Medifast Revenue Falls 19.4% to $72 Million Despite Surge in Coach Productivity
Key Facts
Medifast’s third-quarter 2026 revenue fell 19.4% to $72.0 million from $89.4 million in the same period last year, according to the results statement the company filed with the U.S. Securities and Exchange Commission. The company attributed the decline mainly to a lower number of revenue-generating active coaches. By contrast, average revenue per active coach rose 54.1% to $7,064, compared with $4,585 a year earlier. Medifast presented the increase as a result of its focus on a smaller, more efficient and productive network. But higher revenue per coach did not offset their lower numbers, and total revenue declined year over year.
The number of active coaches was 10,200 in the third quarter, down 47.7% from 19,500 in the same period of 2025, according to the statement. The company linked the contraction to continued difficulty acquiring customers amid broader operating environment challenges. It said the rapid spread of GLP-1 weight-loss drugs was among the factors reflecting these pressures. This highlights the contrast between growth in revenue generated per coach and contraction in the coach base on which the company relies to generate sales. Medifast reported second-quarter revenue of $76.4 million and revenue of $6,529 per active coach, meaning revenue fell sequentially in the third quarter while revenue per coach rose.
Medifast’s net loss widened to $17.5 million, or $1.57 per diluted share, from a loss of $2.3 million, or $0.21 per share, in the third quarter of 2025. The adjusted loss, under a non-GAAP measure, was $2.1 million, or $0.19 per diluted share. This adjusted figure differs from the reported loss of $1.57 per share, so describing the result with a single figure would not reflect the difference between the two measures. Reported gross margin also remained at 69.5%, equal to its level in the year-earlier period. Adjusted gross margin rose 220 basis points year over year to 71.7%.
Restructuring charges weighed on expenses during the quarter, as the Catalyst project added $13.8 million to selling, general and administrative expenses, the company said. This was partly offset by a $6.6 million decline in coach compensation as activity and the number of active coaches fell. In the second quarter, the net loss was $3.1 million before widening to $17.5 million in the third quarter. These figures put the impact of cost cuts and restructuring in the context of falling sales, rather than showing only an improvement in adjusted margins. Management said the third quarter saw the launch of the Trilivy brand and Reset Fuelings line, along with a new compensation plan and Coach Hub platform, and that most of the Catalyst cost-cutting program had been implemented.
The company expects fourth-quarter 2026 revenue of $55 million to $75 million and earnings per share of $0.00 to $0.25. It also estimated adjusted earnings before interest, taxes, depreciation and amortization, excluding interest income, at $2 million to $6 million for the same period. For fiscal 2026, Medifast expects revenue of $280 million to $300 million. Its annual forecast puts GAAP loss per share at $1.80 to $2.05 and adjusted loss per share at $0.45 to $0.70. The fourth quarter is therefore the next test of the company’s estimates, with an annual loss still expected despite a quarterly profit per share at the top end of the range.
Medifast shares, listed under the ticker MED, closed at $12.11 on October 26, 2026, according to EL7 data. The supplied trading data do not include verified session high and low figures, so the share-price context here is limited to the closing price. Revenue trends and the development of the coach base remain central to tracking the company’s results after this quarter. That matters as the number of active coaches fell alongside an improvement in average revenue per coach. Fourth-quarter results will show how closely revenue and profitability approach the ranges the company announced.