Optavia
October 26, 2026
BALTIMORE, Maryland - October 26, 2026
Medifast, Inc., the publicly traded parent of the coach-based nutrition business formerly marketed as Optavia and rebranded as Trilivy in July, reported on October 26, 2026 that third-quarter revenue fell 19.4% to $72.0 million as its field of independent coaches nearly halved over the past year. The company also posted a net loss of $17.5 million, or $1.57 per share, for the quarter ended September 30, 2026, driven largely by restructuring charges.
The number of active earning coaches dropped 47.7% to 10,200, down from 19,500 in the third quarter of 2025. Medifast attributed the decline to continued difficulty acquiring new clients amid a tougher operating environment, including the rapid adoption of GLP-1 weight-loss medications, and said it expects the coach count to keep falling through the end of 2026.
Because the shrinking field was concentrated among less productive coaches, average revenue per active earning coach rose 54.1% to $7,064, compared with $4,585 a year earlier. Chief Executive Officer Nick Johnson said coach productivity has now improved year over year for four consecutive quarters, an indicator he said has historically come before a return to coach and revenue growth.
The quarter marked the main execution phase of a cost-cutting program the company calls Catalyst. Its restructuring component shrinks and relocates parts of Medifast's distribution network, streamlines internal software and realigns staffing to current revenue levels. Catalyst restructuring charges added about $13.8 million to selling, general and administrative expenses, which rose 4.8% to $69.4 million, or 96.3% of revenue. Excluding those charges, adjusted SG&A fell 16.0% to $55.6 million. Coach compensation dropped $6.6 million on lower volume and fewer active coaches.
Gross profit fell 19.5% to $50.0 million, while gross margin held at 69.5%. Loss from operations widened to $19.4 million from $4.1 million a year earlier. On an adjusted basis that excludes Catalyst costs and other items, Medifast reported a net loss of $2.1 million, or $0.19 per diluted share, and adjusted EBITDA of $0.4 million. The company ended the quarter with $172.5 million in cash, cash equivalents and investment securities and no debt.
Johnson said the major pieces of the company's "3.0" strategy are now in the market, including the Trilivy brand and metabolic health system, a new Reset Fuelings product line, a revised coach compensation plan and a new Coach Hub tool. "With enthusiasm high in the Field, we believe we are on track to deliver profitability in the fourth quarter," he said.
For the fourth quarter of 2026, Medifast guided revenue of $55 million to $75 million and earnings of $0.00 to $0.25 per share. For the full year, it expects revenue of $280 million to $300 million and a loss of $1.80 to $2.05 per share, or an adjusted loss of $0.45 to $0.70 per share.
Medifast rebranded its Optavia lifestyle business as Trilivy on July 17, 2026, shifting its pitch from weight loss toward what it describes as a three-phase metabolic health system. The company's coaches, who sell its meal replacements and programs while recruiting and supporting clients, remain the core of its direct sales model, and the latest results show how closely the company's revenue continues to track the size of that coach network.