Executive Summary

Q1 2025 revenue declined to $26.6M (-9.6% YoY) with constant-currency revenue down 5.4%, driven primarily by demand weakness in Asia/Pacific and a $1.2M FX headwind .
Gross margin compressed to 74.3% (vs. 78.6% YoY) due to increased freight costs on backordered items and price promotions; operating swung to a loss of $0.8M vs. +$0.8M YoY .
EPS was -$0.80 vs. $0.63 YoY and $1.20 in Q4 2024, as lower sales and higher supply chain costs offset commission rate improvement (37.7% vs. 38.1% YoY) .
Mannatech reiterated cost discipline; however, management flagged trade policy risks and supply chain constraints, underscoring near-term uncertainty while focusing on associate/customer growth initiatives .
Key stock narrative catalysts: Asia/Pacific demand trajectory, margin recovery efforts, FX sensitivity, and progress on recruiting/associate base stabilization .

What Went Well and What Went Wrong

What Went Well

Selling and administrative expenses decreased $0.6M YoY to $10.0M; despite lower sales, commission rate improved modestly to 37.7% (from 38.1% YoY), reflecting some cost efficiency .
Prior quarter execution delivered positive profitability: Q4 2024 operating income was $0.9M and EPS was $1.20, aided by strict cost controls and improved gross margin (80.5%) .
Brand-building content: Mannatech premiered “The Long Run” documentary, highlighting product positioning around glycan replenishment and athlete recovery, which can support marketing and associate recruitment narratives .

What Went Wrong

Asia/Pacific weakness and unfavorable FX weighed on Q1 revenue; FX reduced GAAP net sales by $1.2M, and constant-currency revenue still fell 5.4% YoY .
Gross margin declined to 74.3% (vs. 78.6% YoY) due to increased freight related to backorders and sales promotions; operating income deteriorated to a $0.8M loss from +$0.8M YoY .
Distribution KPIs worsened: the network’s associate and preferred customer positions fell to ~129,000 (vs. ~143,000 YoY), and recruiting decreased 13.9% YoY, tightening demand visibility .

Financial Results

Quarterly Financials (older → newer)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$31.725	$29.007	$26.563
Gross Profit ($USD Millions)	$23.620	$23.364	$19.736
Gross Margin (%)	74.5%	80.5%	74.3%
Operating Income ($USD Millions)	$0.887	$0.864	$(0.833)
Net Income ($USD Millions)	$(0.328)	$2.262	$(1.530)
Diluted EPS ($USD)	$(0.17)	$1.20	$(0.80)
Commissions + Incentives ($USD Millions)	$12.893	$12.072	$10.553
Selling & Administrative ($USD Millions)	$9.840	$10.428	$10.016

YoY Comparison (Q1 2024 → Q1 2025)

Metric	Q1 2024	Q1 2025
Revenue ($USD Millions)	$29.393	$26.563
Gross Profit ($USD Millions)	$23.097	$19.736
Gross Margin (%)	78.6%	74.3%
Operating Income ($USD Millions)	$0.820	$(0.833)
Net Income ($USD Millions)	$1.180	$(1.530)
Diluted EPS ($USD)	$0.63	$(0.80)
Commission Rate (% of Sales)	38.1%	37.7%

Regional Net Sales (Q1)

Region	Q1 2024 ($M / %)	Q1 2025 ($M / %)
Americas	$10.2 / 34.7%	$9.0 / 33.8%
Asia/Pacific	$17.1 / 58.2%	$15.4 / 57.9%
EMEA	$2.1 / 7.1%	$2.2 / 8.3%
Total	$29.4 / 100%	$26.6 / 100%

Non-GAAP Constant Currency (Q1 2025 vs Q1 2024)

Metric	GAAP Q1’25	FX Translation Adj.	Constant $ Q1’25	GAAP Q1’24	Constant $ Change ($ / %)
Net Sales ($M)	$26.6	$1.2	$27.8	$29.4	$(1.6) / (5.4%)
Gross Profit ($M)	$19.7	$1.0	$20.7	$23.1	$(2.4) / (10.4%)
(Loss) Income from Operations ($M)	$(0.8)	$0.3	$(0.5)	$0.8	$(1.3) / (162.5%)

KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
Associate & Preferred Customer Positions (approx.)	~136,000	~133,000	~129,000
Recruiting YoY Change	-28.1%	-19.5%	-13.9%
Cash & Cash Equivalents (period-end)	$12.150M	$11.396M	$9.323M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarter	Not provided	Not provided	Maintained: No formal guidance
Gross Margin	FY/Quarter	Not provided	Not provided	Maintained: No formal guidance
OpEx (S&A, Commissions)	FY/Quarter	Not provided	Emphasis on strict cost control (narrative only)	Qualitative only
Tax Rate	FY/Quarter	Not provided	Not provided	Maintained: No formal guidance
Dividends	FY/Quarter	No new updates in Q1 materials	No new updates	Maintained

Note: Mannatech did not issue quantitative guidance ranges. Management commentary emphasized ongoing cost discipline and acknowledged macro/trade policy risks .

Earnings Call Themes & Trends

Note: A Q1 2025 earnings call transcript was not available; themes below are derived from press releases and 8-Ks .

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Asia/Pacific demand	Ongoing economic challenges; demand weakness continues	Demand weakness persists relative to prior year	Persistent headwind
FX impact	FX reduced Q3 GAAP sales by ~$0.5M	FX reduced Q1 GAAP sales by ~$1.2M	Elevated FX sensitivity
Supply chain & freight	Lower supply chain shipping costs helped Q4 margin	Increased freight costs on backorders pressured Q1 margin	Mixed; Q4 benefit, Q1 headwind
Cost controls	Strict cost controls; positive Q4 profitability	S&A down YoY; commission rate improved slightly	Continued discipline
Recruiting/associate base	Associates ~136k; recruiting -28.1% YoY	Associates ~129k; recruiting -13.9% YoY	Declining base, decelerating recruiting declines
Trade policy risk	Not highlighted	Trade policy changes may affect cost structure; limited ability to mitigate near term	New cautionary tone

Management Commentary

“Changes in current trade policies could affect our cost structure and profitability… our ability to [mitigate] may be limited by operational and supply chain constraints and uncertainties, especially in the short term.” — Management statement, Q1 2025 .
“Despite anticipating continued economic difficulties for the rest of 2024, we are committed to increasing our revenue by growing our team of sales associates and expanding our base of preferred customers, all while keeping costs under strict cost controls.” — CEO Landen Fredrick, Q3 2024 .
“2024 was a challenging year… particularly in the Asia/Pacific region… however, through strict cost management, we were able to achieve a positive net income. We remain dedicated to expanding our revenue and carefully managing our expenses moving forward.” — CEO Landen Fredrick, Q4 2024 .

Q&A Highlights

No Q1 2025 earnings call transcript was available; Q&A highlights and any real-time guidance clarifications are therefore unavailable [List: earnings-call-transcript shows no 2025 entries].

Estimates Context

Wall Street consensus coverage for Q1 2025 appears unavailable in S&P Global data; no EPS or revenue consensus was returned for Q1 2025 [GetEstimates].
Actual reported results: Revenue $26.563M and Diluted EPS -$0.80 .

Metric	Q1 2025 Consensus	Q1 2025 Actual
EPS ($)	N/A*	$(0.80)
Revenue ($USD Millions)	N/A*	$26.563

*Values retrieved from S&P Global.

Implication: Absent formal consensus, estimate revisions are unlikely to be a near-term driver; investors should watch management commentary and quarterly execution vs internal expectations.

Key Takeaways for Investors

Sequential slowdown from Q4 2024 to Q1 2025: revenue fell to $26.6M and margins compressed to 74.3%, driving a swing to operating loss; watch for stabilization in Asia/Pacific and freight normalization .
FX is material: $1.2M GAAP revenue headwind this quarter; constant-currency declines still present but less severe (sales -5.4% YoY) .
Distribution KPIs remain under pressure: associate base and recruiting are declining, though recruiting decline decelerated vs Q3; track progress of associate/customer growth initiatives .
Cost discipline continues: S&A down YoY and commission rate slightly improved; margin recovery depends on freight/backorder dynamics and promotion intensity .
No formal guidance: narrative suggests caution on trade policy and supply chain; position sizing should reflect macro sensitivity and FX exposure .
Prior quarter profitability shows playbook: Q4 margin improvement and cost controls delivered EPS $1.20; re-attaining margin mix without heavy promotions is key .
Near-term trading: stock likely reacts to updates on Asia/Pacific demand and FX trends; medium-term thesis hinges on rebuilding the salesforce, product marketing effectiveness (e.g., brand content), and sustained cost discipline .

MANNATECH INC (MTEX)·Q1 2025 Earnings Summary