NATR Nature's Sunshine Products Inc.

Nature's Sunshine Reports Second Quarter 2025 Results

Nature's Sunshine Reports Second Quarter 2025 Results

LEHI, Utah, July 31, 2025 (GLOBE NEWSWIRE) -- Nature’s Sunshine Products, Inc. (Nasdaq: NATR) ("Nature’s Sunshine"), a leading manufacturer of high-quality herbal and nutritional supplements, reported financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Financial Summary vs. Same Year-Ago Quarter

  • Net sales were up 4% to $114.8 million compared to $110.6 million (up 2% in constant currency).
  • GAAP net income attributable to common shareholders was $5.3 million, or $0.28 per diluted common share, compared to $1.3 million, or $0.07 per diluted common share.
  • Adjusted EBITDA was up 8% to $11.3 million compared to $10.4 million.



Management Commentary

“We delivered another strong quarter, with net sales of $115 million and adjusted EBITDA of $11 million, up 4% and 8%, respectively, year-over-year,” said Terrence Moorehead, CEO of Nature’s Sunshine. “We’re particularly encouraged by the strength we continued to see in Japan and Central Europe, as well as sustained momentum in our digital business and auto ship program. These results underscore the effectiveness of our global strategy and the progress we’ve made strengthening fundamentals in North America. While the macroeconomic environment remains uncertain, we’re confident in the underlying health of the business and our ability to drive sustainable growth going forward.”

Second Quarter 2025 Financial Results

  Net Sales by Operating Segment (Amounts in Thousands)
Three Months Ended June 30,  2025  2024 Percent

Change
 Impact of

Currency

Exchange
 Percent

Change

Excluding

Impact of

Currency
Asia $52,664 $49,984 5.4% $1,523  2.3%
Europe  21,741  21,602 0.6   483  (1.6)
North America  34,977  33,563 4.2   (25) 4.3 
Latin America and Other  5,368  5,402 (0.6)  (184) 2.8 
  $114,750 $110,551 3.8% $1,797  2.2%
                 

Net sales in the second quarter increased 4% to $114.8 million compared to $110.6 million in the same year-ago quarter. Excluding the impact from foreign exchange rates, net sales in the second quarter of 2025 increased 2% compared to the year-ago quarter.

Gross profit margin in the second quarter increased to 71.7% compared to 71.4% in the year-ago quarter. The increase was driven by cost savings initiatives, partially offset by unfavorable foreign exchange and market mix.

Volume incentives as a percentage of net sales were 29.9% compared to 31.4% in the year-ago quarter. The decrease was primarily due to timing of promotional incentives and changes in product pricing and market mix.

Selling, general and administrative expenses ("SG&A") in the second quarter were $43.7 million compared to $38.6 million in the year‐ago quarter. The increase was primarily related to the timing of compensation costs, incremental investment in digital marketing and other non-recurring expenses. As a percentage of net sales, SG&A expenses were 38.1% for the second quarter of 2025 compared to 34.9% in the year-ago quarter.

Operating income in the second quarter decreased to $4.3 million, or 3.7% of net sales, compared to $5.6 million, or 5.1% of net sales, in the year-ago quarter.

Other income (loss), net, in the second quarter of 2025 was $3.3 million compared to $(1.2) million in the second quarter of 2024. Other income (loss), net, primarily consisted of foreign exchange gains in Asia and Europe, partially offset by foreign exchange losses in Latin America and North America that resulted from net changes in foreign currencies. The provision for income taxes was $2.0 million in the second quarter of 2025 compared to $2.9 million for the year-ago quarter.

GAAP net income attributable to common shareholders increased to $5.3 million, or $0.28 per diluted common share, compared to $1.3 million, or $0.07 per diluted common share, in the second quarter of 2024. Net income attributable to NSP China increased to $0.9 million, or $0.05 per diluted common share, for the second quarter of 2025, compared to $0.7 million, or $0.04 per diluted common share, for the second quarter of 2024.

Adjusted EBITDA in the second quarter increased 8% to $11.3 million compared to $10.4 million in the prior year quarter. The increase was driven primarily by the increase in net sales. Adjusted EBITDA, which is a non-GAAP financial measure, is defined here as net income from continuing operations before taxes, depreciation, amortization, and other income (loss) adjusted to exclude share-based compensation expense and certain noted adjustments. A reconciliation of net income to adjusted EBITDA is provided in the attached financial tables.

Balance Sheet and Cash Flow

Net cash provided by operating activities was $6.9 million for the six months ended June 30, 2025, compared to $3.5 million in the prior year period. Capital expenditures during the six months ended June 30, 2025, totaled $2.5 million compared to $7.0 million in the comparable period of 2024. During the six months ended June 30, 2025, the Company repurchased 1,011,000 shares at a total cost of $12.4 million or $12.22 per share. As of June 30, 2025, the Company had cash and cash equivalents of $81.3 million and zero debt.

Outlook

Nature's Sunshine now expects full year 2025 net sales to range between $460 - $475 million ($445 - $470 million prior) and adjusted EBITDA to range between $41 - $45 million ($38 - $44 million prior).

Conference Call

The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its second quarter of 2025 results.

Date: Thursday, July 31, 2025

Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)

Toll-free dial-in number: 1-800-717-1738

International dial-in number: 1-646-307-1865

Conference ID: 14947

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860.

The conference call will be broadcast live and available for replay and via the Events section of the Nature’s Sunshine website .

A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through August 14, 2025.

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 1114947

About Nature’s Sunshine Products

Nature’s Sunshine Products (Nasdaq: NATR), a leading natural health and wellness company, markets and distributes nutritional and personal care products in more than 40 countries. Nature’s Sunshine manufactures most of its products through its own state-of-the-art facilities to ensure its products continue to set the standard for the highest quality, safety, and efficacy on the market today. Additional information about the company can be obtained at its website,

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements regarding the Company’s future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our objectives, plans, strategies and financial results, including expected improvements in gross profit and gross margin. All statements (other than statements of historical fact) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. These statements are often characterized by terminology such as “believe,” “hope,” “may,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy” and similar expressions, and are based on assumptions and assessments made in light of our experience and perception of historical trends, current conditions, expected future developments and other factors we believe to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, including the following:

  • extensive government regulations to which the Company’s products, business practices and manufacturing activities are subject, including, but not limited to, trade restrictions and export controls;
  • registration of products for sale in foreign markets, or difficulty or increased cost of importing products into foreign markets;
  • legal challenges to the Company’s direct selling program or to the classification of its independent consultants;
  • laws and regulations regarding direct selling may prohibit or restrict our ability to sell our products in some markets or require us to make changes to our business model in some markets;
  • liabilities and obligations arising from improper activity by the Company’s independent consultants;
  • product liability claims;
  • impact of anti-bribery laws, including the U.S. Foreign Corrupt Practices Act;
  • the Company’s ability to attract and retain independent consultants;
  • the loss of one or more key independent consultants who have a significant sales network;
  • the effect of fluctuating foreign exchange rates;
  • failure of the Company’s independent consultants to comply with advertising laws;
  • changes to the Company’s independent consultants' compensation plans;
  • geopolitical issues and conflicts, including changes to U.S. trade policy resulting in new or additional tariffs;
  • negative consequences resulting from difficult economic conditions, including the availability of liquidity or the willingness of the Company’s customers to purchase products;
  • risks associated with the manufacturing of the Company’s products;
  • supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand;
  • failure to timely and effectively obtain shipments of products from our suppliers and contract manufacturers and deliver products to our independent consultants and customers;
  • world-wide slowdowns and delays related to supply chain, ingredient shortages and logistical challenges;
  • uncertainties relating to the application of transfer pricing, duties, value-added taxes, and other tax regulations, and changes thereto;
  • changes in tax laws, treaties or regulations, or their interpretation;
  • failure to maintain an effective system of internal controls over financial reporting;
  • cybersecurity threats and exposure to data loss;
  • the storage, processing, and use of data, some of which contain personal information, are subject to complex and evolving privacy and data protection laws and regulations;
  • reliance on information technology infrastructure; and
  • the sufficiency of trademarks and other intellectual property rights.



These and other risks and uncertainties that could cause actual results to differ from predicted results are more fully detailed under the caption “Risk Factors” in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports filed on Form 10-Q.

All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in or incorporated by reference into this press release. Except as is required by law, the Company expressly disclaims any obligation to publicly release any revisions to forward-looking statements to reflect events after the date of this press release.

Non-GAAP Financial Measures

We have included information which has not been prepared in accordance with generally accepted accounting principles (GAAP), such as information concerning non-GAAP net income, adjusted EBITDA and net sales excluding the impact of foreign currency exchange fluctuations.

We utilize the non-GAAP measures of non-GAAP net income and adjusted EBITDA in the evaluation of our operations and believe that these measures are useful indicators of our ability to fund our business. These non-GAAP financial measures should not be considered as an alternative to, or more meaningful than, U.S. GAAP net income (loss) as an indicator of our operating performance.

Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of Nature’s Sunshine Products’ performance in relation to other companies. We have included a reconciliation of net income, the most comparable GAAP measure, to adjusted EBITDA. We have also included a reconciliation of GAAP net income to non-GAAP net income and non-GAAP adjusted EPS, in the attached financial tables.

Net sales in local currency removes, from net sales in U.S. dollars, the impact of changes in exchange rates between the U.S. dollar and the functional currencies of our foreign subsidiaries. This is accomplished by translating the current period's net sales into U.S. dollars using the same foreign currency exchange rates that were used to translate the net sales for the previous comparable period.

We believe presenting the impact of foreign currency fluctuations is useful to investors because it allows a more meaningful comparison of net sales of our foreign operations from period to period. Net sales excluding the impact of foreign currency fluctuations should not be considered in isolation or as an alternative to net sales in U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

With respect to our adjusted EBITDA outlook for the full year 2025, a quantitative reconciliation to the corresponding GAAP information cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to warrant liabilities and stock based compensation. For the same reasons, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.

Investor Relations:

Gateway Group, Inc.

Cody Slach

1-949-574-3860

    
NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share information)

(Unaudited)
    
 Three Months Ended

June 30,
 Six Months Ended

June 30,
  2025   2024   2025   2024 
Net sales$114,750  $110,551  $227,998  $221,544 
Cost of sales 32,451   31,664   64,102   63,679 
Gross profit 82,299   78,887   163,896   157,865 
        
Operating expenses:       
Volume incentives 34,360   34,693   69,204   68,263 
Selling, general and administrative 43,665   38,557   84,246   79,341 
Operating income 4,274   5,637   10,446   10,261 
Other income (loss):       
Interest and other income, net 268   412   473   475 
Interest expense (24)  (103)  (45)  (115)
Foreign exchange gains (losses), net 3,026   (1,523)  3,779   (1,543)
  3,270   (1,214)  4,207   (1,183)
Income before provision for income taxes 7,544   4,423   14,653   9,078 
Provision for income taxes 2,025   2,935   4,250   5,100 
Net income 5,519   1,488   10,403   3,978 
Net income attributable to noncontrolling interests 186   139   323   308 
Net income attributable to common shareholders$5,333  $1,349  $10,080  $3,670 
        
Basic and diluted net income per common share:       
        
Basic earnings per share attributable to common shareholders$0.29  $0.07  $0.55  $0.20 
        
Diluted earnings per share attributable to common shareholders$0.28  $0.07  $0.54  $0.19 
        
Weighted average basic common shares outstanding 18,406   18,647   18,446   18,737 
Weighted average diluted common shares outstanding 18,966   19,119   18,832   19,184 
                



NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

(Unaudited)
    
 June 30,

2025
 December 31,

2024
Assets   
Current assets:   
Cash and cash equivalents$81,345  $84,700 
Accounts receivable, net of allowance for doubtful accounts of $93 and $97, respectively 13,029   9,477 
Inventories 69,320   59,443 
Prepaid expenses and other 8,144   6,959 
Total current assets 171,838   160,579 
    
Property, plant and equipment, net 35,930   39,585 
Operating lease right-of-use assets 14,218   12,799 
Restricted investment securities - trading 1,041   915 
Deferred income tax assets 21,410   17,644 
Other assets 10,438   9,333 
Total assets$254,875  $240,855 
    
Liabilities and Shareholders’ Equity   
Current liabilities:   
Accounts payable$9,924  $8,912 
Accrued volume incentives and service fees 22,583   20,563 
Accrued liabilities 27,456   25,399 
Deferred revenue 5,501   2,774 
Income taxes payable 5,765   4,117 
Current portion of operating lease liabilities 4,625   3,927 
Total current liabilities 75,854   65,692 
    
Liability related to unrecognized tax benefits 638   628 
Long-term portion of operating lease liabilities 11,005   10,277 
Deferred compensation payable 1,041   915 
Deferred income tax liabilities 1,009   1,007 
Other liabilities 1,646   1,345 
Total liabilities 91,193   79,864 
    
Commitments and contingencies   
    
Shareholders’ equity:   
Common stock, no par value, 50,000 shares authorized, 17,635 and 18,483 shares issued and outstanding, respectively 104,662   114,577 
Retained earnings 67,487   57,407 
Noncontrolling interest 6,001   5,678 
Accumulated other comprehensive loss (14,468)  (16,671)
Total shareholders’ equity 163,682   160,991 
Total liabilities and shareholders’ equity$254,875  $240,855 
        



NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)
         
Six Months Ended June 30,  2025   2024 
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $10,403  $3,978 
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization  6,999   6,659 
Non-cash lease expense  2,675   3,298 
Share-based compensation expense  2,938   2,630 
Deferred income taxes  (3,179)  (14)
Purchase of trading investment securities  (78)  (110)
Proceeds from sale of trading investment securities  11   40 
Realized and unrealized gains on investments  (59)  (72)
Foreign exchange losses (gains)  (3,779)  1,543 
Changes in assets and liabilities:    
Accounts receivable  (2,963)  (2,960)
Inventories  (7,901)  3,112 
Prepaid expenses and other current assets  (1,349)  (2,162)
Other assets  (355)  (598)
Accounts payable  790   409 
Accrued volume incentives and service fees  1,193   (144)
Accrued liabilities  325   (7,993)
Deferred revenue  2,583   477 
Lease liabilities  (2,684)  (3,215)
Income taxes payable  824   (2,251)
Liability related to unrecognized tax benefits  429   726 
Deferred compensation payable  126   142 
Net cash provided by operating activities  6,949   3,495 
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property, plant and equipment  (2,460)  (7,040)
Net cash used in investing activities  (2,460)  (7,040)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from revolving credit facility  1,823   34,216 
Principal payments of revolving credit facility  (1,823)  (34,216)
Payments related to tax withholding for net-share settled equity awards  (499)  (586)
Repurchase of common stock  (12,354)  (7,725)
Net cash used in financing activities  (12,853)  (8,311)
Effect of exchange rates on cash and cash equivalents  5,009   (1,822)
Net decrease in cash and cash equivalents  (3,355)  (13,678)
Cash and cash equivalents at the beginning of the period  84,700   82,373 
Cash and cash equivalents at the end of the period $81,345  $68,695 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid for income taxes, net of refunds $6,211  $8,144 
Cash paid for interest  45   115 
         



NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

(Amounts in thousands)

(Unaudited)
    
 Three Months Ended

June 30,
 Six Months Ended

June 30,
  2025   2024  2025   2024
Net income$5,519  $1,488 $10,403  $3,978
Adjustments:       
Depreciation and amortization 3,500   3,499  6,999   6,659
Share-based compensation expense 1,638   1,261  2,938   2,630
Other (income) loss, net* (3,270)  1,214  (4,207)  1,183
Provision for income taxes 2,025   2,935  4,250   5,100
Other adjustments (1) 1,853     1,853   
Adjusted EBITDA$11,265  $10,397 $22,236  $19,550
        
        
(1) Other adjustments       
Other non-recurring expenses$1,853  $ $1,853  $
Total adjustments$1,853  $ $1,853  $
              

* Other (income) loss, net is primarily comprised of foreign exchange (gains) losses, interest income, and interest expense.

    
NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO

NON-GAAP NET INCOME and NON-GAAP ADJUSTED EPS

(Amounts in thousands)

(Unaudited)
    
 Three Months Ended

June 30,
 Six Months Ended

June 30,
  2025   2024  2025   2024
Net income$5,519  $1,488 $10,403  $3,978
Adjustments:       
Other non-recurring expenses 1,853     1,853   
Tax impact of adjustments (463)    (463)  
Total adjustments 1,390     1,390   
Non-GAAP net income$6,909  $1,488 $11,793  $3,978
        
Reported income attributable to common shareholders$5,333  $1,349 $10,080  $3,670
Total adjustments 1,390     1,390   
Non-GAAP net income attributable to common shareholders$6,723  $1,349 $11,470  $3,670
        
Basic income per share, as reported$0.29  $0.07 $0.55  $0.20
Total adjustments, net of tax 0.08     0.08   
Basic income per share, as adjusted$0.37  $0.07 $0.63  $0.20
        
Diluted income per share, as reported$0.28  $0.07 $0.54  $0.19
Total adjustments, net of tax 0.07     0.07   
Diluted income per share, as adjusted$0.35  $0.07 $0.61  $0.19
              


EN
31/07/2025

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