Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $115 million, a 4% increase year-over-year or 2% in constant currency [6][14] - Adjusted EBITDA for Q2 was $11 million, an 8% increase from $10 million in the prior year [6][22] - GAAP net income attributable to common shareholders was $5.3 million or $0.28 per diluted share, compared to $1.3 million or $0.07 per diluted share in the prior year [22] - Gross margin increased by 36 basis points to 71.7% compared to the previous year [20] Business Line Data and Key Metrics Changes - North America sales grew 4%, with digital sales increasing by 34% [10][15] - Asia Pacific sales increased by 5%, driven by a 27% increase in Japan [7][16] - Europe sales were up 1% but down 2% in constant currency, with Central Europe showing strong growth of 15% [12][19] Market Data and Key Metrics Changes - In North America, the digital business saw significant growth, contributing to overall sales growth [10][15] - Japan's sales growth was notable, with a consistent 20%+ growth for four consecutive quarters [16] - Taiwan and South Korea faced challenges due to a slowing macroeconomic environment, impacting sales growth [9][18] Company Strategy and Development Direction - The company is focused on long-term sustainable growth through strong consumer engagement and execution of sales and marketing strategies [6][7] - The strategy includes sharpening digital execution, stabilizing the core business in North America, and driving growth in key international markets [12][13] - The company is increasing its full-year guidance based on strong first-half performance and positive momentum [13][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainties but expressed confidence in the company's fundamentals and growth strategy [6][7] - The outlook for the second half of the year includes expectations for continued growth in North America and stabilization in Asia Pacific [55][56] - Management is optimistic about future growth prospects, particularly in digital sales and new product innovations [25][62] Other Important Information - The company repurchased 1.1 million shares for approximately $12.3 million during the first half of 2025 [23] - Inventory increased to $69.3 million as the company prepared for potential supply chain disruptions [23] Q&A Session Summary Question: Clarification on EBITDA guidance range - Management indicated that the range reflects confidence in North America and the digital business, with performance dependent on continued acceleration [27][28] Question: Insights on SG&A expenses and digital investment - Management confirmed increased digital investment in Q2, with plans to continue funding if strong returns are observed [32][34] Question: Impact of new product innovations - New products are expected to provide consumer energy and acquisition, with cumulative effects anticipated over time [61][62] Question: Capacity and potential partnerships - The company is exploring opportunities to leverage increased manufacturing capacity through organic growth and potential partnerships [40][41] Question: Growth expectations in North America and Asia - Continued acceleration in North America is expected, while Asia Pacific will see growth but at lower rates compared to previous quarters [51][55]

Financial Data and Key Metrics Changes - Revenue for the first quarter was reported at $113 million, reflecting a 5% increase compared to the prior year, or a 2% increase when excluding foreign exchange impacts [8][15] - Adjusted EBITDA increased by 20% to $11 million compared to $9.2 million in the previous year [22] - GAAP net income attributable to common shareholders was $4.7 million, or $0.25 per diluted share, compared to $2.3 million, or $0.12 per diluted share in the prior year [21] Business Line Data and Key Metrics Changes - In Asia Pacific, revenue grew by 10% on a local currency basis, with standout performances in Japan and Taiwan, where sales increased by 24% and 18% respectively [9][16] - European sales increased by 9% on a constant currency basis, driven by strong growth in Central Europe, which was up 16% [10][17] - North American sales declined by 4%, but there was a positive trend with the third consecutive quarter of sequential order growth [10][18] Market Data and Key Metrics Changes - Digital sales in North America increased by 19%, significantly outpacing the supplement industry's digital growth rate [11][18] - The Subscribe and Thrive Autoship program accounted for approximately 26% of total sales and about 45% of direct-to-consumer sales [11] Company Strategy and Development Direction - The company is focusing on minimizing exposure to tariffs by increasing raw ingredient inventory and enforcing pricing contracts with suppliers [6][7] - A strong emphasis on sustainability initiatives was highlighted, with goals to reduce carbon emissions by 50% and achieve zero waste certification [12][13] - The company is optimistic about growth opportunities in North America, despite current challenges, and plans to leverage digital transformation and strategic initiatives [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand for products and a positive outlook for 2025, despite macroeconomic uncertainties [6][14] - The company is taking a conservative stance in its guidance, anticipating potential headwinds from tariffs and economic instability [24][35] Other Important Information - The company repurchased 38,000 shares for approximately $500,000 during the quarter, with an increased share repurchase authority of $25 million [23] - Inventory levels increased to $64.9 million, reflecting a strategic decision to prepare for potential tariff-related costs and delays [22] Q&A Session Summary Question: How did Q1 come in relative to internal expectations? - The company was slightly ahead of internal expectations for the quarter [30] Question: Can you clarify guidance for the balance of the year? - The midpoint of guidance assumes continued macroeconomic instability and potential tariff impacts [35] Question: What are the expectations for the new digital toolkit launch? - The toolkit is on track for launch in the second half of 2025, with no anticipated order disruptions [40][41] Question: What are the drivers for continued growth in Europe and Asia? - Strong fundamentals in sales and marketing are expected to drive growth, with significant market opportunities remaining [48] Question: How is the company addressing the North American market challenges? - Focus on building fundamentals, new leadership, and the introduction of a new toolkit are key strategies [55]