Medifast (MED) opened 2026 earnings season with Q1 results that sit against a recent run of shrinking sales and losses, after reporting Q4 2025 revenue of US$75.1 million and a basic EPS loss of US$1.65 on net income of US$18.1 million. Over the past six reported quarters, revenue has moved from US$140.2 million in Q3 2024 to US$119.0 million in Q4 2024, then to US$115.7 million in Q1 2025 and US$105.6 million in Q2 2025 before landing at US$89.4 million in Q3 2025 and US$75.1 million in Q4 2025. Over the same period, basic EPS shifted from US$0.10 to US$0.07, then to losses of US$0.07, a profit of US$0.23, a loss of US$0.21 and finally a loss of US$1.65. For investors, the key question now is whether management can stabilize margins and stop the earnings pressure from deepening.

See our full analysis for Medifast.

With the numbers on the table, the next step is to see how this earnings profile lines up against the main narratives around Medifast, and where those stories might need to be updated.

Five year earnings slide now at 46.8% a year

• On a trailing 12 month basis to Q4 2025, Medifast reported total revenue of US$385.8 million and a net loss of US$18.7 million, with earnings having declined at a 46.8% annual rate over the past five years according to the analysis data.
• Bears highlight that this five year deterioration in earnings challenges the business model, and the recent quarterly pattern lines up with that concern.
  • Quarterly revenue moved from US$140.2 million in Q3 2024 to US$75.1 million in Q4 2025, while net income swung from a profit of US$1.1 million in Q3 2024 to a loss of US$18.1 million in Q4 2025.
  • The consensus narrative points to pressure on the coach network and customer acquisition, and the combination of a shrinking revenue base and persistent losses gives that bearish angle clear numerical support.

Skeptics looking at this multi year earnings slide argue that the real story sits in how sustainable the coach led model is under this kind of pressure, and the bear case digs into that in detail 🐻 Medifast Bear Case.

Low 0.4x P/S versus peers at 7.8x

• The stock is cited on a P/S ratio of 0.4x, compared with a peer average of 7.8x and a US Personal Products industry average of 1.0x, so the shares are priced on a much lower sales multiple than many competitors in the same space.
• Supporters of the bullish narrative point to this low sales multiple alongside the business repositioning in GLP 1 and wellness, arguing the valuation gives room if the model gains traction.
  • The consensus narrative highlights efforts like GLP 1 focused offerings, Premier+ auto ship and digital tools for coaches, which are all aimed at driving more recurring revenue per customer.
  • Set against the 0.4x P/S, those product and program changes mean any stabilization in revenue around the trailing 12 month level of US$385.8 million would sit on a multiple that is well below the 1.0x industry reference, which is what bullish investors focus on.

Fans of the upside case argue that the combination of a 0.4x P/S tag and the push into GLP 1 linked wellness is exactly where the bullish story starts to get interesting for long term holders 🐂 Medifast Bull Case.

DCF fair value below both price and analyst target

• The cited DCF fair value of US$8.40 sits below both the current share price of US$13.02 and the analyst consensus price target of US$12.00, so the market is pricing Medifast above that particular cash flow based estimate.
• Analysts' consensus view effectively weighs this against the weak recent earnings, and treats today’s valuation signals as mixed rather than clearly cheap or expensive.
  • On one side, the 0.4x P/S ratio versus 7.8x for peers suggests the stock screens as inexpensive on sales, which some investors may see as a potential reward signal.
  • On the other side, the combination of a trailing 12 month loss of US$18.7 million and a DCF fair value that is below the current price introduces a check on how much weight to put on simple multiples when thinking about the analyst target of US$12.00.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Medifast on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

After all that, the real question is how this earnings story fits with your own risk tolerance and time horizon, so take a moment to review the data in detail and pressure test your view against the 1 important warning sign.

See What Else Is Out There

Medifast’s five year 46.8% annual earnings decline, recent net losses and pressured revenue base show that profitability and resilience are key weak spots in this story.

If that mix of shrinking earnings and ongoing losses feels too fragile for your comfort, it is worth lining it up against the strength of the 72 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.