MEDIFAST INC

Greetings. Welcome to Medifast's third quarter 2026 earnings conference call. At this time, all participants are in listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Please note that this conference is being recorded. At this time, I'll turn the conference over to Matt Daraman, Manager of Investor Relations. Thank you, Matt. You may now begin.

Good morning and welcome to Medifast's third quarter 2026 earnings conference call. On the call with me today are Nick Johnson, Chief Executive Officer, and Jim Maloney, Chief Financial Officer. By now, everyone should have access to the earnings release for the third quarter ended September 30th, 2026. that went out this morning at approximately 8.05 a.m. Eastern Time. If you have not received the release, it is available on the Investor Relations portion of Medifast's website at www.medifastinc.com. This call is being webcast, and a replay will also be available on the company's website. Before we begin, we would like to remind everyone that today's prepared remarks contain forward-looking statements. and management may make additional forward-looking statements in response to your questions. The words believe, expect, anticipate and other similar expressions generally identify forward-looking statements. These statements do not guarantee future performance and therefore undue reliance should not be placed on them. Actual results could differ materially from those projected in any forward-looking statements. All of the forward-looking statements contained herein speak only as of the date of this call. MediFAST assumes no obligation to update any forward-looking statements that may be made in today's release or call. Now I would like to turn the call over to MediFAST's Chief Executive Officer, Nick Johnson.

Thanks, Matt, and good morning, everyone. Thanks for joining us on the call today and for your continued interest in Medifast. Our third quarter was all about execution. With our new brand Trilogy now live, new products available, and an enhanced compensation plan and unified coach training platform launched, our 3.0 business is rolling out. Early results are already showing up in the field. We delivered revenue in line with guidance at $72 million, continuing the trend of stabilizing revenue around $75 million for the fourth consecutive quarter, and coach productivity continues to improve. We believe these trends leave us well-positioned to deliver profitability in the fourth quarter. We ended the quarter with $173 million in cash and investments and no debt, and our enterprise value continues to sit below the value of our cash and investments. A debt-free balance sheet and a leaner cost structure give us a stable base from which to grow and invest in initiatives that can help deliver scale and profitability. Trilivi is differentiating MediFAST in a large and growing metabolic health market. Thank you so much for joining us. Weight loss remains important, but the quality of the weight loss matters more than ever. That means preserving lean mass, protecting muscle, and over time, building it. Our three-phase metabolic health system is designed to deliver those outcomes, starting with reset as the first phase. Our 10-year growth strategy is a roadmap that is designed to expand what we offer coaches and clients within a comprehensive metabolic health system. We are still at the start of that journey. But with our major launches now in market, we are shifting our focus to getting the best possible return out of what we have built. Whether we are talking to investors, coaches, or employees, I consistently emphasize how we are building our 3.0 organization around four core tenets, speed, simplicity, scale, and stewardship. Each of these showed up across our business in concrete ways this quarter. Speed is evident in the pace of the launches we've brought to market this year. We took reset fuelings from an employee and coach pilot in the spring to having products available for coaches and clients by August, with all SKUs expected to be converted to the new reset fuelings by the end of Q4. We also introduced our new compensation plan and product line within days of each other. We have to make decisions quickly and move resources toward the areas that we believe can best drive growth and do that on a consistent and effective basis. Simplicity is at the heart of the new compensation plan and the new unified training system called the Trilogy Business Blueprint. The new compensation plan simplifies the structure of our coach organization, rewards coach productivity and streamlines how coaches advance through the plan. The Trilogy Business Blueprint consists of the six fundamental skill sets every coach needs to build their business. By focusing on these six core fundamentals, we reduce low-value-add administrative tasks, which allows coaches to focus their energy on activities that fuel the flywheel, namely consistent client acquisition, quality client support, and sponsoring new coaches. An example of our commitment to scaling is the Coach Hub. The Coach Hub, created by a group of our top field leaders, is where coaches go to learn how to put those six fundamental skill sets into practice, with everything they need housed in one place. Alongside this, our Trilogy Coach Certification sets a consistent standard of knowledge across the field. Steven Zenker, Jonathan Barrett MacKenzie On the whole, the indicators we are seeing in our business right now are those that have historically come before coach growth and revenue growth. Coach productivity improved year over year for the fourth consecutive quarter to 54% in Q3 and grew an estimated 8% sequentially, and we expect that trend to continue through the rest of 2026. The percentage of active earning coaches at Executive Director rank or above rose both year-over-year and sequentially. Retention among Premier Plus clients from the first to the second month has stabilized, with September coming in six percentage points higher than Premier. Our enhanced compensation plan was designed to accelerate this kind of leadership development, and we are encouraged by what we have seen in the first two months since launch. While these results are promising and represent historical indicators of growth, the total number of active earning coaches remains below last year's level, and we expect that trend to continue in the near term. Our Trilogy Metabolic Health System is designed as a three-part system. Our foundational phase, Reset, is followed by phase two and phase three, refine and renew, respectively. These will support clients in maintaining their progress over time and ultimately help them to achieve optimal metabolic health. Refine is designed to improve metabolic flexibility and refine body composition, with the overall goal to help enhance metabolism through better fuel use, leading to less fat storage and more muscle mass. The renew phase is focused on optimizing metabolic health for long-term vitality. For our coaches, they provide additional tools to help support long-term client engagement with the Trilogy metabolic system. The energy we saw at our sold-out convention in July has carried through this quarter. We're seeing coaches embrace the new brand and products enthusiastically, and we're hearing from them that their conversations with clients increasingly center on metabolic health markers like visceral fat and lean mass. That shift in how our coaches describe what we do is an important part of what makes Trilogy different. Trilogy is giving our coaches something new to talk about, as well as a clearer way to talk about it. Medifast's work is built on more than 45 years of clinical and scientific heritage. It's that understanding that has led us to metabolic synchronization. Our proprietary science focused on burning fat, preserving lean muscle, and protecting metabolic health. In an independent clinical study, our RESET 5-in-1 plan reduced visceral fat by 14% while retaining 98% of lean mass over 16 weeks. RESET fuelings are the first products to fully use our MetaVantage technology platform, a set of proprietary ingredient formulas designed to optimize metabolic health. The MetaVantage RESET formula helps unlock key metabolic pathways, reducing waist circumference while also supporting normal fat metabolism and healthy insulin. Since the new Trilivi brand and reset launch in August, Medivantage has been well received. Early feedback indicates strong interest in the new formula and its role in supporting the full spectrum of metabolic health. We are continuing to monitor results and coach feedback to determine the impact of launch, but preliminary data indicates fast adoption of our new Trilivi reset products, with 95% of our active earning coaches in September already offering the line to clients. We believe that this product line will extend our ability to meet the needs of an expanded set of clients and deepen our differentiation in a crowded market. Metabolic health is a large global business opportunity. Key members of our Medifast Metabolic Health Institute recently attended MacKenzie and Stanford Medicine's Metabolic Health Business Building Summit 2026, where panelists sized the existing metabolic health market at $12 trillion, with an additional $16 trillion in prevention and optimization that is still largely untapped. The panelists expect that the biggest returns will go to companies that build ecosystems and business models, not just new interventions. Our own view of the market opportunity supports this. More than 90% of US adults are metabolically unhealthy, and we see similar issues around the globe. Our survey of more than 1,000 US adults conducted last September shows that nearly 94% of Americans are concerned about at least one aspect of their metabolic health, and 85% believe metabolic dysfunction can be reversed. Yet 80% say they have limited understanding of what metabolic health means. Thank you. Thank you. Thank you. But the quality of the weight lost matters more than ever. That means preserving lean mass, protecting muscle, and over time building it. Our three-phase Trilivi system is designed to do exactly that, supporting people across the entire spectrum of their health journey, whether they are on medication, transitioning off it, or never started. One of the clearest signs of confidence in our direction this quarter comes from further developments in the field. This company was built on the belief of our founder of the mission and independent Trilogy coach, Dr. Wayne Scott Anderson, who after leaving his medical practice as a critical care physician, dedicated himself to a new mission of lifelong transformation. He invested capital into the business. but also brought incredible energy to the mission as well as deep trust in the power of people to carry that mission into the world. Dr. Anderson continues to play a leadership role in our coach community today and what we're seeing now is the next generation of leaders stepping forward with that same level of conviction. Like Dr. Anderson did all those years ago, a select group of coach leaders are now raising their hands to lead the future growth of the business. They are choosing to invest their time in leadership as well as their own capital through ownership in the company. The same energy and sense of collaboration that we saw earlier in our journey with Dr. Anderson and others is now being demonstrated by a new generation of leaders at key events such as the Trilogy Leadership Symposium or even at the ringing of the closing bell at the New York Stock Exchange in September. This all reflects their deep belief in our mission, confidence in the direction we're headed, and their clear view of the market opportunity in front of us. We view this as a generational moment for our company. What started with the vision and belief of one founder is now being amplified by a new generation of leaders who are choosing to put something meaningful behind their belief and take greater ownership for building what comes next. I'm proud of the partnership with our leaders in the field, which was built and strengthened through my almost 10 years as president. I'm also honored to work alongside the incredible team members at Medifast. Since I stepped into the CEO role in June, my focus has been on accelerating the 3.0 strategy that our leadership team developed together. Thank you. Thank you. Thank you. Thank you for joining us. Thank you. Thank you. Thank you. We are also applying AI more broadly across the business and over time we anticipated helping us move faster in product development and in the tools used by our coaches. Our near-term commitment has not changed. We are targeting profitability in the fourth quarter of 2026 and we believe we are on track to deliver it. Speed, simplicity, scale and stewardship are how we will get there. This quarter we moved quickly to put 3.0 into the market, made it simpler for coaches to build their businesses put in place standards and systems that will allow the field to grow and held firm on costs. We believe we have a solid strategy for long-term growth, a brand and product line that set us apart, science that continues to strengthen, and a coach network that is leaning into the metabolic health opportunity. We still have work to do, particularly in growing our coach count, but we enter the fourth quarter with each piece of our strategy in place. Our attention is now on delivering results. With that, I'll hand over to Jim to run through the financials.