Medifast’s fourth quarter results outperformed Wall Street’s revenue expectations, which the market responded to positively. Management attributed this to early signs of success from its transition to a metabolic health-focused business model and improvements in coach productivity. CEO Dan Chard highlighted that this was the first quarter since mid-2022 where coach productivity turned positive year-over-year, up 6%. Chard noted, “These early performance metrics are yet to have appreciable impact on our revenue, but they are nonetheless early signs of the improving performance of our coaches.”
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Medifast (MED) Q4 CY2025 Highlights:
- Revenue: $75.1 million vs analyst estimates of $71.4 million (36.9% year-on-year decline, 5.2% beat)
- EPS (GAAP): -$1.65 vs analyst estimates of -$0.82 (significant miss)
- Adjusted EBITDA: -$4.77 million (-6.3% margin, 129% year-on-year decline)
- Revenue Guidance for Q1 CY2026 is $72.5 million at the midpoint, below analyst estimates of $85.5 million
- EPS (GAAP) guidance for the upcoming financial year 2026 is -$2.15 at the midpoint, missing analyst estimates by 33.5%
- Operating Margin: -10.4%, down from 11.1% in the same quarter last year
- Market Capitalization: $109.3 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Medifast’s Q4 Earnings Call
- Jim Salera (Stephens Inc.) asked about the sustainability of coach productivity improvements and the changing composition of both coaches and clients. CEO Dan Chard explained that a new narrative focused on metabolic health is attracting a broader client base and expects the trend to continue with future product launches.
- Jim Salera (Stephens Inc.) inquired whether revenue could stabilize or grow by the end of the year. President Nick Johnson clarified that while full-year guidance reflects cautious optimism, a stabilization of top-line trends is anticipated as the new strategy gains traction.
- Jim Salera (Stephens Inc.) sought insights on how new products will serve clients who have used GLP-1 medications. Chard and Johnson stated that the new offerings will address regaining weight and improving body composition, areas of concern for this segment.
- Jim Salera (Stephens Inc.) questioned the impact of cost reductions and restructuring. Chard highlighted that approximately $30 million in annualized savings are expected, improving operational resilience and freeing resources for strategic priorities.
- No additional analyst questions on the call.
Catalysts in Upcoming Quarters
Looking ahead, StockStory analysts will focus on (1) the launch and uptake of Medifast’s new metabolic health product line, (2) sustained improvements in coach productivity and the mix of newer, more engaged coaches, and (3) ongoing progress in cost reduction and operational restructuring. The successful execution of these initiatives will be key to assessing whether Medifast can return to growth and profitability.
Medifast currently trades at $10.45, down from $10.80 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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