Medifast Q3 2026: Loss Smaller Than Expected, Profitability Guided for Q4
As seen on the 24/7 Wall St. homepage on October 26, 2026.
Management now guides to a return to profitability in the fourth quarter, with EPS of $0.00 to $0.25, after a quarterly loss that beat expectations. Revenue per active earning coach rose 54.1%, the fourth straight quarterly gain, even as the coach count fell under GLP-1 pressure.
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Medifast's third-quarter adjusted loss of $0.19 per share came in better than expectations, and revenue also beat, but the business is still contracting sharply as active earning coaches fell 47.7% from a year earlier.
Average revenue per active earning coach rose 54.1%, the fourth consecutive quarter of year-over-year improvement on a metric management calls a leading indicator of eventual coach count and revenue growth, which is why investors are treating the streak as meaningful even as the headline coach number keeps falling.
GAAP results were far worse than the adjusted figures, with $15.4 million in Catalyst Restructuring charges covering distribution network realignment, software changes, and workforce reductions. Non-GAAP adjusted gross margin still expanded year-over-year, a sign the underlying cost structure is improving even as the top line shrinks.
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Fourth-quarter guidance of $0.00 to $0.25 in EPS would mark a return to profitability after several quarters of losses. Active earning coaches are expected to keep declining through year-end, so that profit target rests on continued productivity gains and the cost savings already executed under the Catalyst program.
The company has now rolled out its Trilivy metabolic health system, the Reset Fuelings product line, a new compensation plan, and its Coach Hub platform, completing what CEO Nick Johnson called the major pieces of its 3.0 strategy. Whether those launches translate into coach recruitment and client growth beyond year-end is the central question hanging over the stock heading into the fourth quarter.
Mentioned: MED