Medifast, Inc. Q1 FY2026 earnings call

• Dan Chard mentioned the continued execution of the strategy to transition to serving the metabolic health market, with early indicators of stabilization and progress. The sector has been disrupted by GLP - 1 medications, and Medifast repositioned to address metabolic health. - Nick Johnson discussed the 3.0 strategy, strengthening the clinical and scientific foundation, realigning the cost structure for future savings, and the large market opportunity in metabolic health. The metabolic synchronization science is key, with clinical proven plans and a new comprehensive metabolic system to be launched. Coach productivity had second consecutive quarter of year - over - year gains (19% year - over - year and 16% sequential), EDGE program strengthening coach leadership, field engagement building, referral engine gaining strength, and Coach Incentive Trip and Go Global event being well attended.

For the first quarter of 2026, revenue was $76.0 million, a decrease of 34.3% versus the year - earlier period. Gross profit decreased 38.6% year - over - year to $51.8 million, with a gross profit margin of 68.1% compared to 72.8% in the first quarter of 2025. SG&A expense was down 35.6% year - over - year to $55.1 million. Net loss in the first quarter was $2.1 million, or 19 cents per share. Revenue contribution: The decline in revenue was due to a decrease in the number of active earning coaches, but average revenue per active earning coach was $5,432, a year - over - year increase of 19.2%.

• Second quarter revenue is expected to range from $60 to $80 million, and loss per share from $0.50 to $1. - Full - year 2026 revenue is expected to range from $270 million to $300 million, and loss per share between $1.55 and $2.75. - Improvements toward reattaining profitability are expected to start in the fourth quarter of 2026 and continue into 2027 and beyond. - Working capital is expected to be more than $140 million at December 31st, 2026.

Q: Regarding $30 million in cost savings, where it's from and gross margin once pivoting to earnings growth.

A: Dan Chard had Jim Maloney comment that cost structure changes are part of the path to profitability, with gross margin expected to improve in the back half of the year and SG&A also expected to improve.

Q: What's driving 19% growth in coach productivity, coaches selling more products per customer or more customers per coach.

A: Coach productivity is driven by an increasing number of clients per coach, with average order sizes remaining consistent.

Q: How to message metabolic health in a GLP - 1 environment.

A: Emphasize the quality of weight loss, such as 14% reduction in bad visceral fat in 16 weeks and 98% retention of lean mass, focusing on metabolic synchronization and the comprehensive nature of the program.

Q: Thoughts on when absolute number of coaches might start to improve.

A: Coach productivity is a leading indicator, with historically coach productivity leading to expansion of the coach channel, and based on history, coach growth is expected to come, though not exactly predicted.