NHT Global(NHTC) - 2025 Q2 - Quarterly Results

Report Overview Natural Health Trends Corp. announced Q2 2025 financial results, reporting sales decreases due to economic uncertainty and trade tensions, prompting supply chain realignment to Asia for resilience Introduction Natural Health Trends Corp. announced its financial results for the second quarter ended June 30, 2025, highlighting its position as a direct-selling and e-commerce company specializing in personal care, wellness, and 'quality of life' products under the NHT Global brand - Natural Health Trends Corp. (NASDAQ: NHTC) is a leading direct-selling and e-commerce company[2] - The company markets premium quality personal care, wellness, and 'quality of life' products under the NHT Global brand[2] - The report announces financial results for the quarter ended June 30, 2025[2] Management Commentary Management attributed the Q2 sales decrease to heightened economic uncertainty and evolving trade tensions, particularly impacting their largest market. To mitigate tariff-related risks and enhance long-term resilience, the company is realigning its supply chain by shifting production to manufacturing partners in Asia, closer to core markets - Second quarter sales decreased due to heightened economic uncertainty caused by evolving trade tensions, which are expected to continue impacting consumer sentiment in the largest market[5] - To mitigate tariff-related risks, the company is realigning its supply chain by transitioning production to trusted manufacturing partners in Asia[6] - The supply chain realignment aims to bring operations closer to core markets and enhance long-term resilience[6] Financial Highlights The company reported revenue declines, increased operating losses, and reduced net income for Q2 and year-to-date 2025, alongside increased cash usage from operations and a dividend declaration Second Quarter 2025 Highlights For the second quarter of 2025, Natural Health Trends Corp. reported a 6% decrease in revenue, an increased operating loss, and a significant drop in net income compared to the prior year, alongside a reduction in active members Second Quarter 2025 Financial Performance | Metric | Q2 2025 | Q2 2024 | Change (%) | | :----------------------- | :------ | :------ | :--------- | | Revenue | $9.8M | $10.5M | -6% | | Operating Loss | ($333K) | ($238K) | -39.9% | | Net Income | $15K | $173K | -91.3% | | Diluted EPS | $0.00 | $0.02 | -100% | - The number of Active Members decreased to 29,260 at June 30, 2025, from 31,110 at June 30, 2024[6] Year-to-Date 2025 Highlights For the first six months of 2025, the company experienced a 4% decline in revenue, an increased operating loss, and a substantial decrease in net income compared to the same period in 2024 Year-to-Date 2025 Financial Performance | Metric | YTD 2025 | YTD 2024 | Change (%) | | :----------------------- | :------- | :------- | :--------- | | Revenue | $20.6M | $21.4M | -4% | | Operating Loss | ($678K) | ($603K) | -12.4% | | Net Income | $137K | $361K | -62% | | Diluted EPS | $0.01 | $0.03 | -66.7% | Balance Sheet and Cash Flow Summary In the first six months of 2025, net cash used in operating activities increased significantly, and total cash, cash equivalents, and marketable securities decreased. The company fully settled its U.S. Tax Cuts and Jobs Act liability and declared a quarterly cash dividend of $0.20 per share Key Cash Flow and Balance Sheet Metrics | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | | Net cash used in operating activities | ($5.2M) | ($3.0M) | | Cash, cash equivalents & marketable securities (as of June 30, 2025) | $34.2M (down from $43.9M at Dec 31, 2024) | N/A | - The liability from the 2017 U.S. Tax Cuts and Jobs Act was fully settled during the second quarter of 2025[6][11] - A quarterly cash dividend of $0.20 per share was declared on July 28, 2025, payable on August 22, 2025, to stockholders of record as of August 12, 2025[6][11] Consolidated Financial Statements Consolidated financial statements reveal decreased assets and liabilities, declining net sales, increased operating losses, and higher cash usage from operations for the first half of 2025 Consolidated Balance Sheets The consolidated balance sheet shows a decrease in total assets and total liabilities from December 31, 2024, to June 30, 2025, primarily driven by reductions in cash, marketable securities, and income taxes payable Consolidated Balance Sheet Summary (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Total assets | $45,162 | $55,359 | | Total liabilities | $16,306 | $22,487 | | Total stockholders' equity | $28,856 | $32,872 | | Cash and cash equivalents | $10,534 | $13,533 | | Marketable securities | $23,711 | $30,407 | Consolidated Statements of Operations The consolidated statements of operations reflect a decline in net sales for both the three and six months ended June 30, 2025, leading to increased operating losses and significantly lower net income compared to the prior year periods Consolidated Statements of Operations Summary (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 sales | $9,813 | $10,475 | $20,550 | $21,426 | | Gross profit | $7,255 | $7,776 | $15,160 | $15,815 | | Total operating expenses | $7,588 | $8,014 | $15,838 | $16,418 | | Loss from operations | ($333) | ($238) | ($678) | ($603) | | Net income | $15 | $173 | $137 | $361 | Consolidated Statements of Cash Flows For the first six months of 2025, the company reported increased net cash used in operating activities, a shift to net cash provided by investing activities due to marketable securities maturities, and consistent cash used in financing activities for dividends Consolidated Statements of Cash Flows Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | ($5,151) | ($3,019) | | Net cash provided by (used in) investing activities | $6,643 | ($32,887) | | Net cash used in financing activities | ($4,606) | ($4,606) | | Net decrease in cash, cash equivalents and restricted cash | ($2,996) | ($40,604) | | Cash, cash equivalents and restricted cash, end of period | $10,571 | $15,613 | Company and Investor Information This section provides an overview of Natural Health Trends Corp., details for the Q2 2025 earnings call, a forward-looking statements disclaimer, and investor contact information About Natural Health Trends Corp. Natural Health Trends Corp. is an international direct-selling and e-commerce company that operates globally through its subsidiaries, marketing premium personal care products under the NHT Global brand - Natural Health Trends Corp. (NASDAQ: NHTC) is an international direct-selling and e-commerce company[9] - The company operates through subsidiaries across Asia, the Americas, and Europe[9] - It markets premium quality personal care products under the NHT Global brand[9] Second Quarter 2025 Financial Results Conference Call Management hosted a conference call on July 30, 2025, to discuss the second quarter 2025 financial results, with details provided for live participation and replay access Conference Call Details | Item | Detail | | :------------ | :------------------------------------------------ | | Date | Wednesday, July 30, 2025 | | Time | 11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time | | Domestic Dial-in | 1-877-407-0789 | | International Dial-in | 1-201-689-8562 | | Conference ID | 13754794 | | Webcast | https://viavid.webcasts.com/starthere.jsp?ei=1726889&tp_key=778e0e5b56 | | Replay Availability | July 30, 2025 (2:30 p.m. ET) - August 13, 2025 (11:59 p.m. ET) | Forward-Looking Statements This section includes a standard safe harbor statement, indicating that forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties detailed in the company's SEC filings, with no obligation to update such information - Forward-looking statements in the press release do not constitute guarantees of future performance[10] - Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated[10] - Risks and uncertainties are detailed under 'Risk Factors' in the company's Annual Report on Form 10-K filed with the SEC[10] Contact Information Investor relations inquiries can be directed to Scott Davidson, Senior Vice President and Chief Financial Officer of Natural Health Trends Corp - Contact for investor relations: Scott Davidson, Senior Vice President and Chief Financial Officer[12] - Contact details: Tel (U.S.): 310-541-0888, Email: investor.relations@nhtglobal.com[12]