Medifast, Inc. (MED) Q1 2026 Earnings Call Transcript
Medifast, Inc. (MED) Q1 2026 Earnings Call Transcript

Residential broadband net subscriber additions/losses - primary growth metric as video declines
Average revenue per user (ARPU) trends - ability to offset volume losses with price increases and speed tier migrations
Competitive fiber overbuilding announcements in core markets - directly threatens monopoly positioning
Free cash flow generation and debt reduction progress - critical given 2.3x leverage and distressed valuation
low-to-moderate - Broadband services exhibit utility-like characteristics with low elasticity during recessions, as internet connectivity is essential. However, business services segment (~15-20% of revenue) is cyclically sensitive to SMB formation and expansion. Video cord-cutting accelerates during economic weakness as consumers trade down to streaming services. The company's smaller market footprint (median household income often below national average) creates modest sensitivity to employment and wage trends.
High sensitivity through multiple channels: (1) Elevated debt load ($1.4B+ estimated) means rising rates directly increase interest expense, compressing net margins already at 0.9%; (2) Capital-intensive business model requires ongoing debt refinancing, with ~$300M annual capex partially debt-funded; (3) Valuation multiple compression as rising risk-free rates make utility-like cash flows less attractive; (4) Potential M&A activity (company as target) becomes less feasible in high-rate environment due to financing costs for acquirers.
Secular video cord-cutting accelerating beyond industry -8% to -10% annual decline rates, with no offset from broadband growth in mature markets
Fiber overbuilding by AT&T, municipal broadband, and rural electric cooperatives using federal RDOF/BEAD subsidies - superior technology threatens HFC network competitiveness
Fixed wireless access (FWA) from T-Mobile and Verizon offering $50/month unlimited broadband in Cable One's rural markets without infrastructure investment
deep value - Stock trades at 0.4x sales and 0.4x book value with 61.8% FCF yield, attracting distressed/special situations investors betting on stabilization, debt reduction, or M&A takeout. Not suitable for growth investors given -5.9% revenue decline and structural headwinds. Dividend investors likely exited given capital allocation priority to debt reduction over distributions.
Trend
-41.7% vs SMA 50 · -48.4% vs SMA 200
Momentum
Accumulation pattern present — more buying days than selling over the past 20 sessions. Volume conditions support gradual price improvement.
Based on volume distribution analysis. Direct short interest data (short float %, days to cover) is not available in current data sources.
Analyst consensus estimates · Actuals replace estimates as reported
| Year | Revenue Est. | Rev Gth | EPS Est. | EPS Gth | Range | Analysts |
|---|---|---|---|---|---|---|
FY2025 | $1.5B $1.5B–$1.6B | — | -$36.18 | — | ±21% | Moderate4 |
FY2026(current) | $1.4B $1.4B–$1.4B | ▼ -5.1% | $24.17 | — | ±3% | Moderate4 |
FY2027 | $1.5B $1.4B–$1.6B | ▲ +4.9% | $27.45 | ▲ +13.6% | ±6% | Moderate4 |
Medifast, Inc. (MED) Q1 2026 Earnings Call Transcript

cable one business offers scalable, reliable, and efficient solutions so that the businesses we serve can be successful. business services available through cable one include high-speed internet; business phone service; reliable, crystal-clear cable tv services; and fiber-optic solutions. for more information about cable one business service, visit www.cableone.net/business or call 1-855-692-4145.
| Symbol | Price | Day % | Mkt Cap↓ | P/E | Rev Grw | Margin | ELO |
|---|---|---|---|---|---|---|---|
CABO◀ | $64.79 | -18.01% | $425M | — | -494.6% | -2374.1% | 1500 |
| $383.25 | +0.23% | $4.7T | 29.1 | +1512.6% | 3280.0% | 1522 | |
| $379.64 | +0.34% | $4.6T | 29.1 | +1512.6% | 3280.0% | 1521 | |
| $610.41 | -0.52% | $1.5T | 21.9 | +2216.7% | 3008.4% | 1498 | |
| $91.02 | -1.66% | $387.6B | 29.1 | +1585.1% | 2430.4% | 1487 | |
| $194.42 | +0.29% | $212.2B | 20.5 | +848.8% | 1244.7% | 1492 | |
| $47.57 | +0.17% | $202.9B | 11.7 | +252.5% | 1242.8% | 1513 | |
| Sector avg | — | -2.74% | — | 23.6 | +1062.0% | 1730.3% | 1505 |