per share of $1.80 to $2.05. Full-year adjusted loss per share is forecast at $0.45 to $0.70. The company also expects fourth-quarter adjusted EBITDA excluding interest income of $2 million to $6 million.