Medifast (MED) investor relations material

Executive summary

• Q3 revenue was $72.0M, down 19.4% YoY; active earning coaches fell 47.7% to 10,200, while revenue per coach rose 54.1% to $7,064.

• GAAP net loss was $17.5M, or $1.57 per diluted share; adjusted net loss was $2.1M, or $0.19 per diluted share.

• Coach productivity improved YoY for a fourth consecutive quarter; management targeted Q4 profitability as the Trilivy metabolic-health strategy advanced.

Financial highlights

• Gross profit declined 19.5% to $50.0M; GAAP gross margin was 69.5%, flat YoY, while adjusted gross margin rose 220 bps to 71.7%.

• SG&A rose 4.8% to $69.4M, including $13.8M of Catalyst charges; adjusted SG&A fell 16.0% to $55.6M.

• GAAP operating loss was $19.4M versus $4.1M a year ago; adjusted operating loss improved 3.2% to $4.0M.

• Adjusted EBITDA was $0.4M versus $0.3M; adjusted EBITDA excluding interest income was $1.9M versus $1.7M.

• 9M revenue was $224.5M versus $310.7M; net loss was $22.7M versus $0.6M.

Outlook and guidance

• Q4 2026 guidance: revenue of $55M–$75M, income per share of $0.00–$0.25, and adjusted EBITDA excluding interest income of $2M–$6M.

• FY 2026 guidance: revenue of $280M–$300M, GAAP loss per share of $1.80–$2.05, and adjusted loss per share of $0.45–$0.70.

• FY 2026 adjusted EBITDA excluding interest income guidance is $10M–$14M.

• Active earning coaches are expected to decline through year-end; revenue per active earning coach is expected to rise through the rest of 2026.

• Catalyst restructuring was completed by September 30; no material related charges are anticipated in future periods, while broader efficiency initiatives continue.