Medifast Q4 Loss Widens to $1.65, Revenue Drops 36.9% as Coaches Fall 40.6%
Medifast reported a Q4 loss of $1.65 per share on $75.1 million in revenue, down 36.9% year over year as active OPTAVIA coaches dropped 40.6% to 16,100 and the company recorded a $12.1 million valuation allowance charge. It guides 2026 revenues of $270–300 million and a $1.55–2.75 loss per share.
1. Fourth-Quarter Results
Medifast reported a net loss of $1.65 per share in Q4, broader than the prior-year EPS of $0.07 and the consensus loss estimate of $0.76. The results include a $12.1 million non-cash valuation allowance on deferred taxes, which added $1.10 per share to the loss.
2. Revenue and Coach Network Decline
Net revenues declined 36.9% year over year to $75.1 million as the active earning OPTAVIA coach count fell 40.6% to 16,100. Average revenue per coach climbed 6.2% to $4,664, driven by shifts in coach composition and productivity.
3. Margin Compression and SG&A Trends
Gross profit dropped 40.9% to $52.1 million and gross margin contracted to 69.4% from 74.1%, reflecting loss of fixed-cost leverage and a one-time restructuring charge. SG&A expenses fell 31.5% to $59.9 million but increased to 79.8% of revenues due to restructuring and event costs.
4. Financial Position and 2026 Outlook
The company closed the quarter with $167.3 million in cash, equivalents and investments, zero debt and $198.9 million in shareholders’ equity. It expects 2026 revenues of $270–300 million with a full-year loss per share of $1.55–2.75, and Q1 revenue of $65–80 million with a $0.15–0.70 loss per share.