Financial Data and Key Metrics Changes - Net sales in Q3 2025 reached $128.3 million, a record high, representing a 12% increase from $114.6 million in Q3 2024, or an 11% increase excluding foreign exchange impacts [9] - Gross margin improved by 200 basis points to 73.3%, the highest in 15 quarters, compared to 71.3% a year ago [16] - Operating income increased to $9 million, or 7% of net sales, compared to $5.3 million, or 4.6% of net sales in the prior year [18] - GAAP net income attributable to common shareholders was $5.3 million, or $0.30 per diluted share, compared to $4.3 million, or $0.23 per diluted share in the year-ago quarter [18] - Adjusted EBITDA increased 42% to $15.2 million from $10.7 million in the prior year [19] Business Line Data and Key Metrics Changes - North America sales grew 7% year-over-year to $36.2 million, with digital sales accelerating by 52% [10] - Asia-Pacific net sales grew 17% year-over-year to $64.7 million, or 15% growth on a constant currency basis, driven by strong performance in Japan, China, and Korea [12] - Europe sales increased 13% year-over-year to $22.1 million, or 10% on a constant currency basis, with Central and Eastern Europe showing strong growth [15] Market Data and Key Metrics Changes - In North America, digital business growth was particularly strong, with new digital customers more than doubling year-over-year [10] - In Asia-Pacific, Japan's sales increased by 32%, China's by 36%, and Korea's by 12%, excluding foreign exchange impacts [12] - Europe saw 10% growth in Central Europe and 14% in Eastern Europe, driven by improved product availability and execution from distribution partners [15] Company Strategy and Development Direction - The company aims to strengthen its brand, enhance digital and direct-to-consumer capabilities, and leverage its direct sales network for global growth [5] - Strategic investments over the past two years are yielding improvements across key regions, with a focus on modernizing the business and expanding digital capabilities [8] - The company is optimistic about future growth prospects, expecting continued strong growth in North America and mid-single-digit growth in 2026 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on market opportunities despite macroeconomic challenges [21] - The CEO emphasized the importance of the company's mission-driven approach and the potential for growth in the natural health sector [5] - The company raised its 2025 guidance for net sales to a range of $476 million to $480 million, reflecting strong Q3 results and improved business momentum [20] Other Important Information - The company has a clean balance sheet with cash and cash equivalents of $95.6 million and zero debt [19] - Inventory decreased to $67.3 million, with plans to rebuild inventory during Q4 to meet strong demand [19] - The company repurchased 1.1 million shares for approximately $14.4 million during the nine months ended September 30, 2025 [19] Q&A Session Summary Question: Insights on North America segment and digital business - Management noted success across multiple digital channels, including Amazon and DTC, with a focus on maintaining low customer acquisition costs [23][24] Question: Performance in APAC, particularly in China - The auto ship program in China has significantly contributed to sales, accounting for over 12% of total sales, aiding in market re-acceleration [27][29] Question: Factors driving growth in Q3 - Growth was attributed to robust digital performance, strong APAC results, and effective cost management, with some revenue timing shifts impacting results [37] Question: Future SG&A expectations - SG&A is expected to be in the range of $46-$47 million for Q4, with flexibility to adjust based on market opportunities and returns on investment [39]