Nu Skin Enterprises Reports Second Quarter Results

About this update from Nu Skin Enterprises, Inc.

Nu Skin Enterprises Inc. (NYSE: NUS) today announced second quarter results. Executive Summary Q2 2026 vs. Prior-year Quarter Revenue $320.1 million; (17.1)% (1.0)% FX impact or $(4.0) million Earnings Per Share (EPS) $(5.14) or $0.20 excluding non-cash impairment and non-cash tax charges compared to $0.43 Customers 660,037; (14)% Paid Affiliates 120,291; (8)% Sales Leaders 26,998; (9)% “We continue to make progress toward our long-term strategy with the continued rollout of Prysm iO and preparations for the formal launch of India,” said Ryan Napierski, Nu Skin president and CEO. “As these initiatives are taking hold, we are incorporating valuable learnings to strengthen our plans moving forward. At the same time, we are re-aligning our organizational resources to better position the business to drive sustainable, long-term value for our shareholders.” Q2 2026 Year-over-year Operating Results Revenue $320.1 million compared to $386.1 million (1.0)% FX impact or $(4.0) million Gross Margin 68.2% compared to 68.8% Nu Skin business was 77.7% compared to 77.5% Selling Expenses 33.7% compared to 33.2% Nu Skin business was 39.8% compared to 40.0% G&A Expenses 28.4% compared to 27.6% Operating Margin (18.5)% or 6.1% excluding non-cash impairment charge compared to 8.0% Interest Expense $3.3 million compared to $2.5 million Other Income (Expense) $(0.5) million compared to $(0.8) million Income Tax Rate (295.4)% or 36.6% excluding non-cash tax charge compared to 23.0% EPS $(5.14) or $0.20 excluding non-cash impairment and non-cash tax charges compared to $0.43  Stockholder Value Dividend Payments $2.9 million Stock Repurchases $0.0 million $137.3 million remaining in authorization Q3 and Full-year 2026 Outlook Q3 2026 Revenue $310 to $340 million; (15)% to (7)% Approximately (3) to (2)% FX impact Q3 2026 EPS $0.00 to $0.09 or $0.10 to $0.20 on an adjusted basis 2026 Revenue $1.28 to $1.35 billion; (14)% to (9)% Approximately (1)% FX impact 2026 EPS ($4.90) to ($4.73) or $0.70 to $0.90 on an adjusted basis “We delivered adjusted earnings per share near the midpoint of our guidance, reflecting our ongoing focus on profitability and disciplined execution,” said Chelsea Lantz, interim chief financial officer. “Based on our first-half performance and outlook for the rest of the year, we are updating our annual guidance to revenue of $1.28 billion to $1.35 billion and adjusted earnings per share of $0.70 to $0.90. For the third quarter, we expect revenue between $310 million and $340 million, with adjusted earnings per share in the range of $0.10 to $0.20.” Conference Call The Nu Skin Enterprises management team will host a conference call with the investment community today at 5 p.m. (ET). Those wishing to access the webcast, as well as the financial information presented during the call, can visit the Investor Relations page on the company's website at ir.nuskin.com . A replay of the webcast will be available on the same page through Aug. 24, 2026. About Nu Skin Enterprises Inc. Nu Skin Enterprises Inc. (NYSE: NUS) is an intelligent beauty and wellness company, powered by a dynamic affiliate opportunity platform, which operates in nearly 50 markets worldwide. Backed by more than 40 years of scientific research, the company’s products help people look, feel and live their best with our newly introduced Prysm iO intelligent wellness platform, an award-winning line of beauty device systems and trusted brands in personal care and wellness products. Rhyz is the strategic investment arm of Nu Skin Enterprises, formed in 2018 consisting of synergistic consumer, technology and manufacturing companies focused on innovation within the beauty, wellness and lifestyle categories. Important Information Regarding Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent the company’s current expectations and beliefs. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws and include, but are not limited to, statements of management’s expectations regarding the company’s performance, growth, initiatives, shareholder value, Prysm launch and its timing, and India expansion; projections regarding revenue, expenses, margins, tax rates, earnings per share, foreign currency fluctuations, uses of cash, financial position and other financial items; statements of belief; and statements of assumptions underlying any of the foregoing. In some cases, you can identify these statements by forward-looking words such as “believe,” “expect,” “become,” “drive,” “project,” “outlook,” “guidance,” “will,” “would,” “could,” “may,” “might,” the negative of these words and other similar words. The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed herein. These risks and uncertainties include, but are not limited to, the following: any failure of current or planned initiatives or products to generate interest among the company’s sales force and customers and generate sponsoring and selling activities on a sustained basis; risk that direct selling laws and regulations in any of the company’s markets, including the United States and Mainland China, may be modified, interpreted or enforced in a manner that results in negative changes to the company’s business model or negatively impacts its revenue, sales force or business, including through the interruption of sales activities, loss of licenses, increased scrutiny of sales force actions, imposition of fines, or any other adverse actions or events; economic conditions and events globally; the company’s future tax-planning initiatives, any prospective or retrospective increases in duties or tariffs on the company’s products imported into the company’s markets, and any adverse results of tax audits or unfavorable changes to tax laws in the company’s various markets; competitive pressures in the company’s markets; risk that epidemics or other crises, as well as any related disruptions, could negatively impact our business; adverse publicity related to the company’s business, products, industry or any legal actions or complaints by the company’s sales force or others; political, legal, tax and regulatory uncertainties, including trade policies, associated with operating in Mainland China and other international markets; uncertainty regarding meeting restrictions and other government scrutiny in Mainland China, as well as negative media and consumer sentiment in Mainland China on our business operations and results; risk of foreign-currency fluctuations and the currency translation impact on the company’s business associated with these fluctuations; uncertainties regarding the future financial performance of the businesses the company has acquired; risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support planned initiatives or launch strategies, and increased risk of inventory write-offs if the company over-forecasts demand for a product or changes its planned initiatives or launch strategies; and regulatory risks associated with the company’s products, which could require the company to modify its claims or inhibit its ability to import or continue selling a product in a market if the product is determined to be a medical device or if the company is unable to register the product in a timely manner under applicable regulatory requirements. The company’s financial performance and the forward-looking statements contained herein are further qualified by a detailed discussion of associated risks set forth in the documents filed by the company with the Securities and Exchange Commission. The forward-looking statements set forth the company’s beliefs as of the date that such information was first provided, and the company assumes no duty to update the forward-looking statements contained in this release to reflect any change except as required by law. Non-GAAP Financial Measures: Constant-currency revenue change is a non-GAAP financial measure that removes the impact of fluctuations in foreign-currency exchange rates, thereby facilitating period-to-period comparisons of the company’s performance. It is calculated by translating the current period’s revenue at the same average exchange rates in effect during the applicable prior-year period and then comparing that amount to the prior-year period’s revenue. The company believes that constant-currency revenue change is useful to investors, lenders and analysts because such information enables them to gauge the impact of foreign-currency fluctuations on the company’s revenue from period to period. Earnings per share, operating margin, and income tax rate, each excluding impairment charges, tax charges, and/or other charges, also are non-GAAP financial measures. Impairment charges and the tax charge incurred in the second quarter of 2026 are not part of the ongoing operations of our underlying business; and The other charges incurred in connection with certain corporate actions, as described in the footnotes to the non-GAAP reconciliation tables below, are not part of our ongoing operations. The company believes that these non-GAAP financial measures are useful to investors, lenders and analysts because removing the impact of these items facilitates period-to-period comparisons of the company’s performance. Please see the reconciliations of these items to our earnings per share, gross margin, operating margin, income tax rate and revenue growth rate calculated under GAAP, below. The following table sets forth revenue for the three-month periods ended June 30, 2026, and 2025 for each of our reportable segments (U.S. dollars in thousands):     Three Months Ended             Constant-     June 30,             Currency       2026       2025       Change       Change   Nu Skin                               Americas $ 59,763     $ 72,946       (18.1 )%     (15.8 )% Mainland China   45,956       53,224       (13.7 )%     (18.7 )% Southeast Asia/Pacific   43,257       50,834       (14.9 )%     (16.3 )% Japan   38,143       44,550       (14.4 )%     (5.5 )% Europe & Africa   32,317       37,328       (13.4 )%     (15.2 )% Hong Kong/Taiwan   26,074       27,527       (5.3 )%     (3.6 )% South Korea   25,620       34,068       (24.8 )%     (19.0 )% Nu Skin Other   79       427       (81.5 )%     (81.5 )% Total Nu Skin   271,209       320,904       (15.5 )%     (14.2 )% Rhyz                               Manufacturing   46,369       60,400       (23.2 )%     (23.2 )% Rhyz Other   2,534       4,834       (47.6 )%     (47.6 )% Total Rhyz   48,903       65,234       (25.0 )%     (25.0 )% Total $ 320,112     $ 386,138       (17.1 )%     (16.1 )% The following table sets forth revenue for the six-month periods ended June 30, 2026, and 2025 for each of our reportable segments (U.S. dollars in thousands):     Six Months Ended             Constant-     June 30,             Currency       2026       2025       Change       Change   Nu Skin                               Americas $ 117,581     $ 142,004       (17.2 )%     (14.2 )% Mainland China   91,104       100,999       (9.8 )%     (14.6 )% Southeast Asia/Pacific   88,731       103,006       (13.9 )%     (16.5 )% Japan   77,882       87,315       (10.8 )%     (4.9 )% Europe & Africa   63,535       70,349       (9.7 )%     (15.0 )% Hong Kong/Taiwan   53,531       55,974       (4.4 )%     (4.8 )% South Korea   50,949       66,583       (23.5 )%     (20.2 )% Nu Skin Other   (155 )     956       (116.2 )%     (116.2 )% Total Nu Skin   543,158       627,186       (13.4 )%     (13.4 )% Rhyz                               Manufacturing   91,294       115,690       (21.1 )%     (21.1 )% Rhyz Other   6,268       7,752       (19.1 )%     (19.1 )% Total Rhyz   97,562       123,442       (21.0 )%     (21.0 )% Total $ 640,720     $ 750,628       (14.6 )%     (14.6 )% The following tables provide information concerning the number of Customers, Paid Affiliates and Sales Leaders in our core Nu Skin business for the three-month periods ended June 30, 2026 and 2025.     Three Months Ended           June 30,             2026       2025       Change   Customers                       Americas   183,757       240,477       (24 )% Mainland China   103,891       117,325       (11 )% Southeast Asia/Pacific   69,354       72,814       (5 )% Japan   100,849       105,961       (5 )% Europe & Africa   111,332       126,146       (12 )% Hong Kong/Taiwan   36,549       41,371       (12 )% South Korea   54,305       67,313       (19 )% Total Customers   660,037       771,407       (14 )% Paid Affiliates                       Americas   27,337       28,827       (5 )% Mainland China   18,736       19,399       (3 )% Southeast Asia/Pacific   17,677       21,092       (16 )% Japan   19,018       19,605       (3 )% Europe & Africa   13,307       15,320       (13 )% Hong Kong/Taiwan   9,390       9,570       (2 )% South Korea   14,826       16,986       (13 )% Total Paid Affiliates   120,291       130,799       (8 )% Sales Leaders                       Americas   5,041       5,971       (16 )% Mainland China   5,899       5,790       2 % Southeast Asia/Pacific   3,631       4,126       (12 )% Japan   5,782       5,882       (2 )% Europe & Africa   2,216       2,695       (18 )% Hong Kong/Taiwan   1,858       2,063       (10 )% South Korea   2,571       3,066       (16 )% Total Sales Leaders   26,998       29,593       (9 )% “Customers” are persons who have purchased directly from the Company during the three months ended as of the date indicated. Our Customer numbers include members of our salesforce who made such a purchase, including Paid Affiliates and those who qualify as Sales Leaders, but they do not include consumers who purchase directly from members of our sales force. “Paid Affiliates” are any Brand Affiliates, as well as members of our sales force in Mainland China, who earned sales compensation during the three-month period. In all of our markets besides Mainland China, we refer to members of our independent sales force as “Brand Affiliates” because their primary role is to promote our brand and products through their personal social networks. “Sales Leaders” are the three-month average of our monthly Brand Affiliates, as well as sales employees and independent marketers in Mainland China, who achieved certain qualification requirements as of the end of each month of the quarter. NU SKIN ENTERPRISES, INC. Consolidated Statements of Income (Unaudited) (U.S. dollars in thousands, except per share amounts)                                   Three Months Ended   Six Months Ended   June 30,   June 30,     2026       2025       2026       2025   Revenue $ 320,112     $ 386,138   $ 640,720   $ 750,628   Cost of sales   101,787       120,405     207,932     237,934   Gross profit   218,325       265,733     432,788     512,694                                   Operating expenses:                               Selling expenses   107,922       128,228     217,976     246,774   General and administrative expenses   90,847       106,725     189,391     219,929   Impairment expenses   78,875       -     80,714     25,114   Total operating expenses   277,644       234,953     488,081     491,817                                   Operating income (loss)   (59,319 )   30,780     (55,293 )   20,877   Interest expense   3,322       2,526     7,572     5,809   Gain on sale of business   -       -     -     176,162   Other income (expense), net   (534 )     (843 )   2,289     (29,218 )                                 Income (loss) before provision for income taxes   (63,175 )     27,411     (60,576 )   162,012   Provision for income taxes   186,623       6,292     187,386     33,378                                   Net income (loss) $ (249,798 )   $ 21,119   $ (247,962 ) $ 128,634                                   Net income (loss) per share (Note 7):                               Basic $ (5.14 )   $ 0.43   $ (5.12 ) $ 2.59   Diluted $ (5.14 )   $ 0.43   $ (5.12 ) $ 2.59                                   Weighted-average common shares outstanding (000s):                               Basic   48,596       49,441     48,400     49,601   Diluted   48,596       49,499     48,400     49,748     NU SKIN ENTERPRISES, INC. Consolidated Balance Sheets (Unaudited) (U.S. dollars in thousands)                     June 30,       December 31,       2026       2025   ASSETS               Current assets:               Cash and cash equivalents $ 189,643     $ 238,630   Current investments   1,743       1,211   Accounts receivable, net   48,902       39,544   Inventories, net   191,497       178,643   Prepaid expenses and other   76,364       89,670   Total current assets   508,149       547,698                   Property and equipment, net   379,550       377,168   Operating lease right-of-use assets   65,442       74,021   Goodwill   4,750       83,625   Other intangible assets, net   37,884       42,614   Other assets   125,755       280,187   Total assets   1,121,530       1,405,313                   LIABILITIES AND STOCKHOLDERS’ EQUITY               Current liabilities:               Accounts payable $ 37,711     $ 26,183   Accrued expenses   198,636       217,551   Current portion of long-term debt   20,000       20,000   Total current liabilities   256,347       263,734                   Operating lease liabilities   50,075       57,640   Long-term debt   193,664       204,187   Other liabilities   78,705       74,512   Total liabilities   578,791       600,073                   Commitments and contingencies (Notes 6 and 12)                               Stockholders’ equity:               Class A common stock – 500 million shares authorized, $0.001 par value, 90.6 million shares issued   91       91   Additional paid-in capital   612,412       635,994   Treasury stock, at cost – 41.9 million and 42.4 million shares   (1,558,183 )     (1,575,059 ) Accumulated other comprehensive loss   (118,152 )     (116,105 ) Retained earnings   1,606,571       1,860,319   Total stockholders' equity   542,739       805,240   Total liabilities and stockholders’ equity $ 1,121,530     $ 1,405,313   NU SKIN ENTERPRISES, INC. Reconciliation of Operating Margin Excluding Certain Charges to GAAP Operating Margin (in thousands, except for per share amounts)                               Three months ended June 30,   Six months ended June 30,     2026   2025   2026   2025 Operating Income   $ (59,319 ) $ 30,780   $ (55,293 ) $ 20,877   Impact of inventory write-off   -   -   3,116   -   Impact of other charges (1)   -   -   2,643   7,966   Impact of impairment   78,875   -   80,714   25,114   Adjusted operating income   $ 19,556   $ 30,780   $ 31,180   $ 53,957           Operating margin   (18.5 )% 8.0 % (8.6 )% 2.8 % Operating margin, excluding certain charges   6.1 % 8.0 % 4.9 % 7.2 %     Revenue   $ 320,112   $ 386,138   $ 640,720   $ 750,628   (1) Other charges for the first quarter of 2026 consist of $1.0 million related to the wind down of the separate BeautyBio business and $1.6 million of other employee severance charges. Other charges for the first quarter of 2025 consist of expenses incurred in connection with the Mavely sale, including $2.7 million of transaction bonuses for certain employees and $5.2 million of equity compensation as a result of the vesting of the Mavely profits interest units. NU SKIN ENTERPRISES, INC. Reconciliation of Effective Tax Rate Excluding Impact of Certain Charges to GAAP Effective Tax Rate (in thousands, except for per share amounts)                               Three months ended June 30,   Six months ended June 30,     2026   2025   2026   2025 Provision (benefit) for income taxes   $ 186,623   $ 6,292   $ 187,386   $ 33,378   Impact of inventory write-off on provision for income taxes   -   -   1,065   -   Impact of other charges (1) on provision for income taxes   -   -   903   725   Impact of impairment on provision for income taxes   (13,370 ) -   (12,741 ) 5,433   Impact of gain on Mavely sale on provision for income taxes   -   -   -   (31,104 ) Impact of gain on unrealized investment loss on provision for income taxes   -   -   -   6,074   Impact of valuation allowance on deferred tax assets   (167,505 ) -   (167,505 ) -   Provision for income taxes, excluding impact of certain charges   $ 5,748   $ 6,292   $ 9,108   $ 14,506       Income before provision for income taxes   (63,175 ) 27,411   (60,576 ) 162,012   Impact of inventory write-off   -   -   3,116   -   Impact of other charges (1)   -   -   2,643   7,966   Impact of impairment expense:   78,875   -   80,714   25,114   Impact of gain on Mavely sale   -   -   -   (176,162 ) Impact of unrealized investment loss   -   -   -   28,077   Income before provision for income taxes, excluding impact certain charges   $ 15,700   $ 27,411   $ 25,897   $ 47,007       Effective tax rate   (295.4 )% 23.0 % (309.3 )% 20.6 % Effective tax rate, excluding impact of certain charges   36.6 % 23.0 % 35.2 % 30.9 % NU SKIN ENTERPRISES, INC. Reconciliation of Earnings Per Share Excluding Impact of Certain Charges to GAAP Earnings Per Share (in thousands, except for per share amounts)                               Three months ended June 30,   Six months ended June 30,     2026   2025   2026   2025 Net income   $ (249,798 ) $ 21,119 $ (247,962 ) $ 128,634   Impact of Inventory write-off   Inventory write-off   -   - 3,116   -   Tax impact   -   - (1,065 ) -   Impact of other charges   Other charges   -   - 2,643   7,966   Tax impact   -   - (903 ) (725 ) Impact of impairment   Impairment charges   78,875   - 80,714   25,114   Tax impact   13,370   - 12,741   (5,433 ) Impact of Mavely sale   Mavely sale   -   - -   (176,162 ) Tax impact   -   - -   31,104   Impact of unrealized investment loss   Unrealized investment loss   -   - -   28,077   Tax impact   -   - -   (6,074 ) Impact of valuation allowance on deferred tax assets   167,505   - 167,505   -   Adjusted net income   $ 9,952   $ 21,119 $ 16,789   $ 32,501           Diluted earnings per share   $ (5.14 ) $ 0.43 $ (5.12 ) $ 2.59   Diluted earnings per share, excluding impact of certain charges   $ 0.20   $ 0.43 $ 0.35   $ 0.65       Weighted-average common shares outstanding (000)   48,596   49,499 48,400   49,748   NU SKIN ENTERPRISES, INC. Reconciliation of Earnings Per Share Excluding Impact of Certain Charges to GAAP Earnings Per Share                               Three months ended September 30, 2026   Year ended December 31, 2026     Low end   High end   Low end   High end Earnings Per Share   $ 0.00   $ 0.09   $ (4.90 ) $ (4.73 ) Impact of inventory write-off   Inventory write-off   -   -   0.06   0.06   Tax impact   -   -   (0.02 ) (0.02 ) Impact of other charges   Other charges (2)   0.10   0.10   0.15   0.15   Tax impact   (0.02 ) (0.02 ) (0.04 ) (0.04 ) Impact of impairment:   Impairment charges   -   -   1.67   1.67   Tax impact   -   -   0.26   0.26   Impact of valuation allowance on deferred tax assets   0.02   0.03   3.52   3.55   Adjusted EPS   $ 0.10   $ 0.20   $ 0.70   $ 0.90   (2) We are currently anticipating other charges for the third quarter of 2026 of approximately $5 million in cash-based transition cost. Other charges for the first quarter of 2026 consist of $1.0 million related to the wind down of the separate BeautyBio business and $1.6 million of other employee severance charges. View source version on businesswire.com: https://www.businesswire.com/news/home/20260810531294/en/

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