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A month has gone by since the last earnings report for Medifast (MED - Free Report) . Shares have lost about 7.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Medifast due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Medifast Q2 Loss Narrower Than Expected, Coach Productivity ImprovesMedifast reported second-quarter 2026 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. However, both metrics declined year over year.

Medifast's Quarterly Performance: Key InsightsThe company posted a loss per share of 28 cents, narrower than the Zacks Consensus Estimate of a loss of 67 cents per share. The company posted earnings of 22 cents per share in the prior-year period.

Revenues declined 27.6% year over year to $76.4 million from $105.6 million, slightly exceeding the Zacks Consensus Estimate of $76 million. Higher revenues generated by each active earning coach reflected continued improvements in coach productivity despite a smaller coach network.

Medifast ended the quarter with approximately 11,700 active earning coaches, down 48.7% from 22,800 a year earlier. Management said that the decline in coaches remained the primary factor behind the year-over-year revenue decrease. The company noted that slower client acquisition continues to reflect broader industry pressures, including the rapid adoption of GLP-1 weight-loss medications.

Average revenue per active earning coach increased 41% year over year to $6,529 from $4,630, marking the third consecutive quarter of productivity improvement. Management continues to view stronger coach productivity as an early indicator of future business improvement, noting that historically it has been followed by higher client acquisition, coach growth and revenue expansion.

Medifast's Margin & Cost PerformanceGross profit fell 30.3% year over year to $53.4 million from $76.6 million, due to lower sales volumes. Gross margin contracted 270 basis points to 69.9% from 72.6%, primarily due to reduced leverage on fixed costs.

Selling, general and administrative expenses were $57.7 million, declining 25.7% year over year from $77.7 million. The decrease reflected $12.6 million of lower coach compensation, $2.3 million of reduced employee salary and benefit expenses and $2 million of lower company-led marketing costs. SG&A expenses represented 75.6% of revenues, up 200 basis points from 73.6% a year ago. The increase primarily reflected fixed-cost deleverage and expenses associated with the Trilivy Reset product launch, partly offset by lower marketing spending.

The operating loss widened to $4.3 million from $1.1 million in the year-ago quarter.

MED's Other Financial InformationMedifast ended June 2026 with $169.8 million in cash, cash equivalents and investment securities compared with $167.3 million at Dec. 31, 2025. The company remained debt-free.

Sneak Peek Into MED's Future OutlookFor the third quarter of fiscal 2026, Medifast expects revenues of $60-$80 million and a loss of 15-65 cents per share, excluding one-time costs related to the Catalyst cost-savings program.

Management expects the active earning coach count to continue declining in the near term but anticipates further improvement in coach productivity on both a year-over-year and sequential basis during the third quarter.

For fiscal 2026, Medifast reaffirmed its revenue outlook of $270-$300 million and now expects a loss in the range of 25 cents to $1.75 per share compared with the previous guidance of a loss of $1.55-$2.75 per share.

The company continues to expect progress toward returning to profitability beginning in the fourth quarter of 2026 following the launch of its new product line, with further earnings improvement targeted through 2027 and beyond. Management also expects working capital to exceed $145 million by year-end. 
The company noted that its Catalyst program is expected to generate savings through facility rationalization, AI-related efficiencies and other operational initiatives.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 33.33% due to these changes.

VGM ScoresAt this time, Medifast has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Medifast has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerMedifast is part of the Zacks Food - Miscellaneous industry. Over the past month, Chefs' Warehouse (CHEF - Free Report) , a stock from the same industry, has gained 5%. The company reported its results for the quarter ended June 2026 more than a month ago.

Chefs' Warehouse reported revenues of $1.17 billion in the last reported quarter, representing a year-over-year change of +12.9%. EPS of $0.78 for the same period compares with $0.52 a year ago.

Chefs' Warehouse is expected to post earnings of $0.61 per share for the current quarter, representing a year-over-year change of +22%. Over the last 30 days, the Zacks Consensus Estimate has changed +11.7%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Chefs' Warehouse. Also, the stock has a VGM Score of C.

Medifast (MED - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

Therefore, the Zacks rating upgrade for Medifast basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

For Medifast, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for MedifastThis weight-loss company is expected to earn -$1.04 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Medifast. Over the past three months, the Zacks Consensus Estimate for the company has increased 47.2%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Medifast to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Backed by 45 years of Medifast clinical research, the institute elevates metabolic health as a cornerstone of well-being

BALTIMORE--(BUSINESS WIRE)--Medifast, Inc. (NYSE: MED) has announced the launch of the Medifast Metabolic Health Institute, established to advance metabolic health through rigorous research and credible, evidence-based education.

The institute brings Medifast’s clinical research, scientific expertise, and educational resources under a single body, solidifying the company’s position in the metabolic health space. It follows the July launch of Trilivy™, which replaced OPTAVIA® as the company’s consumer brand and better reflects the company’s evolved focus on metabolic health.

With metabolic dysfunction reaching critical levels in the United States1, the institute’s work is rooted in the belief that everyone deserves access to the science, education, tools, and support necessary to achieve optimal metabolic health.

“Metabolic dysfunction is one of the defining health challenges of our generation, and most people still do not know what metabolic health means or how to improve it,” said Nick Johnson, Chief Executive Officer of Medifast. “We have spent 45 years building our expertise, and the institute brings that work together in one place. Turning that science into education people can act on is how we earn the right to be a trusted authority in metabolic health.”

Medifast’s research foundation has more than 100 peer-reviewed presentations and publications, including more than 40 peer-reviewed scientific journal publications, as well as 18 randomized controlled trials, and more than 30 scientific research studies and analyses. That work underpins Metabolic Synchronization®, the science behind Trilivy’s comprehensive metabolic health system™, and forms the evidence base the institute will continue to build — strengthening the substantiation behind that system and Medifast’s standing as a trusted authority in an emerging field.

The institute’s work is guided by MMHI™ Distinguished Fellow, Dr. Wayne Scott Andersen, and the Medifast Scientific Advisory Board — first formed in 2008 and composed of internationally recognized experts in medical care, education, nutrition, exercise and biobehavioral science, body composition, metabolism, and digital health. Day-to-day work is led by the company’s Scientific & Clinical Affairs team of registered dietitians, scientists, and health educators — the institute’s engine for research, innovation, and education — alongside a Research & Development team that bridges scientific discovery and real-world application.

As part of the company’s commitment to advancing nutrition and metabolic health through research, Medifast’s Scientific & Clinical Affairs team recently attended the annual American Society for Nutrition conference to present four research posters from MMHI, highlighting emerging research on obesity, metabolic health, healthy aging, and nutrition.

“For decades, Medifast has invested in clinical research and scientific excellence. The Medifast Metabolic Health Institute builds on that foundation by creating a centralized hub for credible, evidence-based research and educational resources,” said Satya Jonnalagadda, PhD, MBA, RDN, Vice President of Scientific & Clinical Affairs at Medifast. “As the understanding of metabolic health continues to evolve, we are committed to helping bridge the gap between scientific discovery and practical application, empowering people with the knowledge needed to support meaningful health transformation.”

The institute also sets the scientific and educational standards for Trilivy’s Coach Certification. Developed by Medifast’s internal team of experts and anchored in rigorous, evidence-based research, the certification ensures that every independent Trilivy coach is equipped with the foundational knowledge essential for driving optimal metabolic health transformation. Completed annually, it reflects a commitment to professional credibility and integrity and a shared mission to provide the highest level of support to clients.

About Medifast and Trilivy

Medifast (NYSE: MED) is the health and wellness company known for its science-backed comprehensive metabolic health system, Trilivy. Designed to address the challenges of metabolic dysfunction, the company’s holistic approach integrates science-backed plans and products, personal 1:1 coaching, a supportive community, and behavioral science support to develop healthy habits.

Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that targets metabolic dysfunction through a comprehensive system focused on fat loss, lean mass preservation, and long-term health. Trilivy's comprehensive three-phase metabolic health system is designed to help people reset their metabolism, refine their health, and renew their lives. By integrating science, coaching, and healthy habits into a single approach, Trilivy helps people look, feel, and live better.

Backed by more than 45 years of clinical heritage, Medifast continues to advance its mission of lifelong transformation through metabolic science and human connection™. For more information, visit trilivyhealth.com and medifastinc.com.

1O’Hearn M, et al. Trends and Disparities in Cardiometabolic Health Among U.S. Adults, 1999-2018. J Am Coll Cardiol. 2022;80(2):138-151. doi:10.1016/j.jacc.2022.04.046

Murphy SL, Kochanek KD, Xu JQ, Arias E. Mortality in the United States, 2023. NCHS Data Brief, no 521. Hyattsville, MD: National Center for Health Statistics. 2024. doi:10.15620/cdc/170564.

Key Takeaways MED's enhanced compensation plan prioritizes Executive Director development and stronger field performance.Active earning coaches fell 48.7% to about 11,700 amid rapid GLP-1 adoption in traditional weight loss.Average revenue per active earning coach rose 41% to $6,529, signaling improved coach productivity. Medifast, Inc.’s (MED - Free Report) has made substantial progress by advancing several key initiatives across the business. These include the introduction of an enhanced compensation plan designed to strengthen the company’s focus on developing and expanding its network of Executive Directors, which management identifies as the single greatest driver of sustainable business growth.

The new structure was informed by the success of the EDGE program and is intended to encourage stronger leadership development across the field. By prioritizing the development of Executive Directors, the company aims to build stronger leadership capabilities and support healthier field performance. The impact of the EDGE program is reflected in the company’s field leadership progress, with the percentage of active earning coaches at the Executive Director level or above remaining above the 10% benchmark for a healthy and scalable organization.

The company ended the second quarter of 2026 with approximately 11,700 active earning coaches, down 48.7% year over year, reflecting the continued impact of rapid GLP-1 medication adoption across the traditional weight loss category. In response, MED is reshaping its coach leadership structure by deprioritizing less productive coaches and developing a network of high-performing Executive Director organizations.

Despite the decline in coach numbers, average revenue per active earning coach increased 41% to $6,529, indicating improving coach productivity both year over year and sequentially.

Overall, if the new compensation plan successfully builds a stronger base of Executive Directors and sustains the recent improvement in coach productivity, it could support coach growth over time and, in turn, help Medifast drive revenue growth.

The Zacks Rundown for MEDThe company's shares have gained 9.6% in the past six months against the industry’s decline of 2.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, MED trades at a forward price-to-sales ratio of 0.48, lower than the industry’s average of 0.83. MED currently carries a Zacks Rank #3 (Hold).

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MED’s current fiscal year earnings implies a year-over-year decline of 140.2%, whereas the same for next fiscal year earnings implies 4.1% growth year over year.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks have been discussed below:

Darling Ingredients Inc. (DAR - Free Report) develops, produces, and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. DAR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DAR’s current fiscal-year sales and earnings implies growth of 12.8% and 926.5%, respectively, from the year-ago actuals. DAR delivered a trailing four-quarter negative earnings surprise of 38.9%, on average.

The Chef’s Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF currently carries a Zacks Rank #1.

The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.

Bunzl plc (BZLFY - Free Report) , together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. BZLFY currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for BZLFY’ current fiscal-year sales and earnings implies growth of 6.9% and 4.2%, respectively, from the year-ago actuals.

Key Takeaways MED targets a Q4 return to profitability as Trilivy and cost cuts support its turnaround.Medifast's coach productivity rose 41%, but the active coach base continues to shrink.MED expects Q3 losses before targeting profitability in Q4, making execution on Trilivy critical. Medifast, Inc. (MED - Free Report) is entering a decisive phase of its turnaround as the Trilivy metabolic-health platform rolls out alongside another round of cost reductions. Management expects progress toward profitability to begin in the fourth quarter of 2026.

The near-term setup remains demanding. Revenues are still well below year-ago levels and the active coach base continues to shrink, leaving the Q4 target dependent on cost execution, steadier sales and better productivity.

MED's Q2 Beat Offers an Early Turnaround SignalSecond-quarter 2026 revenues fell 27.6% year over year to $76.4 million but edged above the Zacks Consensus Estimate of $76 million. The company posted a loss of 28 cents per share, narrower than the consensus loss of 67 cents.

Operating indicators offered some encouragement. Revenue per active earning coach rose 41% year over year to $6,529 and improved for a third consecutive quarter. Management views higher coach productivity as an early indicator because it has historically preceded client acquisition, coach growth and revenue expansion.

Medifast Is Repositioning Around TrilivyTrilivy succeeds OPTAVIA as Medifast's primary consumer brand and expands the company's focus from traditional weight loss to broader metabolic health. The system is organized around Reset, Refine and Renew phases and is designed to support clients using GLP-1 medications, transitioning off them or pursuing non-medication approaches.

For peer context, investors evaluating Medifast can also look at Mama's Creations, Inc. (MAMA - Free Report) and US Foods Holding Corp. (USFD - Free Report) . MED's investment case, however, remains centered on whether Trilivy, improving coach productivity and Catalyst-led savings can stabilize revenues and restore profitability.

MED's Catalyst Program Targets More Cost SavingsThe Catalyst program is designed to generate millions of dollars in additional savings through facility rationalization, artificial-intelligence-related efficiencies and broader business simplification. These initiatives build on more than $30 million of previously identified cost savings.

Management has not yet quantified the new savings target, but expects to provide more detail with third-quarter results. The objective is to remove costs without impairing revenue growth, making Catalyst an important part of the company's effort to improve profitability while continuing to invest in Trilivy.

Medifast Still Expects Losses Before Q4Medifast expects third-quarter revenues of $60 million to $80 million and a loss of 15 cents to 65 cents per share, excluding one-time Catalyst-related costs. The company also expects the active earning coach count to keep declining in the near term even as productivity improves.

For 2026, management projects revenues of $270 million to $300 million and a loss of 25 cents to $1.75 per share. The Q4 profitability goal therefore rests on sustained revenue stability, successful commercialization of Trilivy and enough cost savings to offset continued fixed-cost pressure.

MED's Ratings Frame a High-Risk Recovery StoryThe turnaround has identifiable catalysts, but valuation adds another consideration. MED trades at 0.5X forward 12-month sales, below the food-miscellaneous sub-industry multiple of 0.81X but above its one-year median of 0.40X. The relative discount may look attractive, though the premium to Medifast's own historical median and the company's shrinking coach network and ongoing losses keep execution risk elevated.

Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #3 (Hold). MED also has a Momentum Score of A, but a Value Score of D, Growth Score of F and VGM Score of D. Since the Style Scores are designed to complement the Zacks Rank, the mix points to favorable momentum characteristics but a less convincing broader profile, supporting a measured view until the recovery becomes more established. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Key Takeaways MED's improving coach productivity supports its turnaround case despite continued revenue pressure.Medifast faces ongoing pressure from a shrinking coach base and the rapid adoption of GLP-1 medications.MED's low valuation may appeal to investors, but weak growth and profitability remain key risks. Medifast, Inc. (MED - Free Report) offers investors a difficult trade-off. The stock’s forward sales valuation is discounted to its sub-industry, while the company still faces falling revenues, a shrinking coach network and continuing losses.

The balance sheet gives Medifast time to execute its Trilivy-led turnaround, and coach productivity is improving. The key question is whether those early gains can translate into renewed client acquisition, coach growth and a durable return to profitability.

MED's Valuation Looks Cheap on Forward SalesMED trades at 0.5X forward 12-month sales, below the food-miscellaneous sub-industry multiple of 0.81X. That discount gives the stock an inexpensive look relative to its peer group and leaves room for re-rating if operating trends improve.

The valuation case is less clear against Medifast’s own history. Its current multiple is above the one-year median of 0.4X, so the stock is not unusually cheap by that measure. A discounted peer multiple alone does not remove the execution risk surrounding the turnaround.

Image Source: Zacks Investment Research

Medifast's Cash Cushion Reduces Balance Sheet RiskMedifast ended the second quarter of 2026 with $169.8 million in cash, cash equivalents and investments and no debt. Working capital was $160.5 million, compared with $158.7 million at the end of 2025.

That liquidity gives the company flexibility to fund the Trilivy rollout and restructuring while operating results remain under pressure. Second-quarter revenues fell 27.6% year over year to $76.4 million, and Medifast posted a net loss of $3.1 million, or 28 cents per share.

MED's Turnaround Still Depends on Coach RecoveryThe coach network remains the biggest operating vulnerability. Active earning coaches fell 48.7% year over year to 11,700 in the second quarter, even as revenue per active earning coach rose 41% to $6,529 and increased sequentially for a third consecutive quarter.

Medifast reported a second-quarter loss of 28 cents per share, substantially narrower than the consensus loss of 67 cents. Revenues also came in slightly above expectations, giving investors a better-than-feared quarterly result even as year-over-year sales remained weak.

Peer comparisons also matter. Mama's Creations, Inc. (MAMA - Free Report) and US Foods Holding Corp. (USFD - Free Report) provide additional context for MED's positioning within the broader food industry. Medifast still needs productivity gains to translate into stronger client acquisition and renewed coach growth. Medifast's Profitability Goal Raises the Stakes

Management is targeting a return to profitability beginning in the fourth quarter of 2026. The plan rests on revenue stabilization, the Trilivy product rollout and the Catalyst program, which is designed to reduce costs through facility rationalization, artificial-intelligence-related efficiencies and other measures.

The financial outlook shows how much work remains. Medifast expects 2026 revenues of $270 million to $300 million and a loss of 25 cents to $1.75 per share. Management also expects working capital to remain above $145 million at year-end, preserving financial flexibility as the turnaround progresses.

MED's Style Scores Argue for SelectivityThe stock currently carries a Zacks Rank #3 (Hold), which points to a more balanced near-term setup than an outright buy signal. Medifast also has a Momentum Score of A, indicating favorable momentum characteristics, but that strength is not matched across the other styles. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

MED has a Value Score of D, a VGM Score of D and a Growth Score of F. Zacks Style Scores are designed to complement the Zacks Rank, with stronger grades generally preferred. For investors weighing a low sales multiple against turnaround risk, the current mix supports a selective wait-and-see stance until operating improvement becomes more established.

Key Takeaways MED reported a narrower-than-expected Q2 loss as higher coach productivity supported revenue per coach.MED's active earning coaches fell 48.7%, while revenue per active coach increased 41%.MED reaffirmed its 2026 revenue outlook and improved its full-year earnings guidance. Medifast, Inc. (MED - Free Report) reported second-quarter 2026 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. However, both metrics declined year over year.

Medifast's Quarterly Performance: Key InsightsThe company posted a loss per share of 28 cents, narrower than the Zacks Consensus Estimate of a loss of 67 cents per share. The company posted earnings of 22 cents per share in the prior-year period.

Revenues declined 27.6% year over year to $76.4 million from $105.6 million, slightly exceeding the Zacks Consensus Estimate of $76 million. Higher revenues generated by each active earning coach reflected continued improvements in coach productivity despite a smaller coach network.

Medifast ended the quarter with approximately 11,700 active earning coaches, down 48.7% from 22,800 a year earlier. Management said that the decline in coaches remained the primary factor behind the year-over-year revenue decrease. The company noted that slower client acquisition continues to reflect broader industry pressures, including the rapid adoption of GLP-1 weight-loss medications.

Average revenue per active earning coach increased 41% year over year to $6,529 from $4,630, marking the third consecutive quarter of productivity improvement. Management continues to view stronger coach productivity as an early indicator of future business improvement, noting that historically it has been followed by higher client acquisition, coach growth and revenue expansion.

Medifast's Margin & Cost PerformanceGross profit fell 30.3% year over year to $53.4 million from $76.6 million, due to lower sales volumes. Gross margin contracted 270 basis points to 69.9% from 72.6%, primarily due to reduced leverage on fixed costs.

Selling, general and administrative expenses were $57.7 million, declining 25.7% year over year from $77.7 million. The decrease reflected $12.6 million of lower coach compensation, $2.3 million of reduced employee salary and benefit expenses and $2 million of lower company-led marketing costs. SG&A expenses represented 75.6% of revenues, up 200 basis points from 73.6% a year ago. The increase primarily reflected fixed-cost deleverage and expenses associated with the Trilivy Reset product launch, partly offset by lower marketing spending.

The operating loss widened to $4.3 million from $1.1 million in the year-ago quarter.

MED's Other Financial InformationMedifast ended June 2026 with $169.8 million in cash, cash equivalents and investment securities compared with $167.3 million at Dec. 31, 2025. The company remained debt-free.

Sneak Peek Into MED's Future OutlookFor the third quarter of fiscal 2026, Medifast expects revenues of $60-$80 million and a loss of 15-65 cents per share, excluding one-time costs related to the Catalyst cost-savings program.

Management expects the active earning coach count to continue declining in the near term but anticipates further improvement in coach productivity on both a year-over-year and sequential basis during the third quarter.

For fiscal 2026, Medifast reaffirmed its revenue outlook of $270-$300 million and now expects a loss in the range of 25 cents to $1.75 per share compared with the previous guidance of a loss of $1.55-$2.75 per share.

The company continues to expect progress toward returning to profitability beginning in the fourth quarter of 2026 following the launch of its new product line, with further earnings improvement targeted through 2027 and beyond. Management also expects working capital to exceed $145 million by year-end.

The company noted that its Catalyst program is expected to generate savings through facility rationalization, AI-related efficiencies and other operational initiatives.

Shares of this Zacks Rank #3 (Hold) company have risen 1.4% over the past three months compared with the industry’s growth of 6.1%.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks have been discussed below:

Darling Ingredients Inc. (DAR - Free Report) develops, produces, and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. DAR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DAR’s current fiscal-year sales and earnings implies growth of 13.2% and 685.3%, respectively, from the year-ago actuals. DAR delivered a trailing four-quarter negative earnings surprise of 38.9%, on average.

The Chef’s Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.8 and 24.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.

US Foods Holding Corporation (USFD - Free Report) , together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for US Foods’ current fiscal-year sales and earnings implies growth of 5.1% and 16.3%, respectively, from the year-ago actuals. USFD delivered a trailing four-quarter earnings surprise of 1.4%, on average. 

Medifast (MED - Free Report) came out with a quarterly loss of $0.28 per share versus the Zacks Consensus Estimate of a loss of $0.67. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +58.21%. A quarter ago, it was expected that this weight-loss company would post a loss of $0.55 per share when it actually produced a loss of $0.19, delivering a surprise of +65.45%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Medifast, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $76.38 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.14%. This compares to year-ago revenues of $105.56 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Medifast shares have lost about 8% since the beginning of the year versus the S&P 500's gain of 9.4%.

What's Next for Medifast?While Medifast has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Medifast was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.60 on $69.18 million in revenues for the coming quarter and -$1.97 on $286.02 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 15% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Flowers Foods (FLO - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026.

This bakery goods company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of -23.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Flowers Foods' revenues are expected to be $1.23 billion, down 1% from the year-ago quarter.

BALTIMORE--(BUSINESS WIRE)--Medifast (NYSE: MED), the health and wellness company known for its science-backed comprehensive metabolic health system, Trilivy, today reported results for the second quarter ended June 30, 2026.

Second Quarter 2026

Revenue: $76.4 million, with revenue per active earning coach of $6,529 Independent active earning coaches of 11,700 Net loss of $3.1 million or $0.28 loss per diluted share ("EPS") Cash, Cash Equivalents, and Investment Securities of $169.8 million with no debt Nick Johnson, Chief Executive Officer, commented, “In the second quarter, we continued to see signs of a turnaround in our business. Revenue remained sequentially stable, supported by steady growth in coach productivity and positive coach leadership trends. Combined with the energy and engagement demonstrated at our recent National Coach Convention, these leading indicators have historically been precursors of future growth.

“We're building on that progress by putting new tools in our coaches' hands, with our new brand, Trilivy, our new Reset Fuelings, and our new Medifast Metabolic Health Institute. Each of these is a meaningful step in our 3.0 strategy. Backed by our Metabolic Synchronization science and coach-led model, we believe we are on track to return to profitability in the fourth quarter and have created a foundation that supports our vision for consistent, long-term growth.“

Second Quarter 2026 Results

Second quarter 2026 revenue decreased 27.6% to $76.4 million from $105.6 million for the second quarter of 2025, primarily driven by a decrease in the number of active earning coaches. The total number of active earning coaches decreased 48.7% to 11,700 compared to 22,800 for the second 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 $6,529, compared to $4,630 for the second quarter last year, an increase of 41.0% which was driven by greater alignment of the company's network of coaches, prioritizing productive coaches and more efficient coach network structures.

Gross profit decreased 30.3% to $53.4 million from $76.6 million for the second quarter of 2025. The decrease in gross profit was due to lower sales volumes. The company's gross profit margin was 69.9% compared to 72.6% in the second quarter of 2025. The decrease in gross profit as a percentage of revenue was primarily driven by the loss of leverage on fixed costs.

Selling, general, and administrative expenses (“SG&A”) decreased 25.7% to $57.7 million compared to $77.7 million for the second quarter of 2025. The decrease in SG&A was primarily due to a $12.6 million decrease in coach compensation on lower volume and fewer active earning coaches, a $2.3 million decrease in employee salary and benefit expenses, and a $2.0 million decrease in company-led marketing costs. As a percentage of revenue, SG&A increased 200 basis points year-over-year to 75.6% of revenue, as compared to 73.6% for the second quarter of 2025. The increase in SG&A as a percentage of revenue was primarily due to approximately 290 basis points associated with the loss of leverage on fixed costs and 60 basis points associated with the launch of the company's new Trilivy Reset product line, partially offset by a 190 basis point reduction related to company-led marketing expenses. During Q2 the company launched its Catalyst program with the majority of the execution expected to take place in Q3. The Catalyst program is designed to drive additional cost savings through facility rationalization, AI-related efficiencies and other means.

The company's loss from operations for the period was $4.3 million compared to $1.1 million in the prior year comparable period. As a percentage of revenue, loss from operations was 5.7% for the second quarter of 2026 compared to 1.0% in the prior-year comparable period due to the factors described above impacting revenue and SG&A expenses.

Other income decreased $2.6 million to $1.3 million compared to $3.9 million for the second quarter of 2025 primarily due to gains on the company's investment in LifeMD, Inc. common stock in the prior year period. The company sold its investment in LifeMD during the quarter ended June 30, 2025.

Income tax expense for the period was $0.1 million, an effective rate of negative 3.6%, as compared to $0.4 million for the second quarter of 2025, an effective rate of 13.7%. Due to the existence of a full valuation allowance against its deferred tax assets recorded as of December 31, 2025, the company calculated income tax expense for the current period based on actual results for the quarter. The decrease in the effective tax rate was primarily driven by the increased loss incurred in the June 30, 2026 period and the valuation allowance on the net deferred tax assets.

In the second quarter of 2026, the company's net loss was $3.1 million, or $0.28 per share, based on approximately 11.1 million shares of common stock outstanding compared to a net income of $2.5 million, or $0.22 per share, based on approximately 11.1 million shares of common stock outstanding in the prior year comparable period.

Capital Allocation and Balance Sheet

During the second quarter of 2026, the company executed an amendment to extend the lease and reduce the square footage for the company's Havre de Grace distribution facility, and remeasured its right-of-use asset and corresponding lease liability by $12.5 million and $12.7 million, respectively. This action is in addition to the commencement of the company's new headquarters office space during the first quarter, where the company recorded an initial right-of-use asset and corresponding lease liability of $6.8 million.

The company’s balance sheet remains strong with cash, cash equivalents and investment securities of $169.8 million and no debt as of June 30, 2026, compared to $167.3 million in cash, cash equivalents and investment securities and no debt at December 31, 2025. Working capital as defined as current assets less current liabilities as of June 30, 2026 was $160.5 million, compared to $158.7 million of working capital at December 31, 2025.

Outlook

The company expects third quarter 2026 revenue to be in the range of $60 million to $80 million and third quarter 2026 loss per share to be in the range of $0.15 to $0.65. This excludes any one-time costs associated with the execution of the company's Catalyst initiatives. 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 $0.25 to $1.75.

Conference Call Information

The conference call is scheduled for today, Monday, August 3, 2026 at 4:30 p.m. ET. The call will be broadcast live over the Internet, hosted on the Investor Relations section of Medifast’s website at www.MedifastInc.com or directly at https://viavid.webcasts.com/starthere.jsp?ei=1768081&tp_key=644d7ae69f and will be archived online and available through November 3, 2026. In addition, listeners may dial (201) 389-0879 to join via telephone.

A telephonic playback will be available from 8:30 p.m. ET, August 3, 2026, through August 10, 2026. Participants can dial (412) 317-6671 and enter passcode 13761321 to hear the playback.

About Medifast®:

Medifast (NYSE: MED) is the metabolic health and wellness company known for its science-backed comprehensive metabolic health system, Trilivy. Designed to help address the challenges of metabolic dysfunction, the company’s holistic approach integrates science-backed plans and products, personal 1:1 coaching, a supportive community, and behavioral science support to develop healthy habits.

Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that targets metabolic dysfunction through a comprehensive system focused on fat loss, lean mass preservation, and long-term health. Trilivy's comprehensive three-part metabolic health system is designed to help people reset their metabolism, refine their health, and renew their lives. By integrating science, coaching, and healthy habits into a single approach, Trilivy helps people look, feel, and live better.

Backed by more than 45 years of clinical heritage, Medifast continues to advance its mission of lifelong transformation through metabolic science and human connectionTM. For more information, visit Trilivyhealth.com and Medifastinc.com.

MED-F

Forward Looking Statements

Please Note: This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by use of phrases or terminology such as “intend,” “anticipate,” “expect” or other similar words or the negative of such terminology. Similarly, descriptions of Medifast’s objectives, strategies, plans, goals, outlook or targets contained herein are also considered forward-looking statements. These statements are based on the current expectations of the management of Medifast and are subject to certain events, risks, uncertainties and other factors. Some of these factors include, among others, Medifast's inability to maintain and grow the network of independent coaches; industry competition and new weight loss products, including weight loss medications such as GLP-1s, or services; Medifast’s health or advertising related claims by clients; Medifast's inability to continue to develop new products; effectiveness of Medifast's advertising and marketing programs, including use of social media by coaches; effectiveness of the company's strategic pivot towards metabolic health; the departure of one or more key personnel; Medifast's inability to protect against online security risks and cyberattacks; competitors use of artificial intelligence to make their offer more competitive; risks associated with Medifast's direct-to-consumer business model; disruptions in Medifast's supply chain; product liability claims; Medifast's planned growth into domestic markets including through its collaboration with LifeMD, Inc.; adverse publicity associated with Medifast's products; the impact of existing and future laws and regulations on Medifast’s business; fluctuations of Medifast's common stock market price; increases in litigation; actions of activist investors; the consequences of other geopolitical events, overall economic and market conditions and the resulting impact on consumer sentiment and spending patterns; and Medifast's ability to prevent or detect a failure of internal control over financial reporting. Although Medifast believes that the expectations, statements and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other filings filed with the United States Securities and Exchange Commission, including its quarterly reports on Form 10-Q and current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.

MEDIFAST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(U.S. dollars in thousands, except per share amounts & dividend data)

  Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Revenue

$

76,384

$

105,555

$

152,428

$

221,283

Cost of sales

22,988

28,911

47,276

60,395

Gross profit

53,396

76,644

105,152

160,888

Selling, general, and administrative

57,723

77,710

112,774

163,217

Loss from operations

(4,327

)

(1,066

)

(7,622

)

(2,329

)

Other income

Interest income

1,347

1,369

2,726

2,671

Other income (expense)

(11

)

2,572

(36

)

3,059

1,336

3,941

2,690

5,730

Income (loss) before provision for income taxes

(2,991

)

2,875

(4,932

)

3,401

Provision for income taxes

109

395

290

1,693

Net income (loss)

$

(3,100

)

$

2,480

$

(5,222

)

$

1,708

Earnings (loss) per share - basic

$

(0.28

)

$

0.23

$

(0.47

)

$

0.16

Earnings (loss) per share - diluted

$

(0.28

)

$

0.22

$

(0.47

)

$

0.15

Weighted average shares outstanding

Basic

11,135

10,991

11,071

10,970

Diluted

11,135

11,060

11,071

11,045

MEDIFAST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(U.S. dollars in thousands, except par value)

  June 30,
2026

December 31,
2025

ASSETS

Current Assets

Cash and cash equivalents

$

71,910

$

89,303

Inventories, net

21,181

20,228

Investments

97,911

77,970

Income taxes, prepaid

5,258

5,116

Prepaid expenses and other current assets

5,774

9,066

Total current assets

202,034

201,683

Property, plant and equipment, net of accumulated depreciation

27,980

31,230

Right-of-use assets

24,314

7,232

Other assets

6,073

7,828

TOTAL ASSETS

$

260,401

$

247,973

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Accounts payable and accrued expenses

$

36,406

$

38,359

Current lease obligations

5,158

4,603

Total current liabilities

41,564

42,962

Lease obligations, net of current lease obligations

22,460

6,091

Total liabilities

64,024

49,053

Stockholders' Equity

Common stock, par value $.001 per share: 20,000 shares authorized; 11,181 and 10,991 issued and outstanding at June 30, 2026 and December 31, 2025, respectively

11

11

Additional paid-in capital

43,306

40,406

Accumulated other comprehensive income

11

234

Retained earnings

153,049

158,269

Total stockholders' equity

196,377

198,920

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

260,401

$

247,973

Wall Street expects a year-over-year decline in earnings on lower revenues when Medifast (MED - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on August 3, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis weight-loss company is expected to post quarterly loss of $0.67 per share in its upcoming report, which represents a year-over-year change of -1775%.

Revenues are expected to be $78.35 million, down 25.8% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Medifast?For Medifast, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.26%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Medifast will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Medifast would post a loss of$0.55 per share when it actually produced a loss of -$0.19, delivering a surprise of +65.45%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Medifast appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAnother stock from the Zacks Food - Miscellaneous industry, Darling Ingredients (DAR - Free Report) , is soon expected to post earnings of $1.45 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +0%. Revenues for the quarter are expected to be $1.8 billion, up 21.8% from the year-ago quarter.

The consensus EPS estimate for Darling has been revised 17.1% higher over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Darling will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways Medifast launched Trilivy to expand beyond traditional weight management into broader metabolic health.Trilivy combines nutrition, personalized coaching and behavior-based support across three structured phases. Coach productivity and referral-driven client acquisition improved in the first quarter of 2026. Medifast, Inc. (MED - Free Report) has launched Trilivy, a science-backed metabolic health system that expands the company’s focus beyond traditional weight management. The platform combines nutritional products, personalized coaching and behavior-based support while introducing newly formulated meal replacements featuring proprietary ingredient technology intended to support metabolic health.

The launch marks an important strategic shift as GLP-1 medications continue to reshape the weight-loss market and pressure demand for conventional programs. Trilivy emphasizes broader metabolic health, including visceral-fat reduction, lean-mass preservation, healthy metabolism and sustainable lifestyle improvement. This positioning could help MED appeal to consumers seeking longer-term wellness support, including those looking for alternatives or complements to medication-based weight-loss solutions.

Trilivy also builds on Medifast’s established coach-led model. Its three-phase system — Reset, Refine and Renew — integrates nutritional products, individualized support and healthy habits into a structured customer journey. This approach may strengthen the company’s differentiation from product-only competitors by combining science-backed nutrition with accountability and behavioral guidance.

The launch arrives as some operating indicators are beginning to improve. In the first quarter of 2026, coach productivity increased for a second consecutive time, while referral-driven client acquisition gained momentum. Coaches participating in the referral program generated higher acquisition rates than nonparticipants, suggesting that efforts to improve field engagement are yielding encouraging early results.

Overall, Trilivy gives Medifast a clearer framework for repositioning its business around metabolic health. Successful customer adoption, stronger coach participation and improved engagement could help stabilize revenues and support profitability over time, potentially opening a new growth chapter for the Zacks Rank #1 (Strong Buy) company. You can see the complete list of today’s Zacks #1 Rank stocks here.

MED Stock Price Performance, Valuation & EstimatesShares of Medifast have tumbled 25.6% over the past year compared with the industry’s decline of 21.7%.

MED Price Performance Versus Industry
Image Source: Zacks Investment Research

From a valuation standpoint, Medifast trades at a forward price-to-sales ratio of 0.42, lower than the industry’s average of 0.79.

MED Valuation Compared to Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MED’s current fiscal-year earnings per share implies a year-over-year decline of 140.2%, while the consensus mark for the next year’s EPS suggests growth of 4.1%.

Other Stocks to ConsiderUnited Natural Foods, Inc. (UNFI - Free Report) , a major food wholesaler serving grocery retailers, currently sports a Zacks Rank #1.

The Zacks Consensus Estimate for United Natural’s current and next fiscal-year earnings per share suggests a year-over-year increase of 254.9% and 21.4%, respectively. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.

Mama's Creations, Inc. (MAMA - Free Report) , a maker of refrigerated prepared foods for retail and foodservice, carries a Zacks Rank #2 (Buy) at present.

The Zacks Consensus Estimate for Mama's Creations’ current and next fiscal-year EPS suggests growth of 73.3% and 46.2%, respectively, from the prior-year reported levels. MAMA delivered a trailing four-quarter earnings surprise of 129.2%, on average.

Hormel Foods Corporation (HRL - Free Report) , a global branded food company offering meat, protein and packaged food products, carries a Zacks Rank #2.

The Zacks Consensus Estimate for Hormel Foods’ current and next fiscal-year EPS calls for a year-over-year jump of 9.5% and 3.5%, respectively. HRL delivered a trailing four-quarter earnings surprise of 3.2%, on average.

A downtrend has been apparent in Medifast (MED - Free Report) lately with too much selling pressure. The stock has declined 18.9% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.

We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.

RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.

Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.

So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.

However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.

Why MED Could Bounce Back Before LongThe heavy selling of MED shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 26.5. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.

The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for MED has increased 1.5%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.

Moreover, MED currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Medifast Inc (NYSE: MED - Get Free Report) CEO Daniel Chard acquired 17,678 shares of the stock in a transaction on Friday, March 20th. The stock was bought at an average price of $10.11 per share, with a total value of $178,724.58. Following the transaction, the chief executive officer directly owned 17,678 shares in the company,

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NEW YORK, April 14, 2026 /PRNewswire/ -- Purcell & Lefkowitz LLP announces that it is investigating Medifast, Inc. (NYSE: MED) on behalf of the company's shareholders.  The investigation seeks to determine whether Medifast's directors breached their fiduciary duties in connection with recent corporate actions.

If you are a shareholder of Medifast and are interested in obtaining additional information about your rights and options, please visit us at: https://pjlfirm.com/medifast-inc/

You may also contact Robert H. Lefkowitz, Esq. either via email at [email protected] or by telephone at 212-725-1000.  One of our attorneys will personally speak with you about the case at no cost or obligation.

Purcell & Lefkowitz LLP is a law firm exclusively committed to representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty and other types of corporate misconduct. For more information about the firm and its attorneys, please visit https://pjlfirm.com.   Attorney advertising. Prior results do not guarantee a similar outcome. 

SOURCE Purcell & Lefkowitz LLP

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BALTIMORE--(BUSINESS WIRE)--Medifast (NYSE: MED), the metabolic health and wellness company known for its science-backed, coach-guided lifestyle system, today reported results for the first quarter ended March 31, 2026.

First Quarter 2026

Revenue of $76.0 million, with revenue per active earning coach of $5,432 Independent active earning coaches of 14,000 Net loss of $2.1 million, or $0.19 per diluted share ("EPS") Cash, Cash Equivalents, and Investment Securities of $168.9 million with no debt "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. Backed by our differentiated science, coach-led model, and a disciplined approach to managing costs, we believe we are well positioned to drive improved performance through the remainder of 2026 and a return to sustainable, long-term growth in the years ahead,” said Dan Chard, CEO of Medifast.

First Quarter 2026 Results

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 decrease in gross profit as a percentage of revenue was primarily driven by the loss of leverage on fixed costs.

Selling, general, and administrative expenses (“SG&A”) decreased 35.6% to $55.1 million compared to $85.5 million for the first quarter of 2025. The decrease in SG&A was primarily due to a $16.2 million decrease in coach compensation on lower volume and fewer active earning coaches, a $5.6 million decrease in company-led marketing related expenses, a one-time $2.2 million gain on the sale of the company's Maryland Distribution Center building and land previously classified as held for sale, and a $2.0 million decrease in employee compensation resulting from the realignment of the employee base to lower revenue levels. As a percentage of revenue, SG&A decreased 150 basis points year-over-year to 72.4% of revenue, as compared to 73.9% for the first quarter of 2025. The decrease in SG&A as a percentage of revenue was primarily due to approximately 470 basis points of decreased company-led marketing related expenses and 240 basis points of one-time gain on the sale of the company's Maryland Distribution Center building and land previously classified as held for sale, partially offset by 620 basis points of loss of leverage on fixed costs due to lower sales volume.

The company's loss from operations for the period was $3.3 million compared to $1.3 million in the prior year period. As a percentage of revenue, loss from operations was 4.3% for the first quarter of 2026 compared to 1.1% in the prior year comparable period due to the factors described above impacting revenue and SG&A expenses.

Other income decreased 24.3% to $1.4 million from $1.8 million for the first quarter of 2025 primarily due to unrealized gains on the company's investment in LifeMD common stock in the prior year period. The company sold its investment in LifeMD during the quarter ended June 30, 2025.

Income tax expense for the period was $0.2 million, an effective rate of negative 9.3%, as compared to $1.3 million for the first quarter of 2025, an effective rate of 246.8%. Due to the existence of a full valuation allowance against its deferred tax assets recorded as of December 31, 2025, the Company calculated income tax expense for the current period based on actual results for the quarter. As a result, the Company’s income tax provision for the quarter reflects discrete items, primarily state income taxes. The decrease in the effective tax rate was primarily driven by the increased loss incurred in the March 31, 2026 period and the valuation allowance on the net deferred tax assets.

In the first quarter of 2026, the company's net loss was $2.1 million, or $0.19 per share, based on approximately 11.0 million shares of common stock outstanding compared to a net loss of $0.8 million, or $0.07 per diluted share, based on approximately 10.9 million shares of common stock outstanding in the prior year period.

Capital Allocation and Balance Sheet

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, compared to $167.3 million in cash, cash equivalents and investment securities and no debt at December 31, 2025. Working capital as defined as current assets less current liabilities as of March 31, 2026 was $160.4 million, compared to $158.7 million of working capital at December 31, 2025.

Outlook

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

The conference call is scheduled for today, Monday, May 4, 2026 at 4:30 p.m. ET. The call will be broadcast live over the Internet, hosted on the Investor Relations section of Medifast’s website at www.MedifastInc.com or directly at https://viavid.webcasts.com/starthere.jsp?ei=1759153&tp_key=64a2fbe076 and will be archived online and available through August 4, 2026. In addition, listeners may dial (201) 389-0879 to join via telephone.

A telephonic playback will be available from 7:30 p.m. ET, May 4, 2026 through May 11, 2026. Participants can dial (412) 317-6671 and enter passcode 13759893 to hear the playback.

About Medifast®:

Medifast (NYSE: MED) is the metabolic health and wellness company known for its science-backed, coach-guided lifestyle system. Designed to help address the challenges of metabolic dysfunction, the company’s holistic approach integrates personalized plans, scientifically developed products and a framework for habit creation — all supported by a dedicated network of independent coaches.

Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction through a targeted reset. Research demonstrates the company’s comprehensive system activates strong and targeted fat burn to enhance metabolic health and body composition by reducing visceral fat, preserving lean mass and protecting muscle integrity.

Backed by more than 40 years of clinical heritage, Medifast continues to advance its mission of Lifelong Transformation, Making Healthy Lifestyle Second Nature®. For more information, visit Medifastinc.com.

MED-F

Forward Looking Statements

Please Note: This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by use of phrases or terminology such as “intend,” “anticipate,” “expect” or other similar words or the negative of such terminology. Similarly, descriptions of Medifast’s objectives, strategies, plans, goals, outlook or targets contained herein are also considered forward-looking statements. These statements are based on the current expectations of the management of Medifast and are subject to certain events, risks, uncertainties and other factors. Some of these factors include, among others, Medifast's inability to maintain and grow the network of independent coaches; industry competition and new weight loss products, including weight loss medications such as GLP-1s, or services; Medifast’s health or advertising related claims by clients; Medifast's inability to continue to develop new products; effectiveness of Medifast's advertising and marketing programs, including use of social media by coaches; effectiveness of the Company's strategic pivot towards metabolic health; the departure of one or more key personnel; Medifast's inability to protect against online security risks and cyberattacks; competitors use of artificial intelligence to make their offer more competitive; risks associated with Medifast's direct-to-consumer business model; disruptions in Medifast's supply chain; product liability claims; Medifast's planned growth into domestic markets including through its collaboration with LifeMD, Inc.; adverse publicity associated with Medifast's products; the impact of existing and future laws and regulations on Medifast’s business; fluctuations of Medifast's common stock market price; increases in litigation; actions of activist investors; the consequences of other geopolitical events, overall economic and market conditions and the resulting impact on consumer sentiment and spending patterns; and Medifast's ability to prevent or detect a failure of internal control over financial reporting. Although Medifast believes that the expectations, statements and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other filings filed with the United States Securities and Exchange Commission, including its quarterly reports on Form 10-Q and current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.

    MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(U.S. dollars in thousands, except per share amounts)

Three months ended March 31,

2026

2025

Revenue

$

76,044

$

115,728

Cost of sales

24,288

31,483

Gross profit

51,756

84,245

Selling, general, and administrative

55,051

85,507

Loss from operations

(3,295

)

(1,262

)

Other income

Interest income

1,379

1,301

Other income (expense)

(25

)

487

1,354

1,788

Income (loss) before provision for income taxes

(1,941

)

526

Provision for income taxes

181

1,298

Net loss

$

(2,122

)

$

(772

)

Loss per share - basic

$

(0.19

)

$

(0.07

)

Loss per share - diluted

$

(0.19

)

$

(0.07

)

Weighted average shares outstanding

Basic

11,006

10,948

Diluted

11,006

10,948

    MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(U.S. dollars in thousands, except par value)

March 31,

2026

December 31,

2025

ASSETS

Current Assets

Cash and cash equivalents

$

71,529

$

89,303

Inventories, net

21,403

20,228

Investments

97,417

77,970

Prepaid expenses and other current assets

6,965

9,066

Total current assets

202,630

201,683

Property, plant and equipment, net of accumulated depreciation

29,643

31,230

Right-of-use assets

12,921

7,232

Other assets

6,852

7,828

TOTAL ASSETS

$

252,046

$

247,973

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Accounts payable and accrued expenses

$

38,264

$

38,359

Current lease obligations

3,920

4,603

Total current liabilities

42,184

42,962

Lease obligations, net of current lease obligations

12,181

6,091

Total liabilities

54,365

49,053

Stockholders' Equity

Common stock, par value $.001 per share: 20,000 shares authorized; 11,119 and 10,991 issued and outstanding at March 31, 2026 and December 31, 2025, respectively

11

11

Additional paid-in capital

41,488

40,406

Accumulated other comprehensive income

33

234

Retained earnings

156,149

158,269

Total stockholders' equity

197,681

198,920

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

252,046

$

247,973

   

Medifast, Inc. (MED) Q1 2026 Earnings Call Transcript

Medifast has continued to report concerning financials. A shrinking coach network lowers revenues, and costs remain too high. A turnaround can't be written off quite yet. MED's coach productivity has improved clearly, and a shift to a metabolic health focus from weight loss could work out. Negative enterprise value clearly implies upside potential; I estimate 47% upside to $18.50 if the company's earnings stabilize over the mid-term. Such upside is speculative, though.

Body composition, specifically visceral fat levels and lean mass, plays a meaningful role in long-term metabolic health (Serra MC, et al., 2019)Structured plans, habit building, and dedicated coach support work together to produce body composition outcomes that reflect the quality of weight loss, not just its quantity (Arterburn LM, et al., 2019)High-quality protein, nutrient density, and scientifically developed nutrition, combined with structured plans and habit building, support visceral fat reduction and lean mass preservation during weight loss Human accountability and coach support can lead to stronger outcomes in sustained behavior change and weight management success (Arterburn LM, et al., 2019) BALTIMORE, MD, May 15, 2026 (GLOBE NEWSWIRE) -- The success of weight loss programs is often evaluated by how much weight a person loses in the first few weeks or months, but that narrow focus may not reflect what clinical research shows about long-term success. OPTAVIA, a science-backed, coach-guided comprehensive metabolic health system, is among the programs backed by this growing body of evidence. Peer-reviewed research across multiple clinical settings has found that structured meal replacement programs can produce meaningful body composition outcomes, including visceral fat reduction and lean mass preservation (Arterburn LM, et al., 2019). 

Satya Jonnalagadda, PhD, MBA, RD, Vice President of Scientific & Clinical Affairs at OPTAVIA, says, “Clinical data reveals clear distinctions between weight loss and quality weight loss. Preserving lean mass while reducing visceral fat is what drives sustainable metabolic improvement.”

KEY FACTS:

OPTAVIA’s clinical approach is supported by 18 randomized controlled trialsOPTAVIA’s research portfolio includes 30+ scientific research studies and analyses, 40+ peer-reviewed scientific journal publications, and 100+ peer-reviewed scientific presentations and publications The Science Behind Structured Programs

Clinical research has examined structured meal replacement programs across multiple settings, with findings that extend beyond scale weight. A randomized controlled trial published in Obesity Science & Practice found that structured commercial meal replacement programs produced greater reductions in body weight, fat mass, and abdominal fat than a self-directed reduced-calorie approach, concluding that evidence-based commercial programs can be a meaningful tool for adults managing overweight and obesity (Arterburn LM, et al., 2019). 

A separate multicenter study found that a structured meal replacement plan supported lean mass preservation alongside significant weight reduction, with fat mass representing 80% or more of total weight lost from 12 weeks onward (Coleman CD, et al., 2015). These findings point to body composition, not scale weight alone, as a meaningful measure of what structured programs can produce.

Body Composition Over the Scale

Body composition, specifically visceral fat levels and lean mass, plays a meaningful role in metabolic health. Visceral fat acts as a metabolically active organ, releasing inflammatory molecules and hormones that affect insulin sensitivity and overall metabolic function. Reducing it while preserving lean mass is central to what quality weight loss can produce. Research shows that a nutritionally complete, higher-protein structured plan is effective in reducing body fat in the visceral depot, a reduction associated with meaningful cardiometabolic improvement (Serra MC, et al., 2019).

OPTAVIA's approach centers on nutrient density, high-quality protein, and scientifically developed products, combined with structured plans, habit building, and dedicated coach support with clinical outcomes that reflect that focus.

The body composition outcomes from OPTAVIA’s Optimal Weight 5 & 1 Plan® are clinically proven. Participants achieved a 14% reduction in visceral fat over 16 weeks while retaining 98% of lean mass (Arterburn LM, et al., 2019).

Why Coaching Changes the Clinical Picture

Clinical data from OPTAVIA’s Optimal Weight 5 & 1 Plan® found that participants working with a coach lose up to 10 times more weight and 17 times more fat than those attempting weight loss independently (Arterburn LM, et al., 2019). That difference reflects what behavioral science suggests about accountability and human support in sustained behavior change and speaks directly to the quality of outcomes the program is designed to produce. 

"What we see consistently in the research is that accountability changes outcomes, especially when it’s personal and one-on-one. A coach addresses the behavioral and emotional patterns that can help drive long-term success,” says Jonnalagadda.

The Metabolic Case for Body Composition 

Supporting long-term metabolic health requires targeting visceral fat reduction and lean mass preservation, not scale weight alone.  

OPTAVIA’s Optimal Weight 5 & 1 Plan® is built around nutrient density, high-quality protein, and portion control delivered through scientifically developed, convenient products and a structured plan designed to make healthy eating more sustainable. When the body doesn't receive adequate protein and nutritional support during weight loss, it may draw from lean tissue instead of fat, which can affect metabolic rate over time. Meanwhile, visceral fat can continue to contribute to declining insulin sensitivity and metabolic dysfunction. 

A metabolic health approach that prioritizes both visceral fat reduction and lean mass preservation offers a more complete picture of weight loss quality.

FAQ

Q: What weight loss programs have the best clinical evidence and coaching support?

A: Structured meal replacement programs with coach-guided models have built a strong clinical record across peer-reviewed research. OPTAVIA's approach is supported by 18 randomized controlled trials, with outcomes covering body composition, visceral fat reduction, and lean mass preservation, markers that reflect the broader shift toward metabolic health as a standard for evaluating weight loss success.

Q: How does OPTAVIA's approach support metabolic health beyond weight loss? 

A: OPTAVIA's comprehensive metabolic health system centers on nutrient density, high-quality protein, and scientifically developed products, combined with structured plans, habit building, and dedicated coach support. Together, these elements are designed to support visceral fat reduction and lean mass preservation, markers that speak to the quality of weight loss, not just the number on the scale.

Q: What does clinical evidence show about weight loss coaching?

A: In OPTAVIA's clinical trial, participants who worked with a coach lost up to 10 times more weight and 17 times more fat than those who attempted weight loss independently (Arterburn LM, et al., 2019). Behavioral science suggests that personal accountability and human support are meaningful factors in sustained behavior change.

Q: What is visceral fat, and why does it matter more than total weight loss?

A: Visceral fat is stored deep in the abdomen, surrounding internal organs. Unlike subcutaneous fat, it acts as a metabolically active organ, releasing inflammatory molecules and hormones that affect insulin sensitivity and overall metabolic function. Targeting visceral fat reduction alongside lean mass preservation reflects a more complete picture of weight loss quality.

* OPTAVIA recommends that you contact your healthcare provider before starting and throughout your weight loss journey. Average weight loss on the Optimal Weight 5 & 1 Plan® is 12 pounds. Clients are in weight loss, on average, for 12 weeks.

* Arterburn LM, et al. Randomized controlled trial assessing two commercial weight loss programs in adults with overweight or obesity. Obesity Science & Practice. 2019.
https://onlinelibrary.wiley.com/doi/10.1002/osp4.312. In a clinical study, individuals on the OPTAVIA® 5 & 1 Plan® experienced a reduction of 14% visceral fat and 98% of lean mass was retained at 16 weeks. Those on the Optimal Weight 5&1 Plan® with support of an OPTAVIA® Coach successfully lost 10x more weight and 17x more fat than those who tried to lose weight on their own.

About Medifast
Medifast (NYSE: MED) is the health and wellness company known for its science-backed, coach-guided lifestyle system. Designed to address the challenges of metabolic dysfunction, the company's holistic approach integrates personalized plans, scientifically developed products and a framework for sustainable habit creation — all supported by a dedicated network of independent coaches.

Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction through targeted metabolic reset. Research demonstrates that the company's comprehensive system activates strong and targeted fat burning to enhance metabolic health and body composition by reducing visceral fat, preserving lean mass and protecting muscle integrity.

Backed by more than 40 years of clinical heritage, Medifast continues to advance its mission of Lifelong Transformation, Making a Healthy Lifestyle Second Nature®. For more information, visit MedifastInc.com.

A randomized controlled trial published in Obesity Science & Practice found that clients on the OPTAVIA Optimal Weight 5 & 1 Plan® who worked with a coach lost significantly more weight and fat than those who attempted the program without coaching support (Arterburn LM, et al., 2019)Higher retention in a weight management program is directly correlated with more significant weight loss outcomes, per a 2024 systematic review and meta-analysisOPTAVIA coaches complete a program-specific education curriculum and must pass a certification exam before supporting participantsIndependent research commissioned by OPTAVIA found that 96% of Americans recognize lifestyle changes are essential for weight loss and management, yet only 17% feel confident they can manage it alone BALTIMORE, MD, May 21, 2026 (GLOBE NEWSWIRE) -- OPTAVIA, a science-backed, coach-guided comprehensive metabolic health system, is built around a core principle: that structured human support changes outcomes. The OPTAVIA coaching model is designed specifically around program guidance, accountability, and real-time emotional support, and its impact is documented in published, peer-reviewed research. High dropout remains one of the most consistent challenges in weight management. A 2024 systematic review published in Frontiers in Nutrition analyzed 37 studies of adults in weight loss treatment and found overall dropout rates ranging from 5% to 62%. A separate 2024 systematic review and meta-analysis published in Preventing Chronic Disease found that higher retention was directly correlated with more significant weight loss outcomes, underscoring that the ability to keep people engaged is as consequential as the program design itself. 

"The certification standard and registered dietitian-developed education exist because the coaching relationship should be clinically meaningful. An app can send a notification, but it can't ask how your week went or adjust to what you're actually going through," said Satya Jonnalagadda, PhD, MBA, RD, Vice President of Scientific & Clinical Affairs at OPTAVIA.

KEY FACTS

A 16-week randomized controlled trial found coach-supported clients on the OPTAVIA Optimal Weight 5 & 1 Plan® program lose up to 10 times more weight and 17 times more fat compared to the self-directed control group (Arterburn LM, et al., 2019)There was an average weight loss of 12 pounds on the Optimal Weight 5 & 1 Plan® over an average of 12 weeks, according to the same study (Arterburn LM, et al., 2019) What OPTAVIA Coaches Do

OPTAVIA coaches are accountability partners, real people who guide participants through the program with emotional support and personalized encouragement via texting and phone calls. They are not healthcare professionals and do not provide healthcare advice or clinical guidance. They provide a coaching relationship: helping participants stay on track, work through setbacks, and build the consistency that the program is designed to support.

OPTAVIA coaches complete a program-specific education curriculum developed internally by a team of registered dietitian nutritionists and behavior change experts, focused on how to guide participants through the OPTAVIA program. Coaches must then pass a program certification exam before supporting participants. This internal framework is designed to ensure coaches are prepared for the accountability and support role they play. This approach provides a human layer that research shows makes a meaningful difference in program outcomes.

Coaching Produces Measurable Outcomes

Clinical research has isolated the contribution of human coaching as a quantifiable driver of weight management outcomes. Independent IPSOS research commissioned by OPTAVIA in June 2023 found that 96% of Americans recognize lifestyle changes are essential for weight loss and management, yet only 17% feel confident they can manage it on their own.* The coaching relationship is designed to fill the space between knowing what needs to happen and sustaining the behavior to make it happen. 

Clients on the OPTAVIA Optimal Weight 5 & 1 Plan® who work with a coach lose up to 10 times more weight and 17 times more fat than those who attempt the program without coaching support, according to a randomized controlled trial published in Obesity Science & Practice (Arterburn LM, et al., 2019). Those outcomes reflect the cumulative effect of personalized guidance, real-time accountability, and structured behavior change support in weight management programs.

"Behavior change happens in the moments when motivation drops or routines break down," Jonnalagadda said. "A coach who knows your program and your progress can provide the kind of real-time, personalized support that a static program isn't designed to offer."

As weight loss medications, programs, and other solutions continue to expand across the industry, coaching becomes a valuable currency in navigating a saturated market. A coaching relationship that influences adherence patterns, accountability, and support that contributes to long-term metabolic health outcomes is as reliable as the accountability structure behind it. OPTAVIA’s model provides consumers with structure and a human support layer to guide participants through the program. 

* Independent IPSOS research commissioned by OPTAVIA, June 2023.

FAQ

Q: What do OPTAVIA coaches do?

A: OPTAVIA coaches are accountability partners who guide participants through the OPTAVIA program, providing encouragement, real-time support, and personalized guidance via texting and phone calls. They are not healthcare professionals and do not provide medical or clinical advice.

Q: What education do OPTAVIA coaches complete?

A: OPTAVIA coaches complete a program-specific education curriculum developed internally by a team of registered dietitians, nutritionists and behavior change experts, focused on how to support participants through the OPTAVIA program. Coaches must pass a program certification exam before supporting participants.

Q: Why does social support matter in a weight management program?

A: Sustained behavior change is difficult without accountability. Social support can help participants maintain nutrition adherence, navigate setbacks, and build the consistent habits that weight management programs are designed to support.

Q: Do coached weight loss programs produce stronger results than self-directed ones?

A: Research on the OPTAVIA program found that clients who work with a coach lose significantly more weight and fat than those who attempt the program without coaching support (Arterburn LM, et al., 2019). That difference reflects what personalized guidance, real-time accountability, and consistent encouragement add to an otherwise identical structured program.

Q: What should consumers look for when evaluating a weight loss program's clinical credibility?

A: Published randomized controlled trial data in peer-reviewed journals is a reliable indicator. Look for body composition outcomes reported alongside total weight lost, findings presented at independent scientific conferences, and a Scientific Advisory Board composed of externally credentialed researchers. The presence or absence of that research trail signals meaningful differences in program rigor.

* OPTAVIA recommends that you contact your healthcare provider before starting and throughout your weight loss journey. Average weight loss on the Optimal Weight 5 & 1 Plan® is 12 pounds. Clients are in weight loss, on average, for 12 weeks.

* Arterburn LM, et al. Randomized controlled trial assessing two commercial weight loss programs in adults with overweight or obesity. Obesity Science & Practice. 2019.
https://onlinelibrary.wiley.com/doi/10.1002/osp4.312. In a clinical study, individuals on the OPTAVIA® 5 & 1 Plan® experienced a reduction of 14% visceral fat and 98% of lean mass was retained at 16 weeks. Those on the Optimal Weight 5&1 Plan® with support of an OPTAVIA® Coach successfully lost 10x more weight and 17x more fat than those who tried to lose weight on their own.

About Medifast
Medifast (NYSE: MED) is the health and wellness company known for its science-backed, coach-guided lifestyle system. Designed to address the challenges of metabolic dysfunction, the company's holistic approach integrates personalized plans, scientifically developed products and a framework for sustainable habit creation — all supported by a dedicated network of independent coaches.

Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction through targeted metabolic reset. Research demonstrates that the company's comprehensive system activates strong and targeted fat burning to enhance metabolic health and body composition by reducing visceral fat, preserving lean mass and protecting muscle integrity.

Backed by more than 40 years of clinical heritage, Medifast continues to advance its mission of Lifelong Transformation, Making a Healthy Lifestyle Second Nature®. For more information, visit medifastinc.com.

BALTIMORE--(BUSINESS WIRE)--Medifast, Inc. (NYSE: MED) today announced that its Board of Directors has formally appointed Nicholas Johnson as Chief Executive Officer, effective June 1, 2026. Johnson will succeed Dan Chard as CEO, who will continue to serve as Chairman of the Board. The appointment follows the leadership transition plan that the company disclosed in January and reflects the Board's confidence in Johnson's leadership and the company's strategic direction. Chard will remain active.

A month has gone by since the last earnings report for Medifast (MED - Free Report) . Shares have lost about 5.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Medifast due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for MEDIFAST INC before we dive into how investors and analysts have reacted as of late.

Medifast’s Q1 Loss Narrower Than Expected, Revenues Decline Y/YMedifast reported first-quarter 2026 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. However, both metrics saw year-over-year declines.

Medifast’s Quarterly Performance: Key InsightsMedifast posted a loss of 19 cents per share, narrower than the Zacks Consensus Estimate of a loss of 55 cents. However, the bottom line deteriorated from a loss of 7 cents per share reported in the year-ago quarter.

Net revenues declined 34.3% year over year to $76 million from $115.7 million, primarily due to a significant reduction in the number of active earning OPTAVIA coaches. Despite the decline, net revenues of the company surpassed the Zacks Consensus Estimate of $73.8 million, reflecting a 3.05% positive surprise.

The company continued to face pressure on its coach network, with active earning coaches declining 44.9% year over year to 14,000 from 25,400 in the same period last year. This drop has been attributed to challenges in client acquisition and the growing popularity of GLP-1 weight-loss medications.

Despite the decline in coach count, productivity improved meaningfully. The average revenue per active earning coach increased 19.2% year over year to $5,432 from $4,556 in the prior-year period.

MED’s Margin & Cost DetailsGross profit declined 38.6% year over year to $51.8 million from $84.2 million in the prior-year period, while gross margin contracted to 68.1% from 72.8% in the prior-year period, mainly due to the deleveraging of fixed costs.

Selling, general and administrative (SG&A) expenses decreased 35.6% year over year to $55.1 million, driven by lower coach compensation, lower volume and fewer active earning coaches with reduced marketing expenses. As a percentage of revenue, SG&A declined 150 basis points to 72.4%, primarily due to lower company-led marketing expenses and a one-time gain from the Maryland Distribution Center sale, partially offset by fixed-cost deleverage from lower sales volume.

The company reported an operating loss of $3.3 million, significantly wider than the loss of $1.3 million in the prior-year quarter.

Medifast’s Financial Health SnapshotAs of March 31, 2026, Medifast maintained a strong balance sheet position with $168.9 million in cash, cash equivalents, and investment securities and no debt.

Sneak Peek Into MED’s Future OutlookThe company expects revenues for the second quarter of 2026 between $60 million and $80 million, with loss per share projected to be between 50 cents and $1.00. Management anticipates continued coach productivity growth, both year over year and sequentially, during the second quarter.

For full-year 2026, revenue is expected to be in the range of $270 million to $300 million, while loss per share is projected to be between $1.55 and $2.75.
The company also expects profitability improvements to begin in the fourth quarter of 2026 following the launch of its new product line, with earnings improvement targeted to continue through 2027 and beyond.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -61.91% due to these changes.

VGM ScoresAt this time, Medifast has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Medifast has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerMedifast belongs to the Zacks Food - Miscellaneous industry. Another stock from the same industry, Sysco (SYY - Free Report) , has gained 1.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Sysco reported revenues of $20.52 billion in the last reported quarter, representing a year-over-year change of +4.7%. EPS of $0.94 for the same period compares with $0.96 a year ago.

Sysco is expected to post earnings of $1.51 per share for the current quarter, representing a year-over-year change of +2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

Sysco has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

The weight loss and weight management market was valued at $31.07 billion in 2025 A program can describe its results as clinically meaningful without specifying what was measured, how it was measured, or whether the measurement tool was capable of capturing the outcome being claimedDXA scanning distinguishes fat mass, lean mass, and bone mineral content with greater precision than BMI calculations and just weight number on a scaleStudy completion rates carry significant weight in how research findings should be interpreted BALTIMORE, MD, June 11, 2026 (GLOBE NEWSWIRE) -- Subscription health programs compete on outcome language as much as they compete on results. Terms like "clinically studied," "science-backed," "proven," and "evidence-based" appear across a wide spectrum of programs, from programs with published randomized controlled trials to those with ingredient-level pilot data. However, many of those terms are used without specifying what was measured, by whom, or with what tools. The difference between those two categories is substantial, and it only becomes visible when consumers know what to look for. OPTAVIA, a science-backed, coach-guided comprehensive metabolic health system, has built its research portfolio on peer-reviewed randomized controlled trials with findings verified through clinical gold-standard body composition measurement.

"The clinical evidence behind our program is substantial because it documents real outcomes in real participants," said Satya Jonnalagadda, PhD, MBA, RD, Vice President of Scientific & Clinical Affairs at OPTAVIA. "When people can find that research easily, it builds trust and credibility while also changing the conversation about what a science-backed program actually looks like."

KEY FACTS

98% lean mass retained by individuals on the OPTAVIA Optimal Weight 5 & 1 Plan® at 16 weeks, per a randomized controlled trial (Arterburn LM, et al., 2019)10 times more weight and 17 times more fat lost by coach-supported clients vs. the self-directed control group in the same study (Arterburn LM, et al., 2019) Claims Made in a $31 Billion Industry

According to Research and Markets, the weight loss and diet management market was valued at $31.07 billion in 2025 and is expected to surpass $45 billion by 2030. As the market expands, so do its claims. Weight loss programs operate in a market regulated by both the FTC and the FDA, but within that framework, marketing terms like 'clinically studied,' 'science-backed,' and 'evidence-based' do not carry standardized evidentiary definitions. A program can apply those terms to a full randomized controlled trial or to a single ingredient-level pilot study, and both uses may be technically permissible depending on how the claim is structured. The terms don't require specifics on what was measured, how it was measured, or if the measurement tool could capture the claimed outcome.

Scale weight is one of the most common reporting metrics for weight loss programs because it is easy to collect, but it does not distinguish between fat lost and muscle lost, and it does not capture what is happening to visceral fat stored around organs. Two programs can report identical pounds lost while producing meaningfully different effects on the body's metabolic composition. The difference only becomes visible when measurement goes deeper than a scale.

Dual-energy X-ray absorptiometry (DXA) scanning is the clinical gold standard for body composition assessment. This is because DXA scanning distinguishes fat mass, lean mass, and bone mineral content with greater precision than BMI calculations and just weight number on a scale. A 16-week randomized controlled OPTAVIA trial published in Obesity Science & Practice used DXA throughout to track body composition changes in 198 participants (Arterburn LM, et al., 2019). This methodological choice makes the reported outcomes verifiable in a way that self-reported data is not.

What a 92.3% Completion Rate Actually Signals

Study completion rates carry significant weight in how research findings should be interpreted. In weight loss research, high completion rates add credibility to published outcomes because they indicate the study reflects a broad range of participant experiences.

The trial published in Obesity Science & Practice reported a 92.3% completion rate across 198 enrolled participants over 16 weeks (Arterburn LM, et al., 2019). The published outcomes of this study included 98% lean mass retained and a 14% reduction in visceral fat. High completion rates like the one in this study indicate results reflect a broad range of participant experiences, not only those most likely to succeed.

Subscription health programs will continue to proliferate, and so will the outcome language that accompanies them. Trials with high completion rates, DXA-verified body composition outcomes, and correlation between coaching engagement and results represent a documentable standard of evidence, one that scale weight reporting and self-reported data cannot replicate. For consumers evaluating programs on those terms, the methodological record provides a reliable signal.

FAQ

Q: What does "clinically studied" actually mean on a weight loss program's marketing?

A: It can apply to anything from a full randomized controlled trial to a single ingredient tested in isolation. 

Q: How do I find a weight loss program with genuine peer-reviewed research behind it?

A: Look for programs that publish findings in peer-reviewed journals using randomized controlled trials, not observational data or ingredient-level studies. Check whether body composition outcomes are reported alongside total weight lost, what measurement tools were used, and what the study completion rate was. A Scientific Advisory Board composed of externally credentialed researchers is a further indicator of independent scientific oversight.

Q: Why does body composition measurement matter more than scale weight in weight loss research?

A: Scale weight does not distinguish between fat loss and lean mass loss, and it does not capture changes in visceral fat stored around organs. Programs that use DXA scanning throughout a study are measuring outcomes that scale weight alone can't verify.

Q: What does a high study completion rate indicate about a weight loss program's research?

A: High completion rates add credibility to published outcomes because they indicate results that reflect a broad range of participant experiences, not only those most likely to succeed regardless of the intervention. 

* OPTAVIA recommends that you contact your healthcare provider before starting and throughout your weight loss journey. Average weight loss on the Optimal Weight 5 & 1 Plan® is 12 pounds. Clients are in weight loss, on average, for 12 weeks.

* Arterburn LM, et al. Randomized controlled trial assessing two commercial weight loss programs in adults with overweight or obesity. Obesity Science & Practice. 2019.
https://onlinelibrary.wiley.com/doi/10.1002/osp4.312. In a clinical study, individuals on the OPTAVIA® 5 & 1 Plan® experienced a reduction of 14% visceral fat and 98% of lean mass was retained at 16 weeks. Those on the Optimal Weight 5&1 Plan® with support of an OPTAVIA® Coach successfully lost 10x more weight and 17x more fat than those who tried to lose weight on their own.

About Medifast
Medifast (NYSE: MED) is the health and wellness company known for its science-backed, coach-guided lifestyle system. Designed to address the challenges of metabolic dysfunction, the company's holistic approach integrates personalized plans, scientifically developed products and a framework for sustainable habit creation — all supported by a dedicated network of independent coaches.

Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction through targeted metabolic reset. Research demonstrates that the company's comprehensive system activates strong and targeted fat burning to enhance metabolic health and body composition by reducing visceral fat, preserving lean mass and protecting muscle integrity.

Backed by more than 40 years of clinical heritage, Medifast continues to advance its mission of Lifelong Transformation, Making a Healthy Lifestyle Second Nature®. For more information, visit www.MedifastInc.com.