Medifast Q2 Revenue Drops 28%, Loss Widens as Coach Exodus Continues
MED sits 39% above its 52-week low of $9.22.
Summary
Medifast's Q2 revenue fell 27.6% to $76.4M, swinging to a $3.1M net loss as active coaches dropped 48.7% YoY. The company has a strong cash position but faces ongoing operational headwinds.
Key Events · Earnings and Guidance · MED
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Revenue Decline Accelerates
Q2 revenue fell 27.6% YoY to $76.4M, driven by a 48.7% drop in active earning coaches to 11,700. The six-month revenue decline was 31.1%.
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Net Loss vs. Prior-Year Profit
Net loss of $3.1M ($0.28/share) compared to net income of $2.5M ($0.22/share) in Q2 2025. Operating loss widened to $4.3M from $1.1M.
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Strong Balance Sheet, No Debt
Cash, equivalents, and investments totaled $169.8M at quarter-end, up from $167.3M at year-end 2025. The company has no long-term debt.
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Chairman Adopts 10b5-1 Selling Plan
Chairman Daniel R. Chard adopted a Rule 10b5-1 plan on May 8, 2026, to sell up to 19,089 shares beginning September 28, 2026.
Analysis · MED · Manufacturing
Medifast's Q2 results show the business is still shrinking fast. Revenue fell 27.6% to $76.4 million, and the company swung to a $3.1 million net loss from a $2.5 million profit a year ago. The active coach count nearly halved to 11,700, the main driver of the sales decline. While the balance sheet remains strong with $169.8 million in cash and investments and no debt, the operating losses are eating into equity. The chairman also adopted a 10b5-1 plan to sell shares, adding a small overhang. The rebranding to Trilivy and new compensation plan are attempts to stabilize the business, but the trend is still negative.
At the time of this filing, MED was trading at $12.80 on NYSE in the Manufacturing sector, with a market capitalization of approximately $142.3M. The 52-week trading range was $9.22 to $15.11. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.