Medifast, the parent company of direct selling organization OPTAVIA, announced its financial results for the first quarter of 2026. Revenue during the quarter was $76 million with a net loss of $2.1 million, or $0.19 per diluted share. Independent active earning coaches totaled 14,000 and had an average revenue per active earning coach of $5,432.
Revenue during the quarter saw a 34.3% decrease year-over-year, primarily driven by a decrease in the number of active earning coaches, which fell 44.9% year-over-year. Rapid adoption of GLP-1 medications for weight loss was a major contributor to this decrease.
Gross profit fell 38.6% to $51.8 million, compared to $84.2 million in Q1 2025. Lower sales volumes drove this decrease and the company’s gross profit as a percentage of revenue also fell, from 72.8% to 68.1% year-over-year, in large part because of a loss of leverage on fixed costs.
Loss from operations was $3.3 million, compared to $1.3 million in Q1 2025. As a percentage of revenue, loss from operations was 4.3%. Other income decreased by 24.3% to $1.4 million year-over-year, which the company attributed to unrealized gains on its investment of LifeMD common stock in 2025. This investment was sold in Q2 2025.
“We are encouraged by the continued progress we are seeing as we execute our metabolic health strategy, including a second consecutive quarter of year-over-year coach productivity growth, strong coach leadership advancement and high field engagement,” said Dan Chard, Medifast CEO. “These are metrics that have historically been leading indicators of future growth. Backed by our differentiated science, coach-led model and a disciplined approach to managing costs, we believe we are well positioned to drive improved performance through the remainder of 2026 and a return to sustainable, long-term growth in the years ahead.”
The company ended the quarter with cash, cash equivalents and investment securities of $168.9 million with no debt.
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