Medifast Inc. announced that its OPTAVIA metabolic health system can now be reimbursed through select health insurance plans using Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA). The change, disclosed on February 20 2026, allows eligible clients to save up to 40 % on program costs by applying pre‑tax medical funds, broadening the company’s reach to consumers prioritizing metabolic health.
The expansion is part of Medifast’s broader pivot from a traditional weight‑loss focus to a comprehensive metabolic‑health strategy. By enabling HSA/FSA reimbursement, the company lowers the financial barrier for a core product line and signals a commitment to integrating its Metabolic Synchronization™ science into mainstream health‑care payment models.
Medifast’s recent financial performance has been challenging. In Q4 2025 revenue fell 36.9 % year‑over‑year to $75.1 million, and the company posted a net loss of $18.1 million. In Q1 2025 revenue was $115.7 million, a 33.8 % decline, with a net loss of $0.8 million. By contrast, the company earned $6.0 million in net income in Q4 2023, illustrating a sharp reversal in profitability.
The decline in revenue is driven in large part by a shrinking coach network. Active earning OPTAVIA coaches dropped 40.6 % year‑over‑year to 16,100 in Q4 2025 and 32.8 % to 25,400 in Q1 2025, reducing the company’s sales channel and customer acquisition capacity.
Management has highlighted the competitive pressures from GLP‑1 medications and the need to strengthen its metabolic‑health positioning. Dan Chard, Chairman and CEO, said, “As we enter 2026, Medifast is moving from defining its business transformation strategy to executing on a new path to growth, leading to profitability as we become wholly focused on optimal metabolic health.” Nicholas Johnson, President, added, “This is a major moment for our company, and more importantly, for the millions of people across the U.S. seeking solutions for improving their health. With OPTAVIA’s metabolic health system available on select insurance plans using HSA and FSA funds, we’re encouraging more people to access the innovative tools and science‑backed solutions they need to help promote metabolic health.”
Analysts have responded cautiously. The consensus rating remains “Hold” with a median price target of $12.00. Wall Street Zen downgraded the company to a “sell” rating on February 21 2026, reflecting concerns about ongoing revenue declines, a shrinking coach network, and the competitive threat posed by GLP‑1 medications.
The HSA/FSA reimbursement announcement is a positive development, but it comes amid significant financial headwinds. Medifast’s focus on metabolic health and its new reimbursement channel may help mitigate some of the revenue pressure, yet the company’s recent losses and shrinking sales network suggest that the impact on earnings will be incremental in the short term. Investors will likely view the move as a strategic step toward a more sustainable business model, while remaining wary of the broader market challenges the company faces.
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