Napierski positioned Prysm iO as a central part of the company’s move into the “wellness revolution,” describing it as a non-invasive carotenoid measurement device designed to provide insights across four domains: diet, fitness, lifestyle, and nutritional supplementation. He said Nu Skin is building on its portfolio of connected devices and its BioPhotonic Scanner technology.Napierski described “switching costs” tied to changes in business practices during 2025 and into early 2026, but said the company beli ...

Financial Data and Key Metrics Changes - For 2025, the company reported adjusted earnings per share of $1.27, up from $0.84 in the previous year, representing a 51% growth [17] - Revenue for the full year was $1.49 billion, within the original guidance, with a foreign currency headwind of approximately $13.4 million [20] - The fourth quarter revenue was $370 million, with earnings per share of $0.29, aligning with expectations [18] Business Line Data and Key Metrics Changes - The gross margin for the core Nu Skin business finished at 77.4%, an 80 basis point improvement over the prior year [20] - Selling expense for the core Nu Skin business was 40.3% for the year, with expectations to remain around 40% moving forward [21] - The operating margin for the full year improved to 6.7%, up 140 basis points from the previous year [22] Market Data and Key Metrics Changes - The company initiated pre-market operations in India in November 2025, with a formal market opening anticipated in late 2026 [5] - Latin America continues to show strong performance, contributing positively to the company's growth [24] - The company is focusing on establishing operational infrastructure in India, including local manufacturing and logistics partnerships [14] Company Strategy and Development Direction - The company aims to become the world's leading intelligent beauty, wellness, and lifestyle leadership opportunity platform, focusing on three strategic priorities: launching the Prysm iO platform, expanding into emerging markets like India, and improving operational performance [6][12] - Prysm iO is positioned as a customer acquisition tool with subscription-based revenue, expected to enhance customer lifetime value significantly [11] - The company is targeting to place over 100,000 Prysm iO devices by the end of 2026, with aspirations to reach 10 million households by 2030 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth by the end of 2026, despite inherent switching costs associated with transitioning the business [5] - The company is cautious about revenue projections for India, emphasizing the importance of establishing local infrastructure before the formal launch [36] - Management highlighted the importance of maintaining disciplined execution and financial performance while pursuing growth opportunities [26] Other Important Information - The company ended the quarter with approximately $240 million in cash and reduced outstanding debt to $224 million, resulting in an expanded net cash position [23] - The company returned approximately $11.8 million in dividends and $20 million in share repurchases during the year [23] Q&A Session Summary Question: Insights on Prysm's revenue contribution - Management indicated that the placement of Prysm devices will lead to subscriptions, with an estimated market value of around $300 per device, potentially generating $30 million from device sales alone [33] Question: Thoughts on India market potential - Management sees long-term potential in India but is cautious about immediate revenue forecasts, focusing on establishing local manufacturing and logistics [36][37] Question: Guidance and key leverage points - Management discussed the importance of gross margin expansion and maintaining selling expenses around 40% while managing G&A costs in line with revenue [39][41] Question: Other portfolio performance insights - Management highlighted the successful rollout of the Tru Face skincare line and ongoing improvements in various markets, including China and Latin America [43][45]

Nu Skin Enterprises (NYSE:NUS) Q4 2025 Earnings call February 12, 2026 05:00 PM ET Company ParticipantsB.G. Hunt - VP of Treasurer and Investor RelationsDave Storms - Director of Equity ResearchJames Thomas - CFORyan Napierski - President and CEOOperatorGood day, and thank you for standing by. Welcome to the Q4 2025 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question, please press star one ...

Financial Data and Key Metrics Changes - For Q4 2025, the company reported revenue of $370 million, with an earnings per share (EPS) of $0.29, aligning with expectations [17][24] - For the full year 2025, adjusted EPS was $1.27, up from $0.84 in the previous year, representing a 51% growth [16][20] - Gross margin for Q4 was 70.7%, down from 71.4% in the prior year, while the core Nu Skin business gross margin improved to 77.6% [17][19] - The company generated $1.49 billion in revenue for the full year, with a foreign currency headwind of approximately $13.4 million [18][21] Business Line Data and Key Metrics Changes - The core Nu Skin business saw a gross margin of 77.4% for the full year, an 80 basis point improvement over the prior year [19] - Selling expenses for the core business were 40.3% for the year, with expectations to maintain around 40% moving forward [20] Market Data and Key Metrics Changes - The company initiated pre-market operations in India in November 2025, with a formal market opening anticipated in late 2026 [5][12] - Latin America continues to show strong performance, providing insights for expansion into new emerging markets [13][44] Company Strategy and Development Direction - The company aims to focus on the $6.8 trillion wellness market with the launch of the Prysm iO Intelligent Wellness Platform [6][15] - Strategic priorities include expanding into India and improving operational performance and efficiencies [12][15] - The company plans to place over 100,000 Prysm iO devices by the end of 2026, targeting 10 million healthy households by 2030 [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth by the end of 2026, despite inherent switching costs during the transition [5][15] - The company is cautious about revenue projections for India, focusing on establishing local infrastructure and logistics [35][36] - Management highlighted the importance of the Prysm iO launch in enhancing customer engagement and lifetime value [10][24] Other Important Information - The company ended the quarter with approximately $240 million in cash and reduced outstanding debt to $224 million, resulting in an expanded net cash position [21] - The company returned approximately $11.8 million in dividends and $20 million in share repurchases during the year [21] Q&A Session Summary Question: Insights on Prysm's revenue contribution - Management indicated that the placement of Prysm devices will lead to subscriptions, with an estimated market value of around $300 per device, potentially generating $30 million from device sales alone [32] Question: Thoughts on India market potential - Management sees long-term potential in India but is cautious about immediate revenue forecasts, focusing on local infrastructure and logistics [36][37] Question: Guidance considerations and leverage points - Management discussed modeling for 2026, emphasizing gross margin expansion and maintaining selling expenses around 40% [40][41] Question: Other portfolio performance insights - Management highlighted the restaging of the Tru Face skincare line and improvements in various markets, including China and Latin America [43][44]

Core Viewpoint - Nu Skin Enterprises, Inc. (NUS) is expected to report declines in both revenue and earnings for the fourth quarter of 2025, with revenue estimates at $382.7 million, reflecting a 14.1% decrease year-over-year [1]. Revenue Expectations - The Zacks Consensus Estimate for quarterly revenues is set at $382.7 million, indicating a 14.1% decline from the previous year's quarter [1]. - Management has guided fourth-quarter revenues between $365 million and $400 million, suggesting a year-over-year decline of 10-18% [4]. - Excluding the contribution from the divested Mavely business, revenues are projected to fall by 12-3% [4]. Earnings Projections - The consensus estimate for quarterly earnings remains unchanged at 30 cents per share, which represents a 21.1% decline from the same quarter last year [2]. - Nu Skin anticipates fourth-quarter earnings per share to be between 25 and 35 cents, down from adjusted earnings of 38 cents reported in the previous year [6]. Market Conditions - The company is facing a challenging macroeconomic environment affecting discretionary spending in beauty and wellness [3]. - There has been a decline in customers, paid affiliates, and sales leaders, indicating ongoing pressures in several markets [3]. - Increased competition in the social commerce beauty space, particularly in North America, is also impacting performance [4]. Geographic Performance - Latin America has shown strong performance, with revenues increasing by 53% year-over-year in the third quarter [5]. - Sequential growth was reported in Europe & Africa, Southeast Asia Pacific, South Korea, and Hong Kong & Taiwan, with improving trends noted in Mainland China [5]. Strategic Initiatives - The limited sales leader preview of Prysm iO and the start of pre-market activities in India are expected to influence fourth-quarter performance positively [5]. - Despite the anticipated decline in sales, Nu Skin has achieved five consecutive quarters of adjusted gross margin expansion, supported by product mix improvements and cost discipline [6].

Financial Data and Key Metrics Changes - The company has transitioned to a focus on IoT-connected beauty devices, with a significant emphasis on the wellness market, which is projected to reach a trillion dollars by 2030 [2][19] - The company has established itself as the world's largest beauty and wellness device systems brand, indicating strong market positioning [2] Business Line Data and Key Metrics Changes - The introduction of Prysm iO is aimed at enhancing customer experience through personalized solutions based on biomarker data, which is expected to drive recurring revenue streams [6][12] - The company has developed a proprietary AI-informed algorithm to provide nutritional health scores, leveraging a large database of over 26 million scans from more than 10 million individuals [8][12] Market Data and Key Metrics Changes - The company is expanding into India, a market with 1.6 billion people, which is seen as a significant growth opportunity, especially with a digital-first approach [19][20] - The company has learned from its experiences in Latin America, which has become its fastest-growing segment, and plans to apply these lessons in India [18][21] Company Strategy and Development Direction - The company aims to diversify its market presence to avoid over-reliance on any single region, particularly after losing business in China due to geopolitical tensions [25][26] - The strategy includes leveraging local partnerships and digital-first approaches to penetrate emerging markets effectively [20][21] Management's Comments on Operating Environment and Future Outlook - Management believes that the market undervalues the company due to its direct sales channel, despite having strong technology and product solutions [31][32] - The company anticipates that the rollout of Prysm iO will significantly enhance its revenue potential and stabilize the business as it returns to growth in the coming years [36][38] Other Important Information - The company has a unique model that combines product solutions with data insights, which differentiates it from competitors in the wellness and beauty sectors [12][32] - The company is focused on ensuring that its nutritional supplements are effective and absorbed by the body, addressing a significant market need [14] Q&A Session Summary Question: How does the company plan to roll out and adopt Prysm iO? - The company plans to focus on training its sales force in the first half of the year, followed by a consumer launch in the second half, expecting significant growth in household-based subscriptions [37] Question: What lessons from Latin America will inform the strategy in India? - The company has learned about pricing, positioning, and consumer education from its Latin America experience, which will be applied to the Indian market [18][21] Question: How is the company navigating regional volatility? - The company has diversified its business across multiple regions to reduce risk and is now evenly distributed across its segments, which is seen as beneficial for shareholders [25][26]

Financial Data and Key Metrics Changes - The company has transitioned to a focus on IoT-connected beauty devices, with a significant emphasis on the wellness market, which is projected to reach a trillion dollars by 2030 [2] - The company has established itself as the world's largest beauty and wellness device systems brand, indicating strong market positioning [2] Business Line Data and Key Metrics Changes - The introduction of Prysm iO is aimed at enhancing customer experience through personalized solutions based on biomarker data, which is expected to drive recurring revenue streams [6][12] - The company has developed a proprietary AI-informed algorithm to provide nutritional health scores, leveraging a large database of over 26 million scans from more than 10 million people [8] Market Data and Key Metrics Changes - The company is expanding into India, a market with 1.6 billion people, which is seen as a significant growth opportunity, especially with a digital-first approach [19] - The company has learned from its experiences in Latin America, which has become its fastest-growing segment, and plans to apply these lessons in India [18] Company Strategy and Development Direction - The company aims to diversify its market presence to reduce reliance on any single region, having balanced its business across six regional segments [25][26] - The strategy includes leveraging local partnerships and digital-first approaches to penetrate emerging markets effectively [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the disconnect in market valuation compared to peers, attributing it to the direct sales channel, and believes that as the company continues to innovate, it will demonstrate its value [32][34] - The company anticipates that the rollout of Prysm iO will stabilize the business and return to growth in the coming years [38] Other Important Information - The company has a strong focus on providing effective nutritional supplements that ensure bioabsorption, addressing a significant market need [14] - The company is committed to creating personalized product solutions based on customer data, which is expected to enhance customer engagement and retention [36] Q&A Session Summary Question: How does the company plan to roll out and adopt Prysm iO? - The company plans to focus on training its sales force in the first half of the year, followed by a consumer launch in the second half, expecting significant growth in household-based subscriptions [37] Question: What lessons from Latin America will inform the strategy in India? - The company has learned about pricing, positioning, and consumer education from its Latin America experience, which will be applied to the Indian market [18] Question: How is the company navigating regional volatility? - The company has diversified its business across multiple segments to mitigate risks associated with reliance on any single market, which is seen as crucial for shareholder value [26]

Financial Data and Key Metrics Changes - The company has transitioned to a focus on IoT-connected beauty devices, which is expected to drive growth in the wellness sector, projected to reach a trillion dollars by 2030 [2] - The recurring revenue model is emphasized, with a significant portion of revenue expected to come from subscriptions related to the new Prysm iO device [12][39] Business Line Data and Key Metrics Changes - The introduction of Prysm iO is seen as a pivotal move, with the company aiming to leverage its existing nutritional health database and AI capabilities to enhance customer experience and drive sales [9][39] - The company has historically focused on solutions rather than just devices, indicating a shift towards integrating product solutions with technology [12][13] Market Data and Key Metrics Changes - The company is expanding into India, a market with 1.6 billion people, which is expected to be a significant growth opportunity, leveraging lessons learned from Latin America [21][22] - The company has diversified its market presence to reduce reliance on any single region, particularly after losing business in China due to geopolitical tensions [27][28] Company Strategy and Development Direction - The company aims to establish itself as a leader in the intelligent beauty and wellness sector, focusing on personalized product solutions driven by data and technology [34][35] - The strategy includes a digital-first approach in emerging markets, with local partnerships to facilitate growth and scalability [22][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the disconnect between the company's valuation and its innovative capabilities, suggesting that the market undervalues the company due to its direct sales model [34][35] - The company anticipates a stabilization and return to growth in the coming years, particularly through the rollout of the Prysm iO device and its associated services [39][40] Other Important Information - The company has amassed a significant nutritional health database over 20 years, which it plans to utilize in conjunction with new technology to enhance customer engagement and product efficacy [8][9] - The company is committed to ensuring that its product solutions deliver measurable results, addressing the challenges of supplement absorption and efficacy [14][15] Q&A Session Summary Question: How does the Prysm iO impact customer experience and revenue? - The Prysm iO is designed to provide personalized insights and product recommendations, creating a recurring revenue stream through subscriptions [6][12] Question: What lessons from Latin America will inform the strategy in India? - The company has learned about pricing, positioning, and consumer education from its successful Latin American operations, which will be applied to the Indian market [20][21] Question: How is the company navigating regional volatility? - The company has diversified its business across multiple regions to mitigate risks associated with reliance on any single market, particularly China [27][28] Question: What is the company's outlook on its valuation compared to peers? - Management believes the market is undervaluing the company due to its distribution model, despite its innovative products and technology [34][35]

Core Insights - NU Skin Enterprises Inc. (NUS) reported Q3 2025 revenue of $364.2 million, adjusted net income of $17.1 million, and adjusted EPS of $0.34, which were below revenue estimates but above EPS estimates [1][7] - The company achieved a gross margin of 70.5% and reduced selling expenses to 35.8% company-wide, indicating effective cost management [1][7] - Management noted double-digit growth in Latin America and improvements across several segments, attributing EPS performance to execution and efficiency despite a challenging macro environment [1][7] Financial Performance - Revenue: $364.2 million, compared to estimates of $374.2 million [1][7] - Adjusted Net Income: $17.1 million, exceeding estimates of $14.7 million [1][7] - Adjusted EPS: $0.34, higher than the estimated $0.30 [1][7] - Gross Margin: 70.5% [1][7] - Selling Expense: 35.8% company-wide, 41.7% within the core business [1][7] Strategic Initiatives - Management remains focused on strategic initiatives despite weaker than expected top-line results [1][7] - Rhyz segment generated $51.6 million in revenue, with $47.6 million from Manufacturing and $4.0 million from Rhyz Other [1][7] - Upcoming product launches include Prysm iO limited preview in late Q4 2025 and pre-market activities in India ahead of a 2026 launch [7] Cash Position and Guidance - Cash reserves stood at $251.7 million [7] - Management has narrowed Q4 and full-year 2025 guidance with a continued focus on maintaining margins [7]