Core Insights - The World Federation of Direct Selling Associations (WFDSA) reports a global direct selling industry retail sales of approximately $164 billion, reflecting a growth of $675 million compared to pre-pandemic levels, with 45% of markets showing increases [1][2] - The number of independent representatives in the industry has slightly increased to 104.3 million, with 72.1% being women [1][5] - The U.S. remains the largest market, while significant growth is observed in Brazil, India, and China [2][3] Market Performance - The Asia-Pacific region holds the largest market share, driven by emerging markets like Malaysia, while the Americas experienced the most growth in 2024 [2] - The number of "billion-dollar markets" remains stable at 21, accounting for 92% of global sales [5] - Key sectors within the industry include wellness products, cosmetics, personal care, and household goods [5] Industry Dynamics - Direct selling is characterized by low start-up costs, strong community support, and high-quality products, making it an attractive option for entrepreneurs, particularly women [3] - The STATS report provides insights from 55 markets and anticipates potential factors affecting the industry in 2025, such as tariffs, global trade, technology, and rising interest in entrepreneurship [4]

Core Insights - NU Skin Enterprises Inc. (NUS) reported Q3 2025 revenue of $364.2 million, adjusted net income of $17.1 million, and adjusted EPS of $0.34, which were below revenue estimates but above EPS estimates [1][7] - The company achieved a gross margin of 70.5% and reduced selling expenses to 35.8% company-wide, indicating effective cost management [1][7] - Management noted double-digit growth in Latin America and improvements across several segments, attributing EPS performance to execution and efficiency despite a challenging macro environment [1][7] Financial Performance - Revenue: $364.2 million, compared to estimates of $374.2 million [1][7] - Adjusted Net Income: $17.1 million, exceeding estimates of $14.7 million [1][7] - Adjusted EPS: $0.34, higher than the estimated $0.30 [1][7] - Gross Margin: 70.5% [1][7] - Selling Expense: 35.8% company-wide, 41.7% within the core business [1][7] Strategic Initiatives - Management remains focused on strategic initiatives despite weaker than expected top-line results [1][7] - Rhyz segment generated $51.6 million in revenue, with $47.6 million from Manufacturing and $4.0 million from Rhyz Other [1][7] - Upcoming product launches include Prysm iO limited preview in late Q4 2025 and pre-market activities in India ahead of a 2026 launch [7] Cash Position and Guidance - Cash reserves stood at $251.7 million [7] - Management has narrowed Q4 and full-year 2025 guidance with a continued focus on maintaining margins [7]

Core Insights - Natural Health Trends Corp. reported a net loss of $431,000 for Q3 2025, compared to a net income of $35,000 in Q3 2024, indicating a significant decline in profitability [7][15] - Revenue for Q3 2025 was $9.5 million, down 11% from $10.7 million in Q3 2024, attributed to the timing of product promotions and a presale of a new skincare line [7][15] - The company is undergoing a major restructuring expected to yield annualized savings of $1.5 million, with a one-time charge of approximately $250,000 anticipated in Q4 2025 [4][5] Financial Highlights - Orders decreased by 5% year-over-year but increased by 5% sequentially [6] - Active Members decreased to 28,030 as of September 30, 2025, down from 30,880 a year earlier [7] - The company declared a quarterly cash dividend of $0.20 per share, payable on November 28, 2025 [8] Year-to-Date Performance - Year-to-date revenue was $30.0 million, a decrease of 7% compared to $32.1 million in the first nine months of 2024 [7] - Operating loss for the first nine months of 2025 was $1.2 million, compared to a loss of $878,000 in the same period of 2024 [7] - Net cash used in operating activities was $5.0 million in the first nine months of 2025, compared to $3.5 million in the same period of 2024 [8] Balance Sheet Overview - Total cash, cash equivalents, and marketable securities were $32.0 million as of September 30, 2025, down from $43.9 million at the end of 2024 [8] - Total assets decreased to $42.3 million from $55.4 million at the end of 2024 [13][14] - Total liabilities were $16.1 million, down from $22.5 million at the end of 2024 [14] Management Commentary - The President of Natural Health Trends Corp. highlighted the challenging economic outlook in their largest market and emphasized the need for restructuring to align costs with global sales performance [4][5] - The company plans to invest in new systems and technologies, including an AI-enabled marketing app, to drive member growth and engagement [5]

Core Insights - Herbalife Ltd. has been awarded the Direct Selling Association's 2025 Vision for Tomorrow Award for its Casa Herbalife Program, highlighting the company's commitment to community empowerment through nutrition-driven wellness initiatives [1] Company Initiatives - The Casa Herbalife Program is a signature initiative of the Herbalife Family Foundation, aimed at providing nutrition-driven wellness programs to communities globally [1]

Core Viewpoint - Natural Health Trends Corp. will report its third quarter financial results on November 5, 2025, at 9:00 a.m. Eastern Time, followed by a conference call at 11:30 a.m. Eastern Time to discuss the results [1]. Company Overview - Natural Health Trends Corp. is a leading international direct-selling and e-commerce company that markets premium quality personal care, wellness, and "quality of life" products under the NHT Global brand [3]. - The company operates through subsidiaries across Asia, the Americas, and Europe [3]. Conference Call Details - The conference call to discuss the third quarter 2025 financial results is scheduled for November 5, 2025, at 11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time [2]. - Dial-in number for the conference call is 1-800-330-6730, with participant ID 236986 [2]. - A replay of the call will be available on the Company's Investor Relations website for those unable to participate live [2].

Financial Data and Key Metrics Changes - Revenue grew by 1.4% year over year, while EBITDA increased by 22%, with the margin expanding by 362 basis points to 21.4% [4][19] - Free cash flow conversion remained strong at 77% of EBITDA, reflecting financial discipline and a healthy balance sheet [4] - Adjusted net income increased by 71% compared to the third quarter of 2024, driven by higher operating profits and lower net interest expenses [20] - Free cash flow increased by 32.6% year over year, with an expected annual rate of 60% free cash flow to EBITDA by year-end [21] Business Line Data and Key Metrics Changes - Betterware Mexico's sales decreased by 5.3% year over year due to softer demand, but profitability remained solid [6][7] - Jafra Mexico's revenue increased by 8% year over year, with EBITDA growing by 31% and a margin of 24% [10] - Jafra US showed sequential improvement, with stable revenue and a strong month in September, achieving 30% year-over-year growth [12][13] Market Data and Key Metrics Changes - The Mexican consumer market has shown volatility, with consumption growth decreasing after a brief recovery in the second quarter [41][42] - The Andean and Central American direct selling markets are estimated to be worth $4.5 billion, presenting significant growth opportunities for the company [15] Company Strategy and Development Direction - The company has defined five strategic pillars to guide growth and transformation, focusing on strengthening leadership in the Mexican market, regional expansion, new brands and categories, activating digital selling, and maintaining financial strength [5][17] - The company plans to expand Betterware into Colombia in early 2026, leveraging its successful business model [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the external environment remains challenging, particularly in Mexico and the U.S., but the business model has proven resilient [24] - The company aims to maintain strong profitability and cash flow while pursuing growth and market share even in tough conditions [42] Other Important Information - The company has reduced total debt from 6,700 million pesos to 5,200 million pesos, with a net debt to EBITDA ratio falling from 3.1 times to 1.8 times [23][24] - A dividend of $200 million was proposed and approved, marking the 23rd consecutive quarter of dividend payments since going public [22] Q&A Session Summary Question: Inventory reduction and free cash flow - The company aims to reduce inventory to around 2,100 to 2,200 million pesos by year-end, down from 2,500 million pesos at the start of the year [31][32] Question: Impact of stronger peso on margins - The company is benefiting from a strong peso and lower freight costs, allowing for more aggressive pricing to drive demand while protecting profitability [34] Question: Jafra's expansion strategy - The company is expanding Jafra directly, with 100% ownership and hiring experienced management for new regions [36] Question: Consumer behavior in Mexico - The Mexican consumer has been sluggish, with volatile spending patterns, but the company believes this may be temporary [41][42] Question: Sustainability of EBITDA margins - The company does not expect to sustain the unusually high gross margin seen in Jafra Mexico but plans to reinvest for growth [44] Question: Technology transformation opportunities - The company is investing in technology advancements, including generative AI and digital selling platforms, to enhance efficiency and adapt to market trends [46][47]

Financial Data and Key Metrics Changes - Revenue grew 1.4% year-over-year, while EBITDA increased by 22%, with the margin expanding by 362 basis points to 21.4% [4][19] - Free cash flow conversion remained strong at 77% of EBITDA, reflecting financial discipline and a healthy balance sheet [4] - Adjusted net income increased by 71% compared to Q3 2024, driven by higher operating profits and lower net interest expenses [20] - Free cash flow increased by 32.6% year-over-year, expected to reach an annual rate of 60% free cash flow to EBITDA by year-end [21] Business Line Data and Key Metrics Changes - Betterware Mexico's sales decreased by 5.3% year-over-year due to softer demand, but profitability remained solid [6][7] - Jafra Mexico's revenue increased by 8% year-over-year, with EBITDA growing by 31% and a margin of 24% [10] - Jafra US showed sequential improvement, with stable revenue and a strong month in September, achieving 30% year-over-year growth [12][13] Market Data and Key Metrics Changes - The Mexican consumer market has shown volatility, with consumption growth lessening and trends declining [41][42] - The Andean and Central American direct selling markets are estimated to be MXN 4.5 billion in total size, presenting significant growth opportunities [15] Company Strategy and Development Direction - The company has defined five strategic pillars for growth: strengthening leadership in the Mexican market, regional expansion, new brands and categories, activating digital person-to-person selling, and maintaining financial strength [5][17][18] - The focus is on optimizing pricing, reducing inventories, and refreshing product catalogs to strengthen commercial fundamentals [7][8] - Plans to launch Betterware in Colombia in early 2026 to strengthen presence in Latin America [15] Management's Comments on Operating Environment and Future Outlook - The external environment remains challenging, but the company is confident in its business model's resilience and profitability [25] - Management aims to maintain strong profitability and cash flow while pursuing growth and market share [42] - The company is investing in technology advancements, including generative AI, to enhance operational efficiency [46] Other Important Information - The company has reduced total debt from MXN 6,700 million to MXN 5,200 million, with a net debt to EBITDA ratio falling from 3.1 times to 1.8 times [23][24] - A dividend of MXN 200 million was proposed, marking the 23rd consecutive quarter of dividend payments since going public [22] Q&A Session Summary Question: Inventory reduction and free cash flow - Management aims to reduce inventory to around MXN 2,100 million by year-end, down from MXN 2,500 million at the start of the year [32][33] Question: Impact of stronger peso on margins - The company is benefiting from a strong peso and lower freight costs, allowing for more aggressive pricing to drive demand [35] Question: Jafra's expansion strategy - Jafra is focusing on direct ownership for expansion, hiring experienced management for new regions [37] Question: Insights on the Mexican consumer - The Mexican consumer has been sluggish, with volatile spending patterns, but the company remains focused on profitability and market share [41][42] Question: Sustainability of EBITDA margins - The strong gross margin in Jafra Mexico is not expected to be fully sustainable, but reinvestment will continue to drive growth [44] Question: Technology transformation opportunities - The company is investing in technology, particularly in AI and digital selling platforms, to enhance efficiency and adapt to market trends [46]

Financial Data and Key Metrics Changes - Revenue grew by 1.4% year over year, indicating resilience despite a softer consumer environment [4][21] - EBITDA increased by 22%, with the margin expanding by 362 basis points to 21.4% [4][21] - Free cash flow conversion remained strong at 77% of EBITDA, reflecting financial discipline [4] - Adjusted net income rose by 71% compared to Q3 2024, driven by higher operating profit and lower net interest expenses [22] - Free cash flow increased by 32.6% year over year, expected to reach an annual rate of 60% free cash flow to EBITDA by year-end [23] Business Line Data and Key Metrics Changes - Betterware Mexico's sales decreased by 5.3% year over year due to softer demand for discretionary items [7] - Jafra Mexico's revenue increased by 8% year over year, with EBITDA growing by 31% and a margin of 24% [10] - Jafra U.S. showed stability with a strong month in September, achieving 30% year over year growth in revenue [14] - New operations in Ecuador and Guatemala exceeded expectations, with sales growth of 32% year over year in Guatemala [16] Market Data and Key Metrics Changes - The Mexican market remains challenging, with consumption trends fluctuating and a sluggish consumer environment [46] - The Andean and Central American direct selling markets are estimated to be worth $4.5 billion, presenting significant growth opportunities [17] Company Strategy and Development Direction - The company has defined five strategic pillars to guide growth and transformation, focusing on market leadership, regional expansion, new brands and categories, digital selling, and financial discipline [6][19] - Plans to launch Betterware in Colombia in 2026 to strengthen presence in Latin America [17] - The company aims to replicate its successful business model across U.S. and Latin American markets [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging external environment but emphasizes the resilience and viability of the business model [26] - The company remains focused on maintaining strong profitability and cash flow while pursuing growth opportunities [47] - Management expresses confidence in the long-term growth potential despite current market volatility [46] Other Important Information - The company has reduced total debt from MXN 5,200 million in 2022 to MXN 2,000 million in 2025, with a net debt to EBITDA ratio decreasing from 3.1x to 1.8x [25] - A dividend of MXN 200 million was proposed, marking the 23rd consecutive quarter of dividend payments since going public [23][24] Q&A Session Summary Question: Inventory reduction and future targets - Management aims to reduce inventory to around MXN 2,100 million by year-end, down from MXN 2,500 million at the start of the year [34][35] Question: Impact of stronger peso on margins - The company benefits from a stronger peso and lower freight costs, allowing for more aggressive pricing strategies to drive demand [38] Question: Jafra's expansion strategy - Jafra is focusing on direct ownership for expansion, hiring experienced management for new regions [40][41] Question: Insights on the Mexican consumer - The Mexican consumer has shown volatility, with management maintaining a focus on profitability and market share during uncertain times [46][47] Question: Sustainability of EBITDA margins - Current high margins in Jafra Mexico are not expected to be sustained, with plans to reinvest in growth [50] Question: Technology transformation opportunities - The company is investing in technology advancements, particularly in generative AI and digital selling platforms [53]

Financial Data and Key Metrics Changes - Revenue grew 1.4% year over year, while EBITDA increased by 22%, with the margin expanding by 362 basis points to 21.4% [4][19] - Free cash flow conversion remained strong at 77% of EBITDA, reflecting financial discipline and a healthy balance sheet [4] - Adjusted net income increased by 71% compared to the third quarter of 2024, driven by higher operating profits and lower net interest expenses [20] - Free cash flow increased by 32.6% year over year, with an expected annual rate of 60% free cash flow to EBITDA by year-end [21] Business Line Data and Key Metrics Changes - Betterware Mexico's sales decreased by 5.3% year over year due to softer demand, but profitability remained solid [6] - Jafra Mexico's revenue increased by 8% year over year, with EBITDA growing by 31% and a margin of 24% [10] - Jafra US showed sequential improvement, with a stable revenue performance and a strong month in September, achieving 30% year-over-year growth [12] Market Data and Key Metrics Changes - The Mexican consumer market has shown volatility, with consumption growth lessening and trends declining [40] - The Andean and Central American direct selling markets are estimated to be $4.5 billion in total size, presenting significant growth opportunities [15] Company Strategy and Development Direction - The company has defined five strategic pillars to guide growth and transformation, focusing on strengthening leadership in the Mexican market, regional expansion, new brands and categories, activating digital selling, and maintaining financial strength [5][17] - The company plans to launch Betterware in Colombia in early 2026, aiming to strengthen its presence in Latin America [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging external environment in Mexico and the U.S. but emphasized the resilience and viability of the business model [24] - The company aims to maintain strong profitability and cash flow while pursuing growth and market share even in tough times [41] Other Important Information - The company has reduced total debt from 6,700 million pesos to 5,200 million pesos, with a net debt to EBITDA ratio falling from 3.1 times to 1.8 times [23][24] - A dividend of $200 million was proposed and approved, marking the 23rd consecutive quarter of dividend payments since going public [21] Q&A Session Summary Question: Inventory reduction and free cash flow - Management projected inventory to close 2025 at around 2,100 to 2,200 million pesos, down from 2,500 million pesos at the start of the year [30][31] Question: Impact of stronger peso on margins - The company is benefiting from a strong peso and lower freight costs, allowing for more aggressive pricing to drive demand while protecting profitability [33] Question: Jafra's expansion strategy - Jafra is focusing on direct ownership for expansion, hiring experienced management on-site to manage growth in new regions [35] Question: Mexican consumer behavior - The Mexican consumer has been sluggish, with volatile spending patterns, but management believes this may be temporary [40] Question: Sustainability of EBITDA margins - The strong gross margin in Jafra Mexico is not expected to be fully sustainable, but reinvestment will continue to drive growth [43] Question: Technology transformation opportunities - The company is investing in technology advancements, including generative AI and digital selling platforms, to enhance efficiency and adapt to market trends [45]

Financial Performance Highlights - BeFra's net revenue increased by 1.4% in 3Q25[4], and by 1.1% for the first 9 months of 2025[81] - Gross margin improved by 158 bps to 68.5% in 3Q25[4] - EBITDA increased by 22.1% in 3Q25, resulting in an EBITDA margin of 21.4%, a 362 bps increase[4] - Free Cash Flow (FCF) reached $553 million, with a 77% FCF-to-EBITDA conversion rate[4] - Net debt-to-EBITDA ratio decreased from 1.97x to 1.80x quarter-over-quarter[8] - Net income increased by 71.2% year-over-year in 3Q25[88], reaching 314 million Mxn[89] Regional Performance - Mexico's revenue decreased by 5.3% in 3Q25 to 1,388 million Mxn[21], and by 5.5% for the first 9 months of 2025 to 4,249 million Mxn[21], but EBITDA increased by 11.7% to 313 million Mxn[22] - Betterware Mexico's revenue increased by 7.9% in 3Q25 to 1,752 million Mxn[32], and by 6.4% for the first 9 months of 2025 to 5,476 million Mxn[32], with EBITDA increasing by 31.3% to 418 million Mxn[33] - Jafra US experienced a 4.7% decrease in revenue for the first 9 months of 2025, totaling $36.6 million[47], with an EBITDA loss of $1.3 million[48] - Betterware Ecuador is exceeding internal projections, with month-over-month growth of 21%[7, 59] Strategic Initiatives - The company is focused on strengthening its leadership in Mexico and expanding its brands to gain market share[11, 42] - Regional expansion continues in the USA with the Jafra brand and in Latin America with the Betterware brand[11, 44] - The company is exploring new categories in Mexico and beyond, and evolving its business model towards a digital P2P solution[12, 45] - Maintaining financial discipline and control to demonstrate resilience and pursue opportunistic strategies is a key focus[12, 45]