Nu Skin Enterprises — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $311.0 million, a 14.6% decrease from $364.2 million in the prior-year quarter, with a 1.1% negative impact from foreign exchange (FX) or $(3.9) million.
• GAAP EPS was $(0.02) compared to $0.34 in the prior year; adjusted EPS was $0.10 excluding certain charges.
• Gross margin was 65.0% compared to 70.5% in the prior year; the Nu Skin business gross margin was 76.6% compared to 77.7%.
• Operating margin was 1.6% compared to 5.9% in the prior year; adjusted operating margin was 3.7% excluding certain charges.
• Selling expenses were 33.2% of revenue compared to 35.8% in the prior year; G&A expenses were 30.2% compared to 28.8%.
• Interest expense was $3.5 million compared to $4.1 million in the prior year.
• Net loss for the nine months ended September 30, 2026, was $248.7 million compared to net income of $145.7 million in the prior year.
• Cash and cash equivalents were $164.9 million as of September 30, 2026, down from $238.6 million as of December 31, 2025.
• Total debt (current and long-term) was $203.7 million as of September 30, 2026, down from $224.2 million as of December 31, 2025.

Guidance and Future Outlook:

• Q4 2026 revenue is projected between $310 million and $340 million, representing a 16% to 8% decline year-over-year, with approximately 1% FX impact.
• Q4 2026 EPS is projected between $0.05 and $0.15, or $0.11 to $0.21 on an adjusted basis.
• Full-year 2026 revenue is projected between $1.26 billion and $1.29 billion, representing a 15% to 13% decline year-over-year, with approximately 1% FX impact.
• Full-year 2026 EPS is projected between $(5.08) and $(4.98), or $0.55 to $0.65 on an adjusted basis.
• Management anticipates sequential growth in the fourth quarter driven by holiday season affiliate and customer engagement.

Business Segments and Product Lines:

• Total Nu Skin revenue was $252.6 million for the quarter, a 19.2% decrease year-over-year; Rhyz revenue was $58.4 million, a 13.2% increase year-over-year.
• Nu Skin segment revenue declined across all regions: Americas (17.0%), Southeast Asia/Pacific (23.5%), Mainland China (10.9%), Japan (13.3%), Europe & Africa (26.6%), Hong Kong/Taiwan (19.1%), and South Korea (30.7%).
• Rhyz Manufacturing revenue increased 19.3% to $56.8 million, while Rhyz Other revenue decreased 59.6% to $1.6 million.
• Adoption of the Prysm iO platform is growing, with year-to-date revenue growth in the flagship LifePak nutritional supplements.
• The company previewed new anti-aging offerings focused on women's health at the Nu Skin LIVE global convention in Japan.
• Customer count was 609,469, a 18% decrease year-over-year; Paid Affiliates were 116,449, a 10% decrease; Sales Leaders were 26,995, a 13% decrease.

Market and Competitive Landscape:

• The company operates in nearly 50 markets worldwide.
• Management cited a challenging operating environment as a factor in the current quarter's results.
• The press release notes competitive pressures as a risk factor but does not provide specific market share data.

Risks and Challenges:

• Risks include direct selling laws and regulations in markets including the United States and Mainland China potentially being modified or enforced negatively.
• Economic conditions, global events, and competitive pressures pose risks to business performance.
• Regulatory risks regarding product claims, medical device classification, and import registration in various markets.
• Uncertainties regarding meeting restrictions, government scrutiny, and negative consumer sentiment in Mainland China.
• Risks related to foreign-currency fluctuations and the potential for inventory write-offs due to over-forecasting demand.
• The company recorded $80.7 million in impairment expenses for the nine months ended September 30, 2026, compared to $25.1 million in the prior year.

Management Commentary and Tone:

• Ryan Napierski, President and CEO, stated revenue came in within guidance as the company continued executing on strategic priorities amid a challenging environment.
• Chelsea Lantz, Interim CFO, provided the full-year and fourth-quarter revenue and earnings projections.
• Management expressed focus on driving affiliate and customer engagement through the holiday season.

Other Key Points:

• Dividend payments for the quarter were $2.9 million.
• Stock repurchases were $0.0 million for the quarter, with $137.3 million remaining in the authorization.
• The company incurred $6.3 million in other charges for the quarter, consisting of $5.1 million in employee severance charges and $1.2 million in professional fees.
• For the nine months ended September 30, 2026, the company incurred $8.9 million in other charges, including severance, professional fees, and costs related to the wind-down of the BeautyBio business.
• The company held its Nu Skin LIVE global convention in Japan with 12,000 sales leaders.
• A conference call with the investment community was scheduled for November 5, 2026, at 5 p.m. ET.