Good day and thank you for standing by. Welcome to the Q4 2025 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the call over to NuSkin's president, treasurer, and investor relations. BG Hunt, please go ahead.

Thanks, Tanya, and good afternoon, everyone. I'm joined by Ryan DePerski, president and CEO, and James Thomas, CFO. We are excited to share NuSkin's 2025 results and provide guidance for 2026. Before I turn the time over to Ryan, Again, let me point out that on today's call, comments will be made that include forward-looking statements. These statements involve important risks and uncertainties, and actual results may differ materially from those discussed or anticipated. Please refer to today's earnings release and our SEC filings for a complete discussion of these risks. Also during the call, certain financial numbers may be discussed that differ from comparable numbers obtained in our financial statements. We believe these non-GAAP numbers assist in comparing period-to-period results in a more consistent manner. Please refer to our investor website, ir.newskin.com, for any required reconciliation of these non-GAAP numbers. And with that, I'd like now to turn the call over to Ryan.

Thanks, BG. Good afternoon, everyone. Thanks for joining the call. I'm pleased to report that we delivered fourth quarter and 2025 results within our guidance range with a strong improvement in earnings, which resulted in a 40% increase in stock price for the year as we continue to focus on improving shareholder value amidst our strategic transformation. This past year was very important for the company as we worked to realign our business following the successful transaction of Maybelline, which further strengthened our balance sheet and has enabled us to more assertively pursue our vision of becoming the world's leading intelligent beauty, wellness, and lifestyle leadership opportunity platform. We've worked hard towards this by investing in the build-out of our intelligent wellness platform in preparation for the introduction of Prism.io to the world, which is now underway. We also initiated pre-market operations in India this past November in preparations for a formal market opening anticipated in late 2026 as we work towards expanding our footprint into this and other future growth opportunities in emerging markets. While transitioning our business to enable these strategic priorities has come with some inherent switching costs in 2025 and into early 2026, as our company and channel realign business practices, we believe these shifts are critical to our mid- to long-term success to enable our return to growth by end of 2026. 2026 represents a pivotal year for NuSkin as we accelerate our transformation towards our vision. We're entering this new chapter with three strategic priorities. One, to focus our business on the burgeoning $6.8 trillion wellness revolution currently underway with the launch of our Prism.io Intelligent Wellness Platform. Two, expanding our global reach into India and other critical emerging markets in years to come. And three, improving our operational performance and efficiencies. We are clearly defining the future growth trajectory of the company, which we believe will lead to a stronger core business and a return to meaningful long-term growth. First, let me dive into Prism.io, our truly intelligent wellness platform. Building on our EuroMonitor acclaimed position as the world's leading beauty and wellness device systems brand, we've developed a revolutionary technology which we believe will play a vital role in the rapidly expanding intelligent wellness market, empowering people around the world to more accurately measure, track, and improve their nutritional health. PRISM.IO represents the culmination of decades of nutraceutical-grade science and research and development across the integrated beauty and wellness industries. We've been working towards establishing ourselves as the intelligent beauty leader for the past several years with the introduction of Agelok LumaSpa I.O., WellSpa I.O., and RenuSpa I.O. We're now taking these IoT-derived learnings and combining them with the proprietary science and technology behind our biophotonic scanner. This enables a much greater scale and depth of intelligent wellness in the introduction of Prism I.O., a non-invasive carotenoid measurement device that provides intelligent and insights into nutritional health across four critical domains of diet, fitness, lifestyle and nutritional supplementation. We've now amassed a nutritional health database already containing nearly 400 million intelligent wellness data points from 21 million scans of more than 10 million people in 50 countries around the globe. These data points are repeatable signals tied to real consumer behaviors that indicate profile and context, behavior and habits, and repeatable engagements and activations over time. All of this data compiled into a single source represents what we believe to be the world's largest database on carotenoid health. In combination with our other beauty and wellness IoT connected devices, where we've gathered more than one billion data points and insights, this trove of data will better inform consumer decisions and purchasing habits. It also provides us with far deeper aggregated insights into the needs of our customers in order to empower their personalized wellness journeys, improve customer engagement, and lead to greater customer lifetime value. Our next chapter is now underway as we power these data insights with AI in our proprietary new intelligence database to inform three distinct applications. First, intelligent scoring, which will leverage AI to compare personal results against our database of 21 million scans. Second, intelligent insights, which will provide customers with personalized recommendations for their diet, fitness, lifestyle, and nutritional supplementation. And third, intelligent product recommendations, which will be based upon a customer's intelligent insights through which we provide nutritional supplementation options to help them in their wellness journey. All of these insights culminate in Nu Skin developing a proprietary wellness biomarker based on skin carotenoid levels that we're calling the Nutritional Health Score, a universal score that gives customers insights into their nutritional health. We have long understood the importance of eating a healthy, balanced diet, including fruits and vegetables, avoiding harmful pollution, and making critical lifestyle choices. But until now, consumers have been unable to non-invasively measure at scale the impact of these choices. This revolutionary biomarker offered through PRISM.IO provides critical nutritional health insights to consumers, something that has been missing in the wellness space until now. You deserve to know with PRISM.IO. From a business perspective, the unit economics are compelling. Prism.io serves as a powerful customer acquisition tool for our sales force, combined with subscription-based revenue that provides more than six times greater customer lifetime value. For 2026, we are aiming to place more than 100,000 Prism.io devices by the end of this year since the introduction in late 2025. Looking further into the future, we envision Prism.io becoming the leading platform for consumers to gather deeper, more intelligent insights into their personal and family's health. We have set an internal aspiration with our global sales force of bringing this cutting-edge wellness platform to 10 million healthy households by 2030, as we partner with our dedicated sales force in nearly 50 markets around the world to accomplish this goal. Our go-to-market rollout strategy is deliberately designed to maximize long-term success. We're currently engaging, aligning, and activating our sales force in the first half of 2026 as they acquire and place Prism.io devices, followed by consumer launches around the world beginning in the second half. This approach prepares and aligns our dedicated channel as we scale the full consumer availability throughout the year. This is only the beginning for Prism.io as we delve deeper into the vast dimensions of intelligent wellness, including its impact on beauty, which we all understand begins from the inside out. Our second strategic priority focuses on broadening our emerging market footprint with our formal opening of India anticipated in late 2026. With more than 1.4 billion people and a rapidly growing middle class, India represents one of our most significant long-term geographic growth opportunities. Our ongoing growth in Latin America, where we've built our emerging market model, is providing greater insights into how we will expand our global footprint into new emerging markets. This refined operating model for India includes a localized product portfolio priced for India's growing middle class, a modified compensation plan, and a digital-first infrastructure through our partnership with Infosys. We began pre-market entry operations in mid-November and are currently focused on three key areas. First, establishing operational infrastructure, including high-quality local manufacturing and effective market-wide logistics partnerships. Second, building robust digital first infrastructure across the market to enable fast, simple, and scalable business processes. And third, acquiring customers and brand affiliates to begin building brand awareness and demand generation ahead of the formal market opening. Early learnings to date indicate that the market is advancing quickly towards a more developing status with strong digital-first aspirations, though local infrastructure still has room to improve. Also, India consumers and micro-entrepreneurs are highly aspirational but financially conservative, with beauty and wellness being more aspirational categories for the broader market, leading to typically longer sales and activation cycles. Nevertheless, we see great mid- to long-term potential as we scale investment and operations along the way of our formal market opening later this year. So in summary, in 2026, it is all about accelerating our evolution towards our intelligent beauty and wellness platform vision as we launch Prism.io around the globe and expand our emerging market footprint by continuing growth in Latin America and expanding into India. In late 2026, as we pursue these strategic growth priorities, we will continue to drive our third critical priority of improving operational performance and efficiency to return value to shareholders, which James will discuss in just a moment. Together, these initiatives advance our vision of becoming the world's leading intelligent beauty, wellness, and lifestyle leadership opportunity platform and create a powerful foundation for sustainable growth. Our dedicated global sales force plays a crucial role in our strategic transformation as awareness generators, intelligent wellness consultants, and community and network builders. We are empowering them with greater intelligence consisting of data and insights into their business as we transform into a technology-enabled, intelligent community and wellness platform. Our near-term focus remains on engaging, aligning, and activating our sales force around these transformational opportunities while maintaining disciplined execution and financial performance as we seek to return to growth by year's end. So with that, I'll turn the time over to James to discuss our 2025 financial performance and outlook for 26 in greater detail.

Thank you, Ryan. And thanks to everyone for joining us today. Before I walk through the quarter, I want to begin with the full year story because it best reflects our execution in 2025. On an adjusted basis, we delivered $1.27 in earnings per share, up from 84 cents last year, representing about 51% growth. That improvement was driven by gross margin expansion throughout the year, ongoing selling expense optimization, and disciplined G&A management. Importantly, we achieved this while also strengthening our balance sheet and generating free cash flows to provide meaningful returns to our shareholders. I'll now cover fourth quarter results, then come back to a few full year highlights and conclude with our outlook for the first quarter and full year 2026. I'll be speaking to adjusted non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures can be found on our investor relations website. For the fourth quarter, we delivered revenue inside our guidance range at $370 million, with approximately $1 million headwind from foreign currency. Earnings per share was 29 cents in line with expectations, which closed out our annual performance near the high end of our original guidance range. Our gross margin for the quarter was 70.7% compared to 71.4% in the prior year. The decrease was primarily due to revenue mix of RISE entities and New Skin segments. Within our core New Skin business, gross margin was 77.6%, up 100 basis points from the prior year. Selling expense was 35.5% for the quarter, down from 37.1% in the prior year, primarily reflecting mix between our core business and RISE, as well as the prior year period, including Mavely. Within the core new skin business, selling expense was 40.8%, consistent with our compensation plan alignment and continued progress and leader engagement. General and administrative expenses remain well-managed and aligned with our efficiency initiatives, and operating margin for the quarter was 6.3%. With that view on Q4, let me step back to the full-year results. For the full year, we generated $1.49 billion in revenue, landing within our original guidance with the foreign currency headwind of approximately $13.4 million. Within our cornu skin business, gross margin finished at 77.4%, an 80 basis point improvement over the prior year. We delivered sequential improvement through the first three quarters, and as expected, the gross margin was modestly lower by 10 basis points in the fourth quarter due to a higher promotional period. Overall, we're seeing the benefits of portfolio optimization and product mix improvements, and we believe with our current inventory levels, there remains opportunity to expand gross margin further in 2026. Core new skin selling expense for the year was 40.3%. Looking ahead, we expect selling expense in the core business to remain around 40% as we continue to drive adoption of our enhanced compensation plan and focus investments on initiatives with the greatest impact on supporting top-line growth. On G&A, we remain committed to managing overhead in line with revenue while maintaining an appropriately scaled cost structure. These actions drove 26% growth in operating margin compared to the prior year. Adjusted operating margin was 6.7%, up 140 basis points from 5.3% in the prior year. Below the line, we benefited from an R&D tax credit, which reduced tax expense by approximately $8.1 million, resulting in a reported effective tax rate of 18.8%. Finally, adjusted earnings per share was $1.27, excluding the Mabley game and other items, compared to $0.84 last year, excluding restructuring and other charges. Stepping back, the actions we've taken have strengthened our foundation and improved the flexibility of our cost structure. We're better aligned to our revenue base and will continue to right-size expenses and prioritize investments as trends evolve. With that foundation in place, we're focused on execution and building long-term value. Now turning to the balance sheet and cash flow, We continued to strengthen liquidity and improve flexibility through disciplined capital management. We ended the quarter with approximately $240 million in cash and reduced outstanding debt to $224 million, resulting in an expanded net cash position. For the full year, cash flow from operations was $80.3 million, reflecting disciplined working capital management and improved profitability. We also return capital to shareholders, including approximately $11.8 million in dividends and $20 million of share repurchases during the year. We have $142.3 million remaining under our current share repurchase authorization. Our capital allocation priorities remain consistent, investing in innovation and growth, maintaining a strong balance sheet while continuing to delever and returning capital to shareholders where appropriate. Looking ahead, we remain focused on executing on our strategic priorities to drive growth by the end of 2026. The launch of our Prism I.O. Intelligent Wellness device remains on track for full consumer launch in the back half of the year, representing a major milestone in our transformation towards personalized AI-powered wellness. We're also encouraged by continued momentum in developing markets, particularly Latin America, which remains a strong performer, and by our upcoming full market opening in India, where we're laying the groundwork for an expansive opportunity for our brand affiliates. For our RISE segments, we are projecting year-over-year growth, supported by expanding capabilities and capacity for manufacturing. We are also evaluating opportunities with LifeDNA to maximize our return on investment. With those priorities in mind, let me share our expectations for the full year and first quarter of 2026. For 2026, we project revenue in the range of $1.35 billion to $1.5 billion, including an estimated foreign exchange headwind of $13 million to $15 million, or approximately 1%. We anticipate earnings per share between $0.80 and $1.20, reflecting an expected tax rate of 35%. We project first quarter revenue between $320 million and $340 million, factoring in an expected foreign currency headwind of approximately 1%. Reported earnings per share is anticipated to be in the range of 10 cents to 20 cents. As a reminder, Q1 is historically our lowest quarter due to the seasonality of our business. So to wrap up, 2025 demonstrated the strength of our execution. We delivered meaningful earnings and operating margin improvement, generated solid cash flow, strengthened the balance sheet and returned capital to shareholders, all while continuing to invest in the initiatives that position new skin for the future. As we look to 2026, we're focused on advancing our strategic priorities, driving continued profitability, scaling our momentum in developing markets, and progressing our innovation pipeline, including the Prism.io launch, which we believe will meaningfully strengthen our affiliate value proposition and enhance their ability to attract and retain customers. While we remain mindful of ongoing top-line pressures in certain markets, we believe the The operating foundation we've built gives us the flexibility to invest where we see the best returns can deliver long-term value. And with that, operator, we'll now open up the call for questions.

Certainly. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile our Q&A roster. And our first question will be coming from Dave Storms of Stonegate. Your line is open.

Hello, and thank you all for taking my questions. Hi, Dave. I wanted to start maybe with diving into PRISM a little bit more. Very excited for that to kind of come online towards the end of the year, but we'd love to get a little more color around maybe a revenue guide or any of your thoughts on, you know, what PRISM can really contribute to the top line. It sounds like there could be a lot of recurrent revenue there. I'd just love to hear more thoughts around that.

Yeah, as I was discussing, we're looking from – the key to PRISM as we envision it is the placement of these devices that will lead to subscriptions from customers over time. And so that really is the unit economic model that we're driving here. And so, as I mentioned, we have the 100,000 estimate that we anticipate placing through year's end. And of that subscription uptake, which we're still really learning, Dave, it's so early we're only a month into this, what that will actually be. So we're not really yet at the point of saying exactly what the revenue conversion will be. I think one way to look at this over time is that we've historically, on a revenue split basis, our business has been roughly half beauty and half wellness, with wellness leading much more towards subscription revenue. And so we see PRISM really leading us more and more into the subscription realm for the wellness side. And then, of course, as we apply it into beauty later on, we see it playing there. So we're not giving direct revenue guidance on it yet for PRISM, although I think the math for just the device is pretty simple. You know, I think the market value right now per device is around 300 U.S. dollars, and, you know, we anticipate 100,000 units. So that would be like 30 million in devices, but how we then monetize that through subscriptions, we'll be learning that. James, anything you'd add to that?

Yeah, Dave, appreciate the question. I think as you're thinking about it from a modeling perspective going forward, it's going to be centered around like the timing of the full consumer launch where we would start to begin to see scale with the placement of units through our leaders in the first half and then full consumer launch towards the back half of 2026 is how we see that coming in. And so we're looking at a stronger back half forecast in Q3 and Q4 of 2026.

Appreciate that. I have a second question here in the similar vein around India. Maybe just a little more around your thoughts of what a bull case or a bear case could be there. It sounds like, you know, if you get the infrastructure set up, there could be a lot of room to run early there. Maybe just, you know, how could we get that set up? You know, what key hurdles could be? Anything like that would be very helpful.

Yeah, yeah. India, for us, we do see very, you know, very good long-term potential or mid to long-term. I think, as we mentioned, we're really focused on getting all of the local infrastructure set up properly. I mean, local manufacturing is one of our top priorities there because, obviously, import duties are so high, and we want to ensure high-quality, great products at the right price there. And so that's our big focus now. Logistics throughout a pretty diverse market are critical. and then, of course, the digital infrastructure. So, 26 is very much about that. We don't anticipate the formal launch being until late in 26, so we're being pretty – very conservative from a revenue input perspective on the actual impact for the year. James, any more detail?

No. I mean, India for us is an exciting opportunity for our sales leaders. It's an opportunity to go in and expand in a region that we have not been a part of. And so for us, for the year, I mean, we're being a little bit cautious in how much we're actually forecasting in India. So we've tailored that back, but we believe in the high long-term potential of that market and our ability to go in with a developing market strategy to go in and penetrate into India and look forward to that even beyond 26 into 27 to see how far we can go.

Understood. I appreciate that commentary. James, I did have maybe another question here for you. So I would love to get your thoughts on maybe some of the puts and takes in the guidance and where you see maybe key spots of leverage, you know, whether that's the G&A or, you know, just kind of your thoughts around guidance.

Yeah, I appreciate that, Dave. You know, looking forward to 2026, we are modeling, you know, as per our guide in the release, we are a 1% growth on the high end of our guidance and a down 9% on the low end of guidance. as we look due to the weighting or the timing of the launch of the new product introductions towards the back half of the year. So looking to exit 2026 with growth towards the Q3, year-over-year growth, the Q3 to Q4 timeframe against our compares in 25. So starting at the top line of revenue, when we come down, you know, we look at gross margin. You know, this last year, even starting in 24, we started to see expansion in our gross margin. We had five consecutive quarters of gross margin expansion and growth until this last quarter in Q4, which is a higher promotional period. We believe with the way we're stacked in inventory and some of the moves that we can make around the globe, around our distribution and supply chain, we believe that we can continue to expand that. So from a modeling perspective, I would look at what the gross margin expansion was in 2025 and replicate that into 26 is a good barometer for how to treat gross margin. Selling expense, you know, we go between 40% and 42% on given years where we have certain events associated with our sales leader base. But we try to target that around 40% to 41% on any given year. So that will stay somewhat consistent. And then our G&A, we're working to bring our costs in line with revenue. So as we go throughout the quarters in 2026, we'll continue to work on our overhead. And we're continuing to refine that to get that to levels that are in line with our top line. And then the one last thing that I would call out from year over year is 2025, we did have – we did benefit from an R&D tax credit, which created a lower tax rate in 2025 than we believe that we'll see in 26. So you have to – when you're looking at earnings per share, the guide on earnings per share, you have to take into consideration a 35% tax rate that we're kind of looking at right now as we forecast and project out the year. So that creates that, you know, from $1.27 and $1.25 to where we model out at $1.20. We're actually showing in 26 an operating margin improvement, but a slightly lower earnings per share just because it's below the line items on tax. So that's how I would look at it forward in your model.

I appreciate all that color there. One last for me, you know, there's a lot of excitement around Brisbane for obvious reasons, But I don't want to lose track of, you know, the rest of your portfolio. I know Manly in China, the U.S. had nice quarter-over-quarter revenue growths. Any other storylines that we should be keeping an eye on as we start 2026? Any geographies or thoughts around that?

Yeah, no, I'm glad you mentioned the other, you know, portfolio. One thing that we didn't discuss here is the restaging and rollout of TrueFace, which is our premium skincare line that has really been reformulated and restaged with sustainable packaging. It's doing really well, getting very good reception as it rolls out around the globe in different geographies. I think, you know, areas where we continue to be interested in seeing improvement, obviously Latin America continues to do really well and looking forward, you know, we're excited to see what will happen there as we're just continuing to learn about this emerging market, you know, broader segment of emerging markets around the globe, you know, improvements in China, you know, improvements across Europe, markets within Southeast Asia, happy to see those things improving. You know, Japan and Korea, I think our focus is right now ensuring we've got China, Japan, and Korea, and then North America improving through Prism.io and the adoption of that, as well as, you know, the True Face line from the beauty side of the business continue to to perform better as we move forward.

Appreciate you all taking my questions. Congrats on a quarter and good luck in 2026.

Thanks, Dave.

As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. And I'm showing no further questions. I would now like to turn the conference back to Ryan Napierski for closing remarks.

Yeah, well, thank you very much for joining the call. Well, our roadmap is very clear for us as we move forward towards our vision of becoming the world's leading intelligent beauty and wellness platform powered by our committed and dedicated global sales force. With the launching of Prism.io in 2026, we believe that the world will continue to learn more and more about their nutritional health and that we will be the proprietary company providing that capability to them. We'll continue to focus and update you on India and our progress throughout the year as we prepare for our launch towards the end of this year. And with that, we'll end this call and look forward to chatting with you in the next quarter update. Thank you.

And this concludes today's program. Thank you for participating. You may now disconnect your Q4 2025 New Skin Enterprises Earnings Conference Call.