Medifast (NYSE:MED) Posts Earnings Results

Medifast (NYSE:MED) announced its quarterly earnings results on Tuesday. The specialty retailer reported ($0.55) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.76) by $0.21, Zacks reports. The company had revenue of $75.10 million for the quarter, compared to analyst estimates of $71.40 million. Medifast had a net margin of 0.06% and a negative return on equity of 0.89%. Medifast updated its FY 2026 guidance to -2.750–1.55 EPS and its Q1 2026 guidance to -0.700–0.15 EPS.

Here are the key takeaways from Medifast’s conference call:

• CEO Dan Chard will step down as CEO effective June 1, 2026 and remain chairman, with President Nick Johnson expected to assume the CEO role — the company describes this as a planned, internal succession.
• Medifast is repositioning as a metabolic health company centered on its “Metabolic Synchronization” science, citing a 16-week study showing a 14% reduction in visceral fat and 98% preservation of lean mass, and plans a new product line targeted for launch in Q4 2026.
• Early operational signs include coach productivity turning positive (revenue per active earning coach +6% YoY, highest since Q3 2024) and increased coach-led meetings and referrals; management expects these trends to drive future client acquisition and coach growth.
• Near-term financials remain pressured: Q4 revenue fell 36.9% to $75.1M and active earning coaches declined 40.6% (to ~16,100), producing a Q4 net loss of $18.1M ($1.65 per share) that included a $12.1M non?cash deferred tax valuation allowance, though the company ended the year with $167.3M cash and no debt and announced >$30M of targeted cost savings.

Medifast Stock Down 1.7%

Shares of MED traded down $0.19 during mid-day trading on Wednesday, hitting $10.62. 121,353 shares of the company’s stock were exchanged, compared to its average volume of 219,577. The stock has a market cap of $116.66 million, a price-to-earnings ratio of 1,061.50 and a beta of 0.53. The firm has a fifty day moving average of $11.35 and a two-hundred day moving average of $12.32. Medifast has a twelve month low of $10.10 and a twelve month high of $15.95.

Analyst Ratings Changes

A number of equities analysts have commented on MED shares. Weiss Ratings restated a “sell (d)” rating on shares of Medifast in a research note on Thursday, January 22nd. Wall Street Zen raised Medifast from a “sell” rating to a “hold” rating in a report on Saturday, December 6th. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $16.50.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of MED. Charles Schwab Investment Management Inc. boosted its holdings in Medifast by 30.5% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 776,829 shares of the specialty retailer’s stock valued at $8,297,000 after purchasing an additional 181,618 shares during the period. Bank of America Corp DE raised its position in shares of Medifast by 14.2% in the third quarter. Bank of America Corp DE now owns 452,543 shares of the specialty retailer’s stock valued at $6,186,000 after buying an additional 56,174 shares in the last quarter. Lido Advisors LLC bought a new stake in shares of Medifast in the third quarter valued at approximately $4,521,000. Dimensional Fund Advisors LP grew its position in Medifast by 9.3% during the fourth quarter. Dimensional Fund Advisors LP now owns 326,240 shares of the specialty retailer’s stock worth $3,484,000 after buying an additional 27,871 shares in the last quarter. Finally, Steamboat Capital Partners LLC bought a new position in Medifast during the 4th quarter worth $2,952,000. 95.51% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Medifast

Here are the key news stories impacting Medifast this week:

• Positive Sentiment: Q4 revenue and adjusted EPS beat consensus — Medifast reported Q4 revenue of $75.1M and an adjusted EPS outcome that beat Street estimates (company-reported EPS of -$0.55 vs. consensus around -$0.76), giving a near-term operational data point that outperformed expectations. Medifast Announces Fourth Quarter and Full Year 2025 Financial Results
• Neutral Sentiment: Company highlights strategic reset and leadership change — management outlined a focus on metabolic-health positioning and a CEO transition while setting a 2026 revenue target of $270M–$300M; this signals strategic intent but introduces execution risk until the new leadership proves results. Medifast outlines $270M–$300M 2026 revenue target as CEO transition and metabolic health focus drive execution
• Negative Sentiment: Guidance materially below Street expectations — Medifast cut Q1 2026 EPS guidance to -$0.70 to -$0.15 (consensus ~ -$0.26) and FY 2026 EPS to -$2.75 to -$1.55 with revenue guidance $270M–$300M versus consensus near $355M, a clear negative for near- and full-year investor expectations. Medifast earnings / guidance details
• Negative Sentiment: GAAP results show a widening net loss and margin pressure — filings/coverage show a larger GAAP net loss (reported ~$18.1M for Q4) and operating profit deterioration; some outlets report a larger diluted EPS impact after one-time items, underscoring near-term profitability challenges. Medifast (MED) Releases Q4 2025 Earnings: Revenue Slight Beat but Deepening Net Loss and EPS Miss
• Negative Sentiment: Institutional positioning and cash trends add caution — recent filings show mixed hedge-fund moves (large blocks trimmed by several institutions) and cash burn/operating use of cash in the quarter, which investors may view as an additional headwind while the business reshapes. QuiverQuant institutional activity and financials

About Medifast

Medifast, Inc (NYSE: MED) is a health and wellness company specializing in clinically supported weight-loss, weight-management and healthy living products and services. Through its OPTAVIA brand, the company offers a range of meal replacement products, snacks, supplements and coaching programs designed to support metabolic health and sustainable lifestyle changes. Medifast markets its products directly to consumers via a network of independent distributors—known as OPTAVIA Coaches—who provide personalized guidance and support throughout the client’s weight?loss journey.

Founded in 1980 by William Vitale and headquartered in Baltimore, Maryland, Medifast has grown into a nationally recognized provider of nutrition and weight?management solutions.