USANA HEALTH SCIENCES INC

Core Nutritional Business: During the third quarter of 2025, we held a successful Global Convention in Salt Lake City where we launched several new and upgraded products, recognized our top sales leaders and held numerous training sessions for our Brand Partners. Our product teams will continue working to roll out these recently launched products to all of our markets globally over the next several quarters. We also launched several enhancements to our Brand Partner compensation plan (“Brand Partner Compensation Plan” or “Compensation Plan”) to strengthen the competitiveness and appeal of our business opportunity in today's competitive and evolving marketplace. We will continue to promote and train our Brand Partners on these Compensation Plan enhancements during 2026. We will also continue to develop, promote and deploy marketing and training materials around these new products and Compensation Plan enhancements as part of our commitment to quality, excellence, and innovation and to benefit our active Customers in all our markets.

In 2026, our commercial team will remain actively engaged in prioritizing in-person meetings with our Brand Partners, with a focus on training and education, to ensure these recent product launches and Compensation Plan enhancements are successful and fully leveraged by our global active Brand Partners. Additionally, our team will continue to strengthen content creation at regional and local levels to enhance our global Brand Partners' ability to share, attract, and recruit new Brand Partners and customers.

Further, we will continue executing our global strategy which focuses on increasing the number of active Customers in each of our markets. Our key priorities include: (i) continuing to enhance the earning opportunity of our Brand Partners through our Compensation Plan; (ii) accelerating the launch of new and upgraded products while driving innovative product development; (iii) strengthening our brand messaging to create a more compelling and consistent market presence; (iv) deepening engagement with our Brand Partners through both in-person and digital initiatives around the world; (v) focusing on China while also implementing more tailored, decentralized solutions to meet the unique needs of each region; and (vi) supporting and expanding our acquired businesses, including the growth and expansion of Hiya and Rise. Further details on these strategies are outlined below.

We are leveraging our strong foundation in the nutrition business and expanding beyond our legacy direct selling channel to connect with a greater number of health-conscious consumers worldwide. We see an opportunity in a growing global health and wellness market to strengthen our brand relevance through an omni-channel platform. By deepening consumer engagement, empowering our Brand Partners, and executing with discipline, we believe we can accelerate profitable growth, extend our competitive advantages, and deliver sustainable long-term value for our shareholders. To facilitate this channel expansion, we intend to accelerate our technology initiatives to modernize our core systems and improve our customer experience and to create future cost efficiencies across our IT infrastructure. We plan to strategically leverage leading third-party IT platforms to move faster and more efficiently.

Enhancing the Earning Opportunity

To enhance the earning opportunity for our Brand Partners, we rolled out ourenhanced Brand Partner Compensation Plan during the third quarter of 2025, which represents a strategic move to modernize our business and better position our Brand Partners, and the Company, for long-term success in a competitive landscape. This approach includes optimization of incentives to drive sustainable income, introduction of targeted elements that reward sales, customer, and team growth early in the journey of a new Brand Partner, and providing a more robust system of training, tools, and data to help Brand Partners build and scale their businesses. By aligning our compensation structure with business growth objectives, we aim to create a more rewarding and financially empowering opportunity for our global Brand Partner base.

Product Development

In 2026, we will continue to lead in the area of cellular nutrition by enhancing our foundational and flagship products where necessary, developing more potent, unique, and differentiated formulations, and accelerating our speed to market for innovative new products. Our three dedicated product teams will continue to focus on delivering world-class nutrition solutions that meet evolving consumer needs and set new standards in the industry. Through continued investment in research, development, and cutting-edge science, we will ensure that USANA remains at the forefront of clinical nutrition, providing products that support optimal health and wellness worldwide.

Strengthening our Brand

We are enhancing and refining our brand messaging to create a more compelling, consistent, and globally recognized identity. Our focus is on clearly communicating our unique and differentiated commitment to world-class cellular nutrition, the strength of our science-backed products, and the life-changing opportunities we offer through our business model. We will continue to elevate our brand presence across digital and traditional channels, ensuring that our messaging resonates with both new and existing customers. By sharpening our positioning and storytelling, we aim to deepen trust, increase brand loyalty, and further differentiate USANA in the health and wellness industry.

Brand Partner Engagement

We are deepening our engagement with Brand Partners worldwide by enhancing both in-person and digital interactions. Our goal is to create a more connected and empowered health community by providing better communication, more personalized support, and expanded training opportunities. We will continue investing in digital tools, events, and mentorship programs that help Brand Partners build successful businesses and foster stronger relationships within their teams. By prioritizing engagement at every level, we aim to strengthen the Brand Partner experience, increase retention, and drive long-term growth across all markets.

China and Regional Support

We will continue executing strategic initiatives to drive growth in China, including: targeting and expanding active Customers through simple, easy-to-use, digitally-based customer acquisition, fulfillment, and service initiatives; enhancing our digital capabilities with continued investments aimed at improving the overall customer experience; expanding our market-leading training, development, and certification programs to empower Brand Partners in health, business, and personal growth, ensuring they have the tools needed to succeed; and enhancing our product portfolio with products specifically designed for the Chinese consumer.

Beyond China, we are strengthening our regional approach by empowering local leaders to develop winning strategies tailored to their unique cultures and market conditions. By providing them with greater authority and influence over product development and incentive creation, we are fostering a more agile, market-responsive organization.

In India, following our market entry at the end of 2023, we continue to execute our long-term growth strategy by expanding our product portfolio, strengthening local marketing efforts, and supporting our Brand Partners with enhanced tools and training. Additionally, we remain committed to evaluating new international markets for potential expansion, ensuring sustainable global growth for USANA.

Hiya and Rise: In 2026, we plan to continue to support and grow Hiya and Rise. Hiya and Rise expand our growth potential into the direct-to-consumer, third-party marketplace and retail channels through their diverse models.

Hiya growth initiatives include: (i) product portfolio expansion, (ii) distribution channel expansion, via online marketplaces and select retail partners, and (iii) geographic expansion in early 2026 into Canada and the United Kingdom. We are also leveraging assets and expertise from our core nutritional business to facilitate operational efficiencies for Hiya. For example, we are now manufacturing Hiya products in-house at our U.S. manufacturing facility to generate savings beginning in the second half of 2026 as efficiencies of scale and integration benefits materialize. We will continue to work with Hiya to capitalize on additional synergies, assets and expertise across both companies to promote overall sales and customer growth.

Rise growth initiatives also include product category expansion and distribution channel expansion. In 2025, Rise expanded its brand and product portfolio through launching Protein Pop, a new clear protein, RTD product line. Rise also expanded its distribution channel in 2025 and will further expand in 2026, largely through certain new key retail partners.

We will continue to work with Rise to generate additional synergies, assets and expertise across the Company to promote overall sales and customer growth.

We also expect to continue to pursue acquisition opportunities in the health and wellness space that strengthen, diversify, and grow our worldwide business by focusing on: (i) overall nutrition, (ii) vertical integration, (iii) product and category expansion, distribution channel expansion, and (iv) geographic expansion.

For further details of these acquisitions, see Note B to the consolidated financial statements included in Part II, Item 8 of this Annual Report, which is incorporated by reference.