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]

Financial Data and Key Metrics Changes - The company reported a decline in sales and brand partner productivity leading up to the global convention in August, but recent activity has shown improvement [4][7] - Year-to-date sales growth for the direct-to-consumer business, HYA, is at 26%, indicating a positive trajectory despite challenges in the third quarter [10] - RiseBAR reported record third-quarter net sales with year-to-date net sales increasing by 169% [12] Business Line Data and Key Metrics Changes - The enhanced compensation plan has led to increased engagement and excitement among brand partners, contributing to improved sales activity and leader productivity [5][7] - The company has seen an increase in inventories due to new product introductions and investments in inventory locations to support tariff mitigation [8] - HYA has faced challenges in top-line growth but is expected to bounce back as operational efficiencies are realized [10][29] Market Data and Key Metrics Changes - The Americas and Europe regions performed relatively better than other regions, attributed to the maturity of these markets and the impact of the RiseBAR performance [25][26] - The children's vitamin market, where HYA operates, is competitive, but HYA has been gaining market share through its direct-to-consumer model [42] Company Strategy and Development Direction - The company is focused on a comprehensive commercial strategy that includes an enhanced compensation plan, product innovation, and improved tools for brand partners [5][6] - There is a commitment to diversification, with plans to explore mergers and acquisitions to strengthen the portfolio [46][47] - A global cost reduction process has been initiated, including workforce rightsizing, to support a more agile organization [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the direct selling business and the diversification strategy with HYA and RiseBAR [13][14] - The company is optimistic about the future, citing renewed excitement among brand partners and positive early indicators from the new compensation plan [4][7] Other Important Information - The company anticipates a one-time charge of $4.7 million in the fourth quarter related to the global cost reduction process [13] - The management is focused on ensuring that the new compensation plan is well understood and embraced by brand partners globally [27] Q&A Session Summary Question: Can you walk us through the trajectory of your business trends from July through October? - Management noted promising trends from the new compensation plan launched in July, with increased engagement and excitement observed in September and early October [17][19] Question: Why did the Americas and Europe region perform better? - The performance was influenced by the global convention and the contribution from RiseBAR, which is a smaller percentage of overall sales [25][26] Question: What incentives are planned for the fourth quarter? - The company plans to provide strategic incentives for brand partners, which are expected to carry over into Q1 of the following year [27] Question: What are the reasons for the decline in active customer count for HYA? - Management indicated that the decline was due to changes in marketing algorithms on platforms like Meta, but they expect a rebound as they adapt [28][29] Question: How will the rightsizing of the organization impact annualized operating cost savings? - Management stated that they are still early in the process and will provide more details on cost savings in February [30][31] Question: Are there opportunities for further acquisitions in the DTC space? - The company is committed to diversification and will explore opportunities for mergers and acquisitions to strengthen its portfolio [46][47]

Financial Data and Key Metrics Changes - The company reported a decline in sales and brand partner productivity leading up to the global convention in August, but recent activity has shown improvement [4][6] - An increase in inventories was noted, attributed to new product introductions and investments in inventory locations for tariff mitigation [8] - The company expects to incur a one-time charge of $4.7 million in the fourth quarter due to a global cost reduction process [12] Business Line Data and Key Metrics Changes - Hiya Health experienced a 26% year-to-date sales growth despite challenges in the third quarter, with significant progress in integration initiatives [9] - RiseBar reported record third quarter net sales, with year-to-date net sales increasing by 169% [10][11] - The company is investing additional resources in Hiya Health and RiseBar to capitalize on current momentum and drive long-term growth [11] Market Data and Key Metrics Changes - The Americas and Europe regions performed relatively better than other regions, partly due to the maturity of these markets and the impact of the RiseBar performance [21] - The direct selling business has struggled over the past few years, but recent changes in compensation plans are expected to improve engagement and sales [31] Company Strategy and Development Direction - The company is focused on a comprehensive commercial strategy that includes an enhanced compensation plan, product innovation, and improved tools for brand partners [4][5] - Diversification remains a key strategy, with ongoing investments in Hiya Health and RiseBar, as well as potential M&A opportunities [35][36] - The company aims to create lasting value across its portfolio while adapting to a competitive landscape [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the direct selling business and the diversification strategy [12] - The company is optimistic about the future, particularly with the growth of Hiya Health in the children's health market and RiseBar in the healthy foods market [12] - Management acknowledged the challenges in the direct selling industry but believes recent changes will position the company for future success [31] Other Important Information - The company has initiated a global cost reduction process, including a right-sizing of the workforce, to prioritize strategic initiatives and improve efficiency [11][12] - Management highlighted the importance of simplicity and early success in the new compensation plan to attract younger demographics [5][6] Q&A Session Summary Question: Can you walk us through the trajectory of your business trends from July through October? - Management noted promising trends from the new compensation plan launched in July, with increased engagement and excitement observed in September and early October [17][19] Question: Can you discuss the incentives planned for the fourth quarter? - The company plans to provide strategic incentives for brand partners in the fourth quarter, which may carry over into early 2026 [22] Question: What are the reasons for the decline in active customer count for Hiya Health? - Management expressed confidence in Hiya Health's growth despite recent slowdowns, attributing challenges to changes in marketing algorithms [23] Question: How should we think about the level of annualized operating cost savings from the right-sizing process? - Management indicated that it is early in the process and will provide more details on cost savings in February [24] Question: Are you seeing any slowdown in consumer purchases related to VMS or wellness? - The company acknowledged struggles in the direct selling business but believes recent offerings will help improve performance [31] Question: Is there an opportunity to acquire more DTC businesses? - Management confirmed that diversification and potential M&A opportunities are part of the future strategy [35]

LifeVantage Conference Call Summary Company Overview - **Company Name**: LifeVantage (NasdaqCM: LFVN) - **Industry**: Direct Selling, Nutraceuticals - **Headquarters**: Near Salt Lake City, Utah - **Years in Business**: 16 years - **Active Customers and Consultants**: Approximately 132,000 globally - **Geographic Presence**: Products sold in about 20 countries, with 80% of revenue from North America [2][4] Financial Performance - **Fiscal Year Ended June 30**: - Revenue: $229 million, up 14% year-over-year [3] - EBITDA: Just under $10 million [3] - **Revenue Model**: 70% of revenue is subscription-based, with a 30-day consumption model for products [2][11] - **Balance Sheet**: - Cash: Approximately $20 million - No debt - Working capital: $24 million [15] Product Portfolio - **Core Products**: - Protandim Nrf2: Flagship product, accounts for 50% of revenue, clinically proven to reduce oxidative stress by 40% in 30 days [6] - TrueScience Liquid Collagen: Increases collagen production by 100% [7] - MindBody GLP-1 System: Natural alternative to synthetic drugs, proven to increase GLP-1 production by over 200% [9] - P84 (from LoveBiome acquisition): Focused on gut microbiome [11] - **Market Potential**: - GLP-1 market projected to grow from $19 billion to $88 billion [10] - Gut health market projected to reach $32 billion [11] Strategic Initiatives - **Acquisition**: Acquired LoveBiome to enhance product offerings and geographic reach [5][11] - **Compensation Plan**: Modernized to attract both traditional business builders and micro-influencers, allowing earnings of up to 40% on product sales [12] - **E-commerce Development**: Partnership with Shopify to enhance customer experience [13][17] Growth Opportunities - **Geographic Expansion**: Underrepresented in Europe and Asia, presenting significant growth opportunities [4][20] - **Product Innovation**: Continuous investment in product development and operational efficiencies [14][17] - **Subscription Model**: Provides consistent revenue stream, reducing volatility [20] Shareholder Returns - **Stock Buyback Program**: $60 million plan, with $17 million remaining for future repurchases [18] - **Dividends**: Regular increases in dividend payouts since introduction [19] Market Positioning - **Health Conscious Consumer Base**: Products cater to a growing trend of proactive health management [19][20] - **Competitive Advantage**: Strong foundation with patented, science-backed products supported by clinical studies [22] Conclusion - LifeVantage is positioned for sustained growth through strategic acquisitions, product innovation, and a strong subscription model, while also focusing on expanding its international presence and enhancing its compensation plan to attract new sales representatives [20][22]