Medifast (NYSE:MED) reported third-quarter 2026 revenue of $72 million, down 19.4% from a year earlier, as the company continued to face a sharp decline in its active earning coach base. Management said revenue was within its guidance range and marked a fourth consecutive quarter in which sales stabilized around the mid-$70 million range.
The company ended the quarter with approximately 10,200 active earning coaches, compared with 19,500 in the third quarter of 2025. Chief Financial Officer Jim Maloney said the decline reflects, in part, rapid adoption of GLP-1 medications across the traditional weight-loss category.
Despite the lower coach count, Medifast said coach productivity continued to improve. Average revenue per active earning coach rose 54.1% year over year to $7,064, while CEO Nick Johnson said productivity improved 54% in the third quarter and increased an estimated 8% sequentially. The company expects active earning coach counts to continue declining through year-end, while anticipating further productivity gains.
Trilivy Rollout Targets Metabolic Health Market
Johnson said the quarter centered on execution of Medifast’s “3.0” strategy, including the rollout of its Trilivy brand, Reset product line, revised coach compensation plan and unified coach training platform.
The company is positioning Trilivy as a metabolic health platform rather than a traditional weight-loss offering. Its three-phase system includes Reset, Refine and Renew, which are intended to support clients from initial weight loss through longer-term metabolic health and body-composition goals.
Medifast said Reset Fuelings became available to coaches and clients in August, with all stock-keeping units expected to convert to the Reset line by the end of the fourth quarter. The company also introduced its MetaVantage ingredient platform, which it said is designed to support fat metabolism, waist-circumference reduction and healthy insulin levels.
Johnson cited an independent clinical study in which the Reset 5 & 1 Plan reduced visceral fat by 14% while retaining 98% of lean mass over 16 weeks. He said 95% of active earning coaches were already offering Trilivy Reset products to clients in September.
Management said the company’s updated coach compensation structure emphasizes the development of high-producing Executive Directors. Johnson said the plan was designed to improve the quality and productivity of the coach network, even as the overall number of active coaches remains under pressure.
GLP-1 Use Reshapes Client Conversations
During the question-and-answer session, Johnson said GLP-1 medications have become “ubiquitous” in the marketplace and that Medifast coaches are regularly working with clients who use the medications.
He said conversations have shifted from the amount of weight a client loses to the quality of weight lost, including preserving lean mass and skeletal muscle. Johnson said Medifast views GLP-1 medications as a potential catalyst for consumers to begin a health journey, while maintaining that medications alone may not support lasting lifestyle changes.
Maloney said Medifast has survey data on the percentage of clients using GLP-1 medications but does not centrally track GLP-1 use for every customer or by individual order. As a result, he said the company could not provide specific spending comparisons between clients using GLP-1s and those solely using Medifast’s program.
Catalyst Restructuring Drives Charges, Cost Reduction Efforts
Medifast recorded a $19.4 million operating loss in the third quarter, compared with a $4.1 million operating loss a year earlier. The result included charges tied to Project Catalyst, a restructuring program involving facility closures, retirement of internal-use software and other cost-realignment actions.
SG&A expense increased 4.8% to $69.4 million, driven primarily by $13.8 million in Catalyst restructuring charges. Those expenses were partly offset by a $6.6 million reduction in coach compensation and a $1.4 million decline in IT consulting spending.
On a non-GAAP basis excluding Catalyst-related expenses, Medifast’s operating loss improved 3.2% to $4 million. Adjusted EBITDA, excluding stock-based compensation and Catalyst charges, was $0.4 million, while adjusted EBITDA excluding interest income was $1.9 million.
The company reported a net loss of $17.5 million, or $1.57 per diluted share, compared with a loss of $2.3 million, or $0.21 per share, in the prior-year quarter. Excluding Catalyst-related expenses, the adjusted net loss was $2.1 million, or $0.19 per diluted share.
Maloney said Medifast continues to seek efficiencies through process improvements and artificial intelligence applications. He said management expects AI and operational changes to reduce the need to add certain fixed costs if revenue returns to growth.
Fourth-Quarter Profitability Target Remains
Medifast ended September with $172.5 million in cash equivalents and investments and no debt. Johnson said the company’s balance sheet and leaner cost structure provide a foundation for investments in growth initiatives while pursuing profitability.
For the fourth quarter, Medifast forecast revenue of $55 million to $75 million and earnings per share between breakeven and $0.25. It expects adjusted EBITDA excluding interest income of $2 million to $6 million.
For full-year 2026, the company forecast revenue of $280 million to $300 million and a loss of $1.80 to $2.05 per share. On a non-GAAP basis, it expects a loss of $0.45 to $0.70 per share and adjusted EBITDA excluding interest income of $10 million to $14 million.
Johnson said Medifast remains focused on achieving profitability in the fourth quarter, while acknowledging that rebuilding the coach count remains a key challenge.
About Medifast (NYSE:MED)
Medifast, Inc (NYSE: MED) is a health and wellness company that provides weight-management products, programs and support services. Its primary brand, OPTAVIA, offers meal-replacement products, including shakes, bars, soups and other portion-controlled foods, along with structured plans intended to help customers establish healthier eating and lifestyle habits.
The company distributes its products primarily through an independent network of coaches who provide guidance, accountability and support to clients.
