USANA Health Sciences Conference Call Summary Company Overview - **Company**: USANA Health Sciences (NYSE: USNA) - **Industry**: Health and Wellness, Nutritional Supplements - **Focus**: Premium vitamins, supplements, and health products with a recent pivot towards mergers and acquisitions (M&A) to broaden customer base and channels [5][6][49] Key Points and Arguments Growth Projections - **2026 Growth**: Expected mid-single-digit growth, approaching $1 billion in revenue, with significant contributions from new acquisitions like Rise Wellness [6][49] - **Rise Wellness**: Acquired a protein bar company, projected revenue growth from $5 million in 2024 to $16 million in 2025, and an anticipated $65-$80 million in 2026 [8][10][11] Product Launches - **Protein Pop**: New product launched in March, quickly gaining traction in retail, including placements in Target and Costco [11][12][19] - **Target and Costco**: Major retail partners, with Protein Pop being featured prominently in stores [16][19] Market Strategy - **Channel Expansion**: Shift from direct-to-consumer (DTC) to larger retail accounts has been beneficial, allowing for rapid growth [15][19] - **Customer Demographics**: Targeting health-conscious consumers, particularly women, and those seeking clean protein options [32][35] HYA Acquisition - **HYA Performance**: Expected revenue of $132 million in 2025, with projections of $140-$155 million in 2026, focusing on retail channel expansion and international markets [37][38] Leadership Changes - **CEO Transition**: Kevin Guest returns as CEO to reinvigorate the direct selling business, following a leadership change aimed at addressing recent challenges [41][42] Direct Selling Business Challenges - **Market Awareness**: Emphasis on improving brand messaging and awareness to drive sales through independent business owners [42][43] - **Cost Management**: Plans for alignment and right-sizing to manage costs effectively while investing in critical areas [43][44] Capital Allocation - **Investment Focus**: Prioritizing investments in brands like Rise and HYA, with a focus on inventory and growth initiatives [49][51] - **Share Repurchase**: Considered as a method to return excess capital to shareholders if no immediate investment opportunities arise [51] Strategic Outlook - **Future Growth**: Aiming for a significant increase in revenue from non-direct selling channels, projected to reach low 20% of total revenue in the near future [56] - **Operational Synergies**: Leveraging infrastructure and expertise to enhance the performance of acquired companies [58][60] Additional Important Insights - **Consumer Trends**: Notable shift towards clean, simple ingredient products, with a focus on health and wellness [32][35] - **International Expansion**: Experience in international markets is a key advantage for scaling acquired brands [58][60] - **Brand Development**: Continuous focus on building and expanding brands beyond traditional direct selling methods [56][62] This summary encapsulates the key insights and strategic directions discussed during the USANA Health Sciences conference call, highlighting growth opportunities, product innovations, and market strategies.

Core Viewpoint - USANA Health Sciences, Inc. has announced preliminary fiscal year 2025 net sales of approximately $925 million, exceeding previous guidance, and provided initial net sales guidance for fiscal year 2026 in the range of $925 million to $1.0 billion [2][3]. Fiscal Year 2025 Net Sales Results - The company anticipates consolidated net sales for fiscal year 2025 to be around $925 million, which is an increase from the previously issued guidance of approximately $920 million [2]. Initial Fiscal Year 2026 Net Sales Outlook - The initial net sales outlook for fiscal year 2026 is projected to be between $925 million and $1.0 billion, driven by significant growth in the Rise Wellness segment, which includes Rise Bar and Protein Pop [3]. - Rise Wellness is expected to achieve breakeven operating margins in fiscal 2026 as the company invests in strategic initiatives for future growth [3]. Investments in Growth - The company is making substantial investments in inventory, capital expenditures, and working capital for both Rise Wellness and Hiya to support their early growth stages [4]. Participation in ICR Conference - USANA will participate in the 28th Annual ICR Conference on January 12-13, 2026, where key executives will present the company's strategy and sales outlook [5]. Fourth Quarter and Fiscal Year 2025 Earnings Release - Preliminary financial results and the initial fiscal 2026 sales outlook will be updated during the earnings release scheduled for February 17, 2026, followed by a conference call on February 18, 2026 [6]. Segment-Specific Net Sales Projections for Fiscal Year 2026 - Projected net sales for fiscal year 2026 include: - Core nutritional business: $720 to $765 million (down from approximately $777 million in fiscal 2025) - Hiya: $140 to $155 million (up from approximately $132 million in fiscal 2025) - Rise Wellness: $65 to $80 million (up from approximately $16 million in fiscal 2025) [8].