Medifast’s third quarter results met Wall Street’s revenue expectations, but the market responded negatively as sales continued to decline sharply year-over-year. Management attributed these results to ongoing headwinds in the weight loss industry—most notably, increased competition from GLP-1 medications and declines in the number of active earning coaches. CEO Dan Chard highlighted that the company’s evolving science-backed approach to metabolic health aims to differentiate Medifast in a changing landscape. Chard pointed to coach-led support and recent clinical studies as key elements, while also acknowledging the need for further progress in reversing declining sales.

Is now the time to buy MED? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Medifast’s Q3 Earnings Call

• Jim Salera (Stephens) asked about integrating metabolic health messaging across the coach network. CEO Dan Chard and Chief Field Operations Officer Nick Johnson described ongoing training and leadership retreats to ensure consistent communication.
• Jim Salera (Stephens) inquired about the EDGE program’s incentive structure as Medifast broadens its focus. Johnson detailed how EDGE is designed to increase productivity by building and multiplying highly productive executive directors.
• Jim Salera (Stephens) requested more detail on SG&A alignment with revenue declines. CFO Jim Maloney explained recent one-time charges and ongoing cost control measures, emphasizing efforts to rightsize the business for future profitability.
• Jim Salera (Stephens) probed consumer demand amid economic softness. Chard responded that, despite macro pressures, consumers continue to prioritize health spending and see value in Medifast’s offerings, especially as coaches adapt to the changing landscape.
• Jim Salera (Stephens) asked about the status of the LifeMD partnership. Maloney clarified that collaboration continues, but the amortization of the initial investment has concluded, impacting SG&A comparisons.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will be monitoring (1) progress in stabilizing and growing coach productivity and network size, (2) the reception and impact of the upcoming metabolic health product launch, and (3) the effectiveness of ongoing training and digital enhancements in supporting client engagement and retention. Shifts in the broader weight loss industry, especially concerning GLP-1 adoption, will also remain key factors for future results.

Medifast currently trades at $11.93, in line with $11.90 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).

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