Medifast, Inc. (MED) Market Cap
Medifast, Inc. has a market capitalization of $121.3M.
Financials based on reported quarter end 2025-12-31
Price: $11.00
▲ 0.08 (0.73%)
Market Cap: 121.35M
NYSE · time unavailable
CEO: Daniel R. Chard
Sector: Consumer Cyclical
Industry: Personal Products & Services
IPO Date: 1993-12-30
Website: https://medifastinc.com
Medifast, Inc. (MED) - Company Information
Market Cap: 121.35M · Sector: Consumer Cyclical
Medifast, Inc., through its subsidiaries, manufactures and distributes weight loss, weight management, healthy living products, and other consumable health and nutritional products in the United States and the Asia-Pacific. The company offers bars, bites, pretzels, puffs, cereal crunch, drinks, hearty choices, oatmeal, pancakes, pudding, soft serves, shakes, smoothies, soft bakes, and soups under the OPTAVIA, Optimal Health by Take Shape for Life, and Flavors of Home brands. It markets its products through point-of-sale transactions over ecommerce platform. The company was founded in 1980 and is headquartered in Baltimore, Maryland.
Analyst Sentiment
Based on 12 ratings
Analyst 1Y Forecast: $12.00
Average target (based on 3 sources)
Consensus Price Target
Low
$12
Median
$12
High
$12
Average
$12
Potential Upside: 9.1%
Price & Moving Averages
Related Companies in Consumer Cyclical
AMERICAN OUTDOOR BRANDS INC (AOUT)
Consumer Cyclical
$0.12B
Mkt Cap
TRAEGER INC (COOK)
Consumer Cyclical
$0.12B
Mkt Cap
BASSETT FURNITURE INDUSTRIES INC (BSET)
Consumer Cyclical
$0.13B
Mkt Cap
LAKELAND INDUSTRIES INC (LAKE)
Consumer Cyclical
$0.12B
Mkt Cap
AMERICAS CAR MART INC (CRMT)
Consumer Cyclical
$0.12B
Mkt Cap
CLARUS CORP (CLAR)
Consumer Cyclical
$0.11B
Mkt Cap
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"MED reported a revenue of $75.1M for the most recent quarter, though it experienced a net loss of $18.1M with an EPS of -$1.65. The company has significant total assets of $257.0M against total liabilities of $58.1M, translating to a solid equity position of $198.9M and a negative net debt of $72.5M, indicating a cash-rich balance sheet. However, cash flow remains a concern, with an operating cash flow of -$5.3M and a free cash flow of -$6.6M. MED has consistently paid dividends, averaging around $1.65 quarterly, but the substantial 32.23% decline in stock price over the last year raises concerns about investor confidence. Despite a strong balance sheet, the company's profitability issues and declining share price considerably affect its overall performance."
Revenue Growth
The company has relatively strong revenue of $75.1M but needs to address its profitability.
Profitability
Currently operating at a net loss of $18.1M, indicating challenges in achieving profitability.
Cash Flow Quality
Negative cash flow metrics reflect operational issues that need resolving.
Leverage & Balance Sheet
Strong balance sheet with significant equity and negative net debt, providing a buffer.
Shareholder Returns
Despite consistent dividends, the stock has significantly decreased in value over the last year.
Analyst Sentiment & Valuation
Price target is stable at $12, but recent stock performance is underwhelming.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management is positioning the business as exiting “transformation” and moving into “execution,” citing a rare +6% YoY coach productivity green shoot (first positive YoY since mid-2022) and an improved revenue-per-coach (+6.2% YoY to $4,664). However, the actual financials remain weak: Q4 revenue fell 36.9% YoY to $75.1M, and gross margin contracted 470 bps to 69.4%, driven by fixed-cost leverage loss and restructuring. The EPS loss of $1.65 is heavily distorted by a $12.1M noncash deferred tax valuation allowance (=$1.10/share), with underlying loss per share before that item of $0.55 said to be better than guidance. In Q&A, analysts pressed on revenue sequencing versus the 2026 $270M–$300M target and whether stabilization/flat-by-4Q is plausible. Management avoided quarterly commitments but suggested stabilization is “not unreasonable,” while emphasizing ongoing dependence on sustained productivity and a large GLP-1 “off-ramp” opportunity.
Growth Catalysts
- Coach productivity turning positive YoY for first time since mid-2022; +6% YoY in Q4 2025 and also positive sequentially
- Premier+ expected to simplify offer and strengthen client acquisition/retention (especially beyond month 1)
- EDGE incentivizing duplication of high-performing coaches; higher Executive Director rank penetration and retention
- New product line tied to metabolic synchronization science expected to launch in back half of 2026 (profitability improvements start in Q4 2026)
- Expanded referral-oriented client activity; indications of higher share of client recommendations
Business Development
- KRC Research national survey on metabolic health concerns (94% concerned about at least one aspect; 85% believe reversible; 84% see it as central to well-being)
- LifeMD common stock investment (investment losses referenced in Q4 2024 not recurring in Q4 2025)
Financial Highlights
- Q4 2025 EPS loss: $1.65 diluted; impacted by $12.1M noncash valuation allowance on deferred tax assets (= $1.10 per share of the $1.65 loss)
- Q4 2025 loss per share before noncash deferred tax valuation allowance: $0.55 (better than guidance range)
- Q4 2025 revenue: $75.1M (-36.9% YoY), driven primarily by active earning coach count decline
- Active earning coaches: ~16,100 at quarter-end (-40.6% YoY)
- Revenue per active earning coach: $4,664 (+6.2% YoY), highest since Q3 2024
- Gross margin: 69.4% (-470 bps YoY); drivers: -420 bps loss of leverage on fixed costs and -40 bps one-time restructuring charge
- Loss from operations: $7.8M vs $0.7M operating income prior year; operating margin: -10.4% vs +0.6%
- SG&A: $59.9M (-31.5% YoY); Q4 SG&A as % of revenue: +630 bps YoY (370 bps loss of leverage on fixed costs, +300 bps higher coach event costs, +250 bps one-time restructuring charge, partially offset by -440 bps reduced company-led marketing)
- Income tax: $11.7M expense; effective tax rate -183.9% vs 37.3% prior-year Q4 (driven by full valuation allowance set on deferred tax assets)
- Balance sheet: $167.3M cash/cash equivalents/investment securities; no debt
Capital Funding
- No debt outstanding (explicitly 'no debt')
- Cash, cash equivalents and investment securities: $167.3M at year-end 2025
- Working capital: $158.7M as of Dec 31, 2025
- Guidance for working capital: >$140M at Dec 31, 2026
- No buyback/debt funding amounts mentioned in transcript
Strategy & Ops
- Restructuring executed across all business functions in Q4 2025; scaled back marketing spend with targeted future savings of over $30M incorporated into 2026 guidance
- Cost structure realignment: coach compensation decreased; marketing expense down; employee base realignment to lower revenue levels
- Coach tenure mix expected to become more favorable (younger tenured, less-productive coaches transitioning off) even though overall active earning coach count expected to decline through most of 2026
- Field equip/enablement: scientific symposium, continued education for coaches; more in-person event activity and training activity
Market Outlook
- Q1 2026 guidance: revenue $65M to $80M; loss per share $0.15 to $0.70
- Full-year 2026 guidance: revenue $270M to $300M; loss per share $1.55 to $2.75
- Earnings improvement timing: improvements to get back to profitability start in Q4 2026 after new product line launch; targeting continued earnings improvements into 2027 and beyond
- Management reinstituted annual guidance due to improved confidence/visibility for entire upcoming year
Risks & Headwinds
- GLP-1 adoption continuing to impact traditional weight loss category; active earning coach decline driven in part by this
- Top-line pressure expected to persist early in 2026 (no quarterly guidance given); question implies Q1 midpoint revenue down ~37% YoY vs full-year midpoint down ~27% (management did not confirm quarters, but indicated stabilization is possible)
- Deferred tax assets valuation risk realized: $12.1M noncash valuation allowance equal to ending deferred tax asset balance
- Revenue growth requires sustained coach productivity; management reiterated need for productivity sustainment over several quarters for revenue growth to materialize
Sentiment: MIXED
Note: This summary was synthesized by AI from the MED Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.