Medifast stock faces coach losses as Q3 revenue falls 19.4%

Medifast reported third-quarter results on October 26, with revenue declining as its independent coach network contracted. In its earnings release, the company said revenue fell 19.4% year over year to 72.0 million US dollars for the quarter ended September 30.

Medifast stock traded at 11.80 euros on Lang & Schwarz at 11:00 p.m. CET on Wednesday, November 11. The company remains in a transition phase as it reshapes its offer around metabolic health and seeks to rebuild growth.

Coach losses weigh on revenue

Independent active earning coaches fell 47.7% year over year to 10,200. Medifast linked the decline primarily to continued pressure on client acquisition, including the rapid adoption of GLP-1 medications for weight loss.

Revenue per active earning coach rose 54.1% to 7,064 US dollars. The increase reflects a smaller but more productive coach network and does not offset the effect of the lower coach count on total sales. Medifast expects the number of active earning coaches to continue declining through the end of 2026.

Restructuring deepens reported loss

Net loss widened to 17.5 million US dollars from 2.3 million US dollars in the year-earlier quarter. The reported loss included Catalyst restructuring charges; adjusted net loss was 2.1 million US dollars, or 0.19 US dollars per diluted share.

Operating loss reached 19.4 million US dollars, compared with 4.1 million US dollars a year earlier. Catalyst costs included changes to the distribution network, internal software and organizational resources. The balance sheet held 172.5 million US dollars in cash, cash equivalents and investment securities at September 30, with no debt.

Management targets a fourth-quarter profit

Medifast expects fourth-quarter revenue of 55 million to 75 million US dollars and income per share of 0.00 to 0.25 US dollars. For the full year, it forecasts revenue of 280 million to 300 million US dollars and a loss per share of 1.80 to 2.05 US dollars. Management said Trilivy, Reset Fuelings, a new compensation plan and Coach Hub are now in market and expects fourth-quarter profitability.

Medifast business profile

Medifast is a US health and wellness company focused on a science-backed comprehensive metabolic health system. Its offer combines plans, nutritionally developed products, personal one-to-one coaching, community support and behavioral science. The Trilivy system is designed around metabolic health, fat loss, lean-mass preservation and long-term habits. The company is responding to competition from weight-loss medications and other products by emphasizing coaching and a broader metabolic-health approach.

The broader US market can be followed through the S&P 500.

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