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NU SKIN ENTERPRISES, INC. (NUS)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 revenue of $386.1M landed at the high end of guidance and GAAP EPS of $0.43 exceeded guidance, driven by cost discipline and operational efficiencies; operating margin reached 8.0% despite top-line pressure .
  • Management narrowed FY25 revenue guidance to $1.48–$1.55B (from $1.48–$1.62B) and raised FY25 EPS to $3.05–$3.25 (adj. $1.15–$1.35), reflecting confidence in profitability improvements and balance sheet strength (net cash positive for first time in 4+ years) .
  • Rhyz Manufacturing grew 17% YoY, while core geographies saw mixed trends: strong growth in Latin America (+107% YoY cited qualitatively), stability in Japan, with continued pressure in Mainland China and South Korea; total company revenue declined 12.1% YoY .
  • Near-term catalysts: mid-Q4 limited preview of the Prysm iO AI-powered wellness device to seed 2026 subscriptions growth, and Q3 guidance of $360–$390M revenue and $0.25–$0.35 EPS .

What Went Well and What Went Wrong

What Went Well

  • Profitability execution: “significantly exceeding our forecast for earnings per share,” delivering 8% operating margin amid top-line pressure; FY25 EPS guidance raised .
  • Rhyz Manufacturing momentum: +17.3% YoY in Q2, helping mix and operational leverage .
  • Strategic pipeline and engagement: CEO highlighted on-schedule mid-Q4 limited preview of Prysm iO (AI-powered wellness device) intended to drive personalized subscriptions and CLV; progressing India pre-opening in Q4 with a formal launch mid-2026 .

What Went Wrong

  • Top-line contraction: Revenue fell 12.1% YoY; customer, affiliate and sales leader counts declined 14%, 16% and 23% YoY, respectively, signaling ongoing field pressure .
  • Regional headwinds: Mainland China (-17.7% YoY) and South Korea (-22.8% YoY) weighed on Nu Skin segment revenues; broader macro/tariff uncertainties flagged by management .
  • Gross margin (total company) was 68.8% vs 70.0% prior year, with mix shifts (Rhyz vs Core) a headwind even as core Nu Skin gross margin improved to 77.5% .

Financial Results

Consolidated P&L and Margins

MetricQ4 2024Q1 2025Q2 2025
Revenue ($M)$445.6 $364.5 $386.1
YoY Growth(8.8)% (12.7)% (12.1)%
GAAP Diluted EPS ($)$(0.73) $2.14 $0.43
Adjusted EPS ($)$0.38 $0.23 $0.43
Gross Margin % (GAAP)62.7% 67.8% 68.8%
Operating Margin % (GAAP)(11.9)% (2.7)% 8.0%
Operating Margin % (Adj.)7.7% 6.4% 8.0%
Cash & Equivalents ($M, period-end)$186.9 $203.8 $264.2

Notes:

  • Management cited four consecutive quarters of sequential improvement in core Nu Skin adjusted gross margin; core Nu Skin gross margin was 77.5% in Q2 vs 76.1% prior year .

Segment Revenue Mix

Segment ($M)Q4 2024Q1 2025Q2 2025
Total Nu Skin$362.4 $306.3 $320.9
Rhyz Manufacturing$47.9 $55.3 $60.4
Rhyz Other$35.2 $2.9 $4.8
Total Company$445.6 $364.5 $386.1

Commercial KPIs (Totals)

KPI (Core Nu Skin)Q4 2024Q1 2025Q2 2025
Customers831,972 776,712 771,407
Paid Affiliates144,874 131,518 130,799
Sales Leaders36,912 31,036 29,593

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$1.48–$1.62B $1.48–$1.55B Narrowed (lowered high end)
EPS (GAAP)FY 2025$2.80–$3.20 $3.05–$3.25 Raised
EPS (Adj.)FY 2025$0.90–$1.30 $1.15–$1.35 Raised
RevenueQ3 2025—$360–$390M New
EPSQ3 2025—$0.25–$0.35 New
DividendQuarterly$0.06/share (May 2025) $0.06/share (Sept 10, 2025 pay date) Maintained

Additional Q2 context vs prior Q2 guidance: Q2 delivered revenue at high end of $355–$390M and EPS above $0.20–$0.30 guidance .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’24, Q1’25)Current Period (Q2’25)Trend
AI/technology initiatives (Prysm iO)Q4: anticipated introduction “later this year” to infuse growth . Q1: preview in back half of 2025 .Mid-Q4 limited preview; AI-powered wellness assessment; personalized recs/subscriptions to drive CLV .Accelerating toward preview
Supply chain/operational efficiencyQ4: restructuring completed; focus on efficiencies . Q1: cost efficiency drove adj OM 6.4% .Project Accelerate: 8% operating margin; sequential core gross margin improvements .Improving margins
Tariffs/macroQ4: challenges in Greater China/S. Korea . Q1: consumer caution, tariffs headwind .Monitoring tariff/geopolitical risks; taking disciplined outlook .Persistent headwind
Regional trendsQ1: LatAm growth; core pressure elsewhere .LatAm +107% YoY cited qualitatively; Japan stable; China/Korea still pressured; some sequential improvement .Mixed; LatAm strong
Regulatory/legal (China)Risks repeatedly flagged in releases .Continued acknowledgment of China regulatory/sentiment risks .Ongoing risk focus

Management Commentary

  • Strategy and product pipeline: “We are on schedule for a mid-Q4 limited preview of our Prysm iO intelligent wellness device… We believe this AI-powered wellness assessment device will stimulate growth… via personalized product recommendations and subscriptions” .
  • Developing markets: “Leveraging success principles from Latin America… we are on track with our plans for Q4 market pre-opening activities in India with a formal launch anticipated for mid-2026” .
  • Profitability and balance sheet: “We’ve achieved our goal of reaching a positive net cash position ahead of schedule… first time in more than 4 years” .
  • Operational execution: “Our ongoing operational optimization efforts result[ed] in 8% operating margin despite top-line pressures” .
  • CFO detail: “Q2 gross margin was 68.8%… core Nu Skin gross margin was 77.5%, up 140 bps YoY… four quarters of sequential adjusted gross margin improvement” .

Q&A Highlights

  • Guidance drivers by geography: Management expects stronger performance from Latin America and Japan; North America, China and Korea are key swing factors for the range .
  • Latin America playbook: Three-pronged approach—portfolio priced for retail profit, balanced selling/referring incentives, and digital-first scalable infrastructure; Prism expected to augment growth with LifePak subscriptions .
  • Cost and margin levers: Continued optimization in inventory turns, selling expense alignment, and G&A through technology/shared services; intent to “deliver more dollars to the bottom line” .
  • Capital allocation: Priorities are funding growth (Prysm iO, India), servicing debt, sustaining dividend, and opportunistic buybacks depending on conditions .

Estimates Context

  • Q2 2025: Our S&P Global query returned no consensus EPS or revenue estimates; company reported at high end of its revenue guidance and above EPS guidance .
  • Historical reference: Q4 2024 S&P Global consensus EPS was $0.215 (2 est.) vs adj. EPS $0.38 (beat); revenue consensus was $436.05M (2 est.) vs $445.55M actual (beat). Values marked with asterisks are from S&P Global.
    • EPS Consensus Mean (Q4 2024): $0.215*; # of Estimates: 2* [Values retrieved from S&P Global]
    • Revenue Consensus Mean (Q4 2024): $436.05M*; # of Estimates: 2* [Values retrieved from S&P Global]
    • Actuals: Adj. EPS $0.38 ; Revenue $445.55M .

Key Takeaways for Investors

  • Profitability is the near-term anchor: Q2 EPS beat guidance; FY25 EPS (GAAP/adj.) raised despite lowering revenue high end—margin execution and cost discipline are working .
  • Mix matters: Rhyz Manufacturing’s +17% YoY growth supports resilience; core Nu Skin shows improved gross margin but still faces volume pressure in China/Korea .
  • Field health needs rebuilding: Customers, Paid Affiliates, and Sales Leaders declined YoY; management is leaning on compensation plan refinements and regional playbooks (notably LatAm) to stabilize and grow .
  • Catalysts into 2H/2026: Prysm iO limited preview in mid-Q4 and India pre-opening in Q4 2025 aim to seed 2026 subscriber-led growth—key to sentiment re-rating if execution is solid .
  • Balance sheet optionality: Net cash positive and $264M cash provide flexibility to fund growth while maintaining the dividend ($0.06/share) .
  • Near-term modeling: Use Q3 guide of $360–$390M revenue and $0.25–$0.35 EPS; FY guide $1.48–$1.55B revenue and $3.05–$3.25 EPS (adj. $1.15–$1.35) as updated base cases .
  • Risk monitor: Macro/tariffs and China/Korea recovery path remain key sensitivities; watch for Prysm iO engagement metrics and India ramp milestones .

Appendix: Additional Disclosures and Data

  • Q2 2025 segment by geography (YoY): Americas $72.9M (-14.1%); SE Asia/Pacific $50.8M (-15.8%); Mainland China $53.2M (-17.7%); Japan $44.6M (+4.6%); Europe & Africa $37.3M (-8.3%); South Korea $34.1M (-22.8%); Hong Kong/Taiwan $27.5M (-18.7%) .
  • Dividend: $0.06/share declared Aug. 7, 2025, payable Sept. 10, 2025; prior quarter dividend also $0.06/share (May 2025 declaration) .

Sources: Q2 2025 8-K and press release, transcript, prior quarters’ 8-Ks and press releases .