Medifast, Inc. MED 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 Insights
The 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.
MEDIFAST INC Price, Consensus and EPS Surprise
MEDIFAST INC price-consensus-eps-surprise-chart | MEDIFAST INC Quote
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 Performance
Gross 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.
