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]