May 6, 2026
Medifast reports its first quarter 2026 results.
According to management: “We are encouraged by the continued progress we are seeing as we execute our metabolic health strategy, including a second consecutive quarter of year-over-year coach productivity growth, strong coach leadership advancement, and high field engagement. These are metrics that have historically been leading indicators of future growth.”
First quarter 2026 revenue decreased 34.3% to $76.0 million from $115.7 million for the first quarter of 2025 primarily driven by a decrease in the number of active earning coaches. The total number of active earning coaches decreased 44.9% to 14,000 compared to 25,400 for the first 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 continues its transformation to focus on metabolic health, it expects the number of active earning coaches to continue to decline in 2026. The average revenue per active earning coach was $5,432, compared to $4,556 for the first quarter last year, an increase of 19.2% which was driven by greater alignment of the company’s network of coaches, prioritizing productive coaches and efficient coach network structures.
Gross profit decreased 38.6% to $51.8 million from $84.2 million for the first quarter of 2025. The decrease in gross profit was primarily attributable to lower sales volumes. The company’s gross profit as a percentage of revenue was 68.1% compared to 72.8% for the first quarter of 2025.
The company’s loss from operations for the period was $3.3 million compared to $1.3 million in the prior year period.
The company’s balance sheet remains strong with cash, cash equivalents and investment securities of $168.9 million and no debt as of March 31, 2026.
The company expects second quarter 2026 revenue to be in the range of $60 million to $80 million and second quarter 2026 loss per share to be in the range of $0.50 to $1.00. The company expects full year 2026 revenue to be in the range of $270 million to $300 million and full year 2026 loss per share to range from $1.55 to $2.75.
Conference Call Information
Not much information here. The number of coaches continues to decline, but the ones left are more productive. The firm will launch new products and a new system in July. The company spent $5.6 million less on marketing in Q1 versus last year. A return to company profitability is expected in Q4 2026.
Commentary
No mention was made during the conference call of the number of “clinical” customers Medifast has (those using a GLP-1 based program), or the sales that have been generated from the. Therefore, it’s difficult to judge whether any progress is being made and if that portion of their business is growing, stable or declining. Some transparency on this would be welcome. Company revenues will not grow until the number of coaches on board grows. Where and how will Medifast recruit these coaches, we ask? What do they know about metabolic health? How big is the metabolic health market, how do you define it, and how will Medifast go after it? Are there different segments of the metabolic health market? Will Medifast offer a clinical/medical program for clients in this market, or a commercial program based on meal replacements? These are important questions that we pose at DietBusinessWatch.com.
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