Medifast, Inc.

Second-quarter 2026 revenue was $76.4 million, down 27.6% year over year. Net loss was $3.1 million, or $0.28 per diluted share, versus net income of $2.5 million, or $0.22 per share, in the prior-year quarter. Gross profit was $53.4 million, down 30.3% year over year, and gross margin was 69.9% versus 72.6% last year. SG&A was $57.7 million, down 25.7% year over year, and operating loss was $4.3 million. The company ended Q2 with $169.8 million in cash, cash equivalents, and investments and no debt. For Q3, management guided revenue to $60 million to $80 million and loss per share to $0.15 to $0.65, excluding one-time Catalyst costs. For full-year 2026, revenue guidance is $270 million to $300 million and loss per share is $0.25 to $1.75. Management said it still expects improvement back to profitability to start in Q4 2026 and working capital to be more than $145 million at December 31, 2026.

Nick Johnson framed the quarter as an early sign of stabilization and positioned Trilivy as the centerpiece of Medifast’s 3.0 strategy. He emphasized speed, simplicity, scale, and stewardship, saying the company is simplifying the business while building a broader metabolic health platform. His tone was confident and strategic, with repeated references to positive coach engagement, strong science, and a clear path back to profitability in Q4 2026.

Jim Maloney focused on the numbers and the cost structure. He noted revenue of $76.4 million, gross profit of $53.4 million, gross margin of 69.9%, SG&A of $57.7 million, and a Q2 net loss of $3.1 million, or $0.28 per share. He also highlighted $169.8 million in cash and investments, no debt, and said the Catalyst program should deliver millions of dollars of savings, with more detail to come on the Q3 call. He reiterated guidance for Q3 and full-year 2026 and said profitability improvements should begin in Q4, with further progress targeted into 2027.

Analysts focused on Catalyst, asking for initial implementation costs, expected savings, and the cadence of savings versus costs. Management said it expects “millions” of dollars of savings but would not quantify them yet, because the company is still working through the planned reductions; more detail is expected on the Q3 earnings call. Questions also centered on Trilivy rollout and coach receptivity, and management said feedback has been overwhelmingly positive, with no major hiccups so far. On the path to profitability, management said stabilization in the top line, Catalyst, and the product launch all contribute, and that margin recovery should continue into 2027 as the business scales.