BALTIMORE – Medifast (NYSE: MED), the health and wellness company behind the science-backed metabolic health system Trilivy, today reported results for the second quarter ended June 30, 2026.
Nick Johnson, Chief Executive Officer, said:
“In the second quarter, we continued to see signs of a turnaround in our business. Revenue remained sequentially stable, supported by steady growth in coach productivity and positive coach leadership trends. Combined with the energy and engagement at our recent National Coach Convention, these leading indicators have historically pointed to future growth.
“We are building on that progress by giving coaches new tools, including our new brand Trilivy, new Reset Fuelings, and the new Medifast Metabolic Health Institute. Each step supports our 3.0 strategy. Backed by Metabolic Synchronization science and our coach-led model, we believe we are on track to return to profitability in the fourth quarter and have built a foundation for consistent, long-term growth.”
Revenue fell 27.6% to $76.4 million from $105.6 million in the second quarter of 2025. The decline was driven mainly by fewer active earning coaches. Active earning coaches dropped 48.7% to 11,700 from 22,800 a year earlier. The decrease reflects ongoing challenges in client acquisition, including the rapid adoption of GLP-1 medications for weight loss. The company expects the number of active earning coaches to continue declining in 2026 as it transforms its focus toward metabolic health.
Average revenue per active earning coach rose 41.0% to $6,529 from $4,630. The increase came from better alignment of the coach network, a focus on productive coaches, and more efficient network structures.
Gross profit decreased 30.3% to $53.4 million from $76.6 million. The drop resulted from lower sales volumes. Gross profit margin was 69.9%, down from 72.6%, mainly due to reduced leverage on fixed costs.
Selling, general, and administrative expenses (SG&A) fell 25.7% to $57.7 million from $77.7 million. The reduction included a $12.6 million drop in coach compensation, a $2.3 million decrease in employee salaries and benefits, and a $2.0 million cut in company-led marketing costs. As a percentage of revenue, SG&A rose 200 basis points to 75.6% from 73.6%. The increase was driven by lost leverage on fixed costs and costs related to the Trilivy Reset product launch, partially offset by lower marketing expenses.
The company launched its Catalyst program in the second quarter. Most of the related cost-saving actions are expected in the third quarter. The program targets facility rationalization, AI-driven efficiencies, and other improvements.
Loss from operations was $4.3 million, or 5.7% of revenue, compared with $1.1 million, or 1.0% of revenue, in the prior-year period.
Other income declined $2.6 million to $1.3 million from $3.9 million. The decrease mainly reflected prior-year gains on the company’s investment in LifeMD, Inc., which was sold during the second quarter of 2025.
Net loss for the second quarter of 2026 was $3.1 million, or $0.28 per share, based on approximately 11.1 million shares outstanding. This compared with net income of $2.5 million, or $0.22 per share, in the same period of 2025.
During the second quarter, Medifast amended the lease for its Havre de Grace distribution facility to reduce square footage. The company remeasured its related right-of-use asset and lease liability by $12.5 million and $12.7 million, respectively. This followed the first-quarter commencement of a new headquarters lease, which added an initial right-of-use asset and lease liability of $6.8 million.
The balance sheet remained strong. Cash, cash equivalents, and investment securities totaled $169.8 million with no debt as of June 30, 2026. This compared with $167.3 million and no debt at December 31, 2025. Working capital stood at $160.5 million, up slightly from $158.7 million at year-end 2025.
Medifast(NYSE: MED) Â is a metabolic health and wellness company known for its science-backed Trilivy system. The holistic approach combines science-backed plans and products, personal one-to-one coaching, community support, and behavioral science to build healthy habits.
The company introduced Metabolic Synchronization, a science focused on addressing metabolic dysfunction through fat loss, lean mass preservation, and long-term health. Trilivy’s three-part system is designed to help people reset their metabolism, refine their health, and renew their lives.
With more than 45 years of clinical heritage, Medifast continues its mission of lifelong transformation through metabolic science and human connection. More information is available at Trilivyhealth.com and Medifastinc.com.
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