Medifast Q1 Revenue Plunges 34% as Coach Count Drops 45%, Projects Continued Losses
Summary
Medifast reported a substantial 34% year-over-year decline in Q1 revenue to $76.04 million, resulting in a net loss of $2.1 million. This significant downturn was primarily driven by a 45% decrease in active earning coaches, reflecting ongoing client acquisition challenges and the competitive pressure from GLP-1 weight loss medications, a trend first highlighted in the company's 2025 annual report. The company provided a negative outlook, forecasting continued coach declines and net losses throughout 2026, with Q2 revenue expected between $60 million and $80 million and full-year revenue between $270 million and $300 million. This confirms the severe operational headwinds and persistent profitability issues, indicating that the company's business model continues to struggle against market shifts. Traders should monitor for any strategic adjustments or signs of stabilization in the coach network.
At the time of this announcement, MED was trading at $10.63 on NYSE in the Trade & Services sector, with a market capitalization of approximately $117.3M. The 52-week trading range was $9.22 to $15.46. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.