10-Q · May 4, 2026
Medifast reported a substantial decline in revenue and margins for Q1 2026, with revenue falling 34.3% year-over-year to $76.0 million. The company also experienced a larger net loss of $2.1 million, translating to an…
Earnings analysis · 10-Q
MED earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Medifast's Q2 revenue was $76.4 million, down 27.6% year over year, and diluted EPS moved to a $0.28 loss from $0.22 of earnings. Revenue was approximately flat sequentially versus Q1, and gross margin improved…
Read full summary
Medifast's Q2 revenue was $76.4 million, down 27.6% year over year, and diluted EPS moved to a $0.28 loss from $0.22 of earnings. Revenue was approximately flat sequentially versus Q1, and gross margin improved sequentially to 69.9%, but year-over-year margin deleverage drove a $4.3 million operating loss. The balance sheet remains well funded with $169.8 million of cash, cash equivalents and investment securities, yet management expects the coach count—which fell from 22,800 to 11,700 year over year—to continue declining in 2026.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.28
What stood out
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Sequential sales and gross margin stabilized
Sequential revenue was broadly stable at $76.4 million in Q2 versus approximately $76.0 million in Q1 2026, while gross margin improved 180 basis points sequentially to 69.9% from 68.1%.
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Coach productivity rose 41.0%
Average revenue per active earning coach rose 41.0% to $6,529 from $4,630 a year earlier, despite the active coach base declining to 11,700.
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Liquidity remains substantial
Cash, cash equivalents and investment securities increased $2.5 million to $169.8 million at June 30, 2026, and working capital increased $1.8 million to $160.5 million.
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Operating cash flow turned positive
Six-month operating cash flow improved to $2.0 million from less than $0.1 million in the prior-year period, aided by a $14.9 million accounts-payable-and-accruals benefit.
What to watch
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Coach contraction continues to pressure revenue
Q2 revenue fell $29.2 million, or 27.6%, year over year to $76.4 million as active earning coaches declined to 11,700 from 22,800. Management expects the number of active earning coaches to continue to decline during 2026.
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Volume deleverage widened operating loss
Gross margin fell 270 basis points year over year to 69.9%, and operating margin deteriorated to negative 5.7% from negative 1.0%, reflecting lost fixed-cost leverage as volume declined.
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Profitability reversed to a net loss
The company reported a $3.1 million net loss, or $0.28 per diluted share, versus $2.5 million of net income, or $0.22 per diluted share, a year earlier; Q2 operating loss increased to $4.3 million from $1.1 million.
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GLP-1 and macro pressures remain headwinds
Management identifies GLP-1 adoption, inflation, commodity costs, food costs and potential tariffs as demand and cost risks. It notes approximately one-third of GLP-1 users discontinue after six months and up to 74% stop after one year, but GLP-1s remain a major competitive threat to the traditional client base.
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No formal risk-factor update; execution remains key
The filing states there were no material changes to risk factors from the 2025 Form 10-K. However, six-month cash used in investing was $18.4 million, principally reflecting a $34.1 million net increase in investments, while new growth initiatives could affect liquidity in future periods.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management states that active earning coaches are expected to continue declining in 2026, while updated Trilivy products are expected to be fully brought to market in the current quarter.
Earlier filings 4
10-K · February 17, 2026
Medifast reported a difficult 2025 with revenue down 36.0% to $385.8M and a net loss of $18.7M (GAAP diluted EPS of $(1.70)), driven primarily by a 40.6% decline in active earning coaches to 16,100. Management is…
10-Q · August 4, 2025
Medifast reported Q2 revenue of $105,555,000 and GAAP diluted EPS of $0.22, marking a sharp improvement in profitability versus the prior-year quarter loss of $(0.75) per diluted share. Revenue remains materially below…
10-Q · April 28, 2025
Medifast reported Q1 revenue of $115,728,000 (Q1 2024: $174,739,000), a year-over-year decline with gross margin largely stable at 72.8% but operating margin slipping to -1.1%. The company posted a net loss of $772,000…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.