Core Viewpoint - Natural Health Trends Corp. (NHTC) reported a decline in revenue and net income for the second quarter of 2025, primarily due to ongoing trade tensions affecting consumer confidence in its main market, Hong Kong, while the company is taking steps to realign its supply chain to mitigate these challenges [2][10][12]. Revenue and Earnings Performance - NHTC's second-quarter 2025 revenues were $9.8 million, a decrease of 6.3% from $10.5 million in the same quarter last year [2]. - Net income for the quarter was $15,000, down significantly from $173,000 a year ago, resulting in breakeven earnings per diluted share compared to $0.02 previously [2]. - For the first half of 2025, revenues totaled $20.6 million, a 4.1% decrease from $21.4 million in the first half of 2024 [3]. Sales Performance - Sales in Hong Kong, which accounted for 81.6% of total quarterly sales, declined by 5.5% year over year [4]. - Active members decreased to 29,260 as of June 30, 2025, a decline of 5.9% from 31,110 a year ago [6]. Financial Metrics - Gross profit for the second quarter was $7.3 million, down 6.7% from $7.8 million in the prior-year quarter, with a gross margin of 73.9% compared to 74.2% previously [5]. - Commissions expense rose to 40.9% of sales from 40.1% a year ago, while selling, general, and administrative expenses decreased by 6.2% year over year to $3.6 million [5]. Cash Flow and Operating Activities - Cash used in operating activities increased to $5.2 million in the first half of 2025 from $3 million a year ago [7]. - Total cash, cash equivalents, and marketable securities were $34.2 million at the end of June, down from $43.9 million at the end of 2024 [6]. Management Commentary - Management acknowledged challenges from global trade uncertainties and weak consumer sentiment in core markets, indicating a strategic shift of supply chain operations from the U.S. to Asia to reduce tariff exposure and improve cost efficiency [8][10]. - The company is also focusing on engaging its distributor base through training and incentive programs, with the launch of a new market in Colombia showing positive reception [9]. Strategic Outlook - NHTC did not provide specific forward-looking revenue or earnings guidance but expressed confidence in the strategic realignment of its supply chain and investments in products and programs to support long-term growth [12]. - A significant financial milestone was the full settlement of the company's U.S. Tax Cuts and Jobs Act liability, which impacted operating cash flow but removed a liability from the balance sheet [13].

Financial Data and Key Metrics Changes - Net sales for Q2 2025 were $9.8 million, a 6% decrease compared to $10.5 million in Q2 2024, attributed to heightened economic uncertainty [4][8] - Gross profit margin was 73.9%, consistent with the previous year [8] - Operating loss for the quarter was $333,000, compared to a loss of $238,000 in Q2 2024 [8] - Net income for Q2 2025 was $15,000, or breakeven per diluted share, down from $173,000, or $0.02 per diluted share in Q2 2024 [8] - Net cash used in operating activities was $5.2 million, compared to $3 million in the same period last year [10] - Total cash, cash equivalents, and marketable securities decreased to $34.2 million from $41.9 million at the end of Q1 2025 [10] Business Line Data and Key Metrics Changes - Sales in Hong Kong, which accounted for 82% of total sales, declined by 5% year-over-year due to economic uncertainty [8] Market Data and Key Metrics Changes - The company launched its newest market, Colombia, with a successful grand opening event, indicating strong enthusiasm for growth in South America [6] Company Strategy and Development Direction - The company is transitioning its US-based supply chain to trusted manufacturing partners in Asia to reduce exposure to tariffs and streamline logistics [4][5] - Focus on operational discipline, expense management, and inventory control to mitigate risks associated with economic headwinds [6][11] - Continued investment in brand programs, product innovation, and digital enhancements to drive future growth [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment due to trade tensions affecting consumer sentiment [4] - Despite near-term pressures, long-term fundamentals remain strong, and the company is committed to executing strategic priorities [11] Other Important Information - The Board of Directors declared a cash dividend of $0.20 per share, payable on August 22 to stockholders of record as of August 12 [10] Q&A Session Summary - No specific questions or answers were documented in the provided content.

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 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to _______ Commission File Number: 001-36849 NATURAL HEALTH TRENDS CORP. (Exact name of registrant as specified in its charter) Delawa ...

Exhibit 99.1 Natural Health Trends Reports Second Quarter 2025 Financial Results LOS ANGELES – July 30, 2025 – Natural Health Trends Corp. (NASDAQ: NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness and "quality of life" products under the NHT Global brand, today announced its financial results for the quarter ended June 30, 2025. Second Quarter 2025 Financial Highlights 1Natural Health Trends defines Active Members as those that have placed at least ...

CONTACT: Scott Davidson Senior Vice President and Chief Financial Officer Natural Health Trends Corp. Tel (U.S.): 310-541-0888 investor.relations@nhtglobal.com | Date: | Wednesday, July 30, 2025 | | --- | --- | | Time: | 11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time | | Dial-in: | 1-877-407-0789 (Domestic) | | | 1-201-689-8562 (International) | | Conference ID: | 13754794 | | Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1726889&tp_key=778e0e5b56 | | Replay: | For those unable to participate du ...

Core Viewpoint - Natural Health Trends Corp. (NHTC) reported a decline in revenue and net income for Q1 2025, but showed signs of healthy demand through increased order volume, while facing challenges from trade uncertainties and a strategic focus on regional manufacturing [2][3][8]. Revenue and Earnings Snapshot - NHTC reported revenues of $10.7 million for Q1 2025, a 1.9% decline from $10.9 million in the same period last year [2] - Net income decreased by 35.1% to $122,000 from $188,000 year-over-year, with earnings per diluted share falling to $0.01 from $0.02 [3] - Operating loss narrowed to $0.3 million from $0.4 million a year earlier, while selling, general, and administrative expenses declined by 3.9% to $3.8 million [3] - Gross margin increased to 73.6% from 73.4%, indicating stable cost management [3] Other Key Business Metrics - NHTC ended the quarter with 30,180 active members, down 4.6% year-over-year [4] - Commissions expense as a percentage of revenues increased to 41.8% from 41% due to higher commission payouts [4] - Cash provided by operating activities was $484,000, down from $549,000 in the prior-year quarter [4] Cash Position and Dividends - As of March 31, 2025, NHTC held $41.9 million in cash and marketable securities, down from $43.9 million at the end of 2024, primarily due to dividend payouts [5] - The company declared a quarterly cash dividend of $0.20 per share, payable on May 23 to shareholders of record as of May 13 [5] Management Commentary - President Chris Sharng described Q1 as an extension of positive momentum from the second half of 2024, highlighting engagement from a product roadshow in China and Hong Kong [6] - The launch of new products, Twin Slim Coffee and Tomato Soup, was well-received [6] - The opening of a new office in Bogotá, Colombia, is seen as strategically significant for the Latin American market [7] Factors Influencing the Results - Revenue decline was attributed to timing differences in incentive campaigns rather than weakening demand, with a sequential uptick in order intake noted [8] - The company is working to regionalize manufacturing closer to Asian markets to improve cost efficiency and reduce logistics volatility [8] Guidance and Strategic Outlook - Management did not provide explicit financial guidance but emphasized the importance of navigating evolving trade barriers [9] - NHTC aims to streamline its supply chain and adjust logistics to mitigate adverse impacts while focusing on product innovation and member support [10] Other Developments - NHTC expanded its geographical footprint with the launch of a new regional office in Bogotá, reinforcing its commitment to long-term international expansion [11]

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $10,700,000, a 2% decrease compared to $11,000,000 in the first quarter of 2024, attributed to the timing of incentive calendars [5][8] - Gross profit margin increased slightly to 73.6% from 73.4% in the first quarter last year [9] - Net income for the first quarter was $122,000 or $0.01 per diluted share, compared to $188,000 or $0.02 per diluted share in the first quarter of 2024 [10] Business Line Data and Key Metrics Changes - Active member base decreased slightly to 30,180 at March 31 from 30,870 at December 31, down 5% from 31,620 at March [8] - Commissions expense as a percent of total revenue for the first quarter was 41.8% compared with 41% a year ago, primarily due to higher weekly commissions earned by members [10] Market Data and Key Metrics Changes - In China and Hong Kong, a Night City Roadshow was completed, marketing wellness products with expert insights, and new products in the Twin Slim weight management line received strong feedback [6] Company Strategy and Development Direction - The company is actively working to streamline its supply chain and bring manufacturing closer to primary markets in Asia to weather international trade uncertainties and improve long-term efficiency [7][11] - The opening of a new office in Bogota, Colombia, will serve as a central hub for customer services and showcasing brands and products [6] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need to assess the potential impact of tariffs on operations and respond with strategic actions to optimize the supply chain [11] - The focus remains on executing strategic initiatives and providing exceptional support to members [11] Other Important Information - Total cash, cash equivalents, and marketable securities were $41,900,000 at March 31, down from $43,900,000 at December 31, 2024, due to quarterly dividend payments [11] - A quarterly cash dividend of $0.20 per share was declared, payable on May 23 to stockholders of record as of May 13 [11] Q&A Session Summary - No specific questions or answers were recorded in the provided content.

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $10.7 million, a 2% decrease from $11 million in Q1 2024, attributed to the timing of incentive calendars [4][7] - Active member base decreased to 30,180 as of March 31, down from 30,870 at December 31, and down 5% from 31,620 in March 2024 [7] - Gross profit margin increased slightly to 73.6% from 73.4% in the same quarter last year [7] - Net income for Q1 2025 was $122,000 or $0.01 per diluted share, compared to $188,000 or $0.02 per diluted share in Q1 2024 [9] Business Line Data and Key Metrics Changes - Orders taken increased by 9% sequentially over Q4 2024, indicating sustained interest in products [4] - New products introduced in the Twin Slim weight management line received strong customer feedback [5] Market Data and Key Metrics Changes - The company completed a Night City Roadshow in China and Hong Kong, promoting wellness products [5] - A new office was opened in Bogota, Colombia, serving as a central hub for customer services and brand showcasing [6] Company Strategy and Development Direction - The company is actively working to streamline its supply chain and bring manufacturing closer to primary markets in Asia to improve long-term efficiency [6][10] - Immediate priorities include assessing the potential impact of tariffs on operations and optimizing logistics [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the international trade environment changed significantly after Q1, making it difficult to gauge impacts [6] - The focus remains on executing strategic initiatives and providing exceptional support to members [10] Other Important Information - Commissions expense as a percentage of total revenue increased to 41.8% from 41% a year ago due to higher weekly commissions [8] - Total cash, cash equivalents, and marketable securities were $41.9 million at March 31, down from $43.9 million at December 31, 2024, due to quarterly dividend payments [10] - A quarterly cash dividend of $0.20 per share was declared, payable on May 23 to stockholders of record as of May 13 [10] Q&A Session Summary - No specific Q&A session content was provided in the transcript.

Financial Performance - Net sales for Q1 2025 were $10,737,000, a decrease of 1.95% compared to $10,951,000 in Q1 2024[17] - Gross profit for Q1 2025 was $7,905,000, down from $8,039,000 in Q1 2024, reflecting a gross margin of approximately 73.6%[17] - Net income for Q1 2025 was $122,000, a decline of 35% from $188,000 in Q1 2024[19] - Total net sales for the three months ended March 31, 2025, were $10.7 million, a decrease of 2% from $10.9 million in the same period of 2024[41] - Product sales for the three months ended March 31, 2025, were $10.5 million, compared to $10.6 million in the same period of 2024[41] - The Company’s diluted net income per common share for the three months ended March 31, 2025, was $0.01, down from $0.02 in the same period of 2024[30] - Gross profit for the three months ended March 31, 2025, was $7,905,000, compared to $8,039,000 for the same period in 2024, reflecting a decrease of 1.7%[75] - Commissions expense increased to 41.8% of net sales in Q1 2025, up from 41.0% in Q1 2024, due to higher weekly commissions[107] Assets and Liabilities - Total current assets decreased to $48,806,000 as of March 31, 2025, compared to $50,983,000 at the end of 2024[15] - Total liabilities slightly decreased to $22,297,000 from $22,487,000 at the end of 2024[15] - The total stockholders' equity decreased to $30,882,000 as of March 31, 2025, from $32,872,000 at the end of 2024[15] - Total assets as of March 31, 2025, were $53,179,000, a decrease from $55,359,000 as of December 31, 2024[78] - The Company had contract liabilities of $5.4 million as of March 31, 2025, up from $4.9 million at the end of 2024, primarily due to $3.5 million received for unshipped product orders[39] - Deferred revenue as of March 31, 2025, was $6.9 million, consisting of $5.4 million in unshipped product orders and $1.5 million in auto ship advances[105] Cash Flow and Investments - Cash and cash equivalents increased to $21,688,000 from $13,533,000 at the end of 2024, marking a significant improvement[15] - The Company reported a net cash provided by operating activities of $484,000 for Q1 2025, down from $549,000 in Q1 2024[23] - Cash provided by operations for the first three months of 2025 was $484,000, down from $549,000 in the same period of 2024[112] - Cash flows from investing activities totaled $10.0 million in Q1 2025, compared to cash used of $28.5 million in Q1 2024, with $17.4 million spent on marketable securities[113] - As of March 31, 2025, cash, cash equivalents, and marketable securities totaled $41.9 million, a decrease of $2.0 million from December 31, 2024[111] - The Company recognized share-based compensation expense of $34,000 for the three months ended March 31, 2025, compared to $37,000 in the same period of 2024[64] Dividends and Stock Repurchase - The company declared dividends of $0.20 per share, totaling $2,303,000 for the quarter[20] - Cash dividends of $0.20 per common share were declared and paid, totaling $2.3 million for each quarter in 2025 and 2024[68] - The Company declared a quarterly cash dividend of $0.20 per share, payable on May 23, 2025, to stockholders of record on May 13, 2025[84] - The stock repurchase program has $21.9 million remaining from the authorized $70.0 million as of March 31, 2025[115] Market and Operational Insights - The Company operates in multiple markets, including the Americas, Greater China, Southeast Asia, and Europe, with no single market other than Hong Kong exceeding 10% of total net sales[42] - Approximately 94% of the Company's net sales were generated from subsidiaries located outside the Americas, with the Hong Kong subsidiary accounting for 85% of net sales in the latest fiscal quarter[87] - In Q1 2025, the company generated approximately 85% of its revenue from its e-commerce direct selling platform in Hong Kong, primarily from sales to members in China[88] - The Company operates in various markets, including the Americas, Greater China, Southeast Asia, and Europe, with a focus on expanding in promising markets[85] - The ongoing U.S.-China trade tensions have resulted in significant tariffs, including a 125% reciprocal tariff on Chinese imports, which may adversely affect the company's operations and costs[129] Corporate Changes and Future Outlook - The company relocated its corporate headquarters from Hong Kong to California in February 2025 due to changes in the political and economic landscape[90] - The political and economic environment in Hong Kong may adversely affect the company's future business and financial condition[90] - The company is exploring sourcing products from other jurisdictions to mitigate the impact of U.S. tariffs on Chinese imports[91] - The Company expects to recognize revenue from remaining performance obligations within the next twelve months[39] - The Company plans to focus investments in Greater China and other strategic markets, including Southeast Asia, India, South America, and Europe[118] Risk Management - The company maintains that its existing liquidity is adequate to fund normal operations and financial commitments for the foreseeable future[116] - There were no changes in internal control over financial reporting that materially affected the company during the fiscal quarter ended March 31, 2025[124] - The company has not identified any material changes to its risk factors since the last annual report[128]

Financial Performance - Revenue for Q1 2025 was $10.7 million, a decrease of 2% compared to $11.0 million in Q1 2024[7] - Operating loss for Q1 2025 was $345,000, an improvement from a loss of $365,000 in Q1 2024[7] - Net income for Q1 2025 was $122,000, or $0.01 per diluted share, compared to $188,000, or $0.02 per diluted share in Q1 2024[7] - Cash flows from operations were $484,000 in Q1 2025, down from $549,000 in Q1 2024[11] - Total cash, cash equivalents, and marketable securities were $41.9 million at March 31, 2025, down from $43.9 million at December 31, 2024[11] - The total assets decreased to $53.2 million as of March 31, 2025, from $55.4 million at December 31, 2024[14] Membership and Orders - Active Members decreased by 2% to 30,180 as of March 31, 2025, down from 30,870 at December 31, 2024, and down 5% from 31,620 at March 31, 2024[7] - The company experienced a 9% sequential increase in orders taken compared to Q4 2024, indicating sustained interest in its products[5] Dividends and Manufacturing Strategy - The company declared a quarterly cash dividend of $0.20 per share, payable on May 23, 2025[11] - The company is working to align manufacturing closer to key markets to improve long-term efficiency amid trade uncertainties[6]