Wellness company Medifast (NYSE: MED) reported Q3 2026 results beating Wall Street’s revenue expectations, but revenue fell by 19.4% year on year to $72.05 million. Guidance for next quarter’s revenue was better than expected at $65 million at the midpoint, 1.4% above analysts’ consensus estimates. Its GAAP loss of $1.57 per share was significantly below analysts’ consensus estimates.
For more on Medifast, read the full research report for free.
Medifast (MED) Q3 2026 highlights:
- Revenue $72.05 million vs analysts' consensus estimates of $71.3 million (19.4% year-on-year decline, 1% beat)
- EPS (GAAP) -$1.57 vs analysts' consensus estimates of -$0.35 (significant miss)
- Revenue guidance $65 million at the midpoint for Q4 2026, above analysts' consensus estimates of $64.1 million
- GAAP EPS guidance $0.13 at the midpoint for Q4 2026, beating analysts' consensus estimates by 204%
- EBITDA guidance $12 million at the midpoint for the full year, above analysts' consensus estimates of $4.4 million
- Operating margin -26.9%, down from -4.6% in the same quarter last year
- Market capitalization $122.7 million
“With our launches complete and most of our Catalyst cost program executed, our focus has shifted to delivering returns on our foundational work. Coaches are embracing the new brand, our new compensation plan, our comprehensive metabolic health system--supported by the new Reset Fueling product line, and their conversations with clients are increasingly focused on metabolic health markers like visceral fat, lean mass and protecting and building healthy muscle. With enthusiasm high in the Field, we believe we are on track to deliver profitability in the fourth quarter.”
Revenue growth
A company’s long-term revenue performance can indicate its overall quality. Even a poor business can perform well for one or two quarters, but a high-quality one grows for years.
With $299.6 million in revenue over the past 12 months, Medifast is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers.
Medifast’s demand was weak over the last three years. Its revenue fell by 37.4% annually, a poor track record.
This quarter, Medifast’s revenue fell by 19.4% year on year to $72.05 million but beat Wall Street’s consensus estimates by 1%. Company management is currently guiding for a 13.4% year-on-year decline in revenue next quarter.
Looking further ahead, sell-side analysts expect revenue to decline by 8.4% over the next 12 months according to S&P. That outlook is discouraging for a company already struggling with demand.
Free cash flow
Free cash flow is a key measure of financial performance because companies need cash, not accounting profits, to pay their bills.
Medifast broke even from a free cash flow perspective over the last two years, giving the company limited opportunities to return capital to shareholders.
Key takeaways from Medifast’s Q3 results
Medifast’s outlook provided the quarter’s key positives: full-year EBITDA guidance came in well above analysts’ consensus estimates, and next-quarter EBITDA guidance also topped Wall Street’s consensus. EPS, however, missed estimates. Investors were likely hoping for more, as shares edged lower 1.2% to $11.71 immediately after the results.
Is Medifast a buy at its current price? Consider valuation, business quality and the latest earnings when making that decision. Read the full research report here (it’s free).
