Shares of Natural Health Trends Corp. (NHTC) have gained 2.1% since the company reported its earnings for the quarter ended Dec. 31, 2025. This compares to the S&P 500 Index’s 0.2% decline over the same time frame. Over the past month, the stock gained 8.5% against the S&P 500’s 0.9% decline.Natural Health’s Earnings SnapshotFor the fourth quarter of 2025, revenue declined 10.1% year over year to $9.7 million from $10.8 million, though sales rose 3% sequentially from the third quarter. Operating loss widene ...

Product Launch and Market Strategy - The company prelaunched a new Korean formulated moisturizing skin care series called Soo:vea in Hong Kong, featuring a 4-step line aimed at skin barrier repair and hydration [1] - A limited edition anti-aging cream was unveiled during a celebratory event in Sweden to honor 10 years of success [1] - The company is focused on rolling out new products globally and enhancing member engagement through new marketing initiatives [2] Financial Performance - In Q3 2025, net sales decreased by 11% to $9.5 million compared to Q3 2024, with orders declining by 5% year-over-year [4] - Sales in Hong Kong, which accounted for 82% of total sales, declined by 8% year-over-year, or 4% when excluding the impact of product promotions [5] - Gross profit margin for Q3 was 73.7%, down from 74.1% the previous year, attributed to inventory write-offs related to discontinued products [5] Cost Management and Restructuring - The company is executing a major restructuring plan expected to yield $1.5 million in annualized savings by mid-2026, which includes a workforce reduction of approximately 10% [3][10] - A one-time charge of approximately $250,000 is anticipated in Q4 due to restructuring efforts, alongside a reduction in the quarterly cash dividend to $0.10 per share starting next year [3] Cash Flow and Dividend - Net cash used in operating activities was $5 million during the first nine months of 2025, compared to $3.5 million in the same period last year [8] - Total cash, cash equivalents, and marketable securities decreased to $32 million as of September 30, down from $43.9 million at the end of 2024 [9] - A cash dividend of $0.20 per share was declared, payable on November 28 to stockholders of record as of November 18 [9]

Core Viewpoint - Natural Health Trends Corp is conducting its Fourth Quarter and Full Year 2025 Earnings Conference Call, indicating a focus on financial performance and future outlook [2]. Group 1: Company Overview - The call is led by Michelle Glidewell, Senior Manager of NHT Global Corp, highlighting the company's leadership structure [2]. - Chris Sharng, President of Natural Health Trends, is also involved in the call, suggesting a collaborative approach to discussing the company's performance [4]. Group 2: Forward-Looking Statements - The company acknowledges that statements made during the call may include forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, indicating a focus on future results and potential uncertainties [3]. - Actual results may differ materially from those anticipated due to various factors, emphasizing the importance of understanding the risks associated with forward-looking statements [3].

Financial Data and Key Metrics Changes - In the 4th Quarter, revenue was $9.7 million, a 3% increase from $9.5 million in the 3rd Quarter, but a 10% decline from $10.8 million in the 4th Quarter of the previous year [6] - Gross profit margin was 72.9% in the 4th Quarter, down from 74.2% in the same quarter last year, primarily due to inventory write-offs [7] - Net loss for the 4th Quarter was $588,000, or $0.05 per diluted share, compared to net income of $176,000, or $0.02 per diluted share in the 4th Quarter of 2024 [8] Business Line Data and Key Metrics Changes - Reorders as a percentage of total orders increased in the largest market compared to 2024, and sales of Q-rated product bundles rose 10% for the Full Year [3] - The company saw growth in Taiwan and Peru during the 4th Quarter, with Japan and Colombia achieving strong increases throughout the year [3] Market Data and Key Metrics Changes - Revenue in the primary market of Greater China increased by 2% compared to the 3rd Quarter [6] Company Strategy and Development Direction - The company is focusing on improving operational efficiency through restructuring initiatives, including relocating 40% of product sourcing from America to East Asia to reduce tariff uncertainty [4] - The company plans to celebrate its 25th anniversary in 2026 with special programs and events, aiming to leverage this milestone for renewed momentum [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to support goals in an evolving global environment, emphasizing a strong product portfolio and renewed focus on execution [5] - The company expects to realize significant cost savings of approximately $1.5 million during 2026, positioning itself towards profitability and improved performance [10] Other Important Information - Total cash, cash equivalents, and marketable securities were $28.9 million at December 31, down from $32 million at September 30, primarily due to dividend payments and cash used in operations [9] - The board of directors declared a quarterly cash dividend of $0.10 per share, payable on February 27 to stockholders of record as of February 17 [10] Summary of Q&A Session - The call concluded without a Q&A session, as indicated by the operator's closing remarks [12]

Financial Data and Key Metrics Changes - In the 4th Quarter, revenue was $9.7 million, a 3% increase from $9.5 million in the 3rd Quarter, but a 10% decline from $10.8 million in the 4th Quarter of the previous year [6] - Gross profit margin was 72.9% in the 4th Quarter, down from 74.2% in the same quarter last year, primarily due to inventory write-offs [7] - Net loss for the 4th Quarter was $588,000, or $0.05 per diluted share, compared to net income of $176,000, or $0.02 per diluted share in the 4th Quarter of 2024 [8] Business Line Data and Key Metrics Changes - Reorders as a percentage of total orders increased in the largest market compared to 2024, and sales of curated product bundles rose 10% for the Full Year [3] - Commissions expenses as a percentage of net sales for the 4th Quarter were 40.3%, down from 41.9% a year ago [7] - Selling general and administrative expenses were $3.8 million for the 4th Quarter, a slight decrease from $3.9 million a year ago [8] Market Data and Key Metrics Changes - Revenue in the primary market of Greater China increased by 2% compared to the 3rd Quarter, with notable growth in Taiwan and Peru during the 4th Quarter [6][3] - Japan and Colombia achieved strong increases throughout the year, contributing positively to overall performance [3] Company Strategy and Development Direction - The company is focusing on improving operational efficiency through restructuring initiatives, including relocating 40% of product sourcing to East Asia to reduce tariff uncertainty [4] - The company anticipates realizing approximately $1.5 million in annualized cost savings during 2026, which is expected to enhance profitability and performance [10] - Celebrating its 25th anniversary in 2026, the company plans special programs and events to leverage this milestone for renewed momentum [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to support goals in an evolving global environment, emphasizing a strong product portfolio and renewed focus on execution [5] - The management highlighted the importance of member engagement and ongoing demand for core products as key drivers for future growth [3] Other Important Information - Total cash, cash equivalents, and marketable securities were $28.9 million at the end of the year, down from $32 million at the end of the previous quarter [9] - The company paid out $9.2 million in dividends for the full year of 2025, reaffirming its commitment to returning capital to stockholders [9][10] Q&A Session Summary - No specific questions or answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $9.7 million, a 3% increase from $9.5 million in Q3 2025, but a 10% decline from $10.8 million in Q4 2024 [6] - Gross profit margin was 72.9% in Q4 2025, down from 74.2% in Q4 2024, primarily due to inventory write-offs [6] - Net loss for Q4 2025 was $588,000, or $0.05 per diluted share, compared to net income of $176,000, or $0.02 per diluted share in Q4 2024 [7] Business Line Data and Key Metrics Changes - Sales of Q-rated product bundles increased by 10% for the full year 2025, indicating strong member engagement and demand for core products [3] - Commissions expenses as a percentage of net sales for Q4 2025 were 40.3%, down from 41.9% a year ago [6] Market Data and Key Metrics Changes - Revenue in the primary market of Greater China increased by 2% compared to Q3 2025, with notable growth in Taiwan and Peru during Q4 2025 [6] - Japan and Colombia also achieved strong increases throughout the year [3] Company Strategy and Development Direction - The company is focusing on improving operational efficiency through restructuring initiatives, including relocating 40% of product sourcing from America to East Asia [4] - The company anticipates realizing approximately $1.5 million in annualized cost savings during 2026, which is expected to enhance profitability and performance [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to support long-term goals in an evolving global environment, emphasizing a strong product portfolio and renewed focus on execution [5] - The upcoming 25th anniversary is viewed as a catalyst for renewed momentum across products and business [4] Other Important Information - Total cash, cash equivalents, and marketable securities were $28.9 million at December 31, 2025, down from $32 million at September 30, 2025 [8] - The board of directors declared a quarterly cash dividend of $0.10 per share, payable on February 27, 2026 [9] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session. The call concluded without further inquiries [11]

Revenue and Sales Performance - Revenue for Q4 2025 was $9.7 million, a 3% increase sequentially from $9.5 million in Q3 2025, but a 10% decrease year-over-year from $10.8 million in Q4 2024[5] - Full year 2025 net sales were $39.8 million, a 7% decrease compared to $43.0 million in 2024[5] Membership and Active Users - Active Members decreased to 26,650 as of December 31, 2025, down from 28,030 at September 30, 2025, and 30,870 at December 31, 2024[5] Profitability and Loss - Operating loss for Q4 2025 was $635,000, compared to $495,000 in Q3 2025 and $421,000 in Q4 2024; excluding restructuring charges, the loss would have been $352,000[5] - Net loss for Q4 2025 was $588,000, or $0.05 per diluted share, compared to a net loss of $431,000, or $0.04 per diluted share, in Q3 2025, and net income of $176,000, or $0.02 per diluted share, in Q4 2024[5] - Net income for 2025 was $(882) million, a decrease from $572 million in 2024[18] Cash Flow and Liquidity - Total cash, cash equivalents, and marketable securities were $28.9 million as of December 31, 2025, down from $32.0 million as of September 30, 2025[11] - Operating cash flow for Q4 2025 was a net outflow of $959,000, compared to a net inflow of $88,000 in Q4 2024[11] - Net cash used in operating activities increased to $(5,997) million in 2025 from $(3,367) million in 2024[18] - Total cash, cash equivalents, and restricted cash decreased to $6,820 million at the end of 2025 from $13,567 million at the end of 2024[18] Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.10 per share, payable on February 27, 2026[11] - Dividends paid remained consistent at approximately $(9,210) million for both 2025 and 2024[18] Inventory and Assets - Inventories increased to $1,274 million in 2025 from $1,000 million in 2024[18] - Other current assets showed a significant change, increasing to $1,224 million in 2025 from $(113) million in 2024[18] - Right-of-use assets obtained in exchange for operating lease liabilities rose to $487 million in 2025 from $124 million in 2024[18] Cost Management and Restructuring - The company expects to realize $1.5 million in annualized cost savings from restructuring initiatives that are substantially complete[4] - The company relocated about 40% of its product sourcing base from America to East Asia to reduce tariff uncertainty and streamline logistics[4] Cash Flow from Investments - Cash flows from investing activities provided $8,148 million in 2025, contrasting with $(30,075) million used in 2024[18] - Purchases of marketable securities decreased to $(50,742) million in 2025 from $(70,431) million in 2024[18] Foreign Exchange Impact - The effect of exchange rates on cash resulted in a gain of $312 million in 2025 compared to $5 million in 2024[18]

Core Insights - Natural Health Trends Corp. reported a 3% sequential increase in revenue for Q4 2025 despite a challenging macroeconomic environment, while full-year net sales decreased by 10% year over year [4][6][7] - The company has completed major restructuring initiatives aimed at achieving $1.5 million in annualized cost savings and has relocated 40% of its product sourcing to East Asia to mitigate tariff uncertainties [4][6] - The company declared a quarterly cash dividend of $0.10 per share, payable on February 27, 2026 [9] Fourth Quarter 2025 Financial Highlights - Revenue for Q4 2025 was $9.7 million, a 3% increase from $9.5 million in Q3 2025 but a 10% decline from $10.8 million in Q4 2024 [7] - Operating loss for Q4 2025 was $635,000, compared to losses of $495,000 in Q3 2025 and $421,000 in Q4 2024; excluding restructuring charges, the operating loss would have been $352,000 [7] - Net loss for Q4 2025 was $588,000, or $0.05 per diluted share, compared to a net loss of $431,000, or $0.04 per diluted share, in Q3 2025 and net income of $176,000, or $0.02 per diluted share, in Q4 2024 [7] Full Year 2025 Financial Highlights - Total revenue for 2025 was $39.8 million, down 7% from $43.0 million in 2024 [7] - The operating loss for the full year was $1.8 million, compared to a loss of $1.3 million in 2024 [7] - The net loss for 2025 was $882,000, or $0.08 per diluted share, compared to net income of $572,000, or $0.05 per diluted share, in 2024 [7] Balance Sheet and Cash Flow - As of December 31, 2025, total cash, cash equivalents, and marketable securities were $28.9 million, down from $32.0 million as of September 30, 2025 [8] - Net cash used in operating activities was $959,000 in Q4 2025, compared to net cash provided by operating activities of $88,000 in Q4 2024; total cash used in operating activities for 2025 was $6.0 million, up from $3.4 million in 2024 [8] - The company has fully paid the tax liability arising from the 2017 U.S. Tax Cuts and Jobs Act [8] Management Commentary - The President of Natural Health Trends Corp. highlighted the company's 25th Anniversary in 2026 as a significant milestone, with plans for a celebration in Hong Kong [4][5] - The company aims to leverage this anniversary to create renewed momentum in its business [5]

Core Viewpoint - Natural Health Trends Corp. will report its financial results for Q4 and the full year 2025 on February 4, 2026, with a conference call scheduled for the same day to discuss these results [1][2]. Group 1: Financial Reporting - The financial results for the fourth quarter and full year ended December 31, 2025, will be announced on February 4, 2026, at 9:00 a.m. Eastern Time [1]. - A conference call to discuss the financial results will take place on the same day at 11:30 a.m. Eastern Time [1][2]. - The dial-in number for the conference call is 1-800-330-6730, and the participant ID is 992974 [2]. Group 2: Company Overview - Natural Health Trends Corp. is 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 [1][3]. - The company operates internationally through subsidiaries in Asia, the Americas, and Europe [3]. - Additional information about the company can be found on its website [3].

Core Viewpoint - Natural Health Trends Corp. (NHTC) has experienced a significant decline in stock price following disappointing earnings results for the year ended September 30, 2025, with a 25.1% drop compared to a 0.6% decline in the S&P 500 Index during the same period [1] Financial Performance - NHTC's third-quarter 2025 revenue decreased by 11.4% to $9.5 million from $10.7 million, with a net loss of $0.4 million, or a loss of $0.04 per diluted share, compared to a net income of $35,000 in the same quarter of 2024 [2] - For the first nine months of 2025, revenue fell by 6.5% to $30 million from $32.1 million, resulting in a net loss of $0.3 million, or a loss of $0.03 per share, compared to a net income of $0.4 million in the prior-year period [3] Key Business Metrics - Orders decreased by 5% year over year in Q3 2025, although they improved by 5% sequentially, indicating some stabilization [4] - Active Members declined to 28,030 as of September 30, 2025, from 30,880 a year earlier, representing a 9.2% decrease [4] - Gross profit for the quarter was $6.9 million, down 11.8% from $7.9 million a year ago, with a gross margin of 73.7% compared to 74.1% in Q3 2024 [5] Expense Management - Commissions expense decreased by 10.5% year over year but rose slightly as a percentage of sales to 40.9% from 40.5% [6] - Selling, general, and administrative expenses decreased by 6.8% to $3.6 million from $3.9 million, indicating early cost control measures [6] Management Commentary and Strategic Initiatives - Management noted a challenging economic outlook in Hong Kong, which accounted for 81.4% of Q3 2025 sales, with an 8% year-over-year revenue decline [7] - A major restructuring is underway, expected to deliver $1.5 million in annualized savings by mid-2026, including a 10% workforce reduction and cost-cutting measures [7] - The company is transitioning U.S.-based product manufacturing closer to Asia to mitigate tariff risks and streamline logistics [7] Future Investments - Planned investments include an AI-enabled marketing app and new marketing initiatives aimed at expanding the member base [8] - The company is organizing recognition and training events to strengthen relationships and leadership development across markets [8] Performance Influencers - Weaker results are attributed to macroeconomic factors in Greater China and company-specific issues such as the timing of promotions and inventory write-offs [9][10] Cash Flow and Liquidity - Net cash used in operating activities was $5 million for the first nine months of 2025, compared to $3.5 million in the prior-year period [11] - Total cash and equivalents declined to $32 million as of September 30, 2025, from $43.9 million at year-end 2024, though liquidity remains adequate [11] Guidance and Capital Allocation - Management expects a one-time restructuring charge of approximately $250,000 in Q4 2025 and aims to realize $1.5 million in annualized cost savings by mid-2026 [12] - The company plans to reduce its quarterly cash dividend to $0.10 per share starting in Q1 of the next year [13] Product Innovation and Milestones - NHTC is energizing its network through product innovation, including the pre-launch of the Soo:vea skincare series in Hong Kong and a limited-edition anti-aging cream in Sweden [14] - The company is planning a year-long program of events and marketing campaigns for its 25th anniversary in 2026 to strengthen the brand [15]