Oct. 27, 2026
Medifast management reported results for the third quarter ended September 30, 2026.
The firm is repositioning around its Trilivy metabolic health platform, including the Reset product line, revised coach compensation and training initiatives, while adapting its programs to clients using GLP-1 medications.
Third Quarter 2026
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Revenue: $72.0 million (-19.4%), with revenue per active earning coach of $7,064
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Independent active earning coaches of 10,200 (-47.7%)
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Net loss of $17.5 million (non-GAAP adjusted net loss of $2.1 million)
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Cash, Cash Equivalents, and Investment Securities of $172.5 million with no debt
Nick Johnson, Medifast’s CEO, commented, “The third quarter was about execution. With Trilivy now live, Reset Fuelings in our coaches’ hands, and our new compensation plan and Coach Hub launched, the major pieces of our 3.0 strategy are now in market. Revenue came in line with our guidance, and coach productivity improved year-over-year for the fourth consecutive quarter. Those are the kinds of indicators that have historically come before coach growth and revenue growth.
“With our launches complete and most of our Catalyst cost program executed, our focus has shifted to delivering returns on our foundational work. Coaches are embracing the new brand, our new compensation plan, our comprehensive metabolic health system–supported by the new Reset Fueling product line, and their conversations with clients are increasingly focused on metabolic health markers like visceral fat, lean mass and protecting and building healthy muscle. With enthusiasm high in the Field, we believe we are on track to deliver profitability in the fourth quarter.”
Third quarter 2026 revenue decreased 19.4% to $72.0 million from $89.4 million for the third quarter of 2025, primarily driven by a decrease in the number of active earning coaches. The total number of active earning coaches decreased 47.7% to 10,200 compared to 19,500 for the third 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 is actively executing on metabolic health, it expects the number of active earning coaches to continue to decline through the end of 2026. The average revenue per active earning coach was $7,064, compared to $4,585 for the third quarter last year, an increase of 54.1% which was driven by the decrease in the number of active earning coaches.
During the second quarter of 2026, the company began execution on a cost savings project (“Catalyst”) with the majority of its execution taking place this quarter. One of the key initiatives under Catalyst was a restructuring action intended to simplify the business and reduce costs by reducing the size and reassessing the geographic locations of the company’s distribution network, streamlining the company’s internal use software, and aligning organization resources with current revenue levels.
Medifast said Reset Fuelings became available to coaches and clients in August, with all stock-keeping units expected to convert to the Reset line by the end of the fourth quarter. The company also introduced its MetaVantage ingredient platform, which it said is designed to support fat metabolism, waist-circumference reduction and healthy insulin levels.
Management said Medifast has survey data on the percentage of clients using GLP-1 medications but does not centrally track GLP-1 use for every customer or by individual order. As a result, he said the company could not provide specific spending comparisons between clients using GLP-1s and those solely using Medifast’s program.
Outlook
The company expects fourth quarter 2026 revenue to be in the range of $55 million to $75 million and fourth quarter 2026 income per share to be in the range of $0.00 to $0.25. The company expects full year 2026 revenue to be in the range of $280 million to $300 million.
Commentary
Medifast revenues declined by 19% in Q3 versus last year, and the number of coaches fell 47%. These are very substantial losses. Full year 2026 revenues are estimated to be about $290 million — a 59.2 % decline from 2025. The company expects the number of coaches to decline further in Q4. These are not good metrics. We still believe that it will take a long time to build up the roster of coaches trained in the new world of GLP-1 programs, and metabolic health. The Medifast growth story of the past was built on the strong and continually growing number of MLM coaches it employed. That growth driver now is largely gone. In addition, there has been no mention of allocating any significant funds for marketing/advertising, which has for decades been essential to compete in the U.S. weight loss market. That attitude has to change. There has also been no mention of geographic diversification – entry in overseas markets, which would boost revenues. That said, we believe that Medifast will have a long, slow future path to revenue and profit growth.
Early in the year, the company was expecting just an 11% decrease in 2026 revenues, to between $620 and $635 million. It looks like sales will now come in at $290 million — a 59% decline from 2025. That’s a big miss.
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