Medifast Q3 Loss Reflects Restructuring as Coach Productivity Rises

Medifast Inc. (NYSE: MED) reported a $17.5 million GAAP net loss for the third quarter of 2026 as restructuring costs weighed on operating results, even as productivity across its independent coach network rose for a fourth consecutive quarter. The company expects the fourth quarter to mark an inflection point toward growth and profitability, with guidance calling for earnings per share between break-even and $0.25.

Third-quarter revenue totaled $72 million, while gross margin was 69.5%, consistent with the year-earlier period. The GAAP operating loss was $19.4 million, reflecting restructuring and related charges during the quarter. GAAP loss per diluted share was $1.57.

Excluding $15.4 million of restructuring-related effects, Medifast recorded a non-GAAP operating loss of $4.0 million and a non-GAAP net loss of $2.1 million, or $0.19 per diluted share. Adjusted EBITDA excluding interest income was $1.9 million.

Coach productivity continues to rise

Revenue per active earning coach reached $7,064, up 54% from a year earlier and 8% from the second quarter. Medifast described that level as its highest in more than a decade and said it expects the metric to continue rising through the remainder of 2026.

The company had approximately 10,200 active earning coaches in the quarter. Medifast said higher coach productivity has historically preceded increased client and coach growth, though the presentation did not provide a specific timetable for those effects.

Management also pointed to increased participation in coach-led events and programs. Its new compensation structure, Trilivy Coach Hub platform and Trilivy Business Blueprint training system are intended to improve coach engagement, standardize training and support business development across the network.

Trilivy rollout advances

Medifast is repositioning its business around metabolic health under the Trilivy brand, which replaced OPTAVIA and is organized around three phases: reset, refine and renew. The company has set out a strategic roadmap through 2036 focused on scientific research, product development and coach-guided services.

During the rollout, Medifast launched 31 Trilivy stock-keeping units representing 69% of its essential product portfolio. In September, 95% of active earning coaches sold Trilivy products. The company said the remaining essential portfolio was positioned to transition through year-end.

The new product line includes Reset Fuelings featuring MetaVantage Technology, with ingredients intended to support metabolic health. Medifast also reported higher digital engagement following the brand launch: July post engagements increased 468%, post likes rose 126% and website traffic grew 27% compared with June.

The company’s broader approach emphasizes reducing visceral fat, retaining lean mass and protecting healthy muscle rather than measuring outcomes only through weight loss. Medifast is supporting the strategy through its Metabolic Health Institute, which covers research, product development, scientific communications and coach education.

Outlook and financial position

For the fourth quarter, Medifast expects revenue of $55 million to $75 million and GAAP and non-GAAP income per share ranging from zero to $0.25. Adjusted EBITDA excluding interest income is projected at $2 million to $6 million.

Full-year 2026 revenue is expected to be between $280 million and $300 million. The company forecasts a GAAP loss of $1.80 to $2.05 per share and a non-GAAP loss of $0.45 to $0.70 per share. Full-year adjusted EBITDA excluding interest income is expected to range from $10 million to $14 million.

Medifast ended September with $173 million in cash, cash equivalents and investments, up from $167 million at the end of 2025. It remained debt-free and reported working capital of $160 million.

The outlook remains subject to Medifast’s ability to maintain and expand its independent coach network and execute its transition toward metabolic health. Other risks identified by the company include competition from weight-loss products and medications, the effectiveness of marketing programs, product-development execution, cybersecurity threats, supply-chain disruptions, regulatory changes and pressure on consumer spending.