MEDIFAST INC

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.