Medifast Q2 revenue falls 28% as active coaches drop

Overview

• US health and wellness firm's Q2 revenue fell 28% yr/yr due to fewer active coaches

• Company posted Q2 net loss, reversing profit from prior year

• Revenue per active coach rose 41% yr/yr as company prioritized productive coaches

Outlook

• Medifast expects Q3 2026 revenue between $60 mln and $80 mln

• Company sees Q3 2026 loss per share between $0.15 and $0.65

• Medifast expects full-year 2026 revenue between $270 mln and $300 mln

• Company expects full-year 2026 loss per share between $0.25 and $1.75

• Medifast expects number of active earning coaches to continue to decline in 2026

Result Drivers

• FEWER ACTIVE COACHES - Co attributed revenue decline to a drop in number of active earning coaches, citing continued pressure with client acquisition and broader challenges including rapid adoption of GLP-1 medications

• HIGHER COACH PRODUCTIVITY - Revenue per active earning coach rose 41% yr/yr, driven by greater alignment of the coach network and prioritizing productive coaches

• NEW INITIATIVES - Launch of Trilivy Reset product line and Medifast Metabolic Health Institute cited as steps in transformation strategy

Company press release: ID:nBw1bxzmFa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy."

• Wall Street's median 12-month price target for Medifast Inc is $12.00, about 22.1% above its July 31 closing price of $9.83

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)