Company Overview - Nu Skin Enterprises (NUS) shares increased by 6.2% to close at $12.84, with trading volume significantly higher than usual, contrasting with a 0.3% loss over the past four weeks [1] - The company operates in the cosmetics industry and utilizes a direct-selling model for its skin care and nutritional products [3][6] Strategic Execution - The company's growth is attributed to operational efficiency, innovation focus, and international expansion, with the Rhyz Manufacturing segment showing consistent growth [2] - The upcoming AI-powered Prysm iO device is expected to enhance customer engagement and subscriptions, while lessons from fast-growing markets will guide international expansion [2] Financial Performance - Nu Skin is projected to report quarterly earnings of $0.30 per share, reflecting a year-over-year increase of 76.5%, while revenues are expected to be $374.2 million, a decrease of 13% from the previous year [3] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a potential lack of momentum in earnings estimate revisions [5] Market Position - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [6] - In comparison, European Wax Center, another company in the same industry, has also maintained a Zacks Rank of 3 and is expected to report an EPS of $0.14, a 16.7% increase year-over-year [6][7]

Core Viewpoint - The academic exchange conference focused on the integration of technology and nutrition management, aiming to enhance public health through innovative solutions and collaborative efforts among various stakeholders [1][3][19]. Group 1: Policy and Technological Empowerment - The conference highlighted the foundational role of nutrition in improving national health and quality of life, with emphasis on the need for government, enterprises, and society to work together in implementing the National Nutrition Plan [6][15]. - The "Healthy China 2030" initiative sets clear and quantifiable goals, aligning with the strategic direction of companies like Nu Skin, which focuses on leveraging advanced technologies such as gene expression science and artificial intelligence in health management [5][19]. Group 2: Clinical and Practical Insights - Experts discussed the importance of clinical nutrition interventions and the need for innovative approaches in health management, particularly in the context of chronic disease prevention [10][12]. - The concept of "hidden hunger" was introduced, emphasizing the need for balanced diets and healthy lifestyles to mitigate chronic disease risks [8][12]. Group 3: Technological Innovations - Nu Skin introduced the PRYSM iO hyperspectral scanner, a non-invasive device that measures skin carotenoid levels to assess antioxidant capacity and nutritional status, representing a shift towards scientific quantification in health management [12][13]. - The device's development is based on over 40 years of research and aims to provide a portable tool for community and family health management [12][19]. Group 4: Collaborative Efforts and Future Directions - The conference underscored the need for collaboration among various sectors, including media, healthcare, and enterprises, to promote proactive health management and enhance public understanding of nutrition [15][16]. - Future initiatives will focus on expanding insurance coverage for nutritional services and improving access to quality healthcare resources in communities [15][16].

Core Insights - The academic exchange conference focused on innovative technologies in precision nutrition, chronic disease prevention, and the value of clinical nutrition interventions, aiming to create a collaborative innovation platform for nutrition health management and industry upgrades [1][3]. Group 1: Industry Trends - The "Healthy China 2030" initiative sets clear and quantifiable goals, positioning China at the forefront of global health strategies, with companies like Nu Skin aligning their strategic direction with this national plan [3]. - The conference highlighted the need for collaboration among government, enterprises, and society to implement the National Nutrition Plan, emphasizing the importance of innovation in producing high-quality health foods [3]. Group 2: Technological Innovations - Nu Skin introduced the PRYSM iO hyperspectral scanner, which allows for non-invasive measurement of skin carotenoid levels, reflecting antioxidant capacity and nutritional status, thus transitioning nutritional health management from vague assessments to scientific quantification [5][6]. - The scanner utilizes Raman spectroscopy principles and AI-driven machine learning to generate a body defense index based on skin carotenoid levels, addressing the gap between health expectancy and actual lifespan [5][6]. Group 3: Clinical Perspectives - Clinical nutrition should follow a "5-step therapy" approach, focusing on tailored nutritional education and supplementation for specific populations such as cancer patients, the elderly, and pregnant women [4][5]. - Experts emphasized the importance of balanced diets and healthy lifestyles in reducing chronic disease risks, advocating for adherence to the 2022 Dietary Guidelines for Chinese Residents [4].

Core Insights - The meeting between Shanghai's Commerce Commission Director Zhu Min and Nu Skin Enterprises CEO Ritch N. Wood highlighted the ongoing development of Shanghai as an international consumption center, emphasizing the city's vast consumer market and growth opportunities for both domestic and international brands [1][3]. Group 1: Shanghai's Consumer Market - Shanghai's consumer market is expanding, driven by initiatives like "First Launch Shanghai" which supports the debut of brands and stimulates new consumption dynamics [3]. - The beauty and health industries in Shanghai are experiencing rapid growth, with continuous market size expansion and emerging growth points such as online sales and senior consumer segments [3]. - Future increases in residents' income and heightened health awareness among consumers are expected to further drive industry upgrades [3]. Group 2: Nu Skin Enterprises' Commitment - Nu Skin has been operating in Shanghai for 25 years, establishing its Greater China headquarters and R&D center in the city, which is viewed as a global strategic hub due to its favorable business environment and concentration of innovation and talent [3]. - The company expressed its intention to increase investments in Shanghai, actively participate in consumption promotion activities, and launch new products tailored to the local market [3]. - Nu Skin aims to contribute significantly to the construction of Shanghai as an international consumption center by leveraging new opportunities arising from industry upgrades [3].

Core Insights - Stonegate Capital Partners has initiated coverage on Nu Skin Enterprises Inc. (NUS) [1] - NUS reported revenue of $386.1 million, adjusted net income of $21.1 million, and adjusted EPS of $0.43, exceeding guidance [1] - The Rhyz Manufacturing segment experienced a 17% year-over-year revenue growth [1] - Gross margin for the quarter was 68.8%, reflecting a quarter-over-quarter expansion of 106 basis points from Q1 2025 [1] - Adjusted net income grew by 103.5% year-over-year, driven by revenue growth and operational optimization [1] - The company is positioned for a solid second quarter of 2025 with continued net income margin expansion [1] Financial Performance - Revenue was at the high end of the guidance range, which was between $355.0 million and $390.0 million [1] - Adjusted EPS of $0.43 significantly outpaced the guidance range of $0.20 to $0.30 [1] - Latin America revenue increased by 107% year-over-year [7] - The company achieved a net cash position ahead of schedule [7] Strategic Developments - The expansion in India and the launch of the Prysm iO device are on track [7]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This section presents unaudited consolidated financial statements and management's analysis of financial performance [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements, including balance sheets, income statements, comprehensive income statements, stockholders' equity statements, and cash flow statements, along with detailed notes explaining significant accounting policies, specific financial items, and segment information for the periods ended June 30, 2025, and December 31, 2024 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and equity at specific dates Consolidated Balance Sheet Highlights (U.S. dollars in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $264,159 | $186,883 | | Total current assets | $571,553 | $538,599 | | Total assets | $1,443,693 | $1,468,914 | | Total current liabilities | $283,906 | $296,607 | | Total liabilities | $655,939 | $817,459 | | Total stockholders' equity | $787,754 | $651,455 | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) This section details the company's financial performance, including revenues, expenses, and net income Consolidated Statements of Income Highlights (U.S. dollars in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $386,138 | $439,081 | $750,628 | $856,387 | | Gross profit | $265,733 | $307,177 | $512,694 | $601,241 | | Operating income (loss) | $30,780 | $(125,557) | $20,877 | $(116,735) | | Net income (loss) | $21,119 | $(118,258) | $128,634 | $(118,791) | | Basic Net income (loss) per share | $0.43 | $(2.38) | $2.59 | $(2.39) | - The company reported a significant turnaround from a **net loss in 2024** to **net income in 2025**, primarily due to the absence of large restructuring and impairment expenses and a **gain on the sale of a business**[11](index=11&type=chunk)[84](index=84&type=chunk) [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents total equity changes from non-owner sources, including net income and other comprehensive income items Consolidated Statements of Comprehensive Income Highlights (U.S. dollars in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $21,119 | $(118,258) | $128,634 | $(118,791) | | Foreign currency translation adjustments | $11,398 | $(4,875) | $13,841 | $(14,979) | | Comprehensive income (loss) | $30,911 | $(124,646) | $139,334 | $(135,780) | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in the company's equity accounts, reflecting net income, dividends, and stock transactions Changes in Stockholders' Equity (U.S. dollars in thousands) | Metric | Balance at April 1, 2025 | Balance at June 30, 2025 | Balance at January 1, 2025 | Balance at June 30, 2025 | | :-------------------------------- | :----------------------- | :----------------------- | :------------------------- | :----------------------- | | Total Stockholders' Equity (3 months) | $753,969 | $787,754 | - | - | | Total Stockholders' Equity (6 months) | - | - | $651,455 | $787,754 | | Net income (6 months) | - | - | - | $128,634 | | Cash dividends (6 months) | - | - | - | $(5,966) | | Repurchase of Class A common stock (6 months) | - | - | - | $(5,012) | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities over specific periods Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, U.S. dollars in thousands) | Metric | 2025 | 2024 | | :--------------------------------------- | :--------- | :--------- | | Net cash provided by operating activities | $36,184 | $54,525 | | Net cash provided by (used in) investing activities | $190,337 | $(17,793) | | Net cash used in financing activities | $(157,027) | $(60,772) | | Net increase (decrease) in cash and cash equivalents | $77,276 | $(31,807) | | Cash and cash equivalents, end of period | $264,159 | $224,250 | - Investing activities saw a **significant inflow in 2025** due to proceeds from the sale of business, net, totaling **$193,725 thousand**[20](index=20&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the consolidated financial statements [Note 1. The Company](index=9&type=section&id=Note%201.%20The%20Company) This note describes the company's business operations, primary brands, and revenue reporting segments - Nu Skin Enterprises, Inc. is a holding company, with Nu Skin as the primary operating unit, developing and distributing beauty and wellness products under brands like Nu Skin, Pharmanex, and ageLOC[21](index=21&type=chunk) - The company reports revenue from nine segments: seven geographic Nu Skin segments (Americas, Mainland China, Southeast Asia/Pacific, Japan, Europe & Africa, South Korea, Hong Kong/Taiwan) and two Rhyz segments (Manufacturing and Rhyz Other)[21](index=21&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=9&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and policies used in preparing the consolidated financial statements - Unaudited consolidated financial statements are prepared in accordance with US GAAP for interim financial information[22](index=22&type=chunk) - ASU 2023-09 (Income Taxes) is effective for annual periods beginning January 1, 2025, requiring disaggregated income tax disclosures[23](index=23&type=chunk) - ASU 2024-03 (Income Statement) is effective for fiscal years beginning after December 15, 2026, requiring specific cost and expense disaggregation disclosures[24](index=24&type=chunk) Inventories, net (U.S. dollars in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Raw materials | $101,469 | $121,929 | | Finished goods | $78,908 | $68,313 | | Total Inventory, net | $180,377 | $190,242 | Inventory Reserves (U.S. dollars in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------- | :----------------------------- | :----------------------------- | | Additions | $5,800 | $3,520 | | Write-offs | $(14,110) | $(16,615) | | Ending Balance | $75,696 | $70,283 | [Note 3. Held for Sale](index=10&type=section&id=Note%203.%20Held%20for%20Sale) This note details the sale of the Mavely entity, including proceeds, gain on sale, and assets/liabilities held for sale - The Company completed the sale of its Mavely entity on

Financial Data and Key Metrics Changes - The company reported revenue of $386.1 million for Q2 2025, achieving the high end of its guidance range and significantly exceeding the earnings per share forecast with $0.43, well above the guidance range of $0.20 to $0.30 [6][18] - Gross margin for Q2 was 68.8%, down from 70% in the prior year, while the core Nu Skin business gross margin improved to 77.5%, up 140 basis points year over year [18][19] - Operating margin improved to 8%, up from an adjusted operating margin of 5.4% in the prior year, reflecting operational efficiency efforts [20] Business Line Data and Key Metrics Changes - The Rise segments performed well, with manufacturing reporting a 17% year-over-year increase [7][14] - Latin America showed strong year-over-year growth, exceeding 100% in revenue, customers, and sales leaders, while North America faced declines due to macro pressures [6][12] - Japan reported growth, benefiting from a strong subscription-based wellness business, while South Korea and China experienced revenue declines due to economic challenges [7][12] Market Data and Key Metrics Changes - Latin America continues to outperform expectations, while North America, China, and Korea are under scrutiny for potential impacts on guidance [26][27] - Europe and Africa showed improving trends in customer engagement, and the Pacific region experienced growth, although Southeast Asia remained sluggish [7][12] Company Strategy and Development Direction - The company is focused on launching its innovative wellness platform, Prism IO, which will provide personalized health insights and product recommendations [8][10] - The developing market strategy is crucial, with significant progress in Latin America and plans for a premarket opening in India by Q4 2025 [12][13] - Project Accelerate aims to improve operational efficiencies and expand margins, with a target gross margin of 78% for the core business [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted the importance of disciplined cost management [20][22] - The company anticipates revenue for Q3 2025 to be between $360 million and $390 million, with full-year revenue projected at $1.48 billion to $1.55 billion [22][23] - Management remains focused on driving operational performance and maintaining a strong financial position despite ongoing global challenges [23] Other Important Information - The company achieved a net cash positive position for the first time in over four years, ending the quarter with $264 million in cash [21] - A dividend of approximately $3 million was returned to shareholders, with $157.4 million remaining under the current share repurchase authorization [21] Q&A Session Summary Question: Thoughts on guidance and potential impacts from initiatives or geographies - Management noted that Latin America is overperforming, while North America is facing challenges, particularly in Korea and China due to macro uncertainties [26][27] Question: Insights on Latin America's performance and future potential - Management highlighted a simplified operational model and a three-pronged strategy focusing on product, business model, and operational efficiency as key to success in Latin America [30][31] Question: Future margin improvement opportunities - Management indicated ongoing efforts in inventory management and selling expense optimization, with confidence in continued margin improvements [34][35] Question: Capital allocation priorities for the second half of the year - Management emphasized investing in growth opportunities, particularly in Prism IO and developing markets like India, while also servicing debt and maintaining dividends [36][39]

Financial Performance - Q2 2025 revenue was $386.1 million, a decrease of 12.1% year-over-year[6] - Q2 2025 EPS was $0.43, compared to $(2.38) in Q2 2024, or $0.21 excluding impairment and other charges[6] - The company forecasts Q3 2025 revenue to be between $360 million and $390 million, a decrease of 16% to 9% year-over-year[27] - The company projects 2025 revenue to be between $1.48 billion and $1.55 billion, a decrease of 15% to 11% year-over-year[27] - The company anticipates 2025 EPS to be between $3.05 and $3.25, or $1.15 to $1.35 excluding the Mavely gain and other charges[27] Regional Performance - Mainland China accounted for 14% of Q1 revenue distribution[6] - Americas accounted for 7% of Q1 revenue distribution[6] - Revenue from Mainland China decreased by 18% to $53.2 million[10] - Revenue from Americas decreased by 14% to $72.9 million[10] Customer and Affiliate Metrics - Total customers decreased by 14% year-over-year[6] - Total paid affiliates decreased by 16% year-over-year[6] - Total sales leaders decreased by 23% year-over-year[6]

Executive Summary [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20vs.%20Prior-year%20Quarter) Nu Skin reported Q2 2025 revenue at the high end of guidance and earnings per share exceeding guidance, despite a year-over-year decline in overall revenue and customer metrics. The company achieved an 8% operating margin and saw strong growth in its Rhyz Manufacturing segment **Q2 2025 vs. Prior-year Quarter Performance:** | Metric | Q2 2025 Value | YoY Change | | :--- | :--- | :--- | | Revenue | $386.1 million | (12.1)% | | EPS | $0.43 | N/A (vs. $(2.38)) | | Customers | 771,407 | (14)% | | Paid Affiliates | 130,799 | (16)% | | Sales Leaders | 29,593 | (23)% | - Operating margin reached **8%** despite top-line pressures, indicating effective operational optimization efforts[2](index=2&type=chunk) - Rhyz Manufacturing segment demonstrated strong performance with **17% year-over-year revenue growth**[2](index=2&type=chunk) [Strategic Initiatives and Management Commentary](index=1&type=section&id=Strategic%20Initiatives%20and%20Management%20Commentary) Management highlighted significant progress in building sales leader engagement and alignment for key initiatives. These include the upcoming Q4 limited preview of the AI-powered Prysm iO intelligent wellness device and strategic market expansion plans for India, leveraging successful growth principles from Latin America - A mid-Q4 limited preview is scheduled for the Prysm iO intelligent wellness device, an AI-powered assessment tool expected to boost nutritional supplements through personalized recommendations and subscriptions[3](index=3&type=chunk) - Plans for Q4 market pre-opening activities in India are on track, with a formal launch anticipated for mid-2026, following **107% year-over-year revenue growth in Latin America**[3](index=3&type=chunk) - The company remains confident in its strategy to return to growth and drive shareholder value[3](index=3&type=chunk) Q2 2025 Operating Results [Key Operating Metrics](index=2&type=section&id=Q2%202025%20Year-over-year%20Operating%20Results) Nu Skin's Q2 2025 operating results showed a decrease in revenue and gross margin compared to the prior year, but a significant improvement in operating margin due to lower selling expenses and the absence of large impairment charges seen in the prior year **Q2 2025 Year-over-year Operating Results:** | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $386.1 million | $439.1 million | (12.1)% | | Gross Margin | 68.8% | 70.0% | (1.2) pp | | Selling Expenses (% of Revenue) | 33.2% | 37.7% | (4.5) pp | | G&A Expenses (% of Revenue) | 27.6% | 26.9% | 0.7 pp | | Operating Margin | 8.0% | (28.6)% | 36.6 pp | | Interest Expense | $2.5 million | $6.7 million | (62.6)% | | Income Tax Rate | 23.0% | 10.2% | 12.8 pp | | EPS | $0.43 | $(2.38) | N/A | - Nu Skin business gross margin improved to **77.5% in Q2 2025** from 76.1% in Q2 2024[4](index=4&type=chunk) - Operating margin, excluding impairment and other charges, improved to **8.0% in Q2 2025** from 5.4% in Q2 2024[4](index=4&type=chunk) [Stockholder Value](index=2&type=section&id=Stockholder%20Value) In Q2 2025, Nu Skin paid $3.0 million in dividends and had no stock repurchases, with a significant amount remaining in its stock repurchase authorization **Q2 2025 Stockholder Value:** | Metric | Amount | | :--- | :--- | | Dividend Payments | $3.0 million | | Stock Repurchases | $0.0 million | | Remaining Repurchase Authorization | $157.4 million | Financial Outlook [Q3 and Full-Year 2025 Guidance](index=2&type=section&id=Q3%20and%20Full-year%202025%20Outlook) Nu Skin provided Q3 2025 revenue guidance of $360 to $390 million and EPS of $0.25 to $0.35. For the full year 2025, revenue is projected to be $1.48 to $1.55 billion, with EPS of $3.05 to $3.25, or adjusted EPS of $1.15 to $1.35 excluding Mavely gain and other charges **Q3 and Full-Year 2025 Outlook:** | Metric | Q3 2025 Guidance | Full-Year 2025 Guidance | | :--- | :--- | :--- | | Revenue | $360 to $390 million | $1.48 to $1.55 billion | | Revenue Change (YoY) | (16)% to (9)% | (15)% to (11)% | | Revenue Change (YoY, ex-Mavely) | (13)% to (5)% | (11)% to (7)% | | EPS | $0.25 to $0.35 | $3.05 to $3.25 | | EPS (ex-Mavely gain & other charges) | N/A | $1.15 to $1.35 | - Approximately **(1)% FX impact** is anticipated for both Q3 and full-year 2025 revenue[5](index=5&type=chunk) [CFO Commentary on Financial Position](index=3&type=section&id=CFO%20Commentary) The CFO highlighted improved profitability, significant cash generation, and a strengthened balance sheet, achieving a positive net cash position for the first time in over four years. Based on first-half results and clearer market sentiment, the company narrowed revenue guidance and raised EPS guidance for 2025 - The company achieved a **positive net cash position** ahead of schedule, marking the first time in over 4 years[6](index=6&type=chunk) - Based on first-half results and improved clarity, the company is narrowing its revenue guidance and increasing its earnings guidance for 2025[6](index=6&type=chunk) Company Information & Disclosures [About Nu Skin Enterprises Inc.](index=3&type=section&id=About%20Nu%20Skin%20Enterprises%20Inc.) Nu Skin Enterprises Inc. encompasses Nu Skin, an integrated beauty and wellness company operating globally with personal care, nutrition, and anti-aging brands, and Rhyz Inc., an ecosystem of consumer, technology, and manufacturing companies focused on innovation in beauty, wellness, and lifestyle categories - Nu Skin is an integrated beauty and wellness company operating in nearly 50 markets worldwide, offering personal care (Nu Skin®), nutrition (Pharmanex®), and anti-aging (ageLOC®) products[8](index=8&type=chunk) - Rhyz Inc., formed in 2018, is a synergistic ecosystem of consumer, technology, and manufacturing companies focused on innovation within the beauty, wellness, and lifestyle categories[8](index=8&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call) Nu Skin's management team hosted a conference call on August 7, 2025, at 5 p.m. ET. Webcast access and financial information are available on the Investor Relations page of the company's website, with a replay accessible through August 22, 2025 - A conference call with the investment community was held on August 7, 2025, at 5 p.m. (ET)[7](index=7&type=chunk) - Webcast and financial information are available on the Investor Relations page at ir.nuskin.com, with a replay available through August 22, 2025[7](index=7&type=chunk) [Important Information Regarding Forward-Looking Statements](index=4&type=section&id=Important%20Information%20Regarding%20Forward-Looking%20Statements) This section provides disclaimers regarding forward-looking statements, emphasizing that they represent current expectations and beliefs, are subject to important risks and uncertainties, and the company assumes no duty to update them except as required by law - Forward-looking statements represent the company's current expectations and beliefs, not historical facts, and are subject to important risks and uncertainties[10](index=10&type=chunk)[11](index=11&type=chunk) - Risks include failure of initiatives, changes in direct selling laws, economic conditions, competitive pressures, adverse publicity, and regulatory uncertainties in international markets like Mainland China[12](index=12&type=chunk) - The company assumes no duty to update forward-looking statements contained in this release to reflect any change except as required by law[11](index=11&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) The report defines and explains the use of non-GAAP financial measures, such as constant-currency revenue change, and adjusted EPS, operating margin, and income tax rate. These adjustments remove the impact of fluctuations in foreign-currency exchange rates and specific non-recurring or non-operational charges (e.g., Mavely gain, restructuring, impairment) to facilitate period-to-period performance comparisons - Constant-currency revenue change is a non-GAAP measure that removes the impact of foreign-currency fluctuations to facilitate period-to-period performance comparisons[13](index=13&type=chunk) - Non-GAAP measures for EPS, operating margin, and income tax rate exclude the gain from the Mavely sale, restructuring charges, impairment charges, unrealized investment loss, and other charges[14](index=14&type=chunk) - These non-GAAP adjustments are considered useful to investors, lenders, and analysts for comparing the company's performance by isolating ongoing operational results from non-recurring items[15](index=15&type=chunk)[16](index=16&type=chunk) Detailed Financial and Operational Metrics [Segment Revenue Performance](index=6&type=section&id=Segment%20Revenue%20Performance) For Q2 2025, total revenue decreased by 12.1% year-over-year to $386.1 million. Most Nu Skin segments experienced declines, with South Korea and Mainland China showing significant decreases. Japan was an exception with 4.6% growth. The Rhyz Manufacturing segment showed strong growth of 17.3%, while Rhyz Other declined significantly **Q2 2025 Segment Revenue (in thousands):** | Segment | 2025 Revenue | 2024 Revenue | Change | | :--- | :--- | :--- | :--- | | Nu Skin Americas | $72,946 | $84,935 | (14.1)% | | Nu Skin Mainland China | $53,224 | $64,710 | (17.7)% | | Nu Skin Japan | $44,550 | $42,587 | 4.6% | | Nu Skin South Korea | $34,068 | $44,119 | (22.8)% | | Total Nu Skin | $320,904 | $371,248 | (13.6)% | | Rhyz Manufacturing | $60,400 | $51,473 | 17.3% | | Total Rhyz | $65,234 | $67,833 | (3.8)% | | **Total Company** | **$386,138** | **$439,081** | **(12.1)%** | **Six Months Ended June 30, 2025 Segment Revenue (in thousands):** | Segment | 2025 Revenue | 2024 Revenue | Change | | :--- | :--- | :--- | :--- | | Total Nu Skin | $627,186 | $726,021 | (13.6)% | | Rhyz Manufacturing | $115,690 | $101,775 | 13.7% | | Total Rhyz | $123,442 | $130,366 | (5.3)% | | **Total Company** | **$750,628** | **$856,387** | **(12.3)%** | [Customer and Sales Force Metrics](index=7&type=section&id=Customer%2C%20Paid%20Affiliates%20and%20Sales%20Leaders) All key operational metrics (Customers, Paid Affiliates, Sales Leaders) declined significantly year-over-year in Q2 2025. Total Customers decreased by 14%, Paid Affiliates by 16%, and Sales Leaders by 23%. Mainland China and South Korea showed the steepest declines across these categories, while Americas was the only region to show customer growth **Q2 2025 Customer, Paid Affiliates, and Sales Leaders:** | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Customers | 771,407 | 893,514 | (14)% | | Total Paid Affiliates | 130,799 | 155,486 | (16)% | | Total Sales Leaders | 29,593 | 38,592 | (23)% | | Americas Customers | 240,477 | 226,626 | 6% | | Mainland China Sales Leaders | 5,790 | 10,266 | (44)% | | South Korea Customers | 67,313 | 99,358 | (32)% | - Customers are defined as persons who purchased directly from the Company during the three months ended as of the date indicated, including members of the sales force who made such a purchase[19](index=19&type=chunk) - Sales Leaders are the three-month average of monthly Brand Affiliates (or sales employees/independent marketers in Mainland China) who met certain qualification requirements[19](index=19&type=chunk) [Consolidated Statements of Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income%20(Unaudited)) For Q2 2025, Nu Skin reported net income of $21.1 million, a significant improvement from a net loss of $118.3 million in Q2 2024, primarily due to the absence of large restructuring and impairment expenses. Revenue decreased, but operating income turned positive **Consolidated Statements of Income (Unaudited) - Q2:** | Metric (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $386,138 | $439,081 | | Gross profit | $265,733 | $307,177 | | Total operating expenses | $234,953 | $432,734 | | Operating income (loss) | $30,780 | $(125,557) | | Income (loss) before provision for income taxes | $27,411 | $(131,648) | | Net income (loss) | $21,119 | $(118,258) | | Diluted EPS | $0.43 | $(2.38) | **Consolidated Statements of Income (Unaudited) - Six Months:** | Metric (in thousands) | 6M 2025 | 6M 2024 | | :--- | :--- | :--- | | Revenue | $750,628 | $856,387 | | Gross profit | $512,694 | $601,241 | | Total operating expenses | $491,817 | $717,976 | | Operating income (loss) | $20,877 | $(116,735) | | Gain on sale of business | $176,162 | — | | Net income (loss) | $128,634 | $(118,791) | | Diluted EPS | $2.59 | $(2.39) | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets%20(Unaudited)) As of June 30, 2025, Nu Skin's cash and cash equivalents increased significantly to $264.2 million from $186.9 million at year-end 2024. Total assets slightly decreased, while total liabilities decreased more substantially, leading to an increase in total stockholders' equity. Long-term debt was also reduced **Consolidated Balance Sheets (Unaudited) - Key Figures (in thousands):** | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $264,159 | $186,883 | | Total current assets | $571,553 | $538,599 | | Total assets | $1,443,693 | $1,468,914 | | Total current liabilities | $283,906 | $296,607 | | Long-term debt | $213,900 | $363,613 | | Total liabilities | $655,939 | $817,459 | | Total stockholders' equity | $787,754 | $651,455 | - The company's cash and cash equivalents increased by approximately **$77.3 million** from year-end 2024 to June 30, 2025[23](index=23&type=chunk) - Total liabilities decreased by approximately **$161.5 million**, contributing to a significant increase in total stockholders' equity[23](index=23&type=chunk) Non-GAAP Reconciliations [Operating Margin Reconciliation](index=10&type=section&id=Reconciliation%20of%20Operating%20Margin%20Excluding%20Certain%20Charges%20to%20GAAP%20Operating%20Margin) The reconciliation shows that excluding restructuring and impairment expenses, the adjusted operating margin for Q2 2024 would have been 5.4%, significantly improving from the reported (28.6)%, and comparable to the 8.0% reported for Q2 2025. For the six months ended June 30, 2025, the adjusted operating margin was 7.2% **Operating Margin Reconciliation (Q2):** | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Operating Income (GAAP) | $30,780 | $(125,557) | | Impact of restructuring and impairment | — | $149,350 | | Adjusted operating income | $30,780 | $23,793 | | Operating margin (GAAP) | 8.0% | (28.6)% | | Operating margin, excluding certain charges | 8.0% | 5.4% | **Operating Margin Reconciliation (Six Months):** | Metric | 6M 2025 | 6M 2024 | | :--- | :--- | :--- | | Operating Income (GAAP) | $20,877 | $(116,735) | | Impact of other charges | $7,966 | — | | Impact of restructuring and impairment | $25,114 | $156,484 | | Adjusted operating income | $53,957 | $39,749 | | Operating margin (GAAP) | 2.8% | (13.6)% | | Operating margin, excluding certain charges | 7.2% | 4.6% | [Effective Tax Rate Reconciliation](index=11&type=section&id=Reconciliation%20of%20Effective%20Tax%20Rate%20Excluding%20Impact%20of%20Mavely%20Gain%20and%20Certain%20Charges%20to%20GAAP%20Effective%20Tax%20Rate) The effective tax rate for Q2 2025 was 23.0%. Excluding the impact of Mavely gain and certain charges, the effective tax rate for Q2 2024 would have been 41.4%, significantly higher than the reported 10.2%. For the six months ended June 30, 2025, the adjusted effective tax rate was 30.9% **Effective Tax Rate Reconciliation (Q2):** | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Provision (benefit) for income taxes (GAAP) | $6,292 | $(13,390) | | Impact of restructuring and impairment on provision for income taxes | — | $20,715 | | Provision for income taxes, excluding impact of Mavely gain and certain charges | $6,292 | $7,325 | | Effective tax rate (GAAP) | 23.0% | 10.2% | | Effective tax rate, excluding impact of Mavely gain and certain charges | 23.0% | 41.4% | **Effective Tax Rate Reconciliation (Six Months):** | Metric | 6M 2025 | 6M 2024 | | :--- | :--- | :--- | | Provision (benefit) for income taxes (GAAP) | $33,378 | $(11,756) | | Impact of other charges on provision for income taxes | $725 | — | | Impact of restructuring and impairment on provision for income taxes | $5,433 | $23,071 | | Impact of gain on Mavely sale on provision for income taxes | $(31,104) | — | | Impact of unrealized investment loss on provision for income taxes | $6,074 | — | | Provision for income taxes, excluding impact of Mavely gain and certain charges | $14,506 | $11,315 | | Effective tax rate (GAAP) | 20.6% | 9.0% | | Effective tax rate, excluding impact of Mavely gain and certain charges | 30.9% | 43.6% | [Earnings Per Share Reconciliation](index=12&type=section&id=Reconciliation%20of%20Earnings%20Per%20Share%20Excluding%20Impact%20of%20Mavely%20Gain%20and%20Certain%20Charges%20to%20GAAP%20Earnings%20Per%20Share) The reconciliation demonstrates that excluding the impact of restructuring, impairment, Mavely gain, and unrealized investment loss, the adjusted diluted EPS for Q2 2024 would have been $0.21, compared to the reported $0.43 for Q2 2025. For the full year 2025, the adjusted EPS guidance is $1.15 to $1.35 **Diluted EPS Reconciliation (Q2):** | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income (GAAP) | $21,119 | $(118,258) | | Impact of restructuring and impairment | — | $149,350 | | Tax impact of restructuring and impairment | — | $(20,715) | | Adjusted net income | $21,119 | $10,377 | | Diluted EPS (GAAP) | $0.43 | $(2.38) | | Diluted EPS, excluding impact of Mavely gain and certain charges | $0.43 | $0.21 | **Diluted EPS Reconciliation (Six Months):** | Metric | 6M 2025 | 6M 2024 | | :--- | :--- | :--- | | Net income (GAAP) | $128,634 | $(118,791) | | Impact of other charges | $7,966 | — | | Tax impact of other charges | $(725) | — | | Impact of restructuring and impairment | $25,114 | $156,484 | | Tax impact of restructuring and impairment | $(5,433) | $(23,071) | | Impact of gain on Mavely sale | $(176,162) | — | | Tax impact of gain on Mavely sale | $31,104 | — | | Impact of unrealized investment loss | $28,077 | — | | Tax impact of unrealized investment loss | $(6,074) | — | | Adjusted net income | $32,501 | $14,622 | | Diluted EPS (GAAP) | $2.59 | $(2.39) | | Diluted EPS, excluding impact of Mavely gain and certain charges | $0.65 | $0.29 | **Full Year 2025 Adjusted EPS Outlook:** | Metric | Low end | High end | | :--- | :--- | :--- | | Earnings Per Share (GAAP) | $3.05 | $3.25 | | Adjusted EPS (excluding Mavely gain and certain charges) | $1.15 | $1.35 | [Revenue Growth Rate Reconciliation](index=13&type=section&id=Reconciliation%20of%20Revenue%20Growth%20Rates%20Excluding%20Mavely%20to%20GAAP%20Revenue%20Growth%20Rates) The reconciliation provides revenue growth rates excluding Mavely 2024 revenue. For Q3 2025, the forecasted revenue growth rate is (13)% to (5)% excluding Mavely, compared to (16)% to (9)% including Mavely. For the full year 2025, the adjusted growth rate is (11)% to (7)%, compared to (15)% to (11)% including Mavely **Q3 2025 Revenue Growth Rate Reconciliation:** | Metric | Low end | High end | | :--- | :--- | :--- | | 2024 Revenue | $430,145 | $430,145 | | Less: Mavely 2024 Revenue | $18,391 | $18,391 | | Adjusted 2024 Revenue | $411,754 | $411,754 | | Revenue Growth Rate (GAAP) | (16)% | (9)% | | Revenue Growth Rate, excluding Mavely | (13)% | (5)% | | 2025 Forecasted Revenue | $360,000 | $390,000 | **Full Year 2025 Revenue Growth Rate Reconciliation:** | Metric | Low end | High end | | :--- | :--- | :--- | | 2024 Revenue | $1,732,084 | $1,732,084 | | Less: Mavely 2024 Revenue | $69,620 | $69,620 | | Adjusted 2024 Revenue | $1,662,464 | $1,662,464 | | Revenue Growth Rate (GAAP) | (15)% | (11)% | | Revenue Growth Rate, excluding Mavely | (11)% | (7)% | | 2025 Forecasted Revenue | $1,480,000 | $1,550,000 |

Q1 2025 Performance - Q1 2025 revenue reached $3645 million, a decrease of 127% year-over-year, with a 30% negative impact from foreign exchange[6] - Q1 2025 EPS was $214, or $023 excluding Mavely gain and other charges, compared to $(001) or $009 excluding restructuring charges in the previous year[6] - Customer count decreased by 11%, Paid Affiliates by 15%, and Sales Leaders by 20% year-over-year[6] Regional Performance (Q1 2025 Revenue) - Mainland China accounted for 13% of Q1 revenue[6] - Americas accounted for 8% of Q1 revenue[6] - South Korea accounted for 19% of Q1 revenue[6] - Southeast Asia/Pacific accounted for 9% of Q1 revenue[6] - Japan accounted for 9% of Q1 revenue[6] - Europe & Africa accounted for 14% of Q1 revenue[6] - Hong Kong/Taiwan accounted for 12% of Q1 revenue[6] - Rhyz accounted for 16% of Q1 revenue[6] Q2 2025 and Full Year 2025 Outlook - The company projects Q2 2025 revenue to be between $355 million and $390 million, representing a decline of 19% to 11%, or 17% to 9% excluding Mavely revenue, with an approximate 3-2% negative foreign exchange impact[25] - Q2 2025 EPS is projected to be $020 to $030[25] - Full year 2025 revenue is projected to be between $148 billion and $162 billion, a decrease of 15% to 6%, or 11% to 3% excluding Mavely, with an approximate 3% negative foreign exchange impact[25] - Full year 2025 EPS is projected to be $280 to $320, or $090 to $130 excluding Mavely gain and other charges[25]