Nu Skin Enterprises Reports Second Quarter Results

PROVO, Utah--(BUSINESS WIRE)--Aug. 10, 2026-- Nu Skin Enterprises Inc. (NYSE: NUS) today announced second quarter results. Executive Summary Q2 2026 vs. Prior-year Quarter Revenue $320.1 million; (17.1)% (1.0)% FX impact or $(4.0) million Earnings Per Share (EPS) $(5.14) or $0.20 excluding non-cash impairment and non-cash tax charges compared to $0.43 Customers 660,037; (14)% Paid Affiliates 120,291; (8)% Sales Leaders 26,998; (9)% “We continue to make progress toward our long-term strategy with the continued rollout of Prysm iO and preparations for the formal launch of India,” said Ryan Napierski, Nu Skin president and CEO. “As these initiatives are taking hold, we are incorporating valuable learnings to strengthen our plans moving forward. At the same time, we are re-aligning our organizational resources to better position the business to drive sustainable, long-term value for our shareholders.” Q2 2026 Year-over-year Operating Results Revenue $320.1 million compared to $386.1 million (1.0)% FX impact or $(4.0) million Gross Margin 68.2% compared to 68.8% Nu Skin business was 77.7% compared to 77.5% Selling Expenses 33.7% compared to 33.2% Nu Skin business was 39.8% compared to 40.0% G&A Expenses 28.4% compared to 27.6% Operating Margin (18.5)% or 6.1% excluding non-cash impairment charge compared to 8.0% Interest Expense $3.3 million compared to $2.5 million Other Income (Expense) $(0.5) million compared to $(0.8) million Income Tax Rate (295.4)% or 36.6% excluding non-cash tax charge compared to 23.0% EPS $(5.14) or $0.20 excluding non-cash impairment and non-cash tax charges compared to $0.43 Stockholder Value Dividend Payments $2.9 million Stock Repurchases $0.0 million $137.3 million remaining in authorization Q3 and Full-year 2026 Outlook Q3 2026 Revenue $310 to $340 million; (15)% to (7)% Approximately (3) to (2)% FX impact Q3 2026 EPS $0.00 to $0.09 or $0.10 to $0.20 on an adjusted basis 2026 Revenue $1.28 to $1.35 billion; (14)% to (9)% Approximately (1)% FX impact 2026 EPS ($4.90) to ($4.73) or $0.70 to $0.90 on an adjusted basis “We delivered adjusted earnings per share near the midpoint of our guidance, reflecting our ongoing focus on profitability and disciplined execution,” said Chelsea Lantz, interim chief financial officer. “Based on our first-half performance and outlook for the rest of the year, we are updating our annual guidance to revenue of $1.28 billion to $1.35 billion and adjusted earnings per share of $0.70 to $0.90. For the third quarter, we expect revenue between $310 million and $340 million, with adjusted earnings per share in the range of $0.10 to $0.20.” Conference Call The Nu Skin Enterprises management team will host a conference call with the investment community today at 5 p.m. (ET). Those wishing to access the webcast, as well as the financial information presented during the call, can visit the Investor Relations page on the company's website at ir.nuskin.com. A replay of the webcast will be available on the same page through Aug. 24, 2026. About Nu Skin Enterprises Inc. Nu Skin Enterprises Inc. (NYSE: NUS) is an intelligent beauty and wellness company, powered by a dynamic affiliate opportunity platform, which operates in nearly 50 markets worldwide. Backed by more than 40 years of scientific research, the company’s products help people look, feel and live their best with our newly introduced Prysm iO intelligent wellness platform, an award-winning line of beauty device systems and trusted brands in personal care and wellness products. Rhyz is the strategic investment arm of Nu Skin Enterprises, formed in 2018 consisting of synergistic consumer, technology and manufacturing companies focused on innovation within the beauty, wellness and lifestyle categories. Important Information Regarding Forward-Looking Statements: This press release 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 the company’s 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 the company’s performance, growth, initiatives, shareholder value, Prysm launch and its timing, and India expansion; projections regarding revenue, expenses, margins, tax rates, earnings per share, foreign currency fluctuations, uses of cash, financial position and other financial items; 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,” “become,” “drive,” “project,” “outlook,” “guidance,” “will,” “would,” “could,” “may,” “might,” the negative of these words and other similar words. The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed herein. These risks and uncertainties include, but are not limited to, the following: any failure of current or planned initiatives or products to generate interest among the company’s sales force and customers and generate sponsoring and selling activities on a sustained basis; risk that direct selling laws and regulations in any of the company’s markets, including the United States and Mainland China, may be modified, interpreted or enforced in a manner that results in negative changes to the company’s business model or negatively impacts its revenue, sales force or business, including through the interruption of sales activities, loss of licenses, increased scrutiny of sales force actions, imposition of fines, or any other adverse actions or events; economic conditions and events globally; the company’s future tax-planning initiatives, any prospective or retrospective increases in duties or tariffs on the company’s products imported into the company’s markets, and any adverse results of tax audits or unfavorable changes to tax laws in the company’s various markets; competitive pressures in the company’s markets; risk that epidemics or other crises, as well as any related disruptions, could negatively impact our business; adverse publicity related to the company’s business, products, industry or any legal actions or complaints by the company’s sales force or others; political, legal, tax and regulatory uncertainties, including trade policies, associated with operating in Mainland China and other international markets; uncertainty regarding meeting restrictions and other government scrutiny in Mainland China, as well as negative media and consumer sentiment in Mainland China on our business operations and results; risk of foreign-currency fluctuations and the currency translation impact on the company’s business associated with these fluctuations; uncertainties regarding the future financial performance of the businesses the company has acquired; risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support planned initiatives or launch strategies, and increased risk of inventory write-offs if the company over-forecasts demand for a product or changes its planned initiatives or launch strategies; and regulatory risks associated with the company’s products, which could require the company to modify its claims or inhibit its ability to import or continue selling a product in a market if the product is determined to be a medical device or if the company is unable to register the product in a timely manner under applicable regulatory requirements. The company’s financial performance and the forward-looking statements contained herein are further qualified by a detailed discussion of associated risks set forth in the documents filed by the company with the Securities and Exchange Commission. The forward-looking statements set forth the company’s beliefs as of the date that such information was first provided, and the company assumes no duty to update the forward-looking statements contained in this release to reflect any change except as required by law. Non-GAAP Financial Measures: Constant-currency revenue change is a non-GAAP financial measure that removes the impact of fluctuations in foreign-currency exchange rates, thereby facilitating period-to-period comparisons of the company’s performance. It is calculated by translating the current period’s revenue at the same average exchange rates in effect during the applicable prior-year period and then comparing that amount to the prior-year period’s revenue. The company believes that constant-currency revenue change is useful to investors, lenders and analysts because such information enables them to gauge the impact of foreign-currency fluctuations on the company’s revenue from period to period. Earnings per share, operating margin, and income tax rate, each excluding impairment charges, tax charges, and/or other charges, also are non-GAAP financial measures. Impairment charges and the tax charge incurred in the second quarter of 2026 are not part of the ongoing operations of our underlying business; and The other charges incurred in connection with certain corporate actions, as described in the footnotes to the non-GAAP reconciliation tables below, are not part of our ongoing operations. The company believes that these non-GAAP financial measures are useful to investors, lenders and analysts because removing the impact of these items facilitates period-to-period comparisons of the company’s performance. Please see the reconciliations of these items to our earnings per share, gross margin, operating margin, income tax rate and revenue growth rate calculated under GAAP, below. The following table sets forth revenue for the three-month periods ended June 30, 2026, and 2025 for each of our reportable segments (U.S. dollars in thousands): Three Months Ended Constant- June 30, Currency 2026 2025 Change Change Nu Skin Americas $ 59,763 $ 72,946 (18.1 )% (15.8 )% Mainland China 45,956 53,224 (13.7 )% (18.7 )% Southeast Asia/Pacific 43,257 50,834 (14.9 )% (16.3 )% Japan 38,143 44,550 (14.4 )% (5.5 )% Europe & Africa 32,317 37,328 (13.4 )% (15.2 )% Hong Kong/Taiwan 26,074 27,527 (5.3 )% (3.6 )% South Korea 25,620 34,068 (24.8 )% (19.0 )% Nu Skin Other 79 427 (81.5 )% (81.5 )% Total Nu Skin 271,209 320,904 (15.5 )% (14.2 )% Rhyz Manufacturing 46,369 60,400 (23.2 )% (23.2 )% Rhyz Other 2,534 4,834 (47.6 )% (47.6 )% Total Rhyz 48,903 65,234 (25.0 )% (25.0 )% Total $ 320,112 $ 386,138 (17.1 )% (16.1 )% The following table sets forth revenue for the six-month periods ended June 30, 2026, and 2025 for each of our reportable segments (U.S. dollars in thousands): Six Months Ended Constant- June 30, Currency 2026 2025 Change Change Nu Skin Americas $ 117,581 $ 142,004 (17.2 )% (14.2 )% Mainland China 91,104 100,999 (9.8 )% (14.6 )% Southeast Asia/Pacific 88,731 103,006 (13.9 )% (16.5 )% Japan 77,882 87,315 (10.8 )% (4.9 )% Europe & Africa 63,535 70,349 (9.7 )% (15.0 )% Hong Kong/Taiwan 53,531 55,974 (4.4 )% (4.8 )% South Korea 50,949 66,583 (23.5 )% (20.2 )% Nu Skin Other (155 ) 956 (116.2 )% (116.2 )% Total Nu Skin 543,158 627,186 (13.4 )% (13.4 )% Rhyz Manufacturing 91,294 115,690 (21.1 )% (21.1 )% Rhyz Other 6,268 7,752 (19.1 )% (19.1 )% Total Rhyz 97,562 123,442 (21.0 )% (21.0 )% Total $ 640,720 $ 750,628 (14.6 )% (14.6 )% The following tables provide information concerning the number of Customers, Paid Affiliates and Sales Leaders in our core Nu Skin business for the three-month periods ended June 30, 2026 and 2025. Three Months Ended June 30, 2026 2025 Change Customers Americas 183,757 240,477 (24 )% Mainland China 103,891 117,325 (11 )% Southeast Asia/Pacific 69,354 72,814 (5 )% Japan 100,849 105,961 (5 )% Europe & Africa 111,332 126,146 (12 )% Hong Kong/Taiwan 36,549 41,371 (12 )% South Korea 54,305 67,313 (19 )% Total Customers 660,037 771,407 (14 )% Paid Affiliates Americas 27,337 28,827 (5 )% Mainland China 18,736 19,399 (3 )% Southeast Asia/Pacific 17,677 21,092 (16 )% Japan 19,018 19,605 (3 )% Europe & Africa 13,307 15,320 (13 )% Hong Kong/Taiwan 9,390 9,570 (2 )% South Korea 14,826 16,986 (13 )% Total Paid Affiliates 120,291 130,799 (8 )% Sales Leaders Americas 5,041 5,971 (16 )% Mainland China 5,899 5,790 2 % Southeast Asia/Pacific 3,631 4,126 (12 )% Japan 5,782 5,882 (2 )% Europe & Africa 2,216 2,695 (18 )% Hong Kong/Taiwan 1,858 2,063 (10 )% South Korea 2,571 3,066 (16 )% Total Sales Leaders 26,998 29,593 (9 )% “Customers” are persons who have purchased directly from the Company during the three months ended as of the date indicated. Our Customer numbers include members of our salesforce who made such a purchase, including Paid Affiliates and those who qualify as Sales Leaders, but they do not include consumers who purchase directly from members of our sales force. “Paid Affiliates” are any Brand Affiliates, as well as members of our sales force in Mainland China, who earned sales compensation during the three-month period. In all of our markets besides Mainland China, we refer to members of our independent sales force as “Brand Affiliates” because their primary role is to promote our brand and products through their personal social networks. “Sales Leaders” are the three-month average of our monthly Brand Affiliates, as well as sales employees and independent marketers in Mainland China, who achieved certain qualification requirements as of the end of each month of the quarter. NU SKIN ENTERPRISES, INC. Consolidated Statements of Income (Unaudited) (U.S. dollars in thousands, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Revenue $ 320,112 $ 386,138 $ 640,720 $ 750,628 Cost of sales 101,787 120,405 207,932 237,934 Gross profit 218,325 265,733 432,788 512,694 Operating expenses: Selling expenses 107,922 128,228 217,976 246,774 General and administrative expenses 90,847 106,725 189,391 219,929 Impairment expenses 78,875 - 80,714 25,114 Total operating expenses 277,644 234,953 488,081 491,817 Operating income (loss) (59,319 ) 30,780 (55,293 ) 20,877 Interest expense 3,322 2,526 7,572 5,809 Gain on sale of business - - - 176,162 Other income (expense), net (534 ) (843 ) 2,289 (29,218 ) Income (loss) before provision for income taxes (63,175 ) 27,411 (60,576 ) 162,012 Provision for income taxes 186,623 6,292 187,386 33,378 Net income (loss) $ (249,798 ) $ 21,119 $ (247,962 ) $ 128,634 Net income (loss) per share (Note 7): Basic $ (5.14 ) $ 0.43 $ (5.12 ) $ 2.59 Diluted $ (5.14 ) $ 0.43 $ (5.12 ) $ 2.59 Weighted-average common shares outstanding (000s): Basic 48,596 49,441 48,400 49,601 Diluted 48,596 49,499 48,400 49,748 NU SKIN ENTERPRISES, INC. Consolidated Balance Sheets (Unaudited) (U.S. dollars in thousands) June 30, December 31, 2026 2025 ASSETS Current assets: Cash and cash equivalents $ 189,643 $ 238,630 Current investments 1,743 1,211 Accounts receivable, net 48,902 39,544 Inventories, net 191,497 178,643 Prepaid expenses and other 76,364 89,670 Total current assets 508,149 547,698 Property and equipment, net 379,550 377,168 Operating lease right-of-use assets 65,442 74,021 Goodwill 4,750 83,625 Other intangible assets, net 37,884 42,614 Other assets 125,755 280,187 Total assets 1,121,530 1,405,313 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 37,711 $ 26,183 Accrued expenses 198,636 217,551 Current portion of long-term debt 20,000 20,000 Total current liabilities 256,347 263,734 Operating lease liabilities 50,075 57,640 Long-term debt 193,664 204,187 Other liabilities 78,705 74,512 Total liabilities 578,791 600,073 Commitments and contingencies (Notes 6 and 12) Stockholders’ equity: Class A common stock – 500 million shares authorized, $0.001 par value, 90.6 million shares issued 91 91 Additional paid-in capital 612,412 635,994 Treasury stock, at cost – 41.9 million and 42.4 million shares (1,558,183 ) (1,575,059 ) Accumulated other comprehensive loss (118,152 ) (116,105 ) Retained earnings 1,606,571 1,860,319 Total stockholders' equity 542,739 805,240 Total liabilities and stockholders’ equity $ 1,121,530 $ 1,405,313 NU SKIN ENTERPRISES, INC. Reconciliation of Operating Margin Excluding Certain Charges to GAAP Operating Margin (in thousands, except for per share amounts) Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Operating Income $ (59,319 ) $ 30,780 $ (55,293 ) $ 20,877 Impact of inventory write-off - - 3,116 - Impact of other charges(1) - - 2,643 7,966 Impact of impairment 78,875 - 80,714 25,114 Adjusted operating income $ 19,556 $ 30,780 $ 31,180 $ 53,957 Operating margin (18.5 )% 8.0 % (8.6 )% 2.8 % Operating margin, excluding certain charges 6.1 % 8.0 % 4.9 % 7.2 % Revenue $ 320,112 $ 386,138 $ 640,720 $ 750,628 (1) Other charges for the first quarter of 2026 consist of $1.0 million related to the wind down of the separate BeautyBio business and $1.6 million of other employee severance charges. Other charges for the first quarter of 2025 consist of expenses incurred in connection with the Mavely sale, including $2.7 million of transaction bonuses for certain employees and $5.2 million of equity compensation as a result of the vesting of the Mavely profits interest units. NU SKIN ENTERPRISES, INC. Reconciliation of Effective Tax Rate Excluding Impact of Certain Charges to GAAP Effective Tax Rate (in thousands, except for per share amounts) Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Provision (benefit) for income taxes $ 186,623 $ 6,292 $ 187,386 $ 33,378 Impact of inventory write-off on provision for income taxes - - 1,065 - Impact of other charges(1) on provision for income taxes - - 903 725 Impact of impairment on provision for income taxes (13,370 ) - (12,741 ) 5,433 Impact of gain on Mavely sale on provision for income taxes - - - (31,104 ) Impact of gain on unrealized investment loss on provision for income taxes - - - 6,074 Impact of valuation allowance on deferred tax assets (167,505 ) - (167,505 ) - Provision for income taxes, excluding impact of certain charges $ 5,748 $ 6,292 $ 9,108 $ 14,506 Income before provision for income taxes (63,175 ) 27,411 (60,576 ) 162,012 Impact of inventory write-off - - 3,116 - Impact of other charges(1) - - 2,643 7,966 Impact of impairment expense: 78,875 - 80,714 25,114 Impact of gain on Mavely sale - - - (176,162 ) Impact of unrealized investment loss - - - 28,077 Income before provision for income taxes, excluding impact certain charges $ 15,700 $ 27,411 $ 25,897 $ 47,007 Effective tax rate (295.4 )% 23.0 % (309.3 )% 20.6 % Effective tax rate, excluding impact of certain charges 36.6 % 23.0 % 35.2 % 30.9 % NU SKIN ENTERPRISES, INC. Reconciliation of Earnings Per Share Excluding Impact of Certain Charges to GAAP Earnings Per Share (in thousands, except for per share amounts) Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Net income $ (249,798 ) $ 21,119 $ (247,962 ) $ 128,634 Impact of Inventory write-off Inventory write-off - - 3,116 - Tax impact - - (1,065 ) - Impact of other charges Other charges - - 2,643 7,966 Tax impact - - (903 ) (725 ) Impact of impairment Impairment charges 78,875 - 80,714 25,114 Tax impact 13,370 - 12,741 (5,433 ) Impact of Mavely sale Mavely sale - - - (176,162 ) Tax impact - - - 31,104 Impact of unrealized investment loss Unrealized investment loss - - - 28,077 Tax impact - - - (6,074 ) Impact of valuation allowance on deferred tax assets 167,505 - 167,505 - Adjusted net income $ 9,952 $ 21,119 $ 16,789 $ 32,501 Diluted earnings per share $ (5.14 ) $ 0.43 $ (5.12 ) $ 2.59 Diluted earnings per share, excluding impact of certain charges $ 0.20 $ 0.43 $ 0.35 $ 0.65 Weighted-average common shares outstanding (000) 48,596 49,499 48,400 49,748 NU SKIN ENTERPRISES, INC. Reconciliation of Earnings Per Share Excluding Impact of Certain Charges to GAAP Earnings Per Share Three months ended September 30, 2026 Year ended December 31, 2026 Low end High end Low end High end Earnings Per Share $ 0.00 $ 0.09 $ (4.90 ) $ (4.73 ) Impact of inventory write-off Inventory write-off - - 0.06 0.06 Tax impact - - (0.02 ) (0.02 ) Impact of other charges Other charges(2) 0.10 0.10 0.15 0.15 Tax impact (0.02 ) (0.02 ) (0.04 ) (0.04 ) Impact of impairment: Impairment charges - - 1.67 1.67 Tax impact - - 0.26 0.26 Impact of valuation allowance on deferred tax assets 0.02 0.03 3.52 3.55 Adjusted EPS $ 0.10 $ 0.20 $ 0.70 $ 0.90 (2) We are currently anticipating other charges for the third quarter of 2026 of approximately $5 million in cash-based transition cost. Other charges for the first quarter of 2026 consist of $1.0 million related to the wind down of the separate BeautyBio business and $1.6 million of other employee severance charges. View source version on businesswire.com: https://www.businesswire.com/news/home/20260810531294/en/ Media: [email protected], (801) 345-6397 Investors: [email protected], (801) 345-3577 Source: Nu Skin Enterprises Inc.