Shares of Natural Health Trends Corp. (NHTC) have risen 1.6% since the company reported its earnings for the quarter ended March 31, 2025. However, this gain lags the S&P 500 Index’s 2.3% rise over the same period. Over the past month, NHTC stock has gained 6.5%, significantly underperforming the S&P 500’s 12.3% surge.Revenue and Earnings SnapshotNatural Health reported revenues of $10.7 million for the first quarter of 2025, a 1.9% decline from $10.9 million in the same period last year. The dip was attrib ...

Natural Health Trends (NHTC) Q1 2025 Earnings Call April 30, 2025 11:30 AM ET Speaker0 Greetings, and welcome to the Natural Health Trends Corp. First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. And as a reminder, this conference is being recorded. It is now my pleasure to introduce to you Michelle Godwell with Natural Health Trends Corp. Thank you. You may begin. Speaker1 Thank you, and welcome to Natural Health Trends First Quarter twenty ...

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]

Exhibit 99.1 Natural Health Trends Reports First Quarter 2025 Financial Results LOS ANGELES – April 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 March 31, 2025. First Quarter 2025 Financial Highlights 1Natural Health Trends defines Active Members as those that have placed at least ...

– Sales decreased 2% year-over-year during the first quarter of 2025, attributable to promotional calendar differences – Generated cash flows from operations of $484,000 during the first quarter of 2025 – Declared a quarterly cash dividend of $0.20 per share LOS ANGELES, April 30, 2025 (GLOBE NEWSWIRE) -- 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 bra ...

Membership Trends - Total active members decreased from 32,410 in 2023 to 30,870 in 2024, representing a decline of approximately 4.8%[30] - The Americas region saw a reduction in active members from 4,040 in 2023 to 3,360 in 2024, a decrease of about 16.8%[30] - Hong Kong's active members slightly decreased from 23,490 in 2023 to 23,150 in 2024, a decline of approximately 1.4%[30] - The company experienced a 5% decrease in active members at the end of 2024 compared to the end of 2023, and a 16% decrease in active members at the end of 2023 and 2022 compared to the previous year, significantly impacting year-over-year sales[100] Revenue and Financial Performance - Total net sales for 2024 were $42,963,000, a decrease of 2.2% from $43,924,000 in 2023[236] - Gross profit for 2024 was $31,785,000, down from $32,749,000 in 2023, reflecting a decline of 2.9%[236] - Operating expenses decreased to $33,084,000 in 2024 from $34,420,000 in 2023, a reduction of 3.9%[236] - The company reported a net income of $572,000 for 2024, slightly up from $568,000 in 2023[236] - Basic and diluted net income per common share remained at $0.05 for both 2024 and 2023[236] - Total assets decreased to $55,359,000 in 2024 from $69,091,000 in 2023, a decline of 20%[234] - Current liabilities increased to $20,799,000 in 2024 from $19,984,000 in 2023, an increase of 4.1%[234] - Stockholders' equity decreased to $32,872,000 in 2024 from $41,600,000 in 2023, a decline of 21.1%[234] - The company experienced a loss from operations of $1,299,000 in 2024, an improvement from a loss of $1,671,000 in 2023[236] - Comprehensive income for 2024 was $340,000, down from $503,000 in 2023, a decrease of 32.3%[239] - Total cash, cash equivalents, and restricted cash decreased to $13,567,000 at the end of 2024 from $56,217,000 at the end of 2023, representing a decline of 75.8%[244] - Operating activities resulted in a net cash outflow of $3,367,000 in 2024, an improvement compared to the outflow of $4,278,000 in 2023[244] - The company declared dividends of $0.80 per share, totaling $9,213,000 for 2024, consistent with the $9,215,000 declared in 2023[244] - The company reported a depreciation and amortization expense of $131,000 in 2024, down from $164,000 in 2023, indicating a reduction of 20.1%[244] - Inventories increased by $1,000,000 in 2024 compared to an increase of $228,000 in 2023, showing a significant rise in inventory levels[244] - The company purchased marketable securities worth $70,431,000 in 2024, compared to no purchases in 2023[244] - The net cash used in investing activities was $30,075,000 in 2024, a substantial increase from $46,000 in 2023[244] - The company experienced a net decrease in cash and cash equivalents of $42,650,000 in 2024, compared to a decrease of $13,529,000 in 2023[244] - The company holds $3.6 million in cash in bank accounts located in China, subject to foreign currency controls, with no losses reported[252] - The Company recognized a foreign exchange loss of $230,000 in 2024 and $292,000 in 2023[261] Compensation and Member Engagement - The company employs a binary compensation plan with unilevel features, allowing members to earn commissions based on the bonus volume points from product purchases by their down-line network[45] - Members can earn income through commissions on accumulated bonus volume from product purchases and retail profits from reselling products[47] - Compensation paid to members represented approximately 41% of net sales in 2024 and 42% in 2023, indicating a substantial expense that could reduce profitability[105] - The company offers various support programs, including product training meetings and member events, to enhance member engagement and loyalty[49] - The company has a comprehensive training system for members, covering various roles from prospects to sales leaders[25] - Modifications to the compensation plan are made to motivate members, potentially impacting commissions[264] - Performance-based agreements for business or market development may result in additional compensation for specific members[264] Regulatory and Compliance Challenges - The regulatory environment in China imposes restrictions on multi-level compensation and member recruitment activities, impacting the company's operations[55] - The company is subject to extensive governmental regulations regarding product claims and marketing, particularly for dietary supplements[66] - The company has committed to maintaining compliance with FDA regulations, including good manufacturing practices for dietary supplements[63] - The company anticipates reapplying for a direct selling license in China when conditions are favorable[57] - The company is subject to scrutiny from regulatory authorities regarding compliance with local laws, which could impact operations[68] - The company faces significant regulatory and legal barriers in international markets, which could impede growth and profitability in those regions[94][95] - The company is subject to extensive laws and regulations regarding direct selling, which could lead to significant penalties if compliance is not met[124] - The evolving regulatory climate in China and Hong Kong regarding privacy and data protection could materially adversely affect the company's business[127] - The company faces risks from geopolitical tensions between the U.S. and China, which could disrupt operations and adversely affect financial results[120] - The company has incurred significant expenses to comply with privacy and data protection laws, and any failure to comply could damage its reputation and financial condition[130] - The company may face challenges from third parties regarding the legality of its business operations, which could result in fines or adverse publicity[131] - Non-compliance with regulations could lead to significant penalties, affecting business operations and revenue[146] - New regulations on dietary supplements could impose additional restrictions, potentially harming the company's ability to introduce new products[148] Operational and Market Risks - The company relies on a limited number of independent third-party manufacturers, which poses risks related to product quality and timely delivery, potentially leading to significant revenue loss[93] - The company has suspended member activities in China due to a government campaign targeting illegal practices in the direct selling industry, which may have a material adverse effect on business operations[115] - Economic challenges in China and Hong Kong could have a material adverse impact on the company's overall business and financial results[79] - The company must navigate risks related to product warranties and returns, which vary by country and can affect customer satisfaction and retention[69] - Adverse publicity regarding product claims and compliance could negatively impact the company's ability to attract and retain members, affecting revenue generation[82] - The direct selling industry is highly competitive, with significant competition for member recruitment from larger organizations and local competitors[90] - The company has faced challenges in maintaining member engagement and productivity, particularly if new products fail to gain market acceptance[92] - Cybersecurity risks and data breaches could disrupt operations and harm the company's reputation, leading to financial liabilities[162] International Operations and Currency Risks - The company operates in multiple international markets, including the Americas, Greater China, Southeast Asia, South Korea, Japan, India, and Europe, with a focus on direct-selling and e-commerce[15] - In 2024, 96% of the company's revenue was recorded by subsidiaries located outside of North America, exposing it to foreign currency exchange rate fluctuations[134] - The company's foreign currency exchange rate exposure to various currencies collectively represented approximately 16% and 18% of revenue in 2024 and 2023, respectively[135] - Changes in U.S. tax law and proposals to reform foreign tax laws could significantly affect the company's tax position and cash flows[138] - Operations are subject to customs duties regulations, and failure to comply could materially impact financial condition[142] - Transfer pricing regulations require compliance, and non-compliance may lead to significant adverse effects on financial results[143] - Extensive government regulations on product formulation and marketing could delay or limit product sales, impacting revenue[144] - Compliance with international regulations may create delays and added expenses in introducing new products to certain markets[145]

Shares of Natural Health Trends Corp. (NHTC) have lost 1.1% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 Index’s 0.4% gain over the same time frame. Over the past month, the stock gained 12.3%, significantly outperforming the S&P 500’s 2.8% rise.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Key Performance MetricsFor the fourth quarter of 2024, Natural Health reported revenues of $10.8 million, which was nearly flat compar ...

Natural Health Trends Corp. (NASDAQ:NHTC) Q4 2024 Earnings Conference Call February 5, 2025 11:30 AM ET Company Participants Michelle Glidewell – Investor Relations Chris Sharng – President Scott Davidson – Chief Financial Officer Conference Call Participants Operator Greetings, and welcome to the Natural Health Trends Corp. Fourth Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone shou ...

Financial Performance - Fourth quarter net sales were $10.8 million, roughly unchanged from $10.9 million in Q4 2023, with a 9% sequential increase from the Hong Kong business and a 7% year-over-year increase[4]. - Full year net sales decreased by 2% to $43.0 million compared to $43.9 million in 2023[4]. - Net income for Q4 2024 was $176,000, or $0.02 per diluted share, down from $358,000, or $0.03 per diluted share, in Q4 2023[4]. - Net income for 2024 increased to $572 million from $568 million in 2023, reflecting a slight growth[16]. Membership and Operations - Active Members totaled 30,870 as of December 31, 2024, a decrease of 5% from 32,410 at the end of 2023[4]. - Operating loss for Q4 2024 was $421,000, compared to a loss of $292,000 in Q4 2023[4]. Cash Flow and Liquidity - Total cash, cash equivalents, and marketable securities were $43.9 million as of December 31, 2024, down from $46.3 million as of September 30, 2024[9]. - Net cash provided by operating activities was $88,000 in Q4 2024, compared to net cash used of $69,000 in Q4 2023[9]. - Net cash used in operating activities improved to $(3,367) million in 2024 compared to $(4,278) million in 2023[16]. - Cash, cash equivalents, and restricted cash at the end of the period decreased to $13,567 million from $56,217 million[16]. - The net decrease in cash, cash equivalents, and restricted cash was $(42,650) million in 2024, compared to $(13,529) million in 2023, highlighting a significant cash outflow[16]. Investments and Assets - Net cash used in investing activities rose significantly to $(30,075) million in 2024 from $(46) million in 2023, primarily due to purchases of marketable securities[16]. - Right-of-use assets obtained in exchange for operating lease liabilities amounted to $124 million in 2024, down from $147 million in 2023[16]. - Deferred revenue decreased to $245 million in 2024 from $565 million in 2023, indicating a decline in future revenue recognition[16]. Dividends and Corporate Actions - The company declared a quarterly cash dividend of $0.20 per share, payable on February 28, 2025[9]. - Dividends paid remained stable at $(9,213) million in both 2024 and 2023[16]. - The company relocated its corporate headquarters from Hong Kong back to Rolling Hills Estates, California in February 2025[4]. - The company expects to issue its 2024 audited financial results in late February 2025[6].

– Net sales from our most important Hong Kong business up sequentially and year-over-year during the 4th quarter– Positive cash flows from operations before 2017 Tax Act installment for the 4th quarter as well as the full year of 2024– Declared a quarterly cash dividend of $0.20 per share LOS ANGELES, Feb. 05, 2025 (GLOBE NEWSWIRE) -- 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 ...