Medifast (NYSE:MED) Posts Earnings Results, Beats Expectations By $0.21 EPS

Medifast (NYSE:MED) released its quarterly earnings results on Tuesday. The specialty retailer reported ($0.55) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.76) by $0.21, Zacks reports. The business had revenue of $75.10 million during the quarter, compared to analysts’ expectations of $71.40 million. Medifast had a negative return on equity of 0.89% and a net margin of 0.06%. 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 Trading Down 2.4%

Shares of MED opened at $10.54 on Wednesday. The company has a market cap of $115.87 million, a price-to-earnings ratio of 1,028.40 and a beta of 0.53. The company’s fifty day simple moving average is $11.35 and its 200 day simple moving average is $12.32. Medifast has a 1-year low of $10.10 and a 1-year high of $15.95.

Analysts Set New Price Targets

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

Hedge Funds Weigh In On Medifast

Institutional investors have recently bought and sold shares of the business. BNP Paribas Financial Markets boosted its position in Medifast by 103.1% during the 3rd quarter. BNP Paribas Financial Markets now owns 2,338 shares of the specialty retailer’s stock worth $32,000 after buying an additional 1,187 shares during the period. Man Group plc lifted its holdings in shares of Medifast by 0.6% during the second quarter. Man Group plc now owns 198,156 shares of the specialty retailer’s stock worth $2,784,000 after purchasing an additional 1,200 shares during the period. JPMorgan Chase & Co. grew its stake in shares of Medifast by 2.5% in the second quarter. JPMorgan Chase & Co. now owns 53,341 shares of the specialty retailer’s stock worth $749,000 after purchasing an additional 1,316 shares during the last quarter. Barclays PLC increased its holdings in Medifast by 10.6% in the fourth quarter. Barclays PLC now owns 16,769 shares of the specialty retailer’s stock valued at $179,000 after purchasing an additional 1,608 shares during the period. Finally, Quantbot Technologies LP bought a new position in Medifast during the 3rd quarter worth $37,000. Institutional investors and hedge funds own 95.51% of the company’s stock.

More Medifast News

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

Medifast Company Profile

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.