Medifast (NYSE:MED) Issues Earnings Results

Medifast (NYSE:MED) released its quarterly earnings results on Monday. The specialty retailer reported ($0.19) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.55) by $0.36, FiscalAI reports. Medifast had a negative return on equity of 4.27% and a negative net margin of 4.84%.The business had revenue of $76.04 million for the quarter, compared to the consensus estimate of $69.20 million. Medifast updated its FY 2026 guidance to -2.750–1.550 EPS and its Q2 2026 guidance to -1.000–0.500 EPS.

Here are the key takeaways from Medifast’s conference call:

• Coach productivity rose meaningfully, up ~19% year‑over‑year and 16% sequentially, driven by more clients per coach and stronger referral activity — management framed this as an early leading indicator of future growth.
• Active earning coaches fell ~44.9% year‑over‑year to ~14,000, contributing to a 34.3% decline in Q1 revenue to $76.0M and a net loss of $2.1M, underscoring near‑term top‑line pressure.
• The company has completed a strategic repositioning toward “metabolic health” anchored by its Metabolic Synchronization science (e.g., 14% visceral fat reduction and 98% lean mass retention in 16 weeks) and plans a new proprietary metabolic product system to be launched to coaches later in 2026.
• Management expects >$30M in cost savings from a realigned cost structure, reconfirmed full‑year 2026 guidance ($270M–$300M revenue) and said improvements toward re‑attaining profitability should begin in Q4 2026 and continue into 2027.
• Financial position is solid with ~$169M in cash and investments, no debt and healthy working capital, but near‑term guidance remains wide (Q2 $60M–$80M) and company still expects quarterly losses before the planned Q4 inflection.

Medifast Stock Performance

Medifast stock opened at $10.58 on Tuesday. The stock’s 50 day simple moving average is $10.41 and its two-hundred day simple moving average is $11.10. The stock has a market cap of $116.74 million, a price-to-earnings ratio of -6.19 and a beta of 0.55. Medifast has a fifty-two week low of $9.22 and a fifty-two week high of $15.46.

More Medifast News

Here are the key news stories impacting Medifast this week:

• Positive Sentiment: Q1 beat expectations — Medifast reported a Q1 loss of $0.19/sharp but outperformed consensus (loss of $0.55) and posted revenue of $76.0M versus estimates of ~$69.2M, showing better top-line resilience. Business Wire: Q1 Results
• Positive Sentiment: Strong liquidity and balance sheet — company holds $168.9M in cash, cash equivalents and investment securities with no debt, giving it runway to execute turnaround plans. Business Wire: Cash/Balance Sheet
• Positive Sentiment: Productivity improvements called out on the earnings call — management reported rising productivity per coach despite weaker volumes, a signal that operational fixes may be working. TipRanks: Earnings Call Highlights
• Neutral Sentiment: Revenue guidance range overlaps consensus — Q2 revenue guidance of $60M–$80M and FY revenue guidance of $270M–$300M both span the Street view, so upside or downside will depend on where results land inside the ranges. MarketBeat: Guidance Details
• Neutral Sentiment: Key operating metrics — 14,000 independent active earning coaches and revenue per active earning coach of $5,432 were disclosed; these are useful comparables going forward but need trend context. Business Wire: Operating Metrics
• Negative Sentiment: Guidance missed on earnings — Q2 EPS guidance of -$1.00 to -$0.50 and FY EPS guidance of -$2.75 to -$1.55 both sit below analyst expectations (Q2 consensus ~ -$0.43; FY consensus ~ -$1.98), implying materially worse profitability ahead. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Net loss and negative margins — Q1 net loss was $2.1M (EPS -$0.19), with a negative net margin and return on equity; continued losses and a wide negative EPS outlook increase execution risk. Zacks: Q1 Loss & Revenue
• Negative Sentiment: Management tone cautious — the earnings call emphasized a conservative outlook and execution challenges (sharp declines in volumes/engagement), which likely amplified the negative market reaction. TipRanks: Call Tone

Insiders Place Their Bets

In other news, CEO Daniel R. Chard acquired 17,678 shares of the business’s stock in a transaction on Friday, March 20th. The shares were acquired at an average cost of $10.11 per share, with a total value of $178,724.58. Following the transaction, the chief executive officer owned 17,678 shares in the company, valued at $178,724.58. The trade was a ∞ increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 3.70% of the company’s stock.

Institutional Trading of Medifast

Large investors have recently bought and sold shares of the company. BNP Paribas Financial Markets boosted its position in Medifast by 103.1% during the 3rd quarter. BNP Paribas Financial Markets now owns 2,338 shares of the specialty retailer’s stock valued at $32,000 after acquiring an additional 1,187 shares in the last quarter. Quantbot Technologies LP bought a new stake in Medifast during the 3rd quarter valued at approximately $37,000. Intesa Sanpaolo Wealth Management bought a new stake in Medifast during the 4th quarter valued at approximately $47,000. State of Wyoming bought a new stake in Medifast during the 4th quarter valued at approximately $59,000. Finally, Strs Ohio bought a new stake in Medifast during the 1st quarter valued at approximately $78,000. 95.51% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Stephens decreased their price objective on Medifast from $15.00 to $12.00 and set an “equal weight” rating on the stock in a report on Thursday, February 19th. Weiss Ratings reiterated a “sell (d)” rating on shares of Medifast in a report on Thursday, January 22nd. Finally, Wall Street Zen upgraded Medifast from a “sell” rating to a “hold” rating in a report on Saturday, March 21st. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and an average price target of $12.00.

Medifast Company Profile

Medifast, Inc (NYSE: MED) is a health and wellness company specializing in clinically supported weight-loss, weight-management and healthy living products and services. Through its OPTAVIA brand, the company offers a range of meal replacement products, snacks, supplements and coaching programs designed to support metabolic health and sustainable lifestyle changes. Medifast markets its products directly to consumers via a network of independent distributors—known as OPTAVIA Coaches—who provide personalized guidance and support throughout the client’s weight‐loss journey.

Founded in 1980 by William Vitale and headquartered in Baltimore, Maryland, Medifast has grown into a nationally recognized provider of nutrition and weight‐management solutions.