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Dec 31, 2025
Medifast Q4 2025 Earnings Report
Medifast reported a significant decrease in revenue and a net loss for the fourth quarter of 2025, primarily due to a decline in active earning coaches and a tax provision charge.
Key Takeaways
Medifast experienced a challenging fourth quarter in 2025, with revenue decreasing by 36.9% to $75.1 million and reporting a net loss of $18.1 million. This loss was significantly impacted by a $12.1 million non-cash valuation allowance on deferred tax assets. The decline was largely attributed to a 40.6% decrease in active earning coaches, although coach productivity showed a positive year-over-year trend for the first time since 2022.
Fourth quarter 2025 revenue decreased 36.9% to $75.1 million from $119.0 million in the prior year.
The company reported a net loss of $18.1 million, or $1.65 per diluted share, including a $12.1 million non-cash valuation allowance.
The number of active earning coaches decreased 40.6% to 16,100, primarily due to client acquisition pressures and the rapid adoption of GLP-1 medications.
Coach productivity, measured by average revenue per active earning coach, increased 6.2% to $4,664, marking the first positive year-over-year trend since 2022.
Forward Guidance
Medifast expects first quarter 2026 revenue to be between $65 million and $80 million, with a loss per share ranging from $0.15 to $0.70. For the full year 2026, revenue is projected to be between $270 million and $300 million, and loss per share is expected to range from $1.55 to $2.75.
Positive Outlook
- Reinstating annual guidance indicates a clearer path forward and increased confidence in future performance.
- Focus on optimal metabolic health and business transformation strategy execution for future growth.
- Coach productivity turned positive year-over-year for the first time since 2022, historically a lead indicator of broader improvement.
- Significant increase in coach-led meetings suggests an energized and engaged coach base.
- Foundational work of the past two years has established a direction for future growth.
Challenges Ahead
- Projected revenue for Q1 2026 ($65M-$80M) is significantly lower than Q4 2025 revenue ($75.1M), indicating continued decline.
- Expected loss per share for Q1 2026 ($0.15-$0.70) and FY 2026 ($1.55-$2.75) suggests ongoing unprofitability.
Historical Earnings Impact
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