NATURES SUNSHINE PRODUCTS INC
For the period ended Jun 30, 2026. Filed Aug 6, 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.
Jun 30, 2026 · Filed Aug 6, 2026
NATR$10.87+5.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001628280-26-032316
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001628280-26-054468
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 94 previous paragraphs and 81 current paragraphs.
46 unchanged; 31 reworded; 2 added; 16 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 3 previous and 5 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 (2)
Current report
Second Quarter Performance
Current report
Selling, general and administrative expenses increased $1.2 million and $4.2 million, respectively, to $44.9 million and $88.4 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. Selling, general and administrative expenses were 38.4 percent and 36.9 percent of net sales for the three and six months ended June 30, 2026, compared to 38.1 percent and 37.0 percent for the same periods in 2025. The increase was primarily related to consultant events and variable selling expenses, partially offset by compensation costs.
Removed paragraphs (16)
Previous report
First Quarter Performance
Previous report
Selling, general and administrative expenses increased $3.0 million to $43.5 million for the three months ended March 31, 2026, compared to the same period in 2025. Selling, general and administrative expenses were 35.4 percent and 35.8 percent of net sales for the three months ended March 31, 2026 and 2025, respectively. The decrease as a percent of net sales was primarily related to reductions in professional fees, digital marketing and other non-recurring expenses.
Previous report
Our consolidated financial statements have been prepared in accordance with U.S. GAAP and form the basis for the following discussion and analysis on critical accounting policies and estimates. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On a regular basis, we evaluate our estimates and assumptions. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates and those differences could have a material effect on our financial position and results of operations. We have discussed the development, selection and disclosure of these estimates with the Board of Directors and our Audit Committee.
Previous report
Revenue Recognition
Previous report
Our revenue recognition practices are discussed in Note 11, “Revenue Recognition,” to our unaudited Condensed Consolidated Financial Statements in Item 1, Part 1 of this report.
Previous report
Inventories
Previous report
Inventories are adjusted to the lower of cost and net realizable value, using the first-in, first-out method. The components of inventory cost include raw materials, labor and overhead. To estimate any necessary adjustments, various assumptions are made regarding excess or slow-moving inventories, non-conforming inventories, expiration dates, current and future product demand, production planning and market conditions. If future demand and market conditions are less favorable than our assumptions, additional inventory adjustments could be required.
Previous report
Incentive Trip Accrual
Previous report
We accrue for expenses associated with our direct sales program, which rewards independent consultants with paid attendance for incentive trips, including our conventions and meetings. Expenses associated with incentive trips are accrued over qualification periods as they are earned. We specifically analyze incentive trip accruals based on historical and current sales trends as well as contractual obligations when evaluating the adequacy of the incentive trip accrual. Actual results could generate liabilities more or less than the amounts recorded.
Previous report
Contingencies
Previous report
We are involved in certain legal proceedings and disputes. When a loss is considered probable in connection with litigation or non-income tax contingencies and when such loss can be reasonably estimated with a range, we record our best estimate within the range related to the contingency. If there is no best estimate, we record the minimum of the range. As additional information becomes available, we assess the potential liability related to the contingency and revise the estimates. Revisions in estimates of the potential liabilities could materially affect our results of operations in the period of adjustment. Our contingencies are discussed in further detail in Note 9, “Commitments and Contingencies”, to the Notes of our unaudited Condensed Consolidated Financial Statements, of Item 1, Part 1 of this report.
Previous report
Income Taxes
Previous report
Our provision for income taxes, deferred tax assets and liabilities and contingent reserves reflect management’s best assessment of estimated future taxes to be paid. We are subject to income taxes in both the United States and numerous foreign jurisdictions. Significant judgments and estimates are required in determining our consolidated provision for income taxes.
Previous report
Deferred income taxes arise from temporary differences between the tax and financial statement recognition of revenue and expense. In evaluating our ability to recover our deferred tax assets, management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In projecting future taxable income, we develop assumptions including the amount of future state, federal and foreign pretax operating income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates that we are using to manage the underlying businesses. Valuation allowances are recorded as reserves against net deferred tax assets by us when it is determined that net deferred tax assets are not likely to be realized in the foreseeable future.
Previous report
Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. Management is not aware of any such changes that would have a material effect on our results of operations, cash flows or financial position.
Previous report
The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across our global operations. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized.
Reworded paragraphs (31)
Previous wording
In the first quarter of 2026, we experienced an increase in our consolidated net sales of 8.5 percent (or 6.9 percent in local currencies) compared to the same period in 2025. Asia net sales increased approximately 7.3 percent (or 5.9 percent in local currencies) compared to the same period in 2025. Europe net sales increased approximately 9.5 percent (or 6.0 percent in local currencies) compared to the same period in 2025. North America net sales increased approximately 9.4 percent (or 9.1 percent in local currencies) compared to the same period in 2025. Latin America and Other net sales increased approximately 9.7 percent (or 5.6 percent in local currencies) compared to the same period in 2025. The strengthening of the U.S. dollar versus the local currencies, resulted in an approximate 1.6 percent, or $1.8 million, increase of our net sales during the quarter.
Current wording
In the second quarter of 2026, we experienced an increase in our consolidated net sales of 1.9 percent (or 3.8 percent in local currencies) compared to the same period in 2025. Asia net sales increased approximately 0.6 percent (or 5.3 percent in local currencies) compared to the same period in 2025. Europe net sales increased approximately 4.4 percent (or 3.7 percent in local currencies) compared to the same period in 2025. North America net sales increased approximately 2.8 percent (or 2.8 percent in local currencies) compared to the same period in 2025. Latin America and Other net sales decreased approximately 0.5 percent (or 3.7 percent in local currencies) compared to the same period in 2025. The weakening of the local currencies versus the U.S. dollar, primarily in our Asian markets, resulted in an approximate 1.9 percent, or $2.1 million, decrease of our net sales during the quarter.
Previous wording
Cost of sales increased $1.3 million during the three months ended March 31, 2026, compared to the same period in 2025, and as a percentage of net sales were 26.8 percent and 27.9 percent for the three months ended March 31, 2026 and 2025, respectively. The decrease in cost of sales percentage is primarily due to cost savings initiatives and market mix.
Current wording
Cost of sales decreased $1.6 million during the three months ended June 30, 2026, compared to the same period in 2025, and as a percentage of net sales were 26.3 percent and 28.3 percent for the three months ended June 30, 2026 and 2025, respectively. The decrease in cost of sales percentage is primarily due to cost savings initiatives and market mix.
Previous wording
In absolute terms, selling, general and administrative expenses increased $3.0 million during the three months ended March 31, 2026, compared to the same period in 2025, and as a percentage of net sales were 35.4 percent and 35.8 percent for the three months ended March 31, 2026 and 2025, respectively. The decrease as a percent of net sales was primarily related to reductions in professional fees, digital marketing and other non-recurring expenses.
Current wording
In absolute terms, selling, general and administrative expenses increased $1.2 million during the three months ended June 30, 2026, compared to the same period in 2025, and as a percentage of net sales were 38.4 percent and 38.1 percent for the three months ended June 30, 2026 and 2025, respectively. The increase was primarily related to consultant events and variable selling expenses, partially offset by compensation costs.
Previous wording
Despite the war in Ukraine, net sales related to Eastern Europe for the three months ended March 31, 2026 and 2025, were $17.6 million and $15.8 million, respectively. Operating income related to Eastern Europe for the three months ended
Current wording
Despite the war in Ukraine, net sales related to Eastern Europe for the three and six months ended June 30, 2026, were $15.1 million and $32.7 million, respectively, compared to $13.5 million and $29.3 million for the same periods in 2025. Operating income related to Eastern Europe for the three and six months ended June 30, 2026 was $1.6 million and $3.6 million, respectively, compared to $1.0 million and $2.4 million for the same periods in 2025. As of June 30, 2026, Eastern Europe had assets of $7.1 million, net of working capital reserves related to inventories.
Previous wording
In November 2024, we began an internal investigation regarding our past compliance with relevant U.S. trade controls and made an initial voluntary self-disclosure of apparent trade controls violations to the U.S. Department of Commerce's Bureau of Industry and Security (“BIS”). In addition, in April 2025 we filed an initial voluntary self-disclosure with the Office of Foreign Asset Control (“OFAC”) relating to the same internal investigation. Following our internal investigation, we filed final voluntary self-disclosures with BIS and OFAC on September 5, 2025. We estimate that such potential violations represented less than one percent of our net revenue in each of our last three fiscal years. An unfavorable outcome of this investigation may include fines or penalties imposed in response to our voluntary disclosures. While we believe the amount of any fines or penalties would not be material to our financial condition and results of operation, we are unable to predict the outcome or the timing of resolution of these matters.
Current wording
In November 2024, we began an internal investigation regarding our past compliance with relevant U.S. trade controls and made an initial voluntary self-disclosure of apparent trade controls violations to the U.S. Department of Commerce's Bureau of Industry and Security (“BIS”). In addition, in April 2025 we filed an initial voluntary self-disclosure with the Office of Foreign Asset Control (“OFAC”) relating to the same internal investigation. Following our internal investigation, we filed final voluntary self-disclosures with BIS and OFAC on September 5, 2025. We received a response from BIS closing the matter without further action. The voluntary self-disclosure with OFAC remains pending. We estimate that such potential violations represented less than one percent of our net revenue in each of our last three fiscal years. An unfavorable outcome of this investigation may include fines or penalties imposed in response to our voluntary disclosures. While we believe the amount of any fines or penalties would not be material to our financial condition and results of operation, we are unable to predict the outcome or the timing of resolution of these matters.
Previous wording
While we did not experience material impacts as a result of tariffs for the three months ended March 31, 2026 and 2025, we continue to monitor the additional pressure that tariff-related price increases may have on our business, including the price, availability and quality of raw materials and other ingredients. We expect that tariffs may adversely affect our costs in the remainder of 2026.
Current wording
While we did not experience material impacts as a result of tariffs for the six months ended June 30, 2026 and 2025, we continue to monitor the additional pressure that tariff-related price increases may have on our business, including the price, availability and quality of raw materials and other ingredients. We expect that tariffs may adversely affect our costs in the remainder of 2026.
Previous wording
Consolidated net sales for the three months ended March 31, 2026 and 2025, were $122.9 million and $113.2 million, respectively, which represents an increase of 8.5 percent. The increase was primarily related to product sales increases in each of our operating segments. Excluding the impact of foreign currency exchange rate fluctuations, consolidated net sales for the three months ended March 31, 2026, increased 6.9 percent from the same period in 2025.
Current wording
Consolidated net sales for the three and six months ended June 30, 2026, were $117.0 million and $239.9 million, respectively, compared to $114.8 million and $228.0 million for the same period in 2025, which represents an increase of 1.9 percent and 5.2 percent, respectively. The increase was primarily related to product sales increases in our Asia, Europe and North America operating segments. Excluding the impact of foreign currency exchange rate fluctuations, consolidated net sales for the three and six months ended June 30, 2026 increased 3.8 percent and 5.3 percent, respectively, from the same periods in 2025.
Previous wording
Net sales related to Asia for the three months ended March 31, 2026 and 2025, were $52.2 million and $48.7 million, respectively, or an increase of 7.3 percent. In local currencies, net sales for the three months ended March 31, 2026, increased 5.9 percent compared to the same period in 2025.
Current wording
Net sales related to Asia for the three and six months ended June 30, 2026 were $53.0 million and $105.2 million, respectively, compared to $52.7 million and $101.3 million for the same periods in 2025, or increases of 0.6 percent and 3.8 percent, respectively. In local currency, net sales for the three and six months ended June 30, 2026 increased 5.3 percent and 5.6 percent, respectively, compared to the same periods in 2025.
Previous wording
In our Japan market, net sales increased $1.4 million, or 12.9 percent, for the three months ended March 31, 2026, compared to the same period in 2025. In local currency, net sales for the three months ended March 31, 2026, increased 16.0 percent, compared to the same period in 2025. The increase in net sales was primarily the result of strong field fundamentals and timing of event qualifications that drove greater consultant activity and an increase in total orders and average order value.
Current wording
In our Japan market, net sales increased $5.0 million and $6.5 million, or 38.3 percent and 26.7 percent, for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. In local currencies, net sales for the three and six months ended June 30, 2026 increased 50.7 percent and 34.9 percent, respectively, compared to the same periods in 2025. The increase in net sales was primarily the result of strong momentum and timing of event qualifications that drove greater consultant activity and an increase in total orders and average order value.
Previous wording
In our Taiwan market, net sales decreased $2.9 million, or 16.1 percent, for the three months ended March 31, 2026, compared to the same period in 2025. In local currency, net sales for the three months ended March 31, 2026, decreased 19.3 percent, compared to the same period in 2025. The decrease was primarily the result of slower consumer acquisition and a reduction in total orders.
Current wording
In our Taiwan market, net sales decreased $3.0 million and $5.9 million, or 17.9 percent and 17.0 percent, for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. In local currencies, net sales for the three and six months ended June 30, 2026 decreased 15.6 percent and 17.5 percent, respectively, compared to the same periods in 2025. The decrease was primarily the result of slower consumer acquisition and a reduction in total orders as well as average order values.
Previous wording
In our South Korea market, net sales increased $1.4 million, or 13.4 percent, for the three months ended March 31, 2026, compared to the same period in 2025. In local currency, net sales for the three months ended March 31, 2026, increased 14.3 percent, compared to the same period in 2025. The increase in net sales was primarily the result of an increase in total orders and average order value.
Current wording
In our South Korea market, net sales decreased $0.5 million and increased $0.9 million, or decreased 4.1 percent and increased 4.0 percent, for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. In local currency, net sales for the three and six months ended June 30, 2026 increased 2.9 percent and 8.1 percent, respectively, compared to the same periods in 2025. The increase in net sales in local currency was primarily the result of an increase in total orders and average order value.
Previous wording
In our China market, net sales increased $3.5 million, or 45.7 percent, for the three months ended March 31, 2026, compared to the same period in 2025. In local currency, net sales for the three months ended March 31, 2026, increased 39.7 percent, compared to the same period in 2025. The increase in net sales was primarily the result of an increase in average order value and total orders.
Current wording
In our China market, net sales decreased $1.4 million and increased $2.1 million, or decreased 15.3 percent and increased 12.7 percent, for the three and six months ended June 30, 2026, compared to the same periods in 2025. In local currencies, net sales for the three and six months ended June 30, 2026 decreased 20.1 percent and increased 7.3 percent, respectively, compared to the same periods in 2025. The decrease in net sales for the three months ended June 30, 2026 was primarily the result of a decrease in average order value and total orders, partially offset by an increase in subscription orders. The increase in net sales for the six months ended June 30, 2026 was primarily the result of an increase in total orders and average order value.
Previous wording
Net sales related to Europe for the three months ended March 31, 2026 and 2025, were $26.4 million and $24.1 million, respectively, or an increase of 9.5 percent. In local currencies, net sales for the three months ended March 31, 2026, increased 6.0 percent, compared to the same period in 2025. The functional currency for many of these markets is the U.S. Dollar, which reduces the effect from foreign currency fluctuations. Fluctuations in foreign currency exchange rates had favorable impacts on net sales of $0.8 million for the three months ended March 31, 2026. Net sales increased primarily as a result of improved consumer acquisition and existing consumer engagement, as evidenced by increased active consumer count and average order size.
Current wording
Net sales related to Europe for the three and six months ended June 30, 2026 were $22.7 million and $49.1 million, respectively, compared to $21.7 million and $45.9 million for the same periods in 2025, or increases of 4.4 percent and 7.1 percent, respectively. In local currency, net sales for the three and six months ended June 30, 2026 increased 3.7 percent and 4.9 percent, respectively, compared to the same periods in 2025. The functional currency for many of these markets is the U.S. Dollar which reduces the effect from foreign currency fluctuations. Fluctuations in foreign currency exchange rates had favorable impacts on net sales of $0.2 million and $1.0 million for the three and six months ended June 30, 2026, respectively. Net sales in local currency increased for the three and six months ended June 30, 2026, primarily as a result of growth in average order size and an expanding distributor base.
Previous wording
Net sales related to North America for the three months ended March 31, 2026 and 2025, were $38.3 million and $35.0 million, respectively, or an increase of 9.4 percent. In local currencies, net sales for the three months ended March 31, 2026, increased 9.1 percent compared to the same period in 2025.
Current wording
Net sales related to North America for the three and six months ended June 30, 2026 were $36.0 million and $74.3 million, respectively, compared to $35.0 million and $70.0 million for the same periods in 2025, or increased 2.8 percent and 6.1 percent, respectively. In local currency, net sales for the three and six months ended June 30, 2026 increased 2.8 percent and 6.0 percent, respectively, compared to the same periods in 2025.
Previous wording
In the United States, net sales for the three months ended March 31, 2026, increased $3.2 million, or 9.7 percent compared to the same period in 2025. The increase was primarily due to improved consumer acquisition through our digital channels, supported by our strategic focus on field fundamentals for our consultants.
Current wording
In the United States, net sales for the three and six months ended June 30, 2026 increased $1.1 million and $4.2 million, or 3.3 percent and 6.5 percent, respectively, compared to the same periods in 2025. The increase was primarily due to improved consumer acquisition through our digital channels.
Previous wording
Net sales related to Latin America and Other markets for the three months ended March 31, 2026 and 2025, were $6.0 million and $5.5 million, respectively, or an increase of 9.7 percent. In local currencies, net sales for the three months ended March 31, 2026, increased 5.6 percent compared to the same period in 2025. Fluctuations in foreign currencies had favorable impacts on net sales of $0.2 million for the three months ended March 31, 2026.
Current wording
Net sales related to Latin America and Other markets for the three and six months ended June 30, 2026 were $5.3 million and $11.3 million, respectively, compared to $5.4 million and $10.8 million for the same periods in 2025, or decreased 0.5 percent and increased 4.6 percent. In local currency, net sales for the three and six months ended June 30, 2026 decreased 3.7 percent and increased 1.0 percent, respectively, compared to the same periods in 2025. Fluctuations in foreign currency had favorable impacts on net sales of $0.2 million and $0.4 million for the three and six months ended June 30, 2026, respectively.
Previous wording
Cost of sales as a percent of net sales was 26.8 percent and 27.9 percent for the three months ended March 31, 2026 and 2025, respectively. The decrease in cost of sales percentage is primarily due to cost savings initiatives and market mix.
Current wording
Cost of sales as a percent of net sales was 26.3 percent and 26.6 percent for the three and six months ended June 30, 2026, compared to 28.3 percent and 28.1 percent for the same periods in 2025. The decrease in cost of sales percentage is primarily due to cost savings initiatives and market mix.
Previous wording
Volume incentives expense as a percent of net sales was 30.0 percent and 30.8 percent for the three months ended March 31, 2026 and 2025, respectively. The decrease was primarily due to changes in market mix and the timing of promotional incentives. These payments are designed to provide incentives for reaching certain sales levels. Volume incentives vary slightly, on a percentage basis, by product due to pricing policies and commission plans in place in our various geographies. We do not pay volume incentives in China, instead we pay independent service fees which are included in selling, general and administrative expenses.
Current wording
Volume incentives expense as a percent of net sales was 30.6 percent and 30.3 percent for the three and six months ended June 30, 2026, respectively, compared to 29.9 percent and 30.4 percent for the same periods in 2025. The increase for the three months ended June 30, 2026, was primarily due to timing of promotional incentives and market mix. These payments are designed to provide incentives for reaching certain sales levels. Volume incentives vary slightly, on a percentage basis, by product due to pricing policies and commission plans in place in our various geographies. We do not pay volume incentives in China, instead we pay independent service fees which are included in selling, general and administrative expenses.
Previous wording
Other income (expense), net, for the three months ended March 31, 2026 and 2025, was expense of $1.4 million and income of $0.9 million, respectively. Other income (expense), net for the three months ended March 31, 2026, primarily consisted of foreign exchange losses in Asia, Europe and Latin America, that resulted from net changes in foreign currencies.
Current wording
Other income (expense), net, for the three and six months ended June 30, 2026, was expense of $0.1 million and $1.5 million, respectively, compared to income of $3.3 million and $4.2 million during the same periods in 2025, respectively. Other income (expense), net for the three and six months ended June 30, 2026 primarily consisted of foreign exchange losses in Asia, partially offset by foreign exchange gains in Europe and Latin America, that resulted from net changes in foreign currencies.
Previous wording
For the three months ended March 31, 2026 and 2025, our provision for income taxes, as a percentage of income before income taxes was 37.2 percent and 31.3 percent, respectively, compared with a U.S. federal statutory rate of 21.0 percent.
Current wording
For the three months ended June 30, 2026 and 2025, our provision for income taxes, as a percentage of income before income taxes was 34.1 percent and 26.8 percent, respectively, compared with a U.S. federal statutory rate of 21.0 percent. For the six months ended June 30, 2026 and 2025, our provision for income taxes, as a percentage of income before income taxes was 36.0 percent and 29.0 percent, respectively, compared with a U.S. federal statutory rate of 21.0 percent.
Previous wording
The difference between the effective tax rate and the U.S. federal statutory tax rate for the three months ended March 31, 2026, was primarily attributed to recording a valuation allowance on foreign tax credits which are not expected to be utilized before expiration and to current year foreign losses that presently do not provide future tax benefits, partially offset by the deduction allowed for foreign-derived eligible income.
Current wording
The difference between the effective tax rate and the U.S. federal statutory tax rate for the three and six months ended June 30, 2026, was primarily attributed to recording a valuation allowance on foreign tax credits which are not expected to be utilized before expiration, non-deductible executive compensation, and foreign losses that presently do not provide a future tax benefit, partially offset by the deduction allowed for foreign-derived eligible income and favorable deductions for share-based compensation.
Previous wording
The difference between the effective tax rate and the U.S. federal statutory tax rate for the three months ended March 31, 2025, was primarily attributed to operations in certain foreign countries which are treated as a branch for U.S. tax purposes and current year foreign losses that presently do not provide future tax benefits, partially offset by adjustments to foreign tax credits and valuation allowances.
Current wording
The difference between the effective tax rate and the U.S. federal statutory tax rate for the three and six months ended June 30, 2025, was primarily attributed to operations in foreign countries which are treated as a branch for U.S. tax purposes, partially offset by favorable adjustments to deferred tax assets, foreign derived intangible income deduction and foreign tax credits.
Previous wording
The difference between the effective tax rate for the three months ended March 31, 2026, compared to March 31, 2025, was primarily caused by favorable adjustments to foreign tax credits and valuation allowances in the prior period that did not repeat in the current period.
Current wording
The difference between the effective tax rate for the three and six months ended June 30, 2026, compared to June 30, 2025, was primarily caused by an increase in foreign losses year over year that presently do not provide future tax benefit and favorable adjustments to deferred tax assets in the prior period which do not repeat in the current period.
Previous wording
As of March 31, 2026 and December 31, 2025, we had accrued $0.5 million and $0.4 million, respectively, related to unrecognized tax positions.
Current wording
As of June 30, 2026 and December 31, 2025, we had accrued $0.1 million and $0.4 million, respectively, related to unrecognized tax positions.
Previous wording
See Note 7, Segment Information, for a summary of the U.S. dollar amounts from the sale of general health, immune, cardiovascular, digestive, personal care and weight management products for the three months ended March 31, 2026 and 2025, by business segment.
Current wording
See Note 7, Segment Information, for a summary of the U.S. dollar amounts from the sale of general health, immune, cardiovascular, digestive, personal care and weight management products for the three and six months ended June 30, 2026 and 2025, by business segment.
Previous wording
Our principal use of cash is to pay for operating expenses, including volume incentives, inventory and raw material purchases, capital assets, digital investments and funding of international expansion. As of March 31, 2026, working capital was $107.2 million, compared to $100.3 million as of December 31, 2025. At March 31, 2026, we had $87.6 million in cash and cash equivalents, of which $3.6 million was held in the U.S. and $84.0 million was held in foreign markets and may be subject to various withholding taxes and other restrictions related to repatriation before becoming available to be used along with the normal cash flows from operations to fund any unanticipated shortfalls in future cash flows.
Current wording
Our principal use of cash is to pay for operating expenses, including volume incentives, inventory and raw material purchases, capital assets, digital investments and funding of international expansion. As of June 30, 2026, working capital was $109.7 million, compared to $100.3 million as of December 31, 2025. At June 30, 2026, we had $82.5 million in cash, of which $15.7 million was held in the U.S. and $66.8 million was held in foreign markets and may be subject to various withholding taxes and other restrictions related to repatriation before becoming available to be used along with the normal cash flows from operations to fund any unanticipated shortfalls in future cash flows.
Previous wording
For the three months ended March 31, 2026, operating activities used cash of $1.8 million, compared to provided cash of $2.6 million in the same period in 2025. Operating cash flows decreased primarily due to the timing of payments and receipts for accrued liabilities, deferred revenue, accounts receivables, and prepaid expenses and other current assets, partially offset by reduced accrued volume incentives and service fees, and inventories.
Current wording
For the six months ended June 30, 2026, operating activities used cash of $1.0 million, compared to provided cash of $6.9 million in the same period in 2025. Operating cash flows decreased primarily due to reduced net income and the timing of payments and receipts for accrued liabilities, deferred revenue, income taxes payable, accounts receivable, prepaid expense and other current assets, partially offset by a decrease in inventories and lease liabilities.
Previous wording
For the three months ended March 31, 2026, investing activities used $2.5 million, compared to $1.1 million for the same period in 2025, which consisted of capital expenditures related to the purchase of equipment, computer systems and software.
Current wording
For the six months ended June 30, 2026, investing activities used $5.3 million, compared to $2.5 million for the same period in 2025, which consisted of capital expenditures related to the purchase of equipment, computer systems and software.
Previous wording
For the three months ended March 31, 2026, financing activities used $1.6 million, compared to $0.7 million for the same period in 2025.
Current wording
For the six months ended June 30, 2026, financing activities used $5.0 million, compared to $12.9 million for the same period in 2025.
Previous wording
During the three months ended March 31, 2026, we used cash to repurchase 20,000 shares of our common stock under the share repurchase program for $0.5 million. At March 31, 2026, the remaining balance available for repurchases under the program was $16.9 million.
Current wording
During the six months ended June 30, 2026, we used cash to repurchase 113,000 shares of our common stock under the share repurchase program for $2.6 million. At June 30, 2026, the remaining balance available for repurchases under the program was $14.8 million.
Previous wording
A summary of our significant accounting policies is provided in Note 1 of the Notes to Consolidated Financial Statements in Item 8 of the Annual Report on Form 10-K for the year ended December 31, 2025. We believe the critical accounting policies and estimates described below reflect our more significant estimates and assumptions used in the preparation of the consolidated financial statements. The impact and any associated risks on our business that are related to these policies are also discussed throughout this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” where such policies affect reported and expected financial results.
Current wording
There were no significant changes in our critical accounting policies or estimates for the six months ended June 30, 2026. A summary of our significant accounting policies is provided in Note 1 of the Notes to Consolidated Financial Statements in Item 8 of the Annual Report on Form 10-K for the year ended December 31, 2025.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
The following table summarizes our unaudited consolidated operating results from continuing operations in U.S. dollars and as a percentage of net sales for the six months ended June 30, 2026 and 2025 (dollar amounts in thousands):
Current report — wording carried from elsewhere
The following table summarizes the changes in net sales by operating segment with a reconciliation to net sales excluding the impact of currency fluctuations for the six months ended June 30, 2026 and 2025 (dollar amounts in thousands):
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
March 31, 2026 and 2025, was $2.0 million and $1.4 million, respectively. As of March 31, 2026, Eastern Europe had assets of $6.3 million, net of working capital reserves related to inventories.