MEDIFAST INC

Ocius Technology announced it will integrate sonar systems into its Bluebottle fleet, with ThayerMayhan and Thales Australia providing the technology. CEO Robert Dane is set to discuss the new capabilities on NYSE Live. Separately, Medifast launched the Medifast Metabolic Health Institute, repositioning itself beyond weight loss to address larger metabolic health opportunities, and CEO Nick Johnson will discuss the firm's achievements on Taking Stock. The major averages looked to bounce back as investors navigated the Middle East, with the 10-year U.S. Treasury Yield hitting its highest levels since 2023 and ICE Brent Crude trading at about $94 a barrel as of 8:00 AM ET.

Medifast expects its turnaround to reach profitability in the fourth quarter of 2026, driven by the rollout of its Trilivy metabolic-health platform and additional cost reductions under the Catalyst program. Second-quarter 2026 revenues fell 27.6% year over year to $76.4 million, slightly above the Zacks Consensus Estimate of $76 million, while the loss of 28 cents per share was narrower than the consensus loss of 67 cents. Revenue per active earning coach rose 41% to $6,529, marking a third consecutive quarterly improvement. The company guided for third-quarter revenues of $60 million to $80 million and a loss of 15 cents to 65 cents per share, excluding one-time Catalyst costs, and full-year 2026 revenues of $270 million to $300 million with a loss of 25 cents to $1.75 per share. Management has not yet quantified the new savings target from the Catalyst program, which builds on more than $30 million of previously identified cost savings, but expects to provide more detail with third-quarter results.

Medifast shares have risen 13.6% over the past month, outpacing the industry's 3.5% gain, after the company reported a narrower-than-expected second-quarter loss and showed improving coach productivity. The company posted a loss of 28 cents per share, significantly better than the consensus estimate of a 67-cent loss, while revenues of $76.4 million also came in slightly above expectations. Average revenue per active earning coach jumped 41% year over year to $6,529, marking the third straight quarter of productivity growth and the highest level since the second quarter of 2022. However, the active earning coach base shrank 48.7% to 11,700, and management expects further declines in 2026 despite anticipated growth in new coach additions later in the year. The fiscal-year earnings estimate has moved 49.2% higher over the past four weeks, though the company still projects a full-year loss, and the stock carries a Zacks Rank #3 (Hold) with a Momentum Score of A but weaker Value and Growth scores.

The nine personal care stocks tracked by the report delivered a strong first quarter, with aggregate revenues beating analysts' consensus estimates by 2.5% while next quarter's revenue guidance came in 3.5% below expectations. Edgewell Personal Care reported flat revenues of $519.5 million, in line with estimates, and posted a very strong quarter with beats on EBITDA and organic revenue. USANA Health Sciences was the best performer, with revenues of $250.2 million exceeding expectations by 3.8% and solid beats on EBITDA and EPS. Herbalife was the weakest, with revenues of $1.32 billion up 7.8% year on year but next quarter EBITDA guidance missing estimates. Medifast reported revenues of $76.04 million, down 34.3% year on year, yet beat expectations by 9.9% and raised full-year guidance. Estée Lauder posted revenues of $3.71 billion, up 4.6% year on year, in line with estimates, and exceeded EPS expectations while raising full-year EPS guidance. Share prices of the group have risen 11.7% on average since the latest earnings results.