Core Insights - Nature's Sunshine Products reported record-setting fourth-quarter and full-year results, driven by strong digital business momentum and subscription program adoption [7][9] Sales Performance - Fourth-quarter sales increased 5% year-over-year to $123.8 million, marking the company's second-largest quarter and strongest fourth quarter ever [6][9] - Full-year net sales reached $480.1 million, representing a 6% increase from $454.4 million in 2024, slightly exceeding the high end of guidance [5][9] Regional Performance - Europe saw a significant sales increase of 18% to $25.2 million, with Eastern Europe growing by 23% in local currency [1] - Asia-Pacific sales declined by 1% to $55.7 million, with notable constant-currency growth of 35% in China and 21% in Japan [2] - North America experienced a 6% sales increase to $37.4 million, with digital business growing by 47% year-over-year [3] Profitability Metrics - GAAP net income for the fourth quarter was $4.1 million, compared to a loss of $0.3 million in the previous year [4][9] - Adjusted EBITDA for the fourth quarter was $11.9 million, up 16% from $10.3 million in the prior-year quarter [6][9] Margin and Expense Analysis - Gross margin improved by 55 basis points to 72.5%, attributed to logistics contract renegotiations and manufacturing efficiencies [10] - Selling, general, and administrative expenses rose to $48.4 million, reflecting higher digital ad spend and variable costs tied to increased sales [13] Cash Flow and Financial Position - The company ended the year with $93.9 million in cash and no debt, with inventory at $68.3 million [14] - Net cash provided by operating activities was $35.3 million, an increase from $25.3 million a year earlier [15] Future Outlook - For 2026, the company targets net sales of $500 million to $515 million and adjusted EBITDA of $50 million to $54 million, with planned investments in technology and market expansion [8][16] - CEO Ken Romanzi emphasized a growth vision aiming for $1 billion in sales, supported by a digital ecosystem strategy [17][18]