Medifast Q2 Revenue Drops 28%, Loss Deepens; Full-Year Loss Guidance Issued

summarizeSummary

Medifast posted a 27.6% revenue decline and a net loss of $3.1 million for Q2 2026, with active coaches down 48.7%. The company guided to a full-year loss of up to $1.75 per share but expects a return to profitability in Q4.

check_boxKey Events · Earnings and Guidance · MED

• Revenue Decline Accelerates

  Revenue in Q2 fell 27.6% to $76.4 million, driven by a 48.7% drop in active earning coaches to 11,700, as GLP-1 medications continue to disrupt the weight-loss market.

• Swings to Net Loss

  The company swung to a net loss of $3.1 million ($0.28/share) from net income of $2.5 million ($0.22/share) in Q2 2025, with gross margin contracting to 69.9% from 72.6%.

• Full-Year Loss Guidance

  For the full year 2026, revenue is expected to be $270M–$300M and loss per share $0.25–$1.75, with Q3 revenue guided to $60M–$80M and loss per share of $0.15–$0.65.

• CEO Sees Q4 Profitability

  CEO Nick Johnson stated the company is on track to return to profitability in Q4 2026, citing the new Trilivy brand, product launches, and cost-savings initiatives.

auto_awesomeAnalysis · MED · Manufacturing

The second quarter underscores a deepening contraction for Medifast: revenue fell 27.6% to $76.4 million, and the company swung to a net loss of $3.1 million from a $2.5 million profit a year ago. The active coach count nearly halved, highlighting the structural headwind from GLP-1 weight-loss drugs. While the balance sheet remains robust with $169.8 million in cash and no debt, full-year loss guidance of up to $1.75 per share signals that a turnaround is not yet imminent. The CEO's expectation of returning to profitability in Q4 is a critical milestone to monitor.