Core Insights - The analyst has a strong background in equity research and investment analysis, with a focus on the U.S. equity market and consumer staples sector, indicating a belief in the resilience of defensive stocks for long-term investment opportunities [1]. Group 1: Analyst Background - The analyst is a certified FMVA and FPWMP, which provides expertise in financial statement analysis, valuation modeling, and investment portfolio construction [1]. - Participation in the CFA Research Challenge has equipped the analyst with practical experience in equity analysis and industry research [1]. - The analyst holds a degree in Finance from Alexandria University, graduating in 2024 with a CGPA of 3.6, showcasing a solid academic foundation [1]. Group 2: Professional Experience - The analyst has worked with a confidential client, preparing investment reports across various sectors including healthcare, consumer staples, and industrials, enhancing the ability to evaluate companies across diverse industries [1]. - In 2023, the analyst joined AIESEC, further developing leadership, communication, and teamwork skills through global exchange and project collaboration [1].

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $115 million, a 4% increase year-over-year or 2% in constant currency [6][14] - Adjusted EBITDA for Q2 was $11 million, an 8% increase from $10 million in the prior year [6][22] - GAAP net income attributable to common shareholders was $5.3 million or $0.28 per diluted share, compared to $1.3 million or $0.07 per diluted share in the prior year [22] - Gross margin increased by 36 basis points to 71.7% compared to the previous year [20] Business Line Data and Key Metrics Changes - North America sales grew 4%, with digital sales increasing by 34% [10][15] - Asia Pacific sales increased by 5%, driven by a 27% increase in Japan [7][16] - Europe sales were up 1% but down 2% in constant currency, with Central Europe showing strong growth of 15% [12][19] Market Data and Key Metrics Changes - In North America, the digital business saw significant growth, contributing to overall sales growth [10][15] - Japan's sales growth was notable, with a consistent 20%+ growth for four consecutive quarters [16] - Taiwan and South Korea faced challenges due to a slowing macroeconomic environment, impacting sales growth [9][18] Company Strategy and Development Direction - The company is focused on long-term sustainable growth through strong consumer engagement and execution of sales and marketing strategies [6][7] - The strategy includes sharpening digital execution, stabilizing the core business in North America, and driving growth in key international markets [12][13] - The company is increasing its full-year guidance based on strong first-half performance and positive momentum [13][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainties but expressed confidence in the company's fundamentals and growth strategy [6][7] - The outlook for the second half of the year includes expectations for continued growth in North America and stabilization in Asia Pacific [55][56] - Management is optimistic about future growth prospects, particularly in digital sales and new product innovations [25][62] Other Important Information - The company repurchased 1.1 million shares for approximately $12.3 million during the first half of 2025 [23] - Inventory increased to $69.3 million as the company prepared for potential supply chain disruptions [23] Q&A Session Summary Question: Clarification on EBITDA guidance range - Management indicated that the range reflects confidence in North America and the digital business, with performance dependent on continued acceleration [27][28] Question: Insights on SG&A expenses and digital investment - Management confirmed increased digital investment in Q2, with plans to continue funding if strong returns are observed [32][34] Question: Impact of new product innovations - New products are expected to provide consumer energy and acquisition, with cumulative effects anticipated over time [61][62] Question: Capacity and potential partnerships - The company is exploring opportunities to leverage increased manufacturing capacity through organic growth and potential partnerships [40][41] Question: Growth expectations in North America and Asia - Continued acceleration in North America is expected, while Asia Pacific will see growth but at lower rates compared to previous quarters [51][55]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF For the quarterly period ended June 30, 2025 1934 For the transition period from to . Commission File Number: 001-34483 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF NATURE'S SUNSHINE PRODUCTS, INC. (Exact n ...

Financial Performance - Q2 2025 - Net sales increased by 3.8% to $114.8 million compared to $110.6 million in Q2 2024, driven by strong performance in Japan and North America, but partially offset by weakness in China[6] - Gross margin improved by 30 bps to 71.7% due to cost-saving initiatives, despite unfavorable foreign exchange and market mix[6] - SG&A expenses increased by 13.2% to $43.7 million, primarily due to the timing of compensation costs, incremental investment in digital marketing, and other non-recurring expenses[6] - Operating income decreased by 24.2% to $4.3 million, reflecting the factors impacting net sales, gross margin and SG&A[6] - Net income attributable to common shareholders increased by 295.3% to $5.3 million[6] - Adjusted EBITDA increased by 8.3% to $11.3 million[6] - Diluted EPS increased by 300% to $0.28[6] Balance Sheet & Cash Flow - Cash and cash equivalents totaled $81.3 million as of June 30, 2025[9, 10] - The company has zero debt as of June 30, 2025[9, 10] - Cash from operations totaled $6.9 million[9, 10] - Capital expenditures totaled $2.5 million[9, 10] - Free cash flow totaled $4.4 million[9, 10] Segment Performance - Q2 2025 - Asia net sales increased by 5.4% to $52.664 million, or 2.3% excluding currency impact[11] - Europe net sales increased by 0.6% to $21.741 million, or decreased by 1.6% excluding currency impact[11] - North America net sales increased by 4.2% to $34.977 million, or 4.3% excluding currency impact[11] - Latin America and Other net sales decreased by 0.6% to $5.368 million, or increased by 2.8% excluding currency impact[11] Capital Allocation - $12.4 million in shares were repurchased at an average cost of $12.22 per share in the first six months of 2025[22] - $21.4 million remains in the share repurchase program as of June 30, 2025[22]

[Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) The company achieved strong Q2 2025 results with increased net sales and adjusted EBITDA, driven by robust market performance and digital growth [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Terrence Moorehead highlighted strong Q2 2025 performance, with net sales and adjusted EBITDA growth driven by key market strength and digital initiatives - CEO Terrence Moorehead noted strong Q2 2025 performance, with net sales and adjusted EBITDA growing **4%** and **8%** year-over-year, respectively[2](index=2&type=chunk) - The company saw strong performance in Japan and Central European markets, sustained growth in digital business and auto-ship programs, and strengthened fundamentals in North America[2](index=2&type=chunk) - Despite macroeconomic uncertainties, management is confident in the business's intrinsic health and future sustainable growth[2](index=2&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) In Q2 2025, net sales grew 4% to $114.8 million, GAAP net income significantly increased to $5.3 million, and adjusted EBITDA rose 8% to $11.3 million Key Financial Data for Q2 2025 | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Y-o-Y Change | Y-o-Y Change (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | 114.8 | 110.6 | 4% | 2% | | GAAP Net Income Attributable to Common Shareholders | 5.3 | 1.3 | 308% | - | | Diluted EPS | 0.28 | 0.07 | 300% | - | | Adjusted EBITDA | 11.3 | 10.4 | 8% | - | [Detailed Financial Performance (Q2 2025)](index=1&type=section&id=Detailed%20Financial%20Performance%20(Q2%202025)) This section provides an in-depth analysis of the company's Q2 2025 financial results, covering net sales, profitability metrics, and key expense categories [Net Sales Analysis](index=1&type=section&id=Net%20Sales%20Analysis) Q2 2025 net sales increased 3.8% year-over-year to $114.75 million, growing 2.2% excluding currency impacts, with strong performance in Asia and North America, up 5.4% and 4.2% respectively Net Sales by Operating Segment for Q2 2025 | Operating Segment | Q2 2025 (Thousands USD) | Q2 2024 (Thousands USD) | Percentage Change | FX Impact | Percentage Change (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | :--- | | Asia | 52,664 | 49,984 | 5.4% | 1,523 | 2.3% | | Europe | 21,741 | 21,602 | 0.6% | 483 | (1.6)% | | North America | 34,977 | 33,563 | 4.2% | (25) | 4.3% | | Latin America & Other | 5,368 | 5,402 | (0.6)% | (184) | 2.8% | | **Total** | **114,750** | **110,551** | **3.8%** | **1,797** | **2.2%** | - Total net sales increased **4%** to **$114.8 million** from $110.6 million in the prior year period, with net sales growing **2%** excluding the impact of foreign currency exchange rates[3](index=3&type=chunk) [Profitability Metrics](index=1&type=section&id=Profitability%20Metrics) This section details the company's Q2 2025 profitability, including gross profit, volume incentives, SG&A expenses, operating income, and other income/taxes [Gross Profit and Volume Incentives](index=1&type=section&id=Gross%20Profit%20and%20Volume%20Incentives) Gross profit margin increased due to cost savings, while volume incentives as a percentage of net sales decreased due to promotional timing and product mix Gross Profit Margin and Volume Incentives for Q2 2025 | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit Margin | 71.7% | 71.4% | Increase of 0.3 percentage points | | Volume Incentives as % of Net Sales | 29.9% | 31.4% | Decrease of 1.5 percentage points | - The increase in gross profit margin was primarily due to cost savings initiatives, partially offset by unfavorable foreign exchange rates and market mix[4](index=4&type=chunk) - Volume incentives as a percentage of net sales decreased, mainly due to the timing of promotional incentives and changes in product pricing and market mix[4](index=4&type=chunk) [Selling, General and Administrative Expenses (SG&A)](index=1&type=section&id=Selling,%20General%20and%20Administrative%20Expenses%20(SG%26A)) SG&A expenses increased primarily due to compensation timing, digital marketing investments, and other non-recurring costs SG&A Expenses for Q2 2025 | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | SG&A Expenses | 43.7 | 38.6 | Increase of 5.1 | | SG&A as % of Net Sales | 38.1% | 34.9% | Increase of 3.2 percentage points | - The increase in SG&A expenses was primarily related to the timing of compensation costs, incremental investments in digital marketing, and other non-recurring expenses[5](index=5&type=chunk) [Operating Income](index=2&type=section&id=Operating%20Income) Operating income decreased in Q2 2025, reflecting changes in sales, cost of sales, and operating expenses Operating Income for Q2 2025 | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Operating Income | 4.3 | 5.6 | Decrease of 1.3 | | Operating Income as % of Net Sales | 3.7% | 5.1% | Decrease of 1.4 percentage points | [Other Income (Loss) and Income Taxes](index=2&type=section&id=Other%20Income%20(Loss)%20and%20Income%20Taxes) Other income (loss) was positively impacted by foreign exchange gains in Asia and Europe, while income tax provision decreased Other Income (Loss) and Income Taxes for Q2 2025 | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Other Income (Loss), Net | 3.3 | (1.2) | Increase of 4.5 | | Income Tax Provision | 2.0 | 2.9 | Decrease of 0.9 | - Other income (loss), net, primarily included foreign currency gains in Asia and Europe, partially offset by foreign currency losses in Latin America and North America[8](index=8&type=chunk) [GAAP Net Income and EPS](index=2&type=section&id=GAAP%20Net%20Income%20and%20EPS) GAAP net income and diluted EPS significantly increased in Q2 2025, reflecting improved overall financial performance GAAP Net Income and EPS for Q2 2025 | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | GAAP Net Income Attributable to Common Shareholders | 5.3 | 1.3 | Increase of 4.0 | | Diluted EPS | 0.28 | 0.07 | Increase of 0.21 | | Net Income Attributable to NSP China | 0.9 | 0.7 | Increase of 0.2 | | Diluted EPS Attributable to NSP China | 0.05 | 0.04 | Increase of 0.01 | [Adjusted EBITDA](index=2&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA increased by 8% in Q2 2025, primarily driven by higher net sales and specific non-GAAP adjustments Adjusted EBITDA for Q2 2025 | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | 11.3 | 10.4 | Increase of 0.9 (8%) | - The increase in Adjusted EBITDA was primarily driven by higher net sales[10](index=10&type=chunk) - Adjusted EBITDA is a non-GAAP financial measure defined as net income from continuing operations, adjusted for income taxes, depreciation, amortization, other income (loss), share-based compensation expense, and certain other adjustments[10](index=10&type=chunk) [Financial Position and Cash Flow](index=2&type=section&id=Financial%20Position%20and%20Cash%20Flow) This section summarizes the company's balance sheet and cash flow performance, highlighting liquidity, capital allocation, and debt position [Balance Sheet and Cash Flow Summary](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Summary) As of June 30, 2025, the company saw a significant increase in net cash from operating activities, reduced capital expenditures, and executed substantial share repurchases, maintaining healthy cash reserves with no debt Key Cash Flow and Balance Sheet Data for H1 2025 | Metric | H1 2025 (Millions USD) | H1 2024 (Millions USD) | Change | | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 6.9 | 3.5 | Increase of 3.4 | | Capital Expenditures | 2.5 | 7.0 | Decrease of 4.5 | | Share Repurchase Cost | 12.4 | - | - | | Shares Repurchased | 1,011,000 shares | - | - | | Average Repurchase Price per Share | 12.22 USD | - | - | | Cash and Cash Equivalents as of June 30, 2025 | 81.3 | - | - | | Debt as of June 30, 2025 | 0 | - | - | [Business Outlook](index=2&type=section&id=Business%20Outlook) The company provides its updated full-year 2025 financial guidance, reflecting management's expectations for future net sales and adjusted EBITDA [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) Nature's Sunshine raised its full-year 2025 net sales and adjusted EBITDA guidance, reflecting confidence in future performance Full Year 2025 Performance Guidance | Metric | New Guidance (Millions USD) | Original Guidance (Millions USD) | | :--- | :--- | :--- | | Net Sales | 460 - 475 | 445 - 470 | | Adjusted EBITDA | 41 - 45 | 38 - 44 | [Corporate Information](index=2&type=section&id=Corporate%20Information) This section provides details on the company's Q2 2025 earnings conference call and an overview of Nature's Sunshine Products [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) The company held a Q2 earnings conference call on July 31, 2025, with replay information provided - The conference call was held on **July 31, 2025, at 5:00 p.m. ET**, to discuss Q2 2025 results[13](index=13&type=chunk) - Toll-free dial-in was 1-800-717-1738 and international dial-in was 1-646-307-1865, with conference ID **14947**[13](index=13&type=chunk) - A replay of the conference call was available after **8:00 p.m. ET** on the same day until **August 14, 2025**, with replay ID **1114947**[15](index=15&type=chunk) [About Nature's Sunshine Products](index=3&type=section&id=About%20Nature's%20Sunshine%20Products) Nature's Sunshine Products is a leading natural health and wellness company that sells and distributes nutritional and personal care products in over 40 countries, utilizing its own advanced manufacturing facilities to ensure product quality - Nature's Sunshine Products (Nasdaq: NATR) is a leading natural health and wellness company[15](index=15&type=chunk) - The company sells and distributes nutritional and personal care products in **over 40 countries** worldwide[15](index=15&type=chunk) - The company manufactures most of its products in its own advanced facilities to ensure the highest standards of quality, safety, and efficacy[15](index=15&type=chunk) [Disclosures and Non-GAAP Measures](index=3&type=section&id=Disclosures%20and%20Non-GAAP%20Measures) This section includes cautionary notes regarding forward-looking statements and explanations of non-GAAP financial measures used in the report [Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section outlines forward-looking statements, subject to various risks and uncertainties, and clarifies the company's non-obligation to update them - This press release contains forward-looking statements regarding the company's future business expectations, plans, strategies, and financial results, protected by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995[16](index=16&type=chunk) - Forward-looking statements are not guarantees of future performance and are subject to various risks and uncertainties, including government regulations, product registration, legal challenges, currency fluctuations, supply chain disruptions, and cybersecurity threats[16](index=16&type=chunk)[24](index=24&type=chunk) - The company undertakes no obligation to publicly revise any forward-looking statements to reflect events after the date of this press release, except as required by law[18](index=18&type=chunk) [Explanation of Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) The company utilizes non-GAAP financial measures like adjusted EBITDA to assess operations, providing reconciliations to comparable GAAP metrics - The company uses non-GAAP measures, including non-GAAP net income, adjusted EBITDA, and net sales excluding foreign currency impacts, to evaluate operations and as useful indicators of its ability to fund the business[19](index=19&type=chunk)[20](index=20&type=chunk) - These non-GAAP financial measures should not be considered substitutes for or superior to GAAP net income (loss) and may not be comparable to similarly titled measures used by other companies[20](index=20&type=chunk)[21](index=21&type=chunk) - The company provides reconciliations of net income to adjusted EBITDA, and GAAP net income to non-GAAP net income and non-GAAP adjusted EPS[21](index=21&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's unaudited condensed consolidated financial statements, including statements of income, balance sheets, and cash flows [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section presents the unaudited condensed consolidated statements of income for Nature's Sunshine Products and its subsidiaries, covering financial performance for the three and six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Income (Unaudited, Amounts in Thousands USD, Except Per Share Data) | | Three Months Ended June 30 | | | Six Months Ended June 30 | | | :--- | :--- | :--- | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Net Sales | $ 114,750 | $ 110,551 | $ 227,998 | $ 221,544 | | Cost of Sales | 32,451 | 31,664 | 64,102 | 63,679 | | Gross Profit | 82,299 | 78,887 | 163,896 | 157,865 | | Operating Expenses: | | | | | | Volume incentives | 34,360 | 34,693 | 69,204 | 68,263 | | Selling, general and administrative | 43,665 | 38,557 | 84,246 | 79,341 | | Operating income | 4,274 | 5,637 | 10,446 | 10,261 | | Other income (loss): | | | | | | Interest and other income, net | 268 | 412 | 473 | 475 | | Interest expense | (24) | (103) | (45) | (115) | | Foreign currency gain (loss), net | 3,026 | (1,523) | 3,779 | (1,543) | | | 3,270 | (1,214) | 4,207 | (1,183) | | Income before income taxes | 7,544 | 4,423 | 14,653 | 9,078 | | Income tax provision | 2,025 | 2,935 | 4,250 | 5,100 | | Net income | 5,519 | 1,488 | 10,403 | 3,978 | | Net income attributable to noncontrolling interests | 186 | 139 | 323 | 308 | | Net income attributable to common shareholders | $ 5,333 | $ 1,349 | $ 10,080 | $ 3,670 | | Net income per share - basic and diluted: | | | | | | Basic net income per common share | $ 0.29 | $ 0.07 | $ 0.55 | $ 0.20 | | Diluted net income per common share | $ 0.28 | $ 0.07 | $ 0.54 | $ 0.19 | | Weighted-average basic common shares outstanding | 18,406 | 18,647 | 18,446 | 18,737 | | Weighted-average diluted common shares outstanding | 18,966 | 19,119 | 18,832 | 19,184 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the unaudited condensed consolidated balance sheets for Nature's Sunshine Products and its subsidiaries, detailing assets, liabilities, and stockholders' equity as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (Unaudited, Amounts in Thousands USD) | | As of June 30 | As of December 31 | | :--- | :--- | :--- | | | 2025 | 2024 | | **Assets** | | | | **Current Assets:** | | | | Cash and cash equivalents | $ 81,345 | $ 84,700 | | Accounts receivable, net of allowance for doubtful accounts | 13,029 | 9,477 | | Inventories | 69,320 | 59,443 | | Prepaid expenses and other | 8,144 | 6,959 | | **Total current assets** | **171,838** | **160,579** | | Property, plant and equipment, net | 35,930 | 39,585 | | Operating lease right-of-use assets | 14,218 | 12,799 | | Restricted investment securities - trading | 1,041 | 915 | | Deferred income tax assets | 21,410 | 17,644 | | Other assets | 10,438 | 9,333 | | **Total assets** | **$ 254,875** | **$ 240,855** | | **Liabilities and Stockholders' Equity** | | | | **Current Liabilities:** | | | | Accounts payable | $ 9,924 | $ 8,912 | | Accrued volume incentives and service fees | 22,583 | 20,563 | | Accrued liabilities | 27,456 | 25,399 | | Deferred revenue | 5,501 | 2,774 | | Income taxes payable | 5,765 | 4,117 | | Operating lease liabilities - current portion | 4,625 | 3,927 | | **Total current liabilities** | **75,854** | **65,692** | | Liabilities for unrecognized tax benefits | 638 | 628 | | Operating lease liabilities - long-term portion | 11,005 | 10,277 | | Deferred compensation payable | 1,041 | 915 | | Deferred income tax liabilities | 1,009 | 1,007 | | Other liabilities | 1,646 | 1,345 | | **Total liabilities** | **91,193** | **79,864** | | Commitments and contingencies | | | | **Stockholders' Equity:** | | | | Common stock, no par value, 50,000 shares authorized, 17,635 and 18,483 shares issued and outstanding | 104,662 | 114,577 | | Retained earnings | 67,487 | 57,407 | | Noncontrolling interests | 6,001 | 5,678 | | Accumulated other comprehensive loss | (14,468) | (16,671) | | **Total stockholders' equity** | **163,682** | **160,991** | | **Total liabilities and stockholders' equity** | **$ 254,875** | **$ 240,855** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the unaudited condensed consolidated statements of cash flows for Nature's Sunshine Products and its subsidiaries, detailing cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Cash Flows (Unaudited, Amounts in Thousands USD) | | Six Months Ended June 30 | | :--- | :--- | | | 2025 | 2024 | | **Cash flows from operating activities:** | | | | Net income | $ 10,403 | $ 3,978 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | Depreciation and amortization | 6,999 | 6,659 | | Non-cash lease expense | 2,675 | 3,298 | | Share-based compensation expense | 2,938 | 2,630 | | Deferred income taxes | (3,179) | (14) | | Purchases of trading investment securities | (78) | (110) | | Proceeds from sales of trading investment securities | 11 | 40 | | Realized and unrealized gains on investments | (59) | (72) | | Foreign currency loss (gain) | (3,779) | 1,543 | | Changes in assets and liabilities: | | | | Accounts receivable | (2,963) | (2,960) | | Inventories | (7,901) | 3,112 | | Prepaid expenses and other current assets | (1,349) | (2,162) | | Other assets | (355) | (598) | | Accounts payable | 790 | 409 | | Accrued volume incentives and service fees | 1,193 | (144) | | Accrued liabilities | 325 | (7,993) | | Deferred revenue | 2,583 | 477 | | Lease liabilities | (2,684) | (3,215) | | Income taxes payable | 824 | (2,251) | | Liabilities for unrecognized tax benefits | 429 | 726 | | Deferred compensation payable | 126 | 142 | | **Net cash provided by operating activities** | **6,949** | **3,495** | | **Cash flows from investing activities:** | | | | Purchases of property, plant and equipment | (2,460) | (7,040) | | **Net cash used in investing activities** | **(2,460)** | **(7,040)** | | **Cash flows from financing activities:** | | | | Proceeds from revolving credit facility | 1,823 | 34,216 | | Principal payments on revolving credit facility | (1,823) | (34,216) | | Payment of withholding taxes on net share settlement of equity awards | (499) | (586) | | Repurchases of common stock | (12,354) | (7,725) | | **Net cash used in financing activities** | **(12,853)** | **(8,311)** | | Effect of exchange rate on cash and cash equivalents | 5,009 | (1,822) | | **Net decrease in cash and cash equivalents** | **(3,355)** | **(13,678)** | | Cash and cash equivalents at beginning of period | 84,700 | 82,373 | | **Cash and cash equivalents at end of period** | **$ 81,345** | **$ 68,695** | | **Supplemental cash flow information:** | | | | Income taxes paid, net | $ 6,211 | $ 8,144 | | Interest paid | 45 | 115 | [Reconciliation of Net Income to Adjusted EBITDA](index=9&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This section provides the unaudited reconciliation of net income to adjusted EBITDA for Nature's Sunshine Products and its subsidiaries, illustrating the calculation from GAAP net income to non-GAAP adjusted EBITDA Reconciliation of Net Income to Adjusted EBITDA (Unaudited, Amounts in Thousands USD) | | Three Months Ended June 30 | | | Six Months Ended June 30 | | | :--- | :--- | :--- | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Net income | $ 5,519 | $ 1,488 | $ 10,403 | $ 3,978 | | **Adjustments:** | | | | | | Depreciation and amortization | 3,500 | 3,499 | 6,999 | 6,659 | | Share-based compensation expense | 1,638 | 1,261 | 2,938 | 2,630 | | Other (income) loss, net* | (3,270) | 1,214 | (4,207) | 1,183 | | Income tax provision | 2,025 | 2,935 | 4,250 | 5,100 | | Other adjustments (1) | 1,853 | — | 1,853 | — | | **Adjusted EBITDA** | **$ 11,265** | **$ 10,397** | **$ 22,236** | **$ 19,550** | | **(1) Other adjustments** | | | | | | Other non-recurring expenses | $ 1,853 | $ — | $ 1,853 | $ — | | **Total adjustments** | **$ 1,853** | **$ —** | **$ 1,853** | **$ —** | | * Other (income) loss, net primarily includes foreign currency (gain) loss, interest income, and interest expense. | | | | | [Reconciliation of GAAP Net Income to Non-GAAP Net Income and Adjusted EPS](index=9&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20to%20Non-GAAP%20Net%20Income%20and%20Adjusted%20EPS) This section provides the unaudited reconciliation of GAAP net income to non-GAAP net income and adjusted EPS for Nature's Sunshine Products and its subsidiaries, detailing the adjustments used to calculate non-GAAP metrics Reconciliation of GAAP Net Income to Non-GAAP Net Income and Adjusted EPS (Unaudited, Amounts in Thousands USD) | | Three Months Ended June 30 | | | Six Months Ended June 30 | | | :--- | :--- | :--- | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Net income | $ 5,519 | $ 1,488 | $ 10,403 | $ 3,978 | | **Adjustments:** | | | | | | Other non-recurring expenses | 1,853 | — | 1,853 | — | | Tax impact of adjustments | (463) | — | (463) | — | | **Total adjustments** | **1,390** | **—** | **1,390** | **—** | | **Non-GAAP Net Income** | **$ 6,909** | **$ 1,488** | **$ 11,793** | **$ 3,978** | | Reported net income attributable to common shareholders | $ 5,333 | $ 1,349 | $ 10,080 | $ 3,670 | | Total adjustments | 1,390 | — | 1,390 | — | | **Non-GAAP Net Income Attributable to Common Shareholders** | **$ 6,723** | **$ 1,349** | **$ 11,470** | **$ 3,670** | | Reported basic EPS | $ 0.29 | $ 0.07 | $ 0.55 | $ 0.20 | | Total adjustments, net of tax | 0.08 | — | 0.08 | — | | **Adjusted Basic EPS** | **$ 0.37** | **$ 0.07** | **$ 0.63** | **$ 0.20** | | Reported diluted EPS | $ 0.28 | $ 0.07 | $ 0.54 | $ 0.19 | | Total adjustments, net of tax | 0.07 | — | 0.07 | — | | **Adjusted Diluted EPS** | **$ 0.35** | **$ 0.07** | **$ 0.61** | **$ 0.19** |

Core Viewpoint - Nature's Sunshine Products, Inc. reported a strong second quarter for 2025, with net sales of $115 million and adjusted EBITDA of $11 million, reflecting year-over-year increases of 4% and 8% respectively, driven by growth in Japan, Central Europe, and digital business initiatives [2][7]. Financial Performance - Net sales for the second quarter of 2025 were $114.8 million, up from $110.6 million in the same quarter of 2024, marking a 4% increase. Excluding foreign exchange impacts, net sales increased by 2% [3][7]. - Adjusted EBITDA rose to $11.3 million, an 8% increase from $10.4 million in the prior year quarter, primarily due to higher net sales [10]. - GAAP net income attributable to common shareholders increased to $5.3 million, or $0.28 per diluted share, compared to $1.3 million, or $0.07 per diluted share, in the same quarter of 2024 [9][10]. Segment Performance - Sales by region showed varied performance: - Asia: $52.7 million, up 5.4% - Europe: $21.7 million, up 0.6% - North America: $35.0 million, up 4.2% - Latin America and Other: $5.4 million, down 0.6% [3]. Cost and Expenses - Gross profit margin improved to 71.7% from 71.4% year-over-year, attributed to cost-saving initiatives despite foreign exchange challenges [4]. - Selling, general and administrative expenses (SG&A) increased to $43.7 million from $38.6 million, representing 38.1% of net sales compared to 34.9% in the previous year [5]. Income and Cash Flow - Operating income decreased to $4.3 million, or 3.7% of net sales, down from $5.6 million, or 5.1% of net sales, in the prior year [6]. - Net cash provided by operating activities for the first half of 2025 was $6.9 million, compared to $3.5 million in the same period of 2024 [11]. Outlook - The company expects full-year 2025 net sales to range between $460 million and $475 million, and adjusted EBITDA to range between $41 million and $45 million, reflecting an optimistic outlook despite macroeconomic uncertainties [12].

Company Overview - Nature's Sunshine Products, Inc. (NASDAQ: NATR) is a leading manufacturer of high-quality herbal and nutritional supplements [1][3] - The company markets and distributes nutritional and personal care products in over 40 countries [3] Upcoming Conference Call - Nature's Sunshine will conduct a conference call on July 31, 2025, at 5:00 p.m. Eastern time to discuss its financial results for the second quarter ended June 30, 2025 [1][2] - The call will be hosted by CEO Terrence Moorehead and CFO Shane Jones, followed by a question and answer period [2] Financial Results Announcement - The company will release its financial results in a press release prior to the conference call [1] - A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through August 14, 2025 [3] Contact Information - Investor relations can be reached through Gateway Group, Inc. at 1-949-574-3860 [4]

Market Overview - The global supplement market is large and growing, estimated at $182.7 billion in 2023 and projected to reach $214 billion in 2026 [7] - Asia and Oceania represent 34% of the global supplement sales, followed by North America at 36% and Europe and the Middle East at 19% in 2023 [8] Company Performance and Strategy - Nature's Sunshine operates in 40 markets globally [6] - Asia accounts for 45% of the company's sales, North America 31%, and Europe 18% in 2023 [12] - The company's three global growth strategies are Digital First, Field Energy, and Brand Power [28] - In North America, Subscribe & Thrive represents over 25% of orders, while in Japan, it accounts for over 45% [40] - Taiwan and Japan have experienced strong revenue growth, with Taiwan showing a CAGR of 141% and Japan 23% [45] Financials - The company's revenue was $445.3 million in 2023 [69] - Adjusted EBITDA was $40.4 million in 2022 and $49.4 million in 2023 [69] - The company anticipates net sales between $443 million and $448 million, and adjusted EBITDA between $40 million and $42 million for the full year 2024 [76, 77] - $84 million in shares were repurchased at an average cost of $1656 per share in the first nine months of 2024 [67]

Company Overview - Nature's Sunshine is a global natural health and wellness company operating in 40 markets with 50+ years of experience [6] - The company has a robust product portfolio of 800+ products across six different categories [6] - The company utilizes a fully integrated model with in-house R&D, procurement, testing, and manufacturing capabilities [6] Market and Sales - The company operates in the steadily growing global supplement market, which is projected to reach $1924 billion in 2024 and $2140 billion in 2026 [7] - Asia accounts for 45% of the company's 2023 sales, followed by North America at 31% and Europe at 18% [12] - In North America, the revenue distribution is estimated as follows: Specialty Retail 30%, Health Practitioners 25%, Direct-to-Consumer 25%, and Other 20% [22] Growth Strategies - The company's three global growth strategies are Digital First, Field Energy, and Brand Power [28] - The company aims to grow North America Digital sales to be 50%+ of the business [33] - The Subscribe & Thrive program represents 25%+ of orders in North America and 45%+ of orders in Japan [40] Financial Performance - The company's revenue was $4453 million in 2023 [69] - The company's adjusted EBITDA was $494 million in 2023 [69] - The company's full year 2024 guidance projects net sales of $443 million - $448 million and adjusted EBITDA of $40 million - $42 million [76, 77]

Core Viewpoint - Nature's Sunshine Products, Inc. is conducting a secondary public offering of up to 2,854,607 shares at a price of $12.00 per share, with the offering expected to close on June 27, 2025 [1][2]. Group 1: Offering Details - The Selling Stockholder, Fosun Pharma USA, Inc., will receive all net proceeds from the offering, while Nature's Sunshine will not sell any shares or receive any proceeds [2]. - The Company has agreed to potentially purchase up to $15.0 million of its common stock from the underwriters as part of its share repurchase program, but there is no guarantee that any shares will be purchased [3]. - D.A. Davidson & Co. is acting as the sole book-running manager for the offering, which is made under a shelf registration statement filed with the SEC [4]. Group 2: Company Background - Nature's Sunshine Products is a leading manufacturer of herbal and nutritional supplements, distributing products in over 40 countries and ensuring high quality through its own manufacturing facilities [8].