Nature's Sunshine Reports Strong Third Quarter 2025 Results

Core Insights - Nature's Sunshine Products, Inc. reported a 12% increase in net sales to $128.3 million for Q3 2025, compared to $114.6 million in the same quarter last year [5][7] - Adjusted EBITDA rose by 42% to $15.2 million, up from $10.7 million in the previous year [7][13] - The company raised its full-year outlook for 2025, expecting net sales between $476 million and $480 million, and adjusted EBITDA between $47 million and $49 million [15] Financial Performance - Net sales increased by 12% year-over-year, with a constant currency increase of 10% [5][7] - Gross profit margin improved to 73.3%, up from 71.3% in the prior year, driven by cost-saving initiatives [6][7] - GAAP net income attributable to common shareholders was $5.3 million, or $0.30 per diluted share, compared to $4.3 million, or $0.23 per diluted share, in Q3 2024 [12][7] Segment Performance - Asia segment net sales increased by 17.1% to $64.7 million, with Japan and China both experiencing over 30% growth [5][4] - Europe saw a 12.7% increase in net sales, while North America grew by 7.7% [5] - Latin America and Other segment reported a decline of 13.1% [5] Management Commentary - The CFO highlighted the acceleration of business momentum and the success of strategic investments in North America Digital, which saw a 52% increase in digital sales year-over-year [4] - The new CEO expressed confidence in the company's fundamentals and strategy, aiming for continued growth and value creation [4] Cost Management - Selling, general and administrative expenses (SG&A) increased to $45.7 million, primarily due to timing of compensation costs and investments in digital marketing [9] - SG&A as a percentage of net sales slightly decreased to 35.6% from 35.7% in the previous year [9] Cash Flow and Balance Sheet - Net cash provided by operating activities for the nine months ended September 30, 2025, was $25.4 million, compared to $13.1 million in the prior year [14] - The company had cash and cash equivalents of $95.6 million and zero debt as of September 30, 2025 [14]