Nu Skin(NUS) - 2025 Q2 - Quarterly Report

Part I. Financial Information This section presents unaudited consolidated financial statements and management's analysis of financial performance Item 1. Financial Statements (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 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 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][84] Consolidated Statements of Comprehensive Income 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 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 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] Notes to Consolidated Financial Statements This section provides detailed explanations and additional information supporting the consolidated financial statements Note 1. The Company 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] - 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] Note 2. Summary of Significant Accounting Policies 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] - ASU 2023-09 (Income Taxes) is effective for annual periods beginning January 1, 2025, requiring disaggregated income tax disclosures[23] - ASU 2024-03 (Income Statement) is effective for fiscal years beginning after December 15, 2026, requiring specific cost and expense disaggregation disclosures[24] 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 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