NU SKIN ENTERPRISES, INC.
For the period ended Mar 31, 2025. Filed May 9, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 9, 2025
NUS$4.10-9.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0001140361-24-045720
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001140361-25-018024
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 85 previous paragraphs and 78 current paragraphs.
25 unchanged; 33 reworded; 20 added; 27 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 14 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
The declines for the three-month period ended March 31, 2025 were largely driven by the continued macroeconomic challenges we’ve been facing in our markets, which have negatively impacted consumer spending and customer acquisition. In addition, while we continue to make progress on our long-term vision, we have experienced headwinds from the transformation process. Our priorities for 2025 focus on business model optimization, driven by the continued rollout of enhancements to our sales performance plan, the introduction of our next connected device the Prysm iO and business expansion into India. We are currently anticipating nominal revenue from our fourth quarter India market pre-opening, as we are preparing for the formal launch in mid-2026.
Current report
Earnings per share for the first quarter of 2025 increased to $2.14, compared to $(0.01) in the prior-year period. The increase in earnings per share for the quarter is primarily driven by the sale of our Mavely business, which generated a pre-tax gain of approximately $176.2 million, partially offset by the associated taxes, an intangible impairment of $25.1 million in our Rhyz Other segment, a non-cash loss on investment of $28.1 million and the decline in revenue.
Current report
The year-over-year increase in segment contribution primarily reflects increased profitability in Latin America, partially offset by the overall decline in revenue.
Current report
The year-over-year decrease in segment contribution for the first quarter of 2025 primarily reflects lower revenue and a 1.5 percentage point decrease in gross margin attributable to pressure from fixed cost in cost of sales on depressed revenue, partially offset by a 3.0 percentage point decrease in selling expense as a percent of revenue.
Current report
Japan. The 3.3% decline in revenue is primarily attributable to a 2.5% negative impact from unfavorable foreign-currency fluctuations as well as consumer inflationary pressures which depressed spending. On a local currency basis, revenue decreased 0.8%.
Current report
The year-over-year increase in segment contribution reflects the cost-saving efforts in the segment which benefited gross margin through automation and other initiatives, which resulted in a 3.3 percentage point increase in gross margin. In addition, selling expenses as a percent of revenue decreased 3.3 percentage points primarily from higher sales force events cost in the first quarter of 2024, partially offset by the decline in revenue.
Current report
The increase in segment contribution was primarily driven by a 3.8 percentage point decrease in selling expenses and a 5.3 percentage point decrease in general and administrative expense from ourrecent cost saving efforts, partially offset by the decline in revenue.
Current report
Rhyz Other. The decrease in revenue of our Rhyz Other segment is primarily driven by the January 2, 2025 sale of Mavely, Mavely recognized $7.0 million of revenue in the first quarter of 2024. In addition, our BeautyBio entity remains challenging, with a 72% decline in revenue as we look to change the strategy to minimize future losses and position the brand for growth.
Current report
The increase in segment contribution is primarily from the sale of Mavely, which operated at a loss during the first quarter of 2024, as well as our cost saving efforts at BeautyBio, which had smaller losses for the first quarter of 2025.
Current report
We continue to monitor macroeconomic trends and uncertainties related to international trade relations and trade policy, including those related to tariffs. Incremental tariffs did not have a significant impact on our financial results for the first quarter of 2025 but could adversely impact our results in the future. While we remain focused on mitigating the impact of the tariffs, we currently estimate up to $5 million of incremental cost pressure for the remainder of 2025. We continue to monitor and plan to take proactive measures to minimize the potential impact.
Current report
General and administrative expenses decreased to $113.2 million in the first quarter of 2025, compared to $124.6 million in the prior-year period. The $11.4 million decline is primarily from a $5.6 million contraction in labor expenses, $2.4 million from Mavely and a decrease in promotional expenses in connection with our prior year product launches. General and administrative expenses as a percentage of revenue increased to 31.1% for the first quarter of 2025 from 29.9% for the prior-year period.
Current report
Interest expense decreased to $3.3 million in the first quarter of 2025, compared to $7.3 million in the prior-year period. The decrease in interest expense was primarily due to the debt payments made in the first quarter of 2025 using a portion of the proceeds from the Mavely sale. Our interest rate swap arrangements that we entered into in 2020 have a maturity date of July 31, 2025, at which time our effective interest rate will increase.
Current report
Gain on sale of business
Current report
In January 2025, we completed the sale of our Mavely entity for $230 million in cash and shares of the purchaser’s common stock, subject to certain adjustments as set forth in the purchase agreement, including post-closing determination of net working capital and other elements of purchase price. Following the completion of certain payments to other equity holders in Mavely, we received $193.7 million of cash and equity interest with an estimated fair value of $6.1 million. Approximately $4.4 million of additional payments are expected to be received following the finalization of net working capital. In the first quarter of 2025, we recorded a pre-tax gain on disposition of $176.2 million.
Current report
Other expense, net
Current report
Other expense, net for the first quarter of 2025 was $28.4 million compared to $0.4 million for the first quarter of 2024. The increase in other expense for the first quarter of 2025 is primarily from a $28.1 million unrealized loss on investment. See Note 8 to the consolidated financial statements contained in this report for more information on the unrealized equity investment and the associated loss.
Current report
Provision for income taxes
Current report
Provision for income taxes for the first quarter of 2025 was $27.1 million, compared to $1.6 million for the prior-year period. The effective tax rate was 20.1% of income before provision for income taxes during the first quarter of 2025 compared to 148.4% in the prior-year period. Our first quarter of 2025 effective tax rate benefited from the sale of Mavely, while our first quarter of 2024 tax rate was negatively impacted by the decline in profitability for the quarter as well as the vesting of our employee stock awards.
Current report
Working capital. As of March 31, 2025, working capital was $264.6 million, compared to $242.0 million as of December 31, 2024. Our increase in working capital is primarily attributable toproceeds from the sale of Mavely, partially offset by $115.0 million payment on our term loan. In addition, in the first quarter we paid $30.0 million towards our revolving credit facility.
Current report
There were no significant changes in our critical accounting policies or estimates during the first quarter of 2025.
Removed paragraphs (27)
Previous report
The declines in our third quarter and first nine months of 2024 revenue were largely driven by continued macroeconomic pressures we have been facing in our core Nu Skin segments, which have negatively impacted consumer spending and customer acquisition. In addition, while we continue to make progress on our long-term vision, we have experienced headwinds from the transformation process. The declines in our core Nu Skin segments were partially offset by 20.9% and 34.3% growth for the third quarter and first nine months of 2024, respectively, in our Rhyz segments, partially from acquisitions in the second quarter of 2023 as well as organic growth. Rhyz is a key component of our business, and we anticipate its continued growth in the coming years both on an absolute basis and as a percentage of our consolidated revenue. These companies enable us to diversify our revenue mix, serve more customers where they shop, and create synergies for our owned and partner brands. In the fourth quarter, we are beginning to introduce our new sales performance plan, which we believe combines the best of affiliate marketing and leadership incentives to activate our existing sales force and excite potential new prospects. The plan is placing an enhanced focus on upfront earnings to help attract and retain new affiliates.
Previous report
Earnings per share for the third quarter of 2024 increased to $0.17, compared to $(0.74) in the prior-year period. Earnings per share for the first nine months of 2024 decreased to $(2.23), compared to $0.03 in the prior-year period. The increase in earnings per share for the third quarter is primarily driven by a third quarter of 2023 inventory write-off charge of $65.7 million, partially offset by a decline in revenue. The decrease in earnings per share for the first nine months of 2024 is primarily driven by second quarter of 2024 restructuring and impairment charges of $149.4 million, along with the overall decline in revenue, partially offset by the third quarter of 2023 inventory write-off charge.
Previous report
The year-over-year decline in segment contribution for the third quarter of 2024 primarily reflects the decrease in revenue partially offset by a 2.3 percentage point improvement in selling expenses from product mix and growth in our developing markets. The year-over-year decline in segment contribution for the first nine months of 2024 primarily reflects the decrease in revenue.
Previous report
The year-over-year decrease in segment contribution for the third quarter and first nine months of 2024 primarily reflects lower revenue. In addition, our segment contribution was impacted by a 4.7 percentage point and 3.2 percentage point decrease in gross margin for the third quarter and first nine months of 2024, respectively, attributable to increased sales promotions as well as pressure from the new manufacturing plant that went live in the fourth quarter of 2023. Our segment contribution was also impacted by a 2.5 percentage point and 2.4 percentage point increase in selling expenses as a percentage of revenue for the third quarter and first nine months of 2024, respectively, due to increased transitional sales force incentives.
Previous report
Japan. The third quarter of 2024 decline in revenue is primarily attributable to the third quarter of 2023 launch ofageLOC WellSpa iO, which generated $1.6 million in revenue in third quarter of 2024, compared to $4.4 million in the third quarter of 2023. In addition, Japan’s third quarter and first nine months of 2024 were negatively impacted 2.7% and 8.0%, respectively, from unfavorable foreign-currency fluctuations. Our Paid Affiliates were negatively impacted by a change in eligibility requirements for receiving certain rewards within our compensation structure. We estimate the change in eligibility requirements resulted in a reduction of approximately 14,000 Paid Affiliates for the three months ended September 30, 2024.
Previous report
The year-over-year decline in segment contribution for the third quarter and first nine months of 2024 primarily reflects the decline in revenue.
Previous report
The year-over-year decrease in segment contribution for the third quarter and first nine months of 2024 is primarily from declines in revenue, partially offset by a 4.5 and 1.1 percentage point improvement in gross margin, primarily from a third quarter price increase and less promotional efforts.
Previous report
Rhyz Other. The increase in revenue of our Rhyz other segment is primarily driven by 214.4% and 154.9% growth at our Mavely entity, for the third quarter and first nine months of 2024.
Previous report
The increase in segment contribution for the third quarter of 2024 is primarily from increased profitability at our Mavely entity as it continues to grow. The decline in segment contribution for the first nine months of 2024 is primarily from the companies we acquired in the second quarter of 2023, which we are continuing to invest in to enable future growth, as well as the impacts of purchase accounting, which resulted in $2.3 million of incremental amortization of intangible assets for the first nine months of 2024.
Previous report
General and administrative expenses decreased to $115.6 million in the third quarter of 2024, compared to $130.9 million in the prior-year period and decreased to $358.1 million in the first nine months of 2024, compared to $401.8 million in the prior-year period. The $15.3 million decrease for the third quarter of 2024 and $43.7 million decrease for the first nine months of 2024 was primarily from contraction in labor expense and occupancy related expenses, both attributable to our ongoing restructuring efforts in which we reduced our physical footprint and reduced our headcount. General and administrative expenses as a percentage of revenue increased to 26.9% for the third quarter of 2024, from 26.2% for the prior-year period, and increased to 27.8% for the first nine months of 2024, from 27.1% for the prior-year period.
Previous report
In the third quarter of 2022, we adopted a strategic plan to focus resources on our strategic priorities and optimize future growth and profitability. The global program included workforce reductions and footprint optimization. Total charges incurred under the program were approximately $53.3 million, with $40.8 million in cash charges of severance and lease termination cost and approximately $12.5 million of non-cash charges of impairment of fixed assets, acceleration of depreciation and impairment of other intangibles related to our footprint optimization. During the fourth quarter of 2022, we incurred charges to be settled in cash of $20.1 million in severance charges, $7.4 million in lease termination cost, and $5.2 million in other associated cost, and non-cash charges of $8.2 million in fixed asset impairments, $0.9 million in accelerated depreciation and $1.7 million in impairment of other intangibles. During the first quarter of 2023, we incurred charges to be settled in cash of $4.0 million in severance charges, $1.9 million in lease termination cost, and $2.2 million in other associated cost, and non-cash charges of $1.7 million in accelerated depreciation.
Previous report
During the three months ended June 30, 2024, we determined that the continued decline in our stock price and corresponding market capitalization as well as declines in some of our reporting units’ forecasts were triggering events that required us to perform a quantitative impairment analysis. When we performed an impairment test during the second quarter of 2024, we concluded that the estimated fair value of Americas, Mainland China, Southeast Asia/Pacific, Japan, South Korea, Europe & Africa, Hong Kong/Taiwan and our BeautyBio reporting units were less than their carrying value of equity as June 30, 2024. As a result, we recorded a non-cash goodwill impairment charge of $130.9 million in the second quarter of 2024.
Previous report
Interest expense decreased to $6.5 million in the third quarter of 2024, compared to $7.5 million in the prior-year period. The third quarter decrease in interest expense is primarily attributable to decreases in borrowings on our revolving credit facility. Interest expense for the first nine months of 2024 increased to $20.5 million compared to $18.2 million for the prior-year period. The increase in interest expense were primarily due to increased in borrowings on our revolving credit facility in the first half of 2024 compared to 2023, associated with our June 2023 acquisition of BeautyBio.
Previous report
Other income (expense), net
Previous report
Other income (expense), net was $1.6 million for the third quarter of 2024 compared to $(0.6) million for the prior-year period and $1.8 million for the first nine months of 2024 compared to $3.2 million for the prior-year period. The decrease in other income for the nine-month period ended September 30, 2024 expense is primarily from the impact of foreign currency fluctuations on the valuation of our intercompany receivables and payables.
Previous report
Provision (benefit) for income taxes
Previous report
Provision (benefit) for income taxes for the three- and nine-month periods ended September 30, 2024 was $5.0 million and $(6.8) million, respectively, compared to $2.5 million and $15.9 million for the prior-year periods. The effective tax rates for the three- and nine-month periods ended September 30, 2024 were 37.6% and 5.8% of pre-tax income, respectively, compared to (7.3)% and 92.4% in the prior-year periods. Our tax rate for the nine-month period ended September 30, 2024 was impacted by our second quarter of 2024 goodwill impairment and restructuring charges. Our 2023 effective tax rates were impacted by our third quarter of 2023 inventory write-off charge and associated restructuring charges.
Previous report
Working capital. As of September 30, 2024, working capital was $314.0 million, compared to $373.0 million as of December 31, 2023. Our decline in working capital is primarily attributable to the decline in cash as discussed above, a lower inventory balanceand higher current portion of long-term debt as we intend to pay off a higher portion of our revolving credit facility in the next twelve months partially offset by an increase in prepaid expenses primarily associated with corporate income tax payments.
Previous report
The following critical accounting policies and estimates should be read in conjunction with our audited consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the 2023 fiscal year.
Previous report
Intangible Assets. Acquired intangible assets may represent indefinite-lived assets, determinable-lived intangibles or goodwill. Of these, only the costs of determinable-lived intangibles are amortized to expense over their estimated life. The value of indefinite-lived intangible assets and residual goodwill is not amortized, but is tested at least annually for impairment. Our impairment testing for goodwill is performed separately from our impairment testing of indefinite-lived intangibles. We test goodwill for impairment, at least annually, by reviewing the book value compared to the fair value at the reportable unit level. We have the option to perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of a reporting unit to its carrying amount, including goodwill. Under the qualitative assessment, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. If under the quantitative assessment the fair value of a reporting unit is less than its carrying amount, then the amount of the impairment loss, if any, must be measured. We elected to perform the quantitative assessment for fiscal year 2022 and we used the qualitative assessment for fiscal years 2023 and 2021.
Previous report
Considerable management judgment and assumptions are used in our goodwill impairment assessment, including with respect to the estimated future cash flows, the earnings multiples used in the market approach, the discount rate used to discount such estimated future cash flows to their net present value and the reasonableness of the implied control premium relative to our market capitalization. These factors could materially increase or decrease the fair value of our reporting units and, accordingly, could result in a related impairment charge. Declines in our market capitalization or in our business performance could also result in a material impairment charge in a future period.
Previous report
During the three months ended March 31, 2024, we determined that the recent decline in our stock price and corresponding market capitalization was a triggering event that required us to perform a quantitative impairment analysis. Based on the analysis, we concluded the fair value of all reporting units were in excess of their carrying amounts and no impairment charge was required. For goodwill, the estimated fair value of the reporting units exceeded the carrying value by approximately 1% - 7%.
Previous report
During the three months ended June 30, 2024, we determined that the continued decline in our stock price and corresponding decrease in market capitalization as well as declines in some of our reporting units’ forecasts were triggering events that required us to perform a quantitative impairment analysis. Based on the analysis, we concluded that the estimated fair value of Americas, Mainland China, Southeast Asia/Pacific, Japan, South Korea, Europe & Africa, Hong Kong/Taiwan and our BeautyBio reporting units were less than their carrying value of equity as June 30, 2024. As a result, we recorded a non-cash goodwill impairment charge of $130.9 million in the second quarter of 2024.
Previous report
During the three months ended September 30, 2024, we determined that the recent decline in our stock price and corresponding market capitalization was a triggering event that required the us to perform a quantitative impairment analysis for the Manufacturing and Rhyz other reporting units. Based on the analysis, we concluded the fair value of the Manufacturing and Rhyz other reporting units were in excess of their carrying amounts and no impairment charge was required. For goodwill, the estimated fair value of Manufacturing and Rhyz other reporting units exceeded the carrying value by approximately 2% - 8%; therefore, the reporting units are considered to be at risk of future impairment.
Previous report
Our revenue and profitability forecasts used in the goodwill impairment assessments considered recent and historical performance, strategic initiatives, industry trends and macroeconomic factors. Assumptions used in the valuations were similar to those that would be used by market participants performing independent valuations of the business.
Previous report
Key assumptions developed by management and used in the quantitative analyses:
Previous report
Our BeautyBio reporting unit within our Rhyz other segment remains sensitive to future increases in discount rates, and changes in our forecast. We performed a sensitivity analysis on the impairment model used to test the manufacturing and Rhyz other reporting units’ goodwill. In doing so, we determined that individual changes of a 5% reduction in our annual earnings before interest and tax, or a 40 basis point increase in the discount rate used in the discounted cash flow models did not cause the estimated fair values of the reporting units to decline below their carrying value. We made our estimates based on information available as of the date of our assessment, using assumptions we believe market participants would use in performing an independent valuation of the business. Although we believe the estimates and assumptions used in the impairment testing are reasonable and appropriate, it is possible that the assumptions and conclusions regarding impairment or recoverability of our reporting units’ goodwill could change in future periods. There can be no assurance the estimates and assumptions, particularly our long-term financial projections, used in our goodwill impairment testing will prove to be accurate predictions of the future, if, for example, (i) the business does not perform as projected, (ii) overall economic conditions in the remainder of Fiscal 2024 or future years vary from current assumptions (including changes in discount rates and foreign currency exchange rates), (iii) business conditions or strategies change from current assumptions, (iv) investors require higher rates of return on equity investments in the marketplace, or (v) enterprise values of comparable publicly traded companies, or actual sales transactions of comparable companies, were to decline, resulting in lower multiples of revenues and profitability. A future impairment charge to our reporting units’ goodwill could have a material effect on the consolidated financial position and results of operations.
Reworded paragraphs (33)
Previous wording
This Quarterly Report on Form 10-Q (this “Quarterly Report”) 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 our 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 our performance, initiatives, strategies, product introductions and offerings, growth of our Rhyz business, acquisitions, and the integration of acquired companies, growth, opportunities and risks; statements of projections regarding future sales, expenses, operating results, taxes and duties, capital expenditures, sources and uses of cash, foreign-currency fluctuations or devaluations, repatriation of undistributed earnings, and other financial items; statements of management’s expectations and beliefs regarding our markets and global economic conditions; statements regarding the payment of future dividends and stock repurchases; statements regarding the outcome of litigation, audits, investigations or other regulatory actions; statements regarding government policies and regulations relating to our industry, including government policies and regulations in or related to the United States and Mainland China; accounting estimates and assumptions; 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,” “optimistic,” “project,” “anticipate,” “determine,” “estimate,” “intend,” “plan,” “goal,” “objective,” “targets,” “become,” “likely,” “will,” “would,” “could,” “may,” “might,” the negative of these words and other similar words. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. We caution and advise readers that these statements are based on assumptions that may not be realized and involve risks and uncertainties that could cause actual results to differ materially from the expectations and beliefs contained herein. For a summary of these risks, see the risk factors included in our Annual Report on Form 10-K for the 2023 fiscal year and in any of our subsequent Securities and Exchange Commission filings, including this Quarterly Report.
Current wording
This Quarterly Report on Form 10-Q (this “Quarterly Report”) 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 our 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 our performance, initiatives, strategies, product introductions and offerings, growth of our Rhyz business, acquisitions, and the integration of acquired companies, growth, opportunities and risks; statements of projections regarding future sales, expenses, operating results, taxes and duties, capital expenditures, sources and uses of cash, foreign-currency fluctuations or devaluations, repatriation of undistributed earnings, and other financial items; statements of management’s expectations and beliefs regarding our markets and global economic conditions; statements regarding the payment of future dividends and stock repurchases; statements regarding the outcome of litigation, audits, investigations or other regulatory actions; statements regarding government policies and regulations relating to our industry, including government policies and regulations in or related to the United States and Mainland China; statements regarding tariffs and trade policies; accounting estimates and assumptions; 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,” “optimistic,” “project,” “anticipate,” “determine,” “estimate,” “intend,” “plan,” “goal,” “objective,” “targets,” “become,” “likely,” “will,” “would,” “could,” “may,” “might,” the negative of these words and other similar words. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. We caution and advise readers that these statements are based on assumptions that may not be realized and involve risks and uncertainties that could cause actual results to differ materially from the expectations and beliefs contained herein. For a summary of these risks, see the risk factors included in our Annual Report on Form 10-K for the 2024 fiscal year and in any of our subsequent Securities and Exchange Commission filings, including this Quarterly Report.
Previous wording
Revenue for the three-month period ended September 30, 2024 decreased 14% to $430.1 million, compared to $498.8 million in the prior-year period, and revenue for the nine-month period ended September 30, 2024 decreased 13% to $1.3 billion, compared to $1.5 billion in the prior-year period. Our revenue in the third quarter and first nine months of 2024 was negatively impacted 3.4% and 3.8%, respectively, from foreign-currency fluctuations. Our Customers, Paid Affiliates and Sales Leaders declined 15%, 20% and 19%, respectively, on a year-over-year basis.
Current wording
Revenue for the three-month period ended March 31, 2025 decreased 12.7% to $364.5 million, compared to $417.3 million in the prior-year period. Our revenue in the first quarter of 2025 was negatively impacted 3.0% from foreign-currency fluctuations. Our Customers, Paid Affiliates and Sales Leaders declined 11%, 15% and 20%, respectively, on a year-over-year basis.
Previous wording
We report our business in nine segments to reflect our current management approach. These segments consist of our seven geographic Nu Skin segments—Americas, Mainland China, Southeast Asia/Pacific, Japan, Europe & Africa, South Korea and Hong Kong/Taiwan—and our Rhyz Investment segments—Manufacturing and Rhyz other. The Nu Skin other category includes miscellaneous corporate revenue and related adjustments.
Current wording
We report our business in nine segments to reflect our current management approach. These segments consist of our seven geographic Nu Skin segments—Americas, Mainland China, Southeast Asia/Pacific, Japan, Europe & Africa, South Korea and Hong Kong/Taiwan—and our two Rhyz segments—Manufacturing and Rhyz Other. The Nu Skin Other category includes miscellaneous corporate revenue and related adjustments.
Previous wording
The following table sets forth revenue for the three- and nine-month periods ended September 30, 2024 and 2023 for each of our reportable segments (U.S. dollars in thousands):
Current wording
The following table sets forth revenue for the three-month periods ended March 31, 2025 and 2024 for each of our reportable segments (U.S. dollars in thousands):
Previous wording
The following table sets forth segment contribution for the three- and nine-month periods ended September 30, 2024 and 2023 for each of our reportable segments (U.S. dollars in thousands). Segment contribution excludes certain intercompany charges, specifically royalties, license fees, transfer pricing and other miscellaneous items. We use segment contribution to measure the portion of profitability that the segment managers have the ability to control for their respective segments. The prior year segment contribution has been recast due to a change in how we allocate certain corporate costs. Consolidated financial information was not affected. For additional information regarding our segments and the calculation of segment contribution, see Note 10 to the consolidated financial statements contained in this report.
Current wording
The tables below set forth summarized financial information for each of our reportable segments for the three-month periods ended March 31, 2025 and 2024 (U.S. dollars in thousands). Segment contribution excludes certain intercompany charges, specifically royalties, license fees, transfer pricing and other miscellaneous items. We use segment contribution to measure the portion of profitability that the segment managers have the ability to control for their respective segments. For additional information regarding our segments and the calculation of segment contribution, see Note 11 to the consolidated financial statements contained in this report.
Previous wording
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 September 30, 2024 and 2023.
Current wording
The following table provides information concerning the number of Customers, Paid Affiliates and Sales Leaders in our core Nu Skin business for the three-month periods ended March 31, 2025 and 2024.
Previous wording
Following is a narrative discussion of our results in each segment, which supplements the tables above.
Current wording
The following is a narrative discussion of our results in each segment, which supplements the tables above.
Previous wording
Americas. The results in our Americas segment reflect a continued decline in momentum in our North America markets, while our Latin America markets continue to be challenged by macroeconomic issues. In connection with our transformation efforts, we also have experienced disruptions to our subscription sales in North America, which negatively impacted revenue. In addition, our reported revenue reflects a negative impact from unfavorable foreign currency fluctuations of 15.9% and 9.0% for the three- and nine-month periods, respectively. Our 2024 revenue has benefited from new product launches; in the first quarter of 2024, we launched our new connected device, which generated approximately $27.8 million in revenue for the first nine months of 2024, and in the third quarter of 2024, we launched our newageLOC TruFace Peptide Retinol Complex with advanced peptide technology and MYND360, our new brand taking a holistic approach to support cognitive health, which generated a total of approximately $4.8 million of revenue during the quarter. We are introducing a new sales performance plan in North America starting in November 2024.
Current wording
Americas. The results in our Americas segment reflect a continued decline in our North America markets, while our Latin America markets grew year-over-year. We also introduced enhancements to the sales performance plan in North America starting in November 2024, which has caused disruption as our sales force adapts to the enhancements. In addition, our reported revenue reflects a negative impact from unfavorable foreign currency fluctuations of 6.7% for the first quarter of 2025.
Previous wording
In the second quarter of 2024, we launched our developing market strategy in Argentina, with a revised operating model with a focused product portfolio and modified business model that has enabled us to reach a broader demographic. During the third quarter of 2024, our Argentina market revenue, Customers and Sales Leaders all experienced double-digit growth year-over-year.
Current wording
In the second quarter of 2024, we launched our developing market strategy in Argentina, with a revised operating model with a focused product portfolio and modified business model that has enabled us to reach a broader demographic. During early 2025, we continued to roll out this strategy in additional Latin America markets. For the first quarter of 2025, our Latin America markets revenue increased from $8.9 million to $21.8 million, a 144% increase; in addition, Latin America Customers increased 133%, Paid Affiliates increased 40%, and Sales Leaders increased 62%.
Previous wording
Southeast Asia/Pacific. The decline in revenue, Customers, Paid Affiliates and Sales Leaders for the third quarter and first nine months of 2024 is partially attributable to slowing momentum from the general macroeconomic factors in the markets along with price increases that we implemented in 2022 and 2023 to address inflation. During the second quarter of 2024, we began to see year-over-year improvements in many of our markets, but our Indonesia market remains challenging. Our Paid Affiliates were negatively impacted by a change in eligibility requirements in our Pacific markets for receiving certain rewards within our compensation structure. We estimate the change in eligibility requirements resulted in a reduction of approximately 2,000 Paid Affiliates for the three months ended September 30, 2024. We are making additional changes in the fourth quarter of 2024.
Current wording
Southeast Asia/Pacific. The decline in revenue, Customers, Paid Affiliates and Sales Leaders for the first quarter of 2025 is partially attributable to slowing momentum from the general macroeconomic factors in the markets. We continued to see stabilization in many of our markets, but our Indonesia market remained challenging.
Previous wording
The year-over-year decrease in segment contribution is primarily attributable to the decline in revenue.
Current wording
The year-over-year increase in segment contribution is primarily attributable to a 2.3 percentage point decrease in selling expenses as a percentage of revenue and a 2.1 percentage point decrease in general and administrative expenses as a percentage of revenue attributable to cost savings efforts during 2025 all partially offset by the decline in revenue.
Previous wording
Mainland China. Our Mainland China market continued to be challenged during the third quarter and first nine months of 2024, with ongoing macroeconomic factors and the associated decrease in consumer spending leading to declines in revenue, Customers, Paid Affiliates and Sales Leaders. We anticipate the current regulatory pressures as well as other economic challenges persisting as the economy works to recover.
Current wording
Mainland China. Our Mainland China market continued to be challenged during the first quarter of 2025, with ongoing macroeconomic factors, the associated decrease in consumer spending and a negative sentiment towards U.S. brands leading to declines in revenue.
Previous wording
The year-over-year decline in segment contribution reflects the decreased revenue, partially offset by a 1.4 percentage point decline in general and administrative expenses for the nine months period ended September 30, 2024 attributable to savings from our restructuring plan.
Current wording
The year-over-year decline in segment contribution reflects the decreased revenue, partially offset by a 1.4 percentage point decline in selling expenses.
Previous wording
Europe & Africa. The reduction in revenue, Customers, Paid Affiliates and Sales Leaders reflects the softening of momentum, as well as the macroeconomic factors that have led to a decline in the purchasing power of our customers for the third quarter and first nine months of 2024.
Current wording
Europe & Africa. The reduction in revenue, Customers, Paid Affiliates and Sales Leaders reflects the softening of momentum, as well as the macroeconomic factors that have led to a decline in the purchasing power of our customers. We introduced enhancements to the sales performance plan in Europe & Africa starting in March 2025.
Previous wording
South Korea. Our South Korea market was challenged by difficult macroeconomic trends, including inflationary pressures, and our associated price increases which negatively impacted our revenue, Customers, Paid Affiliates and Sales Leaders for the third quarter and first nine months of 2024. We are introducing a new sales performance plan in South Korea starting in November 2024.
Current wording
South Korea. Our South Korea market was challenged by difficult macroeconomic trends, including inflationary pressures, political instability, and our associated price increases which negatively impacted our revenue, Customers, Paid Affiliates and Sales Leaders for the quarter ended March 31, 2025. During the fourth quarter of 2024, we introduced our enhancements to the sales performance plan in South Korea.
Previous wording
The decline in segment contribution was primarily driven by the decline in revenue, partially offset by savings recognized in general and administrative expenses from our previous restructuring activities.
Current wording
The year-over-year decline in segment contribution primarily reflects the decline in revenue partially offset by a 3.0 percentage point decrease in general and administrative expenses from our cost saving efforts.
Previous wording
Hong Kong/Taiwan. The declines in our Hong Kong/Taiwan segment for the third quarter and first nine months of 2024 are attributable to macroeconomic issues, which are resulting in less purchasing power for our consumers. In addition, we experienced some transformational pressures with new technology in Taiwan.
Current wording
Hong Kong/Taiwan. The declines in our Hong Kong/Taiwan segment for the first quarter of 2025 are attributable to macroeconomic issues, which are resulting in less purchasing power for our consumers.
Previous wording
Manufacturing. Our Manufacturing segment revenue increased 4.1% and 17.2% for the third quarter and first nine months of 2024, respectively, primarily driven by our Wasatch Manufacturing entity.
Current wording
Manufacturing. Our Manufacturing segment revenue increased 9.9% for the first quarter of 2025, primarily driven by our Elevate Manufacturing entity.
Previous wording
The decrease in segment contribution for the third quarter and first nine months of 2024 is primarily from the revenue mix amongst our manufacturing entities as well as product mix, which resulted in less profitability for the periods presented.
Current wording
The decrease in segment contribution for the first quarter of 2025 is primarily from the revenue mix amongst our manufacturing entities as well as product mix, which resulted in less profitability for the periods presented.
Previous wording
Revenue for the three-month period ended September 30, 2024 decreased 14% to $430.1 million, compared to $498.8 million in the prior-year period. Revenue for the nine-month period ended September 30, 2024 decreased 13% to $1.3 billion compared to $1.5 billion. Our reported revenue was negatively impacted 3.4% and 3.8% from foreign-currency fluctuations for the three- and nine-month periods ended September 30, 2024, respectively. For a discussion and analysis of these decreases in revenue, see “Overview” and “Segment Results,” above.
Current wording
Revenue for the three-month period ended March 31, 2025 decreased 12.7% to $364.5 million, compared to $417.3 million in the prior-year period. For a discussion and analysis of this decrease in revenue, see “Overview” and “Segment Results,” above.
Previous wording
Gross profit as a percentage of revenue was 70.1% for the third quarter of 2024, compared to 58.6% for the prior-year period, and 70.2% for the first nine months of 2024, compared to 67.9% for the prior-year period. Gross profit as a percentage of revenue for core Nu Skin increased 14.7 percentage points to 76.5% for the third quarter of 2024 and increased 4.7 percentage points to 76.6% for the first nine months of 2024. The third quarter of 2024 and first nine months of 2024 increase in our core Nu Skin gross margin is primarily attributable to a third quarter of 2023 $65.7 million inventory write-off charge, associated with a re-balancing and narrowing of our portfolio. Our consolidated gross margin for the three- and nine-month periods ended September 30, 2024, was also impacted by the gross margin of our owned manufacturing entities, which as previously disclosed, is significantly lower than the gross margin of our core Nu Skin business.
Current wording
Gross profit as a percentage of revenue was 67.8% for the first quarter of 2025 compared to 70.5% for the prior-year period. The gross margin of our core Nu Skin business decreased 0.2 percentage points to 76.7%. Our gross margin was also impacted by the gross margin of our owned manufacturing entities, which as previously disclosed, is significantly lower than the gross margin of our core Nu Skin business. With the year-over-year growth within our Manufacturing segment, their revenue represented a higher proportion of our overall consolidated revenue for the quarter.
Previous wording
Selling expenses as a percentage of revenue increased to 39.0% for the third quarter of 2024, compared to 37.6% for the prior year period, and decreased to 37.8% for the first nine months of 2024, compared to 37.9% for the prior-year period. Core Nu Skin selling expenses as a percentage of revenue increased 1.8 percentage points to 43.5% for the third quarter of 2024 and increased 1.3 percentage points to 42.5% for the first nine months of 2024. Selling expenses for our core Nu Skin business are driven by the specific performance of our individual Sales Leaders. Given the size of our sales force and the various components of our compensation and incentive programs, selling expenses as a percentage of revenue typically fluctuate plus or minus approximately 100 basis points from period to period. In the third quarter of 2024, we held our global Nu Skin L!VE event with an east L!VE in South Korea and a west L!VE in the United States. As a result of these events, we incurred approximately $10.2 million of incremental expenditures, which contributed to our elevated selling expenses.
Current wording
Selling expenses as a percentage of revenue was 32.5% for the first quarter of 2025, compared to 36.8% for the prior-year period. Selling expenses for our core Nu Skin business as a percentage of revenue decreased 3.0 percentage points to 38.7% for the first quarter of 2025. Selling expenses for our core Nu Skin business are driven by the specific performance of our individual Sales Leaders. Given the size of our sales force and the various components of our compensation and incentive programs, selling expenses as a percentage of revenue typically approximates 40% and fluctuates plus or minus approximately 100 basis points from period to period. Our first quarter of 2025 core Nu Skin selling expenses decrease is partially attributable to the sequential decline in revenue and Sales Leaders, which resulted in a decline in those qualifying for increased sales compensation. In addition, approximately 0.7 percentage points of the decline in selling expenses as a percentage of revenue are attributable to the January 2, 2025 sale of Mavely.
Previous wording
In the fourth quarter of 2023, we adopted another strategic plan to focus resources on our global priorities and optimize future growth and profitability. The global program includes workforce reductions. We estimate total charges under the program will approximate $30–35 million in cash charges of severance, approximately $2.2 million in other cash charges and approximately $8.2 million in non-cash charges, including approximately $6.4 million in fixed asset impairments. We expect to substantially complete the program during the second half of 2024. The program may expand as we continue to evaluate our business, including our product portfolio, global processes and organization, and operational footprint. During the fourth quarter of 2023, we incurred charges to be settled in cash of $10.0 million in severance charges. During the first quarter of 2024, we incurred charges to be settled in cash of $4.1 million in severance charges and $2.0 million in other associated cost, and non-cash charges of $1.0 million in write-down of assets. During the second quarter of 2024, we incurred charges to be settled in cash of $1.0 million in severance charges and $0.1 million on other cash charges, and non-cash charges of $7.2 million in write-down of assets.
Current wording
2023 restructuring plan. In the fourth quarter of 2023, we adopted a strategic plan to focus resources on our global priorities and optimize future growth and profitability. The global program includes workforce reductions and fixed asset impairments associated with our consolidation of technology assets. Total charges under the program included approximately $27.9 million in cash charges of severance, approximately $1.0 million in other cash charges and approximately $38.8 million in non-cash charges, including approximately $36.6 million in fixed asset impairments. We have incurred all expected charges under the 2023 plan and anticipate making the remaining payments in the first half of 2025. During the fourth quarter of 2023, we incurred charges to be settled in cash of $10.0 million in severance charges. During the first quarter of 2024, we incurred charges to be settled in cash of $4.1 million in severance charges and $2.0 million in other associated cost, and non-cash charges of $1.0 million in write-down of assets. During the second quarter of 2024, we incurred charges to be settled in cash of $1.0 million in severance charges and $0.1 million in other cash charges, and non-cash charges of $6.4 million in fixed asset impairments and $0.8 million in other write-downs. In the fourth quarter of 2024, we incurred charges to be settled in cash of $12.8 million in severance charges and $(1.1) million in other cash charges, and non-cash charges of $30.2 million of fixed asset impairments and $0.4 million of other non-cash charges. During the first quarter of 2025, we incurred no further charges.
Previous wording
In addition, during the three months ended June 30, 2024, we determined that the current operating losses and decline in forecasted losses associated with our BeautyBio retail asset group were an interim triggering event that required us to perform an interim impairment analysis on our BeautyBio retail asset group. We assessed the recoverability of the related asset group comparing the carrying value of the asset group to the undiscounted cash flows expected to be generated. The recoverability test indicated the retail asset group was impaired. We concluded the carrying value of the retail asset group exceeded the estimated fair value which resulted in an impairment charge of $10.1 million in our Rhyz other segment during the three months ended June 30, 2024.
Current wording
Intangibles and fixed asset impairment. During the three months ended March 31, 2025, we determined that thecontinued operating losses, further decline in forecasted revenue and an overall change in strategy associated with our BeautyBio asset groups were an interim triggering event that required us to perform an interim impairment analysis on our BeautyBio asset groups. We assessed the recoverability of the related asset groups comparing the carrying value to the undiscounted cash flows expected to be generated. The recoverability test indicated the asset groups were impaired. We concluded that the carrying value of the asset groups exceeded the estimated fair value which resulted in an impairment charge of $25.1 million in our Rhyz Other segment during the three months ended March 31, 2025.
Previous wording
As a result of the foregoing factors, net income for the third quarter of 2024 was $8.3 million, compared to $(37.0) million in the prior-year period. Net income for the first nine months of 2024 was $(110.5) million, compared to $1.3 million for the first nine months of 2023.
Current wording
As a result of the foregoing factors, net income for the first quarter of 2025 was $107.5 million compared to $(0.5) million in the prior-year period.
Previous wording
Historically, our principal uses of cash have included operating expenses (particularly selling expenses) and working capital (principally inventory purchases), as well as capital expenditures, stock repurchases, dividends, and debt repayment. We have at times incurred long-term debt, or drawn on our revolving line of credit, to fund strategic transactions, stock repurchases, capital investments and short-term operating needs. We typically generate positive cash flow from operations due to favorable margins and have generally relied on cash from operations to fund operating activities. In the first nine months of 2024, we generated $86.0 million in cash from operations, compared to $64.5 million during the prior-year period. The increase in cash flow from operations primarily reflects less inventory purchases compared to the first nine months of 2023, as we work to right size our balance sheet following the decline in revenue, and an increase in accrued expenses primarily relating to increased deferred revenue associated with timing of sales, partially offset by an increase in cash expenditures associated with prepaid assets. Cash and cash equivalents, including current investments, as of September 30, 2024 and December 31, 2023 were $237.8 million and $267.8 million, respectively, with the decrease being driven by our quarterly debt payments, $50.0 million paid on our revolving credit facility and capital expenditures, as discussed below, partially offset by $86.0 million in cash from operations.
Current wording
Historically, our principal uses of cash have included operating expenses (particularly selling expenses) and working capital (principally inventory purchases), as well as capital expenditures, stock repurchases, dividends, and debt repayment. We have at times incurred long-term debt, or drawn on our revolving line of credit, to fund strategic transactions, stock repurchases, capital investments and short-term operating needs. We typically generate positive cash flow from operations due to favorable margins and have generally relied on cash from operations to fund operating activities. In the first three months of 2025, we generated $0.4 million in cash from operations, compared to $3.3 million during the prior-year period. The decrease in cash flow from operations primarily reflects cash payments made in the first quarter of 2025 related to expenses accrued as of year-end, which included restructuring and other accrued expenses. Cash and cash equivalents, including current investments, as of March 31, 2025 and December 31, 2024 were $213.6 million and $198.0 million, respectively, with the increase being driven by the proceeds from the sale of Mavely, partially offset by $155.0 million in debt payments.
Previous wording
Capital expenditures. Capital expenditures for the nine months ended September 30, 2024 were $29.0 million. We expect that our capital expenditures in 2024 will be primarily related to:
Current wording
Capital expenditures. Capital expenditures for the three months ended March 31, 2025 were $13.6 million. We expect that our capital expenditures in 2025 will be primarily related to:
Previous wording
We estimate that capital expenditures for the uses listed above will total approximately $35–55 million for 2024.
Current wording
We estimate that capital expenditures for the uses listed above will total approximately $45–65 million for 2025.
Previous wording
Credit Agreement. On June 14, 2022, we entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with various financial institutions as lenders and Bank of America, N.A., as administrative agent. The Credit Agreement provides for a $400.0 million term loan facility and a $500.0 million revolving credit facility, each with a term of five years. We used the proceeds of the term loan and the draw on the revolving facility to pay off the previous credit agreement. Both facilities bear interest at the SOFR, plus a margin based on our consolidated leverage ratio. The term loan facility amortizes in quarterly installments in amounts resulting in an annual amortization of 2.5% during the first year and 5.0% during the subsequent years after the closing date of the Credit Agreement, with the remainder payable at final maturity. As of September 30, 2024 and December 31, 2023, we had $70.0 million and $120.0 million of outstanding borrowings under our revolving credit facility, and $365.0 million and $385.0 million on our term loan facility. The carrying value of the debt also reflects debt issuance costs of $1.5 million and $2.0 million as of September 30, 2024 and December 31, 2023, respectively, related to the Credit Agreement. The Credit Agreement requires us to maintain a consolidated leverage ratio not exceeding 2.75 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00. As of September 30, 2024, we were in compliance with all debt covenants under the Credit Agreement.
Current wording
Credit Agreement. On June 14, 2022, we entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with various financial institutions as lenders and Bank of America, N.A., as administrative agent. The Credit Agreement provides for a $400.0 million term loan facility and a $500.0 million revolving credit facility, each with a term of five years. We used the proceeds of the term loan and the draw on the revolving facility to pay off the previous credit agreement. Both facilities bear interest at the SOFR, plus a margin based on our consolidated leverage ratio. The term loan facility amortizes in quarterly installments in amounts resulting in an annual amortization of 2.5% during the first year and 5.0% during the subsequent years after the closing date of the Credit Agreement, with the remainder payable at final maturity. As of March 31, 2025 and December 31, 2024, we had $0 and $35.0 million of outstanding borrowings under our revolving credit facility, and $240.0 million and $360.0 million on our term loan facility. The carrying value of the debt also reflects debt issuance costs of $1.2 million and $1.4 million as of March 31, 2025 and December 31, 2024, respectively, related to the Credit Agreement. The Credit Agreement requires us to maintain a consolidated leverage ratio not exceeding 2.75 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00. As of March 31, 2025, we were in compliance with all debt covenants under the Credit Agreement.
Previous wording
Stock repurchase plan. In 2018, our board of directors approved a stock repurchase plan authorizing us to repurchase up to $500.0 million of our outstanding shares of Class A common stock on the open market or in private transactions. During the third quarter of 2024, we repurchased no shares of our Class A common stock under the plan. As of September 30, 2024, $162.4 million was available for repurchases under the plan. Our stock repurchases are used primarily to offset dilution from our equity incentive plans and for strategic initiatives.
Current wording
Stock repurchase plan. In 2018, our board of directors approved a stock repurchase plan authorizing us to repurchase up to $500.0 million of our outstanding shares of Class A common stock on the open market or in private transactions. During the first quarter of 2025, we repurchased 0.6 million shares of our Class A common stock under the plan for $5.0 million. As of March 31, 2025, $157.4 million was available for repurchases under the plan. Our stock repurchases are used primarily to offset dilution from our equity incentive plans and for strategic initiatives.
Previous wording
Dividends. In February, May and August 2024, our board of directors declared quarterly cash dividends of $0.06 per share. The quarterly cash dividends of $3.0 million were paid on March 6, 2024, June 12, 2024 and September 11, 2024 to stockholders of record on February 26, 2024, May 31, 2024 and August 30, 2024. In November 2024, our board of directors declared a quarterly cash dividend of $0.06 per share to be paid on December 11, 2024 to stockholders of record on November 29, 2024. Currently, we anticipate that our board of directors will continue to declare quarterly cash dividends and that the cash flows from operations will be sufficient to fund our future dividend payments. However, the continued declaration of dividends is subject to the discretion of our board of directors and will depend upon various factors, including our net earnings, financial condition, cash requirements, future prospects and other relevant factors.
Current wording
Dividends. In February 2025, our board of directors a declared quarterly cash dividend of $0.06 per share. The quarterly cash dividend of $3.0 million was paid on March 5, 2025 to stockholders of record on February 24, 2025. In May 2025, our board of directors declared a quarterly cash dividend of $0.06 per share to be paid on June 11, 2025 to stockholders of record on May 30, 2025. Currently, we anticipate that our board of directors will continue to declare quarterly cash dividends and that the cash flows from operations will be sufficient to fund our future dividend payments. However, the continued declaration of dividends is subject to the discretion of our board of directors and will depend upon various factors, including our net earnings, financial condition, cash requirements, future prospects and other relevant factors.
Previous wording
Cash from foreign subsidiaries. As of September 30, 2024 and December 31, 2023, we held $237.8 million and $267.8 million, respectively, in cash and cash equivalents, including current investments. These amounts include $179.1 million and $213.7 million as of September 30, 2024 and December 31, 2023, respectively, held in our operations outside of the U.S. Substantially all of our non-U.S. cash and cash equivalents are readily convertible into U.S. dollars or other currencies, subject to procedural or other requirements in certain markets, as well as an indefinite-reinvestment designation, as described below.
Current wording
Cash from foreign subsidiaries. As of March 31, 2025 and December 31, 2024, we held $213.6 million and $198.0 million, respectively, in cash and cash equivalents, including current investments. These amounts include $175.6 million and $154.1 million as of March 31, 2025 and December 31, 2024, respectively, held in our operations outside of the U.S. Substantially all of our non-U.S. cash and cash equivalents are readily convertible into U.S. dollars or other currencies, subject to procedural or other requirements in certain markets, as well as an indefinite-reinvestment designation, as described below.
Previous wording
We typically fund the cash requirements of our operations in the U.S. through intercompany dividends, intercompany loans and intercompany charges for products, use of intangible property, and corporate services. However, some markets impose government-approval or other requirements for the repatriation of dividends. For example, in Mainland China, we are unable to repatriate cash from current operations in the form of dividends until we file the necessary statutory financial statements for the relevant period. As of September 30, 2024, we had $32.1 million in cash denominated in Chinese RMB. We also have experienced delays in repatriating cash from Argentina. As of September 30, 2024 and December 31, 2023, we had $19.5 million and $17.7 million, respectively, in intercompany receivables with our Argentina subsidiary. We also have intercompany loan arrangements in some of our markets, including Mainland China, that allow us to access available cash, subject to certain limits in Mainland China and other jurisdictions. We also have drawn on our revolving line of credit to address cash needs until we can repatriate cash from Mainland China or other markets, and we may continue to do so. Except for $60.0 million of earnings in Mainland China that we designated as indefinitely reinvested during the second quarter of 2018, we currently plan to repatriate undistributed earnings from our non-U.S. operations as necessary, considering the cash needs of our non-U.S. operations and the cash needs of our U.S. operations for dividends, stock repurchases, capital investments, debt repayment and strategic transactions. Repatriation of non-U.S. earnings is subject to withholding taxes in certain foreign jurisdictions. Accordingly, we have accrued the necessary withholding taxes related to the non-U.S. earnings.
Current wording
We typically fund the cash requirements of our operations in the U.S. through intercompany dividends, intercompany loans and intercompany charges for products, use of intangible property, and corporate services. However, some markets impose government-approval or other requirements for the repatriation of dividends. For example, in Mainland China, we are unable to repatriate cash from current operations in the form of dividends until we file the necessary statutory financial statements for the relevant period. As of March 31, 2025, we had $30.9 million in cash denominated in Chinese RMB. We also have experienced delays in repatriating cash from Argentina. As of March 31, 2025 and December 31, 2024, we had $24.0 million and $22.4 million, respectively, in intercompany receivables with our Argentina subsidiary. We also have intercompany loan arrangements in some of our markets, including Mainland China, that allow us to access available cash, subject to certain limits in Mainland China and other jurisdictions. We also have drawn on our revolving line of credit to address cash needs until we can repatriate cash from Mainland China or other markets, and we may continue to do so. Except for $60.0 million of earnings in Mainland China that we designated as indefinitely reinvested during the second quarter of 2018, we currently plan to repatriate undistributed earnings from our non-U.S. operations as necessary, considering the cash needs of our non-U.S. operations and the cash needs of our U.S. operations for dividends, stock repurchases, capital investments, debt repayment and strategic transactions. Repatriation of non-U.S. earnings is subject to withholding taxes in certain foreign jurisdictions. Accordingly, we have accrued the necessary withholding taxes related to the non-U.S. earnings.