Mannatech(US:MTEX)2025-11-12 21:05Financial Performance - Net sales for Q3 2025 were $29.2 million, a decrease of $2.6 million or 8.1% compared to $31.7 million in Q3 2024[6] - Gross profit as a percentage of net sales increased to 76.4% in Q3 2025 from 74.5% in Q3 2024, driven by higher sales prices and lower inventory reserve additions[6] - Income from operations was $2.0 million in Q3 2025, compared to $0.9 million in Q3 2024[6] - Net income for Q3 2025 was $1.9 million, or $1.01 per diluted share, compared to a net loss of $0.3 million, or $0.17 per diluted share in Q3 2024[6] - For the three-month period ended September 30, 2025, net sales were $29.2 million, reflecting a decrease of 7.3% compared to $31.7 million in the same period of 2024[17] - Gross profit for the same period was $22.3 million, down 5.1% from $23.6 million year-over-year[17] - For the nine-month period ended September 30, 2025, net sales totaled $81.4 million, representing a 6.5% decline from $88.9 million in the same period of 2024[17] - Gross profit for the nine-month period was $60.9 million, down 8.5% from $68.1 million year-over-year[17] - The loss from operations for the nine-month period was $(0.3) million, a 66.7% improvement compared to a loss of $0.6 million in the prior year[17] Expenses - Commission expenses decreased by 10.7% to $10.9 million in Q3 2025, representing 37.5% of net sales, down from 38.3% in Q3 2024[6] - Selling and administrative expenses decreased by 7.8% to $9.1 million in Q3 2025, with a slight increase in percentage of net sales to 31.1%[6] Cash and Assets - Cash and cash equivalents decreased by 37.3% to $7.1 million as of September 30, 2025, down from $11.4 million at the end of 2024[6] - Total assets decreased to $33.9 million as of September 30, 2025, from $36.1 million at the end of 2024[12] - Total liabilities decreased slightly to $27.0 million as of September 30, 2025, compared to $27.4 million at the end of 2024[12] Associate and Customer Metrics - The number of independent associates and preferred customers decreased to approximately 119,000 from 136,000 in the same period of 2024, with a 21.9% decline in recruiting[6] Non-GAAP Financial Measures - The company utilizes Constant dollar measures to provide a clearer view of financial performance by excluding currency translation impacts[16] - Constant dollar net sales for Q3 2025 were $29.4 million, adjusted from GAAP results of $29.2 million[17] - Constant dollar gross profit for Q3 2025 was $22.4 million, adjusted from GAAP results of $22.3 million[17] - The company believes that these non-GAAP financial measures offer investors additional insights into operational trends[16]