Name: MANNATECH INC Q4 2024 Earnings Call
Start: 2025-03-26T00:00:00.000Z

Executive Summary

Q4 2024 net sales declined 11.3% year over year to $29.0M, but gross margin expanded 510 bps to 80.5% and operating income swung to +$0.9M from a loss; net income was $2.3M ($1.20 diluted EPS), aided by lower SG&A and $2.1M in other income .
Regionally, Asia/Pacific remained soft (GAAP net sales $17.4M) with FX driving a $0.7M headwind to total sales; Americas delivered $9.3M and EMEA $2.3M .
Management emphasized strict cost controls that reduced Q4 SG&A by $1.7M YoY and delivered positive full-year net income despite macro challenges in Asia/Pacific .
No formal quantitative guidance was provided; Wall Street consensus (S&P Global) appears unavailable, limiting beat/miss assessment for EPS and revenue (see Estimates Context).

What Went Well and What Went Wrong

Margin expansion: Gross margin improved to 80.5% vs 75.4% in Q4’23, reflecting lower cost of sales and disciplined promotions .
Cost discipline: Q4 SG&A fell to $10.4M from $12.1M YoY (−$1.7M), with reductions in payroll (−$0.9M), marketing (−$0.7M), and T&E (−$0.1M) .
Profitability improvement: Operating income turned positive ($0.9M vs −$0.9M in Q4’23), and net income reached $2.3M ($1.20 diluted EPS) vs a loss in the prior year quarter, supported by $2.1M other income .
Management tone: “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” — Landen Fredrick, CEO .

Top-line pressure: Q4 net sales fell to $29.0M (−$3.7M, −11.3% YoY; −$2.7M, −8.5% QoQ vs Q3’24 $31.7M), with FX detracting $0.7M .
Asia/Pacific softness: Ongoing demand weakness in Asia/Pacific weighed on results; region GAAP net sales were $17.4M; constant-dollar reconciliation shows $0.7M FX headwind .
Field KPIs: Network size fell to ~133,000 from ~145,000 YoY; recruiting decreased 19.5% YoY with 14,615 new positions vs 18,156 in Q4’23 .
Higher payout ratio: Commissions as % of net sales rose to 40.6% from 39.6% YoY; incentives were 1.0% vs 1.4% .

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$32.694	$27.740	$31.725	$29.007
Gross Profit ($USD Millions)	$24.646	$21.377	$23.620	$23.364
Gross Profit Margin %	75.4%	77.1%	74.5%	80.5%
Operating Income ($USD Millions)	$(0.895)	$(1.143)	$0.887	$0.864
Net Income ($USD Millions)	$(1.756)	$(0.624)	$(0.328)	$2.262
Diluted EPS ($USD)	$(0.94)	$(0.33)	$(0.17)	$1.20
Commissions as % of Net Sales	39.6%	40.0%	38.3%	40.6%
Selling & Administrative ($USD Millions)	$12.152	$10.860	$9.840	$10.428
Other Income (Expense), net ($USD Millions)	$(0.973)	$1.120	$(1.495)	$2.095

Segment sales (GAAP):

KPIs:

KPI	Q3 2024	Q4 2024
Network size (Associates + Preferred Customers)	~136,000	~133,000
New positions (quarter)	—	14,615
Recruiting change YoY	−28.1%	−19.5%
Cash & Cash Equivalents ($USD Millions)	$12.150	$11.396

Metric	Period	Previous Guidance	Current Guidance	Change
—	—	—	—	—

Note: No formal quantitative guidance ranges (revenue, margins, OpEx, OI&E, tax rate, or dividends) were issued in the Q4 2024 press release or 8-K .

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Asia/Pacific demand/macro	Demand weakness most pronounced; impact on recruiting and sales; macro not improving	Continued demand weakness; Asia/Pacific most impacted	“Challenging year… particularly in the Asia/Pacific region”	Persistent headwind
FX impact	FX gain $1.1M in Q2 aided YTD net income; FX reduced cash by $0.8M	FX reduced GAAP net sales by $0.5M in Q3	FX reduced Q4 net sales by $0.7M; constant dollar total $29.7M vs GAAP $29.0M	Mixed; headwind to sales in Q3–Q4
Supply chain/promotions	Back orders and freight costs pressured margins; promotions reduced margins	Freight costs/back orders; promotions reduced margins	Margin expanded despite prior issues; gross margin 80.5%	Improving margin profile
Cost controls	SG&A reductions across payroll, legal, T&E	SG&A down $2.8M YoY; mix of reductions	SG&A down $1.7M YoY; emphasis on strict cost management	Ongoing discipline
Field KPIs/recruiting	Network ~142k; recruiting −13.6% YoY	Network ~136k; recruiting −28.1% YoY	Network ~133k; recruiting −19.5% YoY	Downtrend in network size
Financing/liquidity	Gross loan proceeds $3.6M; cash $9.2M	Cash $12.2M; financing provided $2.9M	Cash $11.4M at year-end	Stable liquidity

“2024 was a challenging year for Mannatech, particularly in the Asia/Pacific region, due to persistent economic challenges. 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.” — Landen Fredrick, President & CEO .
“Although the third quarter of 2024 provided our highest revenue quarter in 2024, we continued to battle demand weakness… most significant impact in the Asia/Pacific region due to ongoing economic challenges… committed to increasing our revenue… while keeping costs under strict cost controls.” — Q3 press release .
“Although we recorded a second quarter loss in 2024, we recorded an overall gain in the first six months of 2024… Demand remained weak… most pronounced in our Asia/Pacific region…” — Q2 press release .

No earnings call transcript for Q4 2024 was found in the document set; Q&A highlights unavailable.

S&P Global consensus estimates for Q4 2024 EPS and revenue appear unavailable for MTEX; we could not retrieve consensus values or estimate counts. Values retrieved from S&P Global*.

Values retrieved from S&P Global.*

Q4 delivered a notable profitability inflection: operating income positive and net income of $2.3M ($1.20 EPS) despite sales decline; margin expansion and SG&A reductions were critical drivers .
FX headwinds obscured underlying performance; constant-dollar Q4 sales were $29.7M vs GAAP $29.0M, suggesting incremental resilience ex-currency .
Asia/Pacific remains the key swing factor; continued macro softness and smaller network size point to near-term revenue pressure until recruiting stabilizes .
Payout ratio drifted up (commissions 40.6% of sales), which may cap margin upside if promotions persist; monitoring incentive/commission policies will be important .
Liquidity is adequate (cash $11.4M at year-end) with manageable liabilities, providing flexibility to navigate macro and field dynamics .
With no formal guidance or Street coverage, near-term stock narrative likely centers on cost discipline, margin sustainability, FX, and Asia/Pacific demand recovery .
Actionable: Watch recruiting trends and Asia/Pacific trajectory, margin mix vs promotions, and FX sensitivity; absent consensus, traders may react to print-quality and margin commentary vs prior quarters .