Medifast Posts $1.57 Per-Share Q3 Loss as Coach Attrition Deepens
MED sits 29% above its 52-week low of $9.22.
Summary
Medifast reported a third-quarter net loss of $17.5M on revenue of $72M, with a per-share loss of $1.57, extending the deterioration seen in Q2, when revenue fell 27.6% to $76.4M and the company swung to a $3.1M net loss as active coaches dropped 48.7% year over year. The company guided fourth-quarter EPS to $0.00–$0.25. The per-share loss lands on a company whose entire market value is roughly $133M, so a loss of this size is large relative to the equity base and points to continued cash burn rather than a one-off charge. The coach-driven model is still shrinking, and the Q2 filing already flagged ongoing operational headwinds despite a strong cash position. Director Kiai Parsa has been buying stock aggressively since August, including $842,699 in open-market purchases on August 19–20 and another $529,157 on August 26, lifting Steamboat Capital's disclosed stake to 7.1% — insider conviction that now runs straight into a weak quarter.
At the time of this announcement, MED was trading at $11.87 on NYSE in the Trade & Services sector, with a market capitalization of approximately $132.7M. The 52-week trading range was $9.22 to $13.45. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.