Medifast, Inc. reported financial results for the third quarter ended September 30, 2026, revealing a significant decline in revenue driven by a sharp decrease in its network of independent earning coaches. The company reported total revenue of $72.0 million for the quarter, a decrease of 19.4% compared to the $89.4 million generated in the same period of the prior year.
A primary factor in the revenue decline was a 47.7% reduction in the number of active earning coaches, which fell to 10,200 from 19,500 in the third quarter of 2025. The company attributed this drop to continued pressure in client acquisition and broader operating challenges, specifically noting the rapid adoption of GLP-1 medications for weight loss as a competitive factor.
Despite the drop in coach count, the company noted that coach productivity improved year-over-year for the fourth consecutive quarter. The average revenue per active earning coach increased 54.1% to $7,064, compared to $4,585 in the prior year.
Medifast also executed on a cost savings initiative named “Catalyst” during the quarter. This restructuring included a Catalyst Restructuring aimed at simplifying the business by reducing the size and geographic footprint of the distribution network and streamlining internal software. The company noted that it expects the number of active earning coaches to continue to decline through the end of 2026.
On the income statement, the company reported a net loss of $17.5 million, or $1.57 per share. Non-GAAP adjusted net loss was $2.1 million, or $0.19 per share. The company’s balance sheet remains strong, with cash, cash equivalents, and investment securities totaling $172.5 million and no debt as of September 30, 2026.
Looking ahead, Medifast provided guidance for the fourth quarter of 2026, projecting revenue between $55 million and $75 million. For the full year 2026, the company expects revenue to range from $280 million to $300 million and a loss per share between $1.80 and $2.05 on a GAAP basis.
