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NU SKIN ENTERPRISES, INC. (NUS)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 revenue was $364.5M, landing at the high end of guidance; GAAP diluted EPS was $2.14, and adjusted EPS was $0.23, up from $0.09 in the prior year excluding restructuring, despite a 12.7% YoY revenue decline and a 3% FX headwind .
  • Management maintained full-year adjusted EPS guidance ($0.90–$1.30) and revenue guidance ($1.48–$1.62B); Q2 guidance calls for revenue of $355–$390M and EPS of $0.20–$0.30, with a 2–3% FX headwind .
  • Cost efficiency drove improved adjusted operating margin (6.4% vs. 3.8% YoY), while debt reduction of $155M brought total debt to the lowest level in over a decade and cash ended at $204M .
  • Strategic catalysts flagged: Prysm iO intelligent wellness device preview in H2 2025, and India pre-opening in Q4 2025 with formal launch mid‑2026, positioning for nutrition-led engagement and subscriptions .
  • Rhyz manufacturing revenue grew 9.9% YoY; however, Nu Skin regional softness persisted in Mainland China, Europe & Africa, and South Korea amid tariff/macro headwinds .

What Went Well and What Went Wrong

What Went Well

  • Achieved revenue at the high end of guidance and exceeded adjusted EPS forecast to start the year; CEO: “We are pleased to achieve revenue at the high end of our guidance range and exceed our adjusted earnings forecast” .
  • Adjusted operating margin improved to 6.4% (vs. 3.8% YoY) driven by cost efficiency; CFO: “encouraging improvement in core Nu Skin operating margin” .
  • Strengthened balance sheet: reduced outstanding debt by $155M (lowest in 10+ years) and ended with $204M cash; returned $8M to shareholders ($3M dividends, $5M buybacks) .

What Went Wrong

  • Core KPIs declined: customers -11% YoY to 776,712, paid affiliates -15% to 131,518, sales leaders -20% to 31,036, reflecting demand softness and sales-force productivity issues .
  • Regional revenue pressure: Mainland China -21.8% YoY, Europe & Africa -21.9%, South Korea -20.6%; broad premium-beauty consumer caution amid tariffs and inflation concerns .
  • Gross margin compressed to 67.8% (70.5% prior year) at consolidated level; “Other expense” of $28.4M included a $28.1M unrealized investment loss, weighing on GAAP results .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$430.1 $445.6 $364.5
Gross Margin % (Consolidated)70.1% 62.7% 67.8%
Selling Expenses %39.0% 37.1% 32.5%
G&A Expenses %26.9% 27.1% 31.1% (28.9% ex. charges)
Operating Margin % (GAAP)4.2% (11.9)% (2.7)%
Operating Margin % (Adjusted)7.9% 7.7% 6.4%
Diluted EPS (GAAP)$0.17 $(0.73) $2.14
Diluted EPS (Adjusted)$0.56 (ex inv. write-off) $0.38 (ex restructuring/other) $0.23 (ex Mavely gain/other)

Segment revenue (Q1 2025 vs Q1 2024)

SegmentQ1 2024 Revenue ($USD 000s)Q1 2025 Revenue ($USD 000s)YoY Change
Americas (Nu Skin)$75,031 $69,058 (8.0)%
SE Asia/Pacific (Nu Skin)$60,065 $52,172 (13.1)%
Mainland China (Nu Skin)$61,067 $47,775 (21.8)%
Japan (Nu Skin)$44,236 $42,765 (3.3)%
Europe & Africa (Nu Skin)$42,273 $33,021 (21.9)%
South Korea (Nu Skin)$40,963 $32,515 (20.6)%
Hong Kong/Taiwan (Nu Skin)$30,466 $28,447 (6.6)%
Total Nu Skin$354,773 $306,282 (13.7)%
Rhyz Manufacturing$50,302 $55,290 +9.9%
Rhyz Other$12,231 $2,918 (76.1)%
Total Rhyz$62,533 $58,208 (6.9)%
Total Company$417,306 $364,490 (12.7)%

KPIs (Core Nu Skin)

KPIQ1 2024Q1 2025YoY Change
Customers (Total)875,261 776,712 (11)%
Paid Affiliates (Total)154,171 131,518 (15)%
Sales Leaders (Total)38,609 31,036 (20)%

Notes: Consolidated income statement for Q1 includes a $176.2M gain on sale of Mavely, $25.1M impairment, and $28.4M other expense driven by a $28.1M unrealized investment loss .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q1 2025$345–$365 Actual: $364.5 At high end
Diluted EPS (Adjusted)Q1 2025$0.10–$0.20 (ex Mavely gain) Actual: $0.23 (ex Mavely gain/other) Beat
Revenue ($USD Millions)Q2 2025—$355–$390; ~2–3% FX headwind New
Diluted EPSQ2 2025—$0.20–$0.30 New
Revenue ($USD Billions)FY 2025$1.48–$1.62 $1.48–$1.62; ~3% FX headwind Maintained
Adjusted EPSFY 2025$0.90–$1.30 $0.90–$1.30 (ex Mavely gain/other) Maintained
DividendQ1/Q2 2025$0.06/share (declared Feb 13) $0.06/share (declared May 8) Maintained

Earnings Call Themes & Trends

TopicQ3 2024 (Nov 2024)Q4 2024 (Feb 2025)Q1 2025 (May 2025)Trend
AI/technology initiativesDevice ecosystem, connecting iO devices; portfolio optimization to lift margins Preview of Prysm iO for 2025; restructuring largely completed Detailed Prysm iO rollout plan; leveraging AI and 20M scans; subscription model focus Increasing emphasis on intelligent wellness
Supply chain & tariffs/macroMacro pressures; cost efficiency and inventory reduction Continued economic challenges; poor consumer sentiment in Greater China & South Korea Proactive sourcing, inventory optimization; tariffs unlikely to materially impact costs near term but may weigh on demand Risks monitored; mitigation in place
Product performance & RhyzRhyz growth offsetting core pressure; Mavely strong Rhyz revenue +27.7% in Q4; Mavely sale strengthens balance sheet Rhyz manufacturing +9.9% YoY; Rhyz other down post-Mavely sale Manufacturing solid; Rhyz portfolio reset
Regional trendsBroad declines; compensation plan revision starting NA & SK Expect return to YoY growth in several markets; LatAm highlighted LatAm up sharply; SK & China KPIs improving; Indonesia headwinds Mixed but stabilizing in key markets
Regulatory/legal (China)Ongoing scrutiny and sentiment risk Continued uncertainties in Mainland China Mainland China still pressured; monitoring Persistent headwind
Cost discipline & marginsSavings; adjusted pricing model; portfolio optimization Restructuring materially completed; cost structure improved Adjusted OM +250 bps YoY to 6.4%; expect Nu Skin GM trend to continue Ongoing margin improvement

Management Commentary

  • Strategic priorities for 2025: strengthen core Nu Skin business, accelerate innovation with Prysm iO, and improve operational performance/efficiency .
  • CEO quote: “We are pleased to achieve revenue at the high end of our guidance range and exceed our adjusted earnings forecast to start out the year” .
  • CFO quote: “We saw encouraging improvement in core Nu Skin operating margin... [and] reduced outstanding debt by $155 million, achieving our lowest debt level in more than 10 years” .
  • Expansion roadmap: India pre-launch in Q4 2025; formal launch mid-2026 with locally manufactured products and digital-first experience with Infosys .
  • Prysm iO thesis: AI-enabled, carotenoid-based antioxidant scoring to drive intelligent recommendations, subscriptions, and higher LTV; phased rollout in H2 2025/H1 2026 .

Q&A Highlights

  • The published transcript did not include a public Q&A session; management addressed guidance, tariffs/macro, and cost actions in prepared remarks .
  • Guidance and visibility: Maintaining FY adjusted guidance amid uncertainty; more updates expected after Q2 .
  • Tariffs: Near-term cost impact expected to be immaterial; main risk is consumer sentiment and demand .
  • Selling expense: Anticipated to normalize toward ~40% as the business strengthens and compensation plan adoption improves .

Estimates Context

  • S&P Global consensus coverage is limited. FY 2025 shows Revenue Consensus Mean of $1.4976B* and Primary EPS Consensus Mean of $1.30*, with one estimate each*; quarterly (Q1 2025) consensus figures were not available to compare against reported results*.
    Values retrieved from S&P Global.*
PeriodRevenue Consensus Mean ($USD)Primary EPS Consensus Mean ($USD)# of Estimates
FY 2025$1,497,600,000*$1.30*1*

Company-guidance comparison: Q1 adjusted EPS of $0.23 exceeded company’s own guidance of $0.10–$0.20 (ex-Mavely gain), and revenue landed at the high end of the $345–$365M range .

Key Takeaways for Investors

  • Cost discipline and mix improvements are lifting adjusted operating margin (6.4% vs. 3.8% YoY) despite revenue pressure; expect Nu Skin core GM trend to continue into Q2 per CFO .
  • Balance sheet de-risking is meaningful (debt down $155M; lowest in 10+ years) and provides flexibility for launches (Prysm iO) and market entries (India) .
  • Near-term top-line visibility remains challenged by China/South Korea weakness and tariff-linked sentiment; management maintained adjusted FY guidance and will reassess after Q2 .
  • Rhyz manufacturing growth (+9.9% YoY) is a positive offset, but the post-Mavely portfolio transition reduces Rhyz other revenue near term .
  • KPIs indicate sales-force rebuilding is needed: customers, paid affiliates, sales leaders declined double-digits YoY; compensation plan enhancements and developing-market model (LatAm) showing promise .
  • Catalysts: Prysm iO preview in H2 2025 and India pre-opening in Q4 2025 could drive nutrition subscriptions and incremental retention; monitor execution and regulatory dynamics .
  • Trading lens: Lean into events (device preview cadence, Q2 print) and watch management’s update on guidance trajectory, China/SK stabilization, and selling-expense normalization toward ~40% .