Medifast (MED) Q3 2026 Earnings Call: Coach Productivity Rises, Q4 Profitability Target Reaffirmed
Source Tradingkey
Key Takeaways
- Q3 2026 revenue fell 19.4% year over year to $72 million, within management’s guidance range, primarily due to a lower number of active earning coaches.
- Active earning coaches declined to approximately 10,200 from 19,500 a year earlier. However, average revenue per active earning coach increased 54.1% to $7,064.
- GAAP net loss widened to $17.5 million, or $1.57 per diluted share, reflecting lower gross profit and Project Catalyst restructuring costs. Adjusted net loss was $2.1 million, or $0.19 per diluted share.
- Medifast ended the quarter with $172.5 million in cash, cash equivalents and investments and no debt.
- Management expects Q4 revenue of $55 million to $75 million, EPS of $0.00 to $0.25, and adjusted EBITDA excluding interest income of $2 million to $6 million.
- Management said Medifast remains on track to deliver profitability in Q4 2026, supported by cost reductions and continued coach productivity growth, although coach count is expected to keep declining through year-end.
Key Financial Data
| Metric | Q3 2026 | Year-over-year change / context |
|---|---|---|
| Revenue | $72.0 million | Down 19.4%, mainly due to fewer active earning coaches |
| Active earning coaches | Approximately 10,200 | Down from 19,500 in Q3 2025 |
| Revenue per active earning coach | $7,064 | Up 54.1% |
| Gross profit | $50.0 million | Down 19.5% |
| Gross margin | 69.5% | Unchanged year over year; included 230 basis points of Catalyst charges |
| Adjusted gross profit | $51.7 million | Down 16.9% |
| Adjusted gross margin | 71.7% | Up 220 basis points |
| SG&A expense | $69.4 million | Up 4.8%, including $13.8 million of Catalyst restructuring charges |
| Adjusted SG&A | $55.6 million | Down 16.0% |
| Operating loss | $19.4 million | Versus a $4.1 million loss in Q3 2025 |
| Adjusted operating loss | $4.0 million | Improved 3.2% |
| Net loss | $17.5 million | Versus a $2.3 million loss a year earlier |
| Diluted EPS | -$1.57 | Versus -$0.21 in Q3 2025 |
| Adjusted diluted EPS | -$0.19 | Adjusted net loss of $2.1 million |
| Adjusted EBITDA | $0.4 million | Up 29.7% |
| Cash, cash equivalents and investments | $172.5 million | No debt at September 30, 2026 |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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