Core Insights - The company faced challenges in Q2 2026, with significant revenue and earnings declines compared to the previous year, primarily due to increased competition in the GLP-1 market following the launch of the MINDBODY system [1][4][13] - Despite these challenges, the company is optimistic about long-term growth, particularly through the integration of the LoveBiome acquisition and the launch of new products [6][10][11] Financial Performance - Q2 2026 net revenue was $48.9 million, down 27.8% from $67.8 million in Q2 2025, but up 2.9% sequentially from Q1 2026 [13][14] - Sales of the MINDBODY GLP-1 system decreased by $16.2 million compared to the prior year, while the LoveBiome product line contributed $4.1 million in revenue [13][14] - Gross profit percentage for Q2 was 74%, down from 80.5% in the prior year, primarily due to a one-time inventory reserve related to MINDBODY [15][18] Market Dynamics - The competitive landscape for GLP-1 products has shifted, with pharmaceutical options becoming more accessible and affordable, impacting the sales of the MINDBODY system [5][6] - The company is recognizing a reserve against a portion of its GLP-1 inventory to respond to these changing dynamics [6][18] Product Development and Launches - The integration of LoveBiome has led to operational synergies and the launch of new products, including Axila X and Phytopower B, which are expected to drive engagement and diversify the product portfolio [7][8][10] - The company is also focusing on the HealthyEdge stack, which combines Protandim NRS-2 with P84, as a key enrollment product for consultants [9][40] Strategic Initiatives - The company is modernizing its technology infrastructure through a partnership with Shopify, aiming to enhance e-commerce capabilities and improve customer experience [9][46][47] - A new $60 million share repurchase program has been authorized, reflecting the company's commitment to returning capital to shareholders [11][20] Future Outlook - The company expects revenue for fiscal 2026 to be in the range of $185 million to $200 million, with adjusted EBITDA of $15 million to $19 million [20][21] - The anticipated growth is supported by the positive momentum from the LoveBiome integration and upcoming product launches [21][54]

Financial Data and Key Metrics Changes - For Q2 of fiscal 2026, net revenue was $48.9 million, down 27.8% from $67.8 million in Q2 of fiscal 2025, but up 2.9% sequentially from Q1 [14] - The decline was primarily driven by a $16.2 million decrease in sales of the MindBody GLP-1 System, partially offset by $4.1 million in revenue from the LoveBiome product line [14] - Gross profit percentage decreased to 74% from 80.5% in the prior year, reflecting a one-time inventory obsolescence allowance [15] - GAAP net income was $0.3 million, or $0.02 per diluted share, compared to $2.6 million, or $0.19 per diluted share in the prior year [17] Business Line Data and Key Metrics Changes - Sales of the MindBody GLP-1 System significantly declined due to increased competition from pharmaceutical options, which are now more accessible and affordable [5][6] - The LoveBiome acquisition contributed $4.1 million in revenue, with two new products launched that are expected to drive engagement and growth [8][9] Market Data and Key Metrics Changes - Revenue in the Americas decreased 32.6% to $38.5 million, while revenue in Asia-Pacific and Europe decreased 2.1% to $10.4 million [15] - The Americas decline was attributed to a 25.2% decrease in total active accounts, primarily from the customer base [15] Company Strategy and Development Direction - The company is focused on stabilizing the GLP-1 business and exploring cost reduction opportunities to maintain profitability [7] - Continued integration of LoveBiome is expected to enhance product diversification and market growth [8] - The company is optimistic about its comprehensive wellness ecosystem, which includes various health products [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q2 performance did not meet expectations but remains confident in long-term growth potential [4] - The company anticipates revenue in the range of $185 million to $200 million for fiscal 2026, with adjusted EBITDA of $15 million to $19 million [19] Other Important Information - A new $60 million share repurchase program was announced, replacing the previous program [18] - A quarterly cash dividend of $0.045 per share was declared, to be paid on March 16, 2026 [19] Q&A Session Summary Question: About LoveBiome transaction costs - The $3.7 million cash at closing was the actual purchase price for LoveBiome, structured in two components: cash down payment and future earnout based on revenue targets [23] Question: Update on MindBody marketing plans - A 20% discount promotion was initiated, along with an "Activate90" event for holistic health discussions and a new app feature for tracking health activities [26][27][28] Question: Revenue split expectations for the second half of the year - Management expects stabilization in MindBody trends and anticipates Q4 will likely have a higher proportion of revenue compared to Q3 [51][53]

Financial Data and Key Metrics Changes - For Q2 of fiscal 2026, net revenue was $48.9 million, down 27.8% from $67.8 million in Q2 of fiscal 2025, but up 2.9% sequentially from Q1 [14] - The decline was primarily driven by a $16.2 million decrease in sales of the MindBody GLP-1 System, partially offset by $4.1 million in revenue from the LoveBiome product line [14] - Gross profit percentage decreased to 74% from 80.5% in the prior year, reflecting a one-time inventory obsolescence allowance [15] - GAAP net income was $0.3 million, or $0.02 per diluted share, compared to $2.6 million, or $0.19 per diluted share in the prior year [17] Business Line Data and Key Metrics Changes - Sales of the MindBody GLP-1 System significantly declined due to increased competition from pharmaceutical options, which have become more accessible and affordable [5][6] - The LoveBiome acquisition contributed $4.1 million in revenue, with two new products launched that are expected to drive engagement and growth [8][9] Market Data and Key Metrics Changes - Revenue in the Americas decreased 32.6% to $38.5 million, while Asia-Pacific and Europe revenue decreased 2.1% to $10.4 million [15] - The Americas decline was attributed to a 25.2% decrease in total active accounts, primarily from the customer base [15] Company Strategy and Development Direction - The company is focused on stabilizing the GLP-1 business and exploring cost reduction opportunities while remaining committed to the MindBody GLP-1 System [7] - The integration of LoveBiome is seen as a strategic move to diversify the product portfolio and enhance market growth [8][11] - The company is modernizing its technology infrastructure through a partnership with Shopify to improve e-commerce capabilities and customer experience [10][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q2 performance did not meet expectations but expressed optimism about long-term growth in the health and wellness ecosystem [4] - The company expects revenue for fiscal 2026 to be in the range of $185 million to $200 million, with adjusted EBITDA of $15 million to $19 million [19] - Management believes the competitive dynamics in the GLP-1 market can be navigated due to the unique value proposition of their natural solutions [47] Other Important Information - The company announced a new $60 million share repurchase program and a quarterly cash dividend of $0.045 per share [18][19] - The CEO announced plans for retirement in April 2026, with a succession plan in place to ensure leadership continuity [20] Q&A Session Summary Question: What was the cash transaction price for LoveBiome? - The cash transaction price for LoveBiome was $3.7 million, with future earnouts based on revenue targets [23] Question: What impacted the reduction in cash on the balance sheet? - The reduction was primarily due to the cash transaction for LoveBiome, timing of accrued payables, and stock-based compensation settlements [24] Question: What are the marketing plans for MindBody as the weight loss season approaches? - The company initiated a go-to-market strategy with a 20% discount and events to engage customers and consultants [26][27] Question: How did LoveBiome impact consultant and customer numbers? - LoveBiome contributed $4 million in product revenue, but specific consultant numbers were not disclosed [30] Question: What are the expectations for revenue in the second half of the year? - The company anticipates a stabilization in MindBody trends and expects Q4 to have a higher proportion of revenue compared to Q3 [51][53]

Financial Data and Key Metrics Changes - For Q2 fiscal 2026, the company reported net revenue of $48.9 million, down 27.8% from $67.8 million in Q2 fiscal 2025, but up 2.9% sequentially from Q1 [13] - The gross profit percentage decreased to 74% from 80.5% in the prior year, primarily due to a one-time inventory obsolescence allowance [15] - GAAP net income was $0.3 million, or $0.02 per diluted share, compared to $2.6 million, or $0.19 per diluted share in the prior year [17] Business Line Data and Key Metrics Changes - Sales of the MindBody GLP-1 System decreased by $16.2 million compared to the prior year, significantly impacting overall revenue [14] - The LoveBiome product line contributed $4.1 million in revenue following the acquisition [14] - The decline in total active accounts was 25.2% in the Americas and 6.5% in Asia-Pacific and Europe, reflecting a decrease in the active customer base [15] Market Data and Key Metrics Changes - Revenue in the Americas decreased 32.6% to $38.5 million, while revenue in Asia-Pacific and Europe decreased 2.1% to $10.4 million [15] - The company noted a slight revenue increase in Japan on a constant currency basis [15] Company Strategy and Development Direction - The company is focused on stabilizing the GLP-1 business and exploring cost reduction opportunities to maintain profitability [5] - The integration of LoveBiome is expected to drive product diversification and market growth, with new product launches planned [8] - The company is committed to enhancing e-commerce capabilities through a partnership with Shopify, aiming to improve customer experience and conversion rates [10][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q2 performance did not meet expectations but expressed optimism about long-term growth in the health and wellness ecosystem [4] - The company expects revenue for fiscal 2026 to be in the range of $185 million to $200 million, with adjusted EBITDA of $15 million to $19 million [19] - Management emphasized the importance of natural solutions in the GLP-1 market, believing there is still significant demand for their products [47] Other Important Information - The company announced a new $60 million share repurchase program and a quarterly cash dividend of $0.045 per share [18][19] - The CEO announced plans for retirement in April 2026, with a succession plan in place to ensure leadership continuity [20] Q&A Session Summary Question: What was the cash transaction price for LoveBiome? - The cash transaction price related to LoveBiome was $3.7 million, structured in two components: a cash down payment and a future earnout based on revenue targets [23] Question: What impacted the reduction in cash on the balance sheet? - The reduction was primarily due to the cash transaction for LoveBiome, timing of accrued payables, and cash utilized for stock-based compensation [24] Question: What are the marketing plans for MindBody entering the weight loss season? - The company initiated a go-to-market strategy with a 20% discount on MindBody products and introduced a new app feature for tracking calories and activities [26][28] Question: How did LoveBiome impact consultant and customer numbers? - LoveBiome contributed $4 million in product revenue, but specific numbers on active consultants were not disclosed [30] Question: What is the revenue outlook for the second half of the year? - Management anticipates stabilization in MindBody trends and expects Q4 to have a higher proportion of revenue compared to Q3 [52]

GOTHENBURG, Sweden, Jan. 26, 2026 /PRNewswire/ -- Zinzino has today entered into an agreement, and simultaneously closed, to combine with the US-based direct sales company It Works! In an all-share transaction. Through the merger, Zinzino acquired the operational assets of It Works!' US business, including inventory, distributor agreements, customer agreements, and IP rights, as well as 100% of the shares in It Works! Marketing International UC, an Irish unlimited company, and its wholly owned subsidiaries ...

Core Insights - Zinzino has signed an agreement to acquire Sanki, a direct sales company based in Mexico, which includes the distributor database, customer register, inventory, and IP rights [1][2][3] - The acquisition aims to enhance Zinzino's distribution capabilities and integrate Sanki's innovative product portfolio into Zinzino's test-based product concept, aligning with Zinzino's growth strategy focused on personal health and well-being [2][3] Acquisition Details - The acquisition will be completed on January 1, 2026, with a fixed purchase price of USD 8 million, of which USD 7 million will be paid in newly issued Zinzino shares and USD 1 million in cash [4] - There is potential for an additional purchase price of up to USD 12 million based on future sales performance, which will also be settled in newly issued shares [4] Strategic Importance - Sanki operates in the health segment across North America and South America, with an annual turnover of approximately USD 12 million, and the collaboration is expected to create synergies that enhance growth [3][5] - The acquisition is part of Zinzino's broader strategy to maintain sustainable growth, strengthen distribution power, and expand into new markets, following previous acquisitions in recent years [5][6] Leadership Perspective - Zinzino's CEO emphasizes the importance of personalized solutions in health and wellness, highlighting the combined industry experience with Sanki's leadership to drive modern shopping experiences through direct sales [6]

Financial Data and Key Metrics Changes - Herbalife reported Q3 net sales of $1.3 billion, up 2.7% year-over-year, marking the first quarter of net sales growth since Q1 2024 [5][20] - Adjusted EBITDA for Q3 was $163 million, exceeding guidance, with an adjusted EBITDA margin of 12.8%, down 60 basis points year-over-year [22][24] - The total leverage ratio was reduced to 2.8 times, outperforming the three-times commitment, with strong operating cash flows of $139 million, up 40% from Q3 2024 [24][20] Business Line Data and Key Metrics Changes - North America achieved its first quarterly growth since Q2 2021, with net sales up 1% year-over-year, driven by favorable pricing on flat volumes [27][21] - Latin America reported a solid quarter with net sales up 11% year-over-year, primarily due to favorable pricing impacts and improved sales mix [25] - EMEA net sales increased 4% on a reported basis, while Asia-Pacific remained relatively flat, indicating mixed performance across regions [26][28] Market Data and Key Metrics Changes - North America saw a significant sequential improvement in year-over-year net sales trend by approximately 480 basis points [27] - China experienced a decline in net sales by 5% year-over-year, primarily due to a 12% decline in volumes [28] - India reported a 4% increase in net sales on a reported basis, driven by favorable pricing and a 5% increase in volume [26] Company Strategy and Development Direction - Herbalife aims to be the world's premier health and wellness company, focusing on personalized nutrition and leveraging technology to enhance distributor engagement [4][9] - The company is introducing Protocol, a next-generation digital personalized health operating system, to deepen engagement and drive growth [6][8] - Linked Bioscience acquisition will enable Herbalife to deliver precision-made supplements tailored to individual needs, enhancing its competitive edge [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation, highlighting strong cash flow, reduced leverage, and targeted investments in innovation [17][35] - The company anticipates continued growth in net sales and adjusted EBITDA for Q4, with guidance reflecting currency volatility [31][33] - Management emphasized the importance of personalized nutrition and the role of distributors in driving business success [60][61] Other Important Information - Herbalife launched new products, including HL Skin and Baseline, showcasing its ability to innovate and respond to global health trends [15][17] - The company opened a new state-of-the-art R&D facility in Torrance, California, to enhance product development capabilities [12][14] - Engagement metrics from the Protocol beta group indicate strong distributor participation and enthusiasm for new technology [7][39] Q&A Session Summary Question: Capital allocation and debt reduction strategy - Management clarified that the focus remains on reducing debt while exploring opportunities for internal investments [36][37] Question: Costs associated with new product introductions - Management indicated that there would be no significant increase in SG&A costs related to distributor education on new products [38] Question: Early responses from the Protocol beta group - Feedback from the beta group has been positive, with high engagement levels and valuable insights for product development [39][40] Question: New distributor growth and productivity - The growth in new distributors is attributed to excitement about future products and ongoing engagement initiatives [42] Question: AI development for skincare products - The AI tool for skincare was developed in partnership and has shown impressive engagement metrics since launch [44] Question: Volume growth drivers and product mix - There is a slight shift towards healthy active lifestyle products, with a renewed focus on weight loss due to the launch of MultiBurn [45][47] Question: Expansion of the Mastermind program in India - The program has received positive feedback and is seen as essential for sustaining growth in the region [48][49] Question: Subscription revenue opportunities - Management believes subscription revenue will play a significant role in the future, with ongoing developments in this area [57][58]

Core Insights - LifeVantage Corporation has successfully completed the acquisition of LoveBiome, enhancing its position in the direct sales and gut health market [1][2] - The acquisition allows LifeVantage to expand its product portfolio into the growing microbiome health sector and strengthen its market presence in the US, Taiwan, and Europe [2] Company Overview - LifeVantage Corporation is a pioneer in nutrigenomics, focusing on how nutrition and natural compounds can activate health at the cellular level [3] - The company offers a range of scientifically validated products, including the Protandim® family, TrueScience® Liquid Collagen, and various health-supporting nutrients [3] - LifeVantage operates through independent consultants who sell products and provide business opportunities to aspiring entrepreneurs [3]

Core Insights - Zinzino has completed the acquisition of Truvy, a North American direct sales company, enhancing its distribution capabilities in North America, Latin America, and South Korea [1][9] - The acquisition includes Truvy's distributor database, customer register, inventory, and intellectual property rights, along with 100% of the shares in Truvy's South Korean subsidiary [1][2] Group 1: Acquisition Details - The total annual turnover of Truvy is approximately USD 12 million, and the collaboration is expected to generate growth through synergies in joint networks [3] - Zinzino will pay a fixed purchase price of USD 4 million, fully settled through newly issued shares, with potential additional payments based on future sales development estimated between USD 4 million and a maximum of USD 16 million [4] Group 2: Strategic Importance - This acquisition is part of Zinzino's growth strategy focused on personal health and well-being through innovative biotechnology and a direct sales model [2][5] - The partnership aims to leverage Zinzino's existing technical platform and organization to enhance profitability and expand into new markets [3][5] Group 3: Leadership Perspective - Zinzino's CEO and Truvy's CEO emphasize the importance of personalized solutions in health and wellness, indicating a commitment to modernizing the direct sales experience [6]

Core Insights - LifeVantage Corporation has announced a definitive agreement to acquire LoveBiome, a direct sales company focused on microbiome health solutions, enhancing its position in the gut health market [1][3] - The acquisition aligns with LifeVantage's mission to activate optimal health processes and expand its product offerings in the growing gut health sector [1][5] - The global gut health supplement market is projected to grow from $14.4 billion in 2025 to $32.4 billion by 2035, with a robust CAGR of 8.4% [5] Company Strategy - The acquisition of LoveBiome is seen as a strategic move to enhance LifeVantage's Activation differentiation and broaden its community reach [1][5] - LifeVantage aims to leverage LoveBiome's expertise in microbiome science to complement its existing product portfolio, including the Protandim® family and MindBody GLP-1 System™ [1][5] - The integration of LoveBiome's innovative P84 product is expected to strengthen LifeVantage's offerings in gut health, which is increasingly recognized for its impact on overall wellness [1][5] Transaction Details - LifeVantage will acquire LoveBiome's critical operating assets and retain key personnel, including founder Kelly Olsen, to ensure operational continuity [3] - The acquisition is expected to close by mid-October, pending customary closing conditions and regulatory approvals [3] - The transaction is anticipated to enhance revenue growth and be accretive to Adjusted EPS and Adjusted EBITDA in the first year, with additional synergy opportunities [5]