Financial Data and Key Metrics Changes - Net revenue for Q1 2026 was $47.6 million, a slight increase of 0.7% from $47.2 million in Q1 2025, reflecting modest growth in consultant numbers and similar growth rates across regions [5][14] - Adjusted EBITDA decreased to $3.9 million, down $500,000 from the previous year, primarily due to lower contribution margins, partially offset by reduced SG&A expenses [5][16] - Gross margin for the quarter was 79.5%, a decrease of 40 basis points compared to the prior year, mainly due to increased shipping and warehouse expenses [15] Business Line Data and Key Metrics Changes - Sales of the MindBody GLP-1 System increased, while sales of Protandim and TrueScience product lines decreased, contributing to the overall revenue changes [14] - The integration of LoveBiome is expected to enhance product offerings and consultant engagement, although it did not contribute to revenue in Q1 2026 as the acquisition closed on October 1, 2025 [22][26] Market Data and Key Metrics Changes - Revenue in Japan increased by 2.6% on a constant currency basis, driven by the launch of the MindBody GLP-1 System [14] - The gut health supplement market is projected to grow from $14.4 billion in 2025 to $32.4 billion in 2035, indicating significant market potential for the newly acquired LoveBiome products [6] Company Strategy and Development Direction - The acquisition of LoveBiome positions the company within the rapidly growing gut microbiome health segment, enhancing its product portfolio and market reach [6][12] - The company aims to create a comprehensive wellness ecosystem that addresses various health aspects, including physical and financial wellness, through innovative products and a robust compensation plan [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory for the remainder of fiscal 2026, anticipating higher revenue in the second half due to seasonal trends and the impact of the LoveBiome acquisition [18][29] - The company is focused on improving operating leverage and profitability metrics, with a target adjusted EBITDA range of $23 million to $26 million for the full year [18] Other Important Information - The company announced a quarterly cash dividend of $0.045 per share, totaling approximately $600,000, to be paid on December 15, 2025 [18] - The company has returned approximately $19.8 million to shareholders through stock repurchases and dividends since the beginning of fiscal 2024 [18] Q&A Session Summary Question: How did the September quarter perform compared to expectations? - Management noted that Q1 is typically a low quarter due to seasonal trends, and the performance was slightly softer than expected but not alarming [21] Question: Was there any revenue impact from LoveBiome before the acquisition closed? - Management confirmed there was zero revenue contribution from LoveBiome prior to the acquisition closing on October 1, 2025 [22] Question: What are the expectations for the second half of the year regarding LoveBiome? - Management indicated that the second half is expected to be larger due to the integration of LoveBiome and the seasonal demand for MindBody products [29]

Financial Data and Key Metrics Changes - Revenues increased approximately 13% year over year to $55.1 million, driven largely by the MindBody GLP-1 System [5] - Adjusted EBITDA of $4.8 million was flat versus last year's fourth quarter, with adjusted non-GAAP net income of $2.3 million, or $0.17 per fully diluted share [17][18] - Gross margin expanded by 40 basis points to 79.9% compared to the prior year period, primarily due to lower shipping costs and a favorable product mix [16] Business Line Data and Key Metrics Changes - Revenue in the Americas region increased 14% to $43.5 million, benefiting from the success of the MindBody GLP-1 System [15] - Active accounts in the Americas were up 6%, with increases in both consultants and customers [6] - Revenue in Asia-Pacific/Europe increased by 7.6% to $11.6 million, reflecting the positive impact of the international MindBody rollout [16] Market Data and Key Metrics Changes - The international business returned to growth for the first time in 12 quarters, with revenues in Asia-Pacific/Europe increasing by 8% [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 CAGR of 8.4% [7][8] Company Strategy and Development Direction - The company announced a definitive agreement to acquire LoveBiome, which focuses on microbiome health, enhancing its product portfolio and market presence [6][10] - The partnership with LoveBiome aims to accelerate growth through cross-selling opportunities and operational leverage [9][10] - The company is committed to modernizing its technology and marketing stack through a partnership with Shopify to enhance consumer experience [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver sustainable long-term value, supported by the successful rollout of the MindBody GLP-1 System and the LoveBiome acquisition [15] - The outlook for fiscal 2026 anticipates full-year revenue in the range of $225 million to $240 million, with adjusted non-GAAP EBITDA expected between $23 million and $26 million [20] Other Important Information - The company repurchased approximately 160,000 shares during the fourth quarter at an average price of $12.74 per share [19] - A quarterly cash dividend of $0.04 per share was announced, totaling approximately $600,000 [19] Q&A Session Summary Question: What caused the disconnect in fourth quarter revenue expectations? - Management noted that the U.S. experienced some softness due to seasonality impacts, while international numbers remained strong [22][23] Question: How much of the fiscal 2026 growth will come from LoveBiome versus organic growth? - Management indicated that the integration of LoveBiome is still being assessed, with a modest amount of revenue expected from the acquisition [23] Question: Can you provide details on LoveBiome's sales and consultant numbers? - Management refrained from disclosing specific revenue metrics or consultant numbers for LoveBiome at this time [24] Question: What is the market position of LoveBiome? - LoveBiome is a relatively young company, established in 2022, with a focus on gut microbiome health [26][29] Question: How does P84 compare to existing products? - P84 is marketed as a comprehensive product focused on the microbiome, complementing existing prebiotic and probiotic offerings [34]