NU SKIN ENTERPRISES, INC.
For the period ended Mar 31, 2026. Filed May 8, 2026.
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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, 2026 · Filed May 8, 2026
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 2025-09-30; filed 2025-11-07.
0001140361-25-040839
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001140361-26-019630
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 80 previous paragraphs and 82 current paragraphs.
31 unchanged; 33 reworded; 17 added; 16 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 14 previous and 11 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 (17)
Current report
. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Current report
The year-over-year decrease in segment contribution for the first quarter of 2026 primarily reflects the overall decline in revenue, as well as a 3.5 percentage-point increase in selling expenses from additional incentives aimed at assisting the transition to the sales performance plan.
Current report
The year-over-year decrease in segment contribution for the first quarter of 2026 primarily reflects the decline in revenue as well as a slight increase in general and administrative cost associated with our pre-market activities in India in preparation for the full market opening in late 2026.
Current report
The year-over-year decrease in segment contribution was primarily driven by an increase in general and administrative expenses with a decline in revenue.
Current report
The decrease in segment contribution for the first quarter of 2026 is partially attributable to a 2.1 percentage-point increase in selling expenses associated with our recent compensation plan enhancements, as well as the decline in revenue paired with the fixed nature of general and administrative expenses, partially offset by a 2.0 percentage point improvement in gross margin from less product write-offs and product promotions.
Current report
Manufacturing. Our Manufacturing segment revenue decreased 18.7% for the first quarter of 2026. The decrease is partially due to a tough comparison with a strong first quarter of 2025, as well as customer order delays related to the tariff and associated economic uncertainty.
Current report
The decrease in segment contribution is primarily due to the decline in revenue, as well as fixed cost pressure within cost of goods sold.
Current report
Rhyz Other. The increase in revenue for the first quarter of 2026 is primarily from our LifeDNA, Inc. (“LifeDNA”) entity, a DNA assessment and recommendation technology company, which revenue increased 96.1% for the first quarter of 2026. We are currently evaluating strategic opportunities with LifeDNA, including potentially divesting it, to maximize our return on investment. This was partially offset by a 66.9% decline in revenue at our BeautyBio entity, which we have decided to exit in the first quarter of 2026.
Current report
During the three months ended March 31, 2026, we acquired the remaining 30% equity interest in LifeDNA, for cash consideration of $6.5 million. The carrying amount of noncontrolling interest, which was previously included in other liabilities on the consolidated balance sheet, was reduced by $4.1 million, with the difference of $2.4 million recorded in additional paid-in capital. Following this transaction, LifeDNA became a wholly owned subsidiary. Due to the noncontrolling interest’s immaterial balance, we have not historically separately disclosed the noncontrolling interest balance or activity.
Current report
The decrease in segment contribution is primarily due to our decision to wind down our separate BeautyBio business and the associated $3.1 million inventory charge, $1.8 million of intangible impairment and $1.0 million in other associated costs.
Current report
General and administrative expenses decreased to $98.5 million in the first quarter of 2026, compared to $113.2 million in the prior-year period. The $14.7 million decline for the first quarter is from a $5.5 million contraction in labor expenses primarily from $5.2 million of stock-based compensation expense recorded in the first quarter of 2025 related to profit interest units issued to the Mavely founders and a $5.4 million decline in software and related contracts from continued cost management. General and administrative expenses as a percentage of revenue decreased to 30.7% for the first quarter of 2026, from 31.1% for the prior-year period.
Current report
Impairment expenses
Current report
During the three months ended March 31, 2026, we decided to wind down our separate BeautyBio business. As part of this exit, we incurred an impairment charge of $1.8 million.
Current report
Provision for income taxes for the first quarter of 2026 was $0.8 million, compared to $27.1 million for the prior-year period. The effective tax rate was 29.4% of income before provision for income taxes during the first quarter of 2026 compared to 20.1% in the prior-year period. The first quarter of 2026 effective tax rate is higher than the prior-year period due to the tax rate benefit from the sale of Mavely in the first quarter of 2025.
Current report
Net income
Current report
The Credit Agreement also includes other covenants, including covenants that, subject to certain exceptions, restrict the ability of the Company and its subsidiaries (i) to create, incur, assume or permit to exist any liens, (ii) to incur additional indebtedness, (iii) to make investments and acquisitions, (iv) to enter into mergers, consolidations or similar transactions, (v) to make certain dispositions of assets, (vi) to make dividends, distributions and prepayments of certain indebtedness, (vii) to change the nature of the Company’s business, (viii) to enter into certain transactions with affiliates, (ix) to enter into certain burdensome agreements, (x) to make certain amendments to certain agreements and organizational documents and (xi) to make certain accounting changes.
Current report
As of March 31, 2026, the Company was in compliance with all covenants under the Credit Agreement.
Removed paragraphs (16)
Previous report
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 third quarter of 2025, our Latin America markets revenue increased from $16.0 million to $24.4 million, a 52.5% year-over-year increase; in addition, Latin America Customers increased 87%, Paid Affiliates increased 56%, and Sales Leaders increased 53%.
Previous report
The year-over-year decrease in segment contribution for the first nine months of 2025 primarily reflects the overall decline in revenue, partially offset by increased profitability in Latin America.
Previous report
The year-over-year increases in segment contribution for the third quarter and first nine months of 2025 are primarily attributable to a 3.7 percentage point and 2.5 percentage point increase to gross margin due to a shift in product mix, and a 1.4 percentage point and 1.9 percentage point decrease in selling expenses as a percentage of revenue primarily from a lower amount of local sales force incentives during the period as well as less qualifiers for the success trips.
Previous report
The year-over-year increase in segment contribution was primarily driven by a 1.2 percentage point and a 2.2 percentage point decline in selling expenses as a percent of revenue for the third quarter and first nine months of 2025, respectively, primarily from elevated sales force events costs in the prior-year periods, partially offset by the decline in revenue.
Previous report
The increase in segment contribution for the third quarter was primarily driven by a 3.1 percentage point improvement in gross margin due to sales mix with higher shift of sales to higher margin products, partially offset by the decline in revenue. For the first nine months of 2025, the increase in segment contribution was primarily driven by a 2.2 percentage point increase in gross margin due to sales mix, a 2.4 percentage point decrease in selling expenses and a 1.9 percentage point decrease in general and administrative, from our recent cost saving efforts, partially offset by the decline in revenue.
Previous report
Manufacturing. Our Manufacturing segment revenue decreased 8.0% for the third quarter of 2025 and increased 6.4% for the first nine months of 2025. Our third quarter revenue was negatively impacted by uncertainty surrounding tariffs which affected the timing of customer orders.
Previous report
The increase in segment contribution for the third quarter and first nine months of 2025 is primarily from the revenue mix amongst our manufacturing entities as well as product mix, which resulted in more profitability for the periods presented.
Previous 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 $18.4 million and $37.4 million of revenue in the third quarter and first nine months of 2024. In addition, our BeautyBio entity continues to be challenged, with a 65.1% and a 59.4% decline in revenue for the third quarter and first nine months of 2025, as we continue to implement our strategy to minimize future losses and better position the brand.
Previous report
Our Rhyz Other segment also includes LifeDNA, Inc. (“LifeDNA”), a DNA assessment and recommendation technology company. During the third quarter and first nine months of 2025, LifeDNA revenue grew 181% and 150%, respectively, to $3.3 million and $7.9 million. In addition, the profitability of LifeDNA has increased as part of the revenue growth, resulting in an operating margin of 15.9% compared to (25.3)% for the third quarter of 2025 and 2024, respectively, and 10.4% compared to (27.7)% for the first nine months of 2025 and 2024. We are currently evaluating strategic opportunities with LifeDNA, including potentially divesting it, to maximize our return on investment.
Previous report
The increase in segment contribution is primarily from the sale of Mavely, which operated at a loss during the first half of 2024 and turned profitable in the third quarter of 2024, as well as our cost saving efforts at BeautyBio, which had smaller losses for the third quarter and first nine months of 2025.
Previous 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 third quarter or the first nine months of 2025 but could adversely impact our results in the future. While we remain focused on mitigating the impacts of the tariffs, we currently estimate approximately $2 million of incremental cost pressure for the full year 2025. We continue to monitor and plan to take proactive measures to minimize the potential impact.
Previous report
General and administrative expenses decreased to $104.8 million in the third quarter of 2025, compared to $115.6 million in the prior-year period and decreased to $324.7 million in the first nine months of 2025, compared to $358.1 million in the prior-year period. The $10.8 million decline for the third quarter is from contraction in labor expenses, $2.9 million of 2024 expenses from Mavely, which was sold in the first quarter of 2025, a decline in professional fees and a decrease in promotional expenses in connection with our prior-year product launches. The $33.4 million decline for the first nine months of 2025 is primarily from $9.1 million contraction in labor expenses, $9.1 million of 2024 expenses from Mavely, which was sold in the first quarter of 2025 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 28.8% for the third quarter of 2025, from 26.9% for the prior-year period, and increased to 29.1% for the first nine months of 2025, from 27.8% for the prior-year period.
Previous report
Restructuring and impairment expenses
Previous report
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 $1.1 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 fourth quarter 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 costs, 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 third quarter and first nine months of 2025, we incurred no further charges.
Previous report
Provision (benefit) for income taxes for the three- and nine-month periods ended September 30, 2025 was $(1.1) million and $32.3 million, respectively, compared to $5.0 million and $(6.8) million for the prior-year periods. The effective tax rates for the three- and nine-month periods ended September 30, 2025 were (6.8)% and 18.1% of pre-tax income compared, respectively, compared to 37.6% and 5.8% in the prior-year periods. Our effective tax rates for the third quarter and first nine months of 2025 benefited from $8.1 million of additional research and development credits determined creditable during the quarter. Our effective tax rate for the first nine months of 2025 was additionally impacted by the following items recorded discretely in the first quarter of 2025: the sale of Mavely, the impairment of the BeautyBio asset group and the unrealized loss on investment. Our effective tax rate for the nine-month period ended September 30, 2024 was impacted by the second quarter of 2024 goodwill impairment.
Previous report
Net income (loss)
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, 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 global economic conditions and our markets, including India; 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 important 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.
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, growth, initiatives, strategies, products, ingredients, product introductions and offerings, product portfolio optimization, restructuring and exit activities, acquisitions, the integration and performance of acquired companies, divestitures, opportunities and risks; statements of management’s expectations, plans and beliefs regarding global economic conditions and our markets (including India), sales force, sales compensation plan and customer base; 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; statements regarding the outcome of litigation, audits, investigations, and other legal or regulatory matters; statements of projections and expectations regarding future sales, expenses, operating results, taxes, duties, capital expenditures, sources and uses of cash, foreign-currency fluctuations or devaluations, repatriation of undistributed earnings, and other financial items; statements regarding the payment of future dividends and stock repurchases; 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,” “enable,” “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 important 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 2025 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, 2025 decreased 15% to $364.2 million, compared to $430.1 million in the prior-year period, and revenue for the nine-month period ended September 30, 2025 decreased 13% to $1,114.8 million, compared to $1,286.5 million in the prior-year period. Our revenue in the third quarter and first nine months of 2025 was negatively impacted 0.4% and 0.9%, respectively, from foreign-currency fluctuations. Our Customers, Paid Affiliates and Sales Leaders declined 10%, 13% and 19%, respectively, on a year-over-year basis.
Current wording
Revenue for the three-month period ended March 31, 2026 decreased 12.0% to $320.6 million, compared to $364.5 million in the prior-year period. Our revenue in the first quarter of 2026 was positively impacted by 1.1% from foreign-currency fluctuations. Our Customers, Paid Affiliates and Sales Leaders declined 14%, 8% and 13%, respectively, on a year-over-year basis.
Previous wording
The declines for the third quarter and first nine months of 2025 were largely driven by the continued macroeconomic challenges we have been facing in our markets, which have negatively impacted consumer spending and customer acquisition. In addition, while we believe 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, a limited preview of our Prysm iO intelligent wellness platform and business expansion into India. Due to the timing of the limited leader preview, we are not anticipating material revenue from the Prysm iO device sales in 2025. We are currently anticipating nominal revenue from our fourth quarter India market pre-opening, as we are preparing for the formal launch in the second half of 2026.
Current wording
The declines for the three-month period ended March 31, 2026 were largely driven by the continued macroeconomic challenges we have 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 2026 focus on business model optimization, driven by the continued rollout of enhancements to our sales performance plan, the continued launch of our Prysm iO intelligent wellness platform and business expansion into India. In the first quarter of 2026, we predominately completed the Sales Leader previews of Prysm iO. We remain focused on the associated Sales Leader activation to enable a successful launch.
Previous wording
Earnings per share for the third quarter of 2025 increased to $0.34, compared to $0.17 in the prior-year period. Earnings per share for the first nine months of 2025 increased to $2.91, compared to $(2.23) in the prior-year period. The increase in earnings per share for the third quarter of 2025 was primarily attributable to a decline in our income tax rate from additional research and development credits recognized during the quarter, as well as a decline in general and administrative expenses from continued expense management. In addition, our earnings per share for the first nine months of 2025 increased due to 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 asset group 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. The improvement in earnings per share for the nine-month period also reflects restructuring and impairment charges of $149.4 million in the second quarter of 2024, which did not repeat in 2025.
Current wording
Earnings per share for the first quarter of 2026 decreased to $0.04, compared to $2.14 in the prior-year period. Our first quarter of 2026 earnings per share was negatively impacted by the decline in revenue and $5.9 million of charges associated with our decision to wind down our separate BeautyBio business. Our 2025 earnings per share benefited from the January 2025 sale of our Mavely business, which generated a pre-tax gain of approximately $176.2 million, partially offset by the associated taxes, an intangible asset group impairment of $25.1 million in our Rhyz Other segment and a non-cash loss on equity investment of $28.1 million.
Previous wording
The following table sets forth revenue for the three- and nine-month periods ended September 30, 2025 and 2024 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, 2026 and 2025 for each of our reportable segments (U.S. dollars in thousands):
Previous wording
The tables below set forth summarized financial information for each of our reportable segments for the three- and nine-month periods ended September 30, 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.
Current wording
The tables below set forth summarized financial information for each of our reportable segments for the three-month periods ended March 31, 2026 and 2025 (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
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. Our North America markets continued to be challenged, where in November 2024 we introduced enhancements to the sales performance plan to address the macro environmental landscape. These enhancements have caused disruption as our sales force adapts to the changes. In addition, our reported revenue reflects negative impacts from unfavorable foreign currency fluctuations of 6.4% and 6.3% for the third quarter and first nine months of 2025, respectively.
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. As our Sales Leaders prioritized Prysm iOand associated wellness products, we experienced switching costs in the first quarter of 2026 as many of our Sales Leaders began adapting to a greater focus on wellness products than previously. In addition, our reported revenue reflects negative impacts from unfavorable foreign currency fluctuations of 3.7% for the first quarter of 2026.
Previous wording
Southeast Asia/Pacific. The decline in revenue, Customers, Paid Affiliates and Sales Leaders for the third quarter and first nine months of 2025 is partially attributable to slowing momentum from the general macroeconomic factors in the markets. In response to these challenges, in 2025 we began leveraging our learnings from the developing market strategy, including with the launch of products specifically aimed at expanding our customer base.
Current wording
Southeast Asia/Pacific. The decline in revenue, Customers, Paid Affiliates and Sales Leaders for the first quarter of 2026 is primarily attributable to slowing momentum from the general macroeconomic factors in the markets. We remain focused on expansion of our developing market strategy in this region. In addition, our reported revenue reflects a benefit from favorable foreign currency fluctuations of 3.8% for the first quarter of 2026.
Previous wording
Mainland China. Our Mainland China market continued to be challenged during the first nine months of 2025, with ongoing macroeconomic factors, the associated decrease in consumer spending and a continued shift of market consumer awareness and demand to online product marketplaces. During the third quarter of 2025, we had a limited preview of our relaunched Tru Face line, which generated approximately $7.2 million of revenue, compared to $4.1 million from the prior Tru Face line in the comparable period. The full launch is expected to occur in December 2025.
Current wording
Mainland China. Our Mainland China market continued to be challenged during the first quarter of 2026, with ongoing macroeconomic factors, the associated decrease in consumer spending and a continued shift of market consumer awareness and demand to online product marketplaces. In addition, our reported revenue reflects a benefit from favorable foreign currency fluctuations of 4.5% for the first quarter of 2026.
Previous wording
The decrease in segment contribution for the third quarter of 2025 primarily reflects the decline in revenue, partially offset by a 3.2 percentage point decrease in selling expenses as a percent of revenue, a 2.2 percentage point increase in gross margin. The year-over-year decrease in segment contribution for the first nine months of 2025 primarily reflects lower revenue, partially offset by a 4.2 percentage point decrease in selling expense as a percent of revenue. The salaries and service fees of our Sales Leaders in Mainland China are fixed until they are adjusted in a quarterly evaluation process. As a result, we have variations in our selling expenses as a percentage of revenue, particularly when there is a sequential change in revenue.
Current wording
The decrease in segment contribution for the first quarter of 2026 primarily reflects the decline in revenue.
Previous wording
Japan. The reduction in revenue, Customers, Paid Affiliates and Sales Leaders is partially attributable to consumer inflationary pressures which depressed spending. In addition, our third quarter of 2024 revenue benefited from elevated promotions that did not repeat in 2025.
Current wording
Japan. The reduction in revenue, Customers, Paid Affiliates and Sales Leaders is partially attributable to consumer inflationary pressures which depressed spending. In addition, our reported revenue reflects negative impacts from unfavorable foreign currency fluctuations of 2.8% for the first quarter of 2026.
Previous wording
Europe & Africa. The reduction in revenue, Customers, Paid Affiliates and Sales Leaders reflects continued softness in these markets, 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. In addition, our reported revenue reflects benefits from favorable foreign currency fluctuations of 5.9% and 2.6% for the third quarter and first nine months of 2025, respectively.
Current wording
Europe & Africa. The reduction in revenue, Customers, Paid Affiliates and Sales Leaders reflects continued softness in these markets, as well as the macroeconomic factors that have led to a decline in the purchasing power of our customers. In addition, our reported revenue reflects a benefit from favorable foreign currency fluctuations of 9.3% for the first quarter of 2026.
Previous wording
Hong Kong/Taiwan. The declines in our Hong Kong/Taiwan segment for the third quarter and first nine months of 2025 are attributable to macroeconomic issues, which are resulting in less purchasing power for our consumers. Our reported revenue reflects benefits from favorable foreign currency fluctuations of 4.3% and 1.5% for the third quarter and first nine months of 2025, respectively.
Current wording
Hong Kong/Taiwan. The declines in our Hong Kong/Taiwan segment for the first quarter of 2026 is attributable to macroeconomic issues, which are resulting in less purchasing power for our consumers. Our reported revenue reflects benefits from favorable foreign currency fluctuations of 2.4% for the first quarter of 2026.
Previous 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 three- and nine-month periods ended September 30, 2025. In addition, our reported revenue reflects negative impacts from unfavorable foreign currency fluctuations of 1.9% and 3.5% for the third quarter and first nine months of 2025, respectively.
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 first quarter of 2026. In addition, in the first quarter of 2026, we lowered our commission to remain in compliance with the local law.
Previous wording
The year-over-year decline in segment contribution primarily reflects the decline in revenue, as well as a 8.3 and 3.3 percentage point increase in selling expenses associated with incremental cost pressure from the enhancements to the sales performance plan, which we introduced in this segment during the fourth quarter of 2024.
Current wording
The year-over-year decline in segment contribution primarily reflects the decline in revenue, as well as a 1.9 percentage-point decrease in gross margin and a 1.5 percentage-point decrease in selling expenses from the reduction.
Previous wording
Revenue for the three-month period ended September 30, 2025 decreased 15% to $364.2 million, compared to $430.1 million in the prior-year period. Revenue for the nine-month period ended September 30, 2025 decreased 13% to $1,114.8 million compared to $1,286.5 million. Our revenue in the third quarter and first nine months of 2025 was negatively impacted 0.4% and 0.9%, respectively, from foreign-currency fluctuations. 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, 2026 decreased 12.0% to $320.6 million, compared to $364.5 million in the prior-year period. Our revenue in the first quarter of 2026 was positively impacted by 1.1%, from foreign-currency fluctuations. For a discussion and analysis of these decreases in revenue, see “Overview” and “Segment Results,” above.
Previous wording
Gross profit as a percentage of revenue was 70.5% for the third quarter of 2025, compared to 70.1% for the prior-year period, and 69.0% for the first nine months of 2025, compared to 70.2% for the prior-year period. Gross profit as a percentage of revenue for our Nu Skin business increased 1.2 percentage points to 77.7% for the third quarter of 2025 and increased 0.7 percentage points to 77.3% for the first nine months of 2025. Our Nu Skin gross margin continues to benefit from our strategic portfolio optimization as well as a favorable product mix shift.
Current wording
Gross profit as a percentage of revenue was 66.9% for the first quarter of 2026, compared to 67.8% for the prior-year period. Gross profit as a percentage of revenue for our Nu Skin business increased 0.2 percentage points to 76.9% for the first quarter of 2026.
Previous wording
Selling expenses as a percentage of revenue decreased to 35.8% for the third quarter of 2025, compared to 39.0% for the prior-year period, and decreased to 33.8% for the first nine months of 2025, compared to 37.8% for the prior-year period. Core Nu Skin selling expenses as a percentage of revenue decreased 1.8 percentage points to 41.7% for the third quarter of 2025 and decreased 2.4 percentage points to 40.1% for the first nine months 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 fluctuate plus or minus approximately 100 basis points from period to period. Our third quarter and first nine months of 2025 core Nu Skin selling expenses decrease is partially attributable to our third quarter of 2024 global Nu Skin L!VE events, which drove approximately $10.2 million of incremental expenditures, that did not repeat in 2025. In addition, approximately 1.3 percentage points and 1.0 percentage points of the decline in selling expenses as a percentage of revenue in our consolidated results are attributable to the January 2, 2025 sale of Mavely.
Current wording
Selling expenses as a percentage of revenue increased to 34.3% for the first quarter of 2026, compared to 32.5% for the prior-year period. Core Nu Skin selling expenses as a percentage of revenue increased 1.8 percentage points to 40.5% for the first quarter of 2026. 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.
Previous wording
Intangibles and fixed asset impairment. During the three months ended March 31, 2025, we decided to make a strategic shift in how we operate the BeautyBio asset group. These strategic changes include exiting certain sales channels, which reduced the forecasted revenues for BeautyBio. We concluded these actions were an interim impairment triggering event that required us to perform an interim impairment analysis on our BeautyBio asset group. We assessed the recoverability of the related asset group comparing the carrying value to the undiscounted cash flows expected to be generated. The recoverability test indicated the asset group was impaired. We concluded that the carrying value of the asset group 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.
Current wording
Intangibles and fixed asset impairment. During the three months ended March 31, 2025, we decided to make a strategic shift in how we operate the BeautyBio asset group. These strategic changes included exiting certain sales channels, which reduced the forecasted revenues for BeautyBio. We concluded these actions were an interim impairment triggering event that required us to perform an interim impairment analysis on our BeautyBio asset group. We assessed the recoverability of the related asset group comparing the carrying value to the undiscounted cash flows expected to be generated. The recoverability test indicated the asset group was impaired. We concluded that the carrying value of the asset group 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
Interest expense decreased to $4.1 million in the third quarter of 2025, compared to $6.5 million in the prior-year period. Interest expense for the first nine months of 2025 decreased to $10.0 million compared to $20.5 million for 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 matured on July 31, 2025, at which time our effective interest rate increased.
Current wording
Interest expense increased to $4.3 million in the first quarter of 2026, compared to $3.3 million in the prior-year period. The increase is primarily due to our interest rate swap arrangements that we entered into in 2020 maturing on July 31, 2025, at which time our effective interest rate increased.
Previous wording
Other income (expense), net was $(1.5) million for the third quarter of 2025 compared to $1.6 million for the prior-year period and $(30.7) million for the first nine months of 2025 compared to $1.8 million for the prior-year period. The increase in other expense for the first nine months 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 wording
Other income (expense), net was $2.8 million for the first quarter of 2026 compared to $(28.4) million for the prior-year period. In the first quarter of 2025, we recorded 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.
Previous wording
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We completed the initial assessment of the OBBBA corporate tax provisions as they relate to our financial statements in the third quarter of 2025. The enactment of the OBBBA did not have a material impact to our income tax benefit for the three and nine months ended September 30, 2025. We will continue to evaluate the impacts of OBBBA and do not expect the OBBBA to have a material impact to our total tax provision.
Current wording
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We completed the initial assessment of the OBBBA corporate tax provisions as they relate to our financial statements in the third quarter of 2025. The enactment of the OBBBA did not have a material impact to our income tax benefit for the three months ended March 31, 2026. We will continue to evaluate the impacts of OBBBA and do not expect the OBBBA to have a material impact to our total tax provision.
Previous wording
As a result of the foregoing factors, net income (loss) for the third quarter of 2025 was $17.1 million, compared to $8.3 million in the prior-year period. Net income (loss) for the first nine months of 2025 was $145.7 million, compared to $(110.5) million for the first nine months of 2024.
Current wording
As a result of the foregoing factors, net income for the first quarter of 2026 was $1.8 million compared to $107.5 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 2025, we generated $63.7 million in cash from operations, compared to $86.0 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, partially offset by a decline in prepaid expenses associated with the utilization of prepaid income taxes. Cash and cash equivalents, including current investments, as of September 30, 2025 and December 31, 2024 were $253.0 million and $198.0 million, respectively, with the increase being driven by the proceeds from the sale of Mavely and cash generated from operations as described above, partially offset by $165.0 million in net debt payments, which was comprised of $130.0 million toward our term loan and $35.0 million toward our revolving credit facility.
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. However, in the first three months of 2026, we had a net outflow of $3.9 million in cash from operations, compared to $0.4 million of cash provided by operations in the prior-year period. The decrease in cash flow from operations primarily reflects cash payments made in the first quarter of 2026 related to prepaid corporate income taxes. Cash and cash equivalents, including current investments, as of March 31, 2026 and December 31, 2025 were $200.4 million and $239.8 million, respectively, with the decrease being primarily driven by $13.7 million of capital expenditures, $6.5 million for the purchase of noncontrolling interest in LifeDNA and $5.0 million in share repurchases.
Previous wording
Working capital. As of September 30, 2025, working capital was $293.7 million, compared to $242.0 million as of December 31, 2024. Our increase in working capital is primarily attributable to changes in our cash balance as explained above.
Current wording
Working capital. As of March 31, 2026, working capital was $265.9 million, compared to $284.0 million as of December 31, 2025. Our decrease in working capital is primarily attributable to changes in our cash balance as explained above.
Previous wording
Capital expenditures. Capital expenditures for the nine months ended September 30, 2025 were $23.5 million. We expect that our capital expenditures in 2025 will be primarily related to:
Current wording
Capital expenditures. Capital expenditures for the three months ended March 31, 2026 were $13.7 million. We expect that our capital expenditures in 2026 will be primarily related to:
Previous wording
We estimate that capital expenditures for the uses listed above will total approximately $30–35 million for 2025.
Current wording
We estimate that capital expenditures for the uses listed above will total approximately $40–60 million for 2026.
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, 2025 and December 31, 2024, we had $0 and $35.0 million of outstanding borrowings under our revolving credit facility, and $230.0 million and $360.0 million on our term loan facility. The carrying value of the debt also reflects debt issuance costs of $1.0 million and $1.4 million as of September 30, 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 September 30, 2025, we were in compliance with all debt covenants under the Credit Agreement.
Current wording
2022 Credit Agreement. On June 14, 2022, we entered into an Amended and Restated 2022 Credit Agreement (the “2022 Credit Agreement”) with various financial institutions as lenders and Bank of America, N.A., as administrative agent. The 2022 Credit Agreement provided 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 2018 Credit Agreement. The interest rate applicable to the facilities was subject to adjustments based on our consolidated leverage ratio. The term loan facility amortized 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 2022 Credit Agreement, with the remainder payable at final maturity. As of December 31, 2025, we had $0.0 million of outstanding borrowings under our revolving credit facility, and $225.0 million on our term loan facility. The carrying value of the debt also reflected debt issuance costs of $0.8 million as of December 31, 2025, related to the 2022 Credit Agreement. The 2022 Credit Agreement required 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 December 31, 2025, we were in compliance with all debt covenants under the 2022 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 2025, we repurchased 0.4 million shares of our Class A common stock under the plan for $5.0 million. As of September 30, 2025, $152.4 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 2026, we repurchased 0.5 million shares of our Class A common stock under the plan for $5.0 million. As of March 31, 2026, $137.3 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 2025, 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 5, 2025, June 11, 2025 and September 10, 2025 to stockholders of record on February 24, 2025, May 30, 2025 and August 29, 2025). In November 2025, our board of directors declared a quarterly cash dividend of $0.06 per share to be paid on December 10, 2025 to stockholders of record on November 28, 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.
Current wording
Dividends. In February 2026, our board of directors declared quarterly cash dividends of $0.06 per share. This quarterly cash dividend of $2.9 million was paid on March 11, 2026 to stockholders of record on February 27, 2026. In May 2026, our board of directors declared a quarterly cash dividend of $0.06 per share to be paid on June 10, 2026 to stockholders of record on May 29, 2026. 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, 2025 and December 31, 2024, we held $253.0 million and $198.0 million, respectively, in cash and cash equivalents, including current investments. These amounts include $162.4 million and $154.1 million as of September 30, 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.
Current wording
Cash from foreign subsidiaries. As of March 31, 2026 and December 31, 2025, we held $200.4 million and $239.8 million, respectively, in cash and cash equivalents, including current investments. These amounts include $159.8 million and $170.7 million as of March 31, 2026 and December 31, 2025, 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, 2025, we had $38.0 million in cash denominated in Chinese RMB. We also have experienced delays in repatriating cash from Argentina. As of September 30, 2025 and December 31, 2024, we had $20.5 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.
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, 2026, we had $32.5 million in cash denominated in Chinese RMB. We also have experienced delays in repatriating cash from Argentina. As of March 31, 2026 and December 31, 2025, we had $28.0 million and $23.9 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.
Previous wording
There were no significant changes in our critical accounting policies or estimates during the third quarter of 2025.
Current wording
There were no significant changes in our critical accounting policies or estimates during the first quarter of 2026.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Credit Agreement. On March 27, 2026, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with several financial institutions as lenders and Bank of America, N.A., as administrative agent, which amended and restated the 2022 Credit Agreement. The Credit Agreement provides for a $175.0 million term loan facility and a $75.0 million revolving credit facility, each with a term of five years. Both facilities bear interest at the SOFR, plus a margin based on the Company's consolidated leverage ratio. Commitment fees payable under the Credit Agreement are also based on the consolidated leverage ratio as defined in the Credit Agreement and range from 0.175% to 0.30% on the unused portion of the total lender commitments then in effect. The term loan facility will amortize in equal quarterly installments in amounts resulting in an annual amortization of $20.0 million per annum, with the remainder payable at final maturity. The Credit Agreement is guaranteed by certain of the Company's domestic subsidiaries and collateralized by assets of such subsidiaries, including a pledge of 65% of the capital stock of certain foreign subsidiaries. As of March 31, 2026, we had $50.0 million of outstanding borrowings under our revolving credit facility, and $175.0 million on our term loan facility. The carrying value of the debt also reflected debt issuance costs of $1.4 million as of March 31, 2026, related to the Credit Agreement. The Credit Agreement requires the Company to maintain a consolidated leverage ratio not exceeding 2.25 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00.