Natural Health Trends Reports Fourth Quarter and Full Year 2025 Financial Results

Core Insights - Natural Health Trends Corp. reported a 3% sequential increase in revenue for Q4 2025 despite a challenging macroeconomic environment, while full-year net sales decreased by 10% year over year [4][6][7] - The company has completed major restructuring initiatives aimed at achieving $1.5 million in annualized cost savings and has relocated 40% of its product sourcing to East Asia to mitigate tariff uncertainties [4][6] - The company declared a quarterly cash dividend of $0.10 per share, payable on February 27, 2026 [9] Fourth Quarter 2025 Financial Highlights - Revenue for Q4 2025 was $9.7 million, a 3% increase from $9.5 million in Q3 2025 but a 10% decline from $10.8 million in Q4 2024 [7] - Operating loss for Q4 2025 was $635,000, compared to losses of $495,000 in Q3 2025 and $421,000 in Q4 2024; excluding restructuring charges, the operating loss would have been $352,000 [7] - Net loss for Q4 2025 was $588,000, or $0.05 per diluted share, compared to a net loss of $431,000, or $0.04 per diluted share, in Q3 2025 and net income of $176,000, or $0.02 per diluted share, in Q4 2024 [7] Full Year 2025 Financial Highlights - Total revenue for 2025 was $39.8 million, down 7% from $43.0 million in 2024 [7] - The operating loss for the full year was $1.8 million, compared to a loss of $1.3 million in 2024 [7] - The net loss for 2025 was $882,000, or $0.08 per diluted share, compared to net income of $572,000, or $0.05 per diluted share, in 2024 [7] Balance Sheet and Cash Flow - As of December 31, 2025, total cash, cash equivalents, and marketable securities were $28.9 million, down from $32.0 million as of September 30, 2025 [8] - Net cash used in operating activities was $959,000 in Q4 2025, compared to net cash provided by operating activities of $88,000 in Q4 2024; total cash used in operating activities for 2025 was $6.0 million, up from $3.4 million in 2024 [8] - The company has fully paid the tax liability arising from the 2017 U.S. Tax Cuts and Jobs Act [8] Management Commentary - The President of Natural Health Trends Corp. highlighted the company's 25th Anniversary in 2026 as a significant milestone, with plans for a celebration in Hong Kong [4][5] - The company aims to leverage this anniversary to create renewed momentum in its business [5]