BALTIMORE — Medifast, a metabolic health and wellness company, reported a net loss of $17.5 million for the third quarter of 2026, compared with a loss of $2.3 million a year earlier, as declining sales and restructuring expenses weighed on its financial performance.
Revenue fell 19.4% to $72 million for the quarter ended September 30, compared with $89.4 million in the same period last year, primarily due to a sharp decline in the number of active earning coaches in the company’s distribution network.
Medifast reported a loss of $1.57 per share, compared with a loss of $0.21 per share in the third quarter of 2025. Excluding certain restructuring and other expenses, the company’s adjusted net loss was $2.1 million, or $0.19 per share.
The number of active earning coaches declined 47.7% to 10,200 from 19,500 a year earlier, reflecting continued challenges in attracting customers and growing competition from GLP-1 weight-loss medications.
Despite the decline in its coach network, average revenue per active earning coach increased 54.1% to $7,064 from $4,585 in the year-earlier quarter.
The company attributed the improvement to efforts to develop a smaller, more productive distribution network.
Medifast CEO Nick Johnson said the company made progress implementing its business transformation strategy during the quarter, including launching its Trilivy metabolic health system, introducing new nutritional products and updating its coach compensation structure.
“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,” Johnson said.
“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,” he added.
The company’s gross profit declined 19.5% to $50 million from $62.2 million a year earlier, while its gross profit margin remained unchanged at 69.5%.
Adjusted gross profit, excluding restructuring expenses, declined 16.9% to $51.7 million. However, adjusted gross profit margin improved to 71.7%, an increase of 2.2 percentage points from the previous year.
Selling, general and administrative expenses increased 4.8% to $69.4 million from $66.2 million, largely due to costs associated with the company’s Catalyst restructuring program.
Medifast launched the initiative during the second quarter of 2026 to simplify operations, reduce expenses and better align its business with declining revenue.
The restructuring includes reducing and reorganizing the company’s distribution network, streamlining internal software systems and adjusting organizational resources.
During the third quarter, restructuring charges contributed to a $13.8 million increase in administrative expenses, partially offset by lower coach compensation and reduced information technology consulting costs.
As a percentage of revenue, selling, general and administrative expenses increased to 96.3% from 74.1% a year earlier.
The company’s operating loss widened to $19.4 million from $4.1 million in the third quarter of 2025.
On an adjusted basis, excluding restructuring costs, the operating loss improved slightly to $4 million.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $0.4 million, compared with $0.3 million a year earlier.
Johnson said the company has completed most of its planned cost-reduction measures and is shifting its focus toward generating returns from its investments in new products and business operations.
“With our launches complete and most of our Catalyst cost program executed, our focus has shifted to delivering returns on our foundational work,” Johnson said.
He added that the company is increasingly emphasizing metabolic health measures, including visceral fat, lean body mass and muscle preservation, as part of its efforts to adapt to changing consumer preferences.
“With enthusiasm high in the Field, we believe we are on track to deliver profitability in the fourth quarter,” Johnson said.
Medifast ended the quarter with $172.5 million in cash, cash equivalents and investment securities, compared with $167.3 million at the end of 2025. The company reported no outstanding debt.
Looking ahead, Medifast expects fourth-quarter revenue between $55 million and $75 million, with earnings per share ranging from breakeven to $0.25.
For the full year 2026, the company projects revenue between $280 million and $300 million and a net loss of $1.80 to $2.05 per share.
On an adjusted basis, Medifast expects a full-year loss of $0.45 to $0.70 per share.
The company also forecasts fourth-quarter adjusted EBITDA, excluding interest income, between $2 million and $6 million, with full-year adjusted EBITDA on the same basis ranging from $10 million to $14 million.
Medifast said it expects its active coach network to continue shrinking through the end of 2026 as it works to reposition its business around comprehensive metabolic health services and nutritional products.
