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NU SKIN ENTERPRISES, INC. (NUS)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 revenue was $364.2M and diluted EPS was $0.34, both within company guidance; revenue declined 15.3% YoY while EPS improved from $0.17 YoY . Versus S&P Global consensus, revenue missed ($374.2M*) while EPS beat ($0.30*); FY guidance was narrowed and EPS low end raised, a constructive signal despite top-line pressure .
  • Gross margin improved to 70.5% (Nu Skin core 77.7%) and operating margin to 5.9%; management highlighted the fifth consecutive quarter of adjusted gross margin improvement, driven by product mix optimization and cost discipline .
  • FY 2025 guidance: revenue $1.48–$1.51B (previously $1.48–$1.55B), EPS $3.15–$3.25 (adjusted $1.25–$1.35); Q4 guidance: revenue $365–$400M, EPS $0.25–$0.35, essentially bracketing S&P consensus ($382.7M*, $0.30*) .
  • Near-term catalysts: limited introduction of AI-powered Prysm iO wellness platform in late Q4 (target placement >10,000 units) and pre-market opening activities in India this month, with formal launch targeted for H2’26 .

What Went Well and What Went Wrong

What Went Well

  • Latin America delivered strong sequential and year-over-year growth; CEO cited 53% YoY growth in the region, underscoring success of the emerging market strategy .
  • Continued margin expansion: gross margin rose to 70.5% (Nu Skin core 77.7%); CFO emphasized five straight quarters of adjusted gross margin improvement from portfolio optimization and cost efficiency .
  • Strengthened balance sheet and liquidity: ended Q3 with $252M cash, reduced total debt by ~$20M, expanded net cash position; returned $3M via dividend and repurchased $5M of stock, leaving $152.4M authorization .

What Went Wrong

  • Top-line pressure persisted: total revenue declined 15.3% YoY; several regions saw broad-based declines, including Mainland China (-19.8% YoY), South Korea (-22.1%), Japan (-5.7%), and Americas (-17.1%), reflecting macro and category pressures .
  • Core commercial KPIs contracted YoY: total customers 746,256 (-10%), paid affiliates 130,096 (-13%), sales leaders 31,150 (-19%), suggesting field engagement and customer acquisition remain challenged in multiple markets .
  • Revenue missed S&P Global consensus (actual $364.2M vs $374.2M*), though EPS beat ($0.34 vs $0.30*), highlighting mixed execution relative to Street expectations .

Financial Results

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$364.5 $386.1 $364.2
Diluted EPS ($USD)$2.14 $0.43 $0.34
Gross Margin %67.8% 68.8% 70.5%
Operating Margin % (GAAP)(2.7)% 8.0% 5.9%
Selling Expenses % of Revenue32.5% 33.2% 35.8%
G&A Expenses % of Revenue31.1% 27.6% 28.8%
Income Tax Rate %20.1% 23.0% (6.8)%
Interest Expense ($USD Millions)$3.3 $2.5 $4.1

Segment revenue breakdown (U.S. dollars in thousands):

SegmentQ3 2024Q2 2025Q3 2025
Nu Skin - Americas$77,194 $72,946 $63,994
Nu Skin - SE Asia/Pacific$59,515 $50,834 $56,285
Nu Skin - Mainland China$53,020 $53,224 $42,519
Nu Skin - Japan$47,222 $44,550 $44,545
Nu Skin - Europe & Africa$38,577 $37,328 $38,002
Nu Skin - South Korea$45,201 $34,068 $35,202
Nu Skin - Hong Kong/Taiwan$33,749 $27,527 $31,799
Nu Skin - Other$2,518 $427 $244
Total Nu Skin$356,996 $320,904 $312,590
Rhyz - Manufacturing$51,773 $60,400 $47,648
Rhyz - Other$21,376 $4,834 $3,973
Total Rhyz$73,149 $65,234 $51,621
Total Company$430,145 $386,138 $364,211

Core KPIs (quarterly totals):

KPIQ1 2025Q2 2025Q3 2025
Customers (Total)776,712 771,407 746,256
Paid Affiliates (Total)131,518 130,799 130,096
Sales Leaders (Total)31,036 29,593 31,150

Estimates comparison (S&P Global; consensus marked with *):

MetricQ3 2025 Consensus*Q3 2025 ActualBeat/Miss
Revenue ($USD Millions)$374.2*$364.2 Miss ($10.0), -2.7%
Primary EPS ($USD)$0.30*$0.34 Beat $0.04

Q4 guidance vs S&P Global consensus:

MetricCompany Guidance (Q4 2025)S&P Consensus*
Revenue ($USD Millions)$365–$400 $382.7*
Primary EPS ($USD)$0.25–$0.35 $0.30*

Note: Consensus values marked with * are Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$1.48–$1.55B $1.48–$1.51B Narrowed; lowered top end
EPS (GAAP)FY 2025$3.05–$3.25 $3.15–$3.25 Raised low end by $0.10
EPS (Adjusted)FY 2025$1.15–$1.35 $1.25–$1.35 Raised low end by $0.10
RevenueQ4 2025N/A$365–$400M Introduced
EPSQ4 2025N/A$0.25–$0.35 Introduced
Dividend per shareQ3/Q4 2025$0.06 (Q2) $0.06 (Q4 pay Dec 10) Maintained
Share repurchase authorizationFY 2025$157.4M remaining $152.4M remaining Decreased by $5M repurchase

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
AI/Technology (Prysm iO)Mid-Q4 limited preview; platform built on 20M scans; reformulating LifePak; subscription model Limited Q4 preview; plan >10,000 units placed Q4; proprietary language model for intelligent insights; full consumer launch in 2026 Accelerating deployment
Macro/TariffsConsumer caution in premium beauty due to inflation/tariffs (Q1) ; mindful of tariff/geopolitical risks (Q2) “Challenging macro environment”; in-line with expectations Persistent headwinds
Regional TrendsLATAM >100% YoY; Japan stable; NA weak; China/Korea down; Pacific strong; Europe/Africa improving LATAM +53% YoY; sequential growth in Europe/Africa, Korea, SE Asia-Pacific, HK/Taiwan; improving KPIs in China; NA transformation ongoing Mixed; LATAM strength, select sequential improvements
Regulatory/LegalOngoing direct selling law risks, China scrutiny noted in releases North America compliance emphasized; industry evolution post-COVID Continued vigilance
R&D/InnovationmSmart rapid launch; LifeDNA ahead of expectations; Rise manufacturing +17% YoY LifeDNA supporting intelligent wellness vision; Rhyz segments performing as anticipated Building platform assets
Health FeaturesDevice measures carotenoid levels; personalized recommendations Expanded detail on biomarkers, antioxidant status, AI insights; family/home use cases emerging in tests Deepening proposition

Management Commentary

  • “We delivered third-quarter revenue of $364 million, which was within our guidance range. We also delivered EPS of 34 cents at the higher end of our guidance range...” — Ryan Napierski, CEO .
  • “Latin America continued its exceptional growth trajectory at 53% year over year... offset by continued challenges in North America... [with] sequential growth in Europe & Africa, South Korea, Southeast Asia-Pacific, and Hong Kong and Taiwan.” — Ryan Napierski, CEO .
  • “Our gross margin for the quarter was 70.5%... Within our Nu Skin core business, gross margin was 77.7%. I want to highlight that this is our fifth consecutive quarter of adjusted gross margin improvement.” — James D. Thomas, CFO .
  • “We closed the quarter with $252 million in cash and reduced total debt by $20 million. Resulting in an expanded positive net cash position.” — James D. Thomas, CFO .
  • “We project fourth quarter revenue between $365 million and $400 million, and EPS between 25 cents and 35 cents... FY 2025 revenue $1.48–$1.51 billion and EPS $3.15 to $3.25; adjusted $1.25 to $1.35.” — James D. Thomas, CFO .

Q&A Highlights

  • Guidance puts/takes: Management tightened FY ranges; upside contingent on Prism iO adoption cadence and India pre-market progress; profitability supported by gross margin and selling expense optimization .
  • India launch logistics: Unique “pre-market opening” approach with multi-city tour to acquire revenue and learn local dynamics; digital-first model with Infosys, localized SeraNu skincare line and nutrition products including Prism iO .
  • North America: Less about U.S. government shutdown; macro evolution post-COVID and crowded social beauty; pivot toward intelligent wellness where Prism iO and AI app expected to resonate, including family/home use cases .
  • Southeast Asia: Mixed by country; Pacific strong, Singapore/Malaysia improving; Indonesia large potential; TR90 complements Prism iO wellness positioning .

Estimates Context

  • Q3 vs S&P Global: Revenue missed ($364.2M vs $374.2M*), EPS beat ($0.34 vs $0.30*). We expect Street to acknowledge cost discipline and margin improvement even with top-line pressure.
  • Q4 setup: Company guidance ($365–$400M, $0.25–$0.35) brackets consensus ($382.7M*, $0.30*), suggesting limited near-term estimate revisions unless Prism iO adoption or India pre-market ramps faster/slower than planned.
    Note: Consensus values marked with * are Values retrieved from S&P Global.

Key Takeaways for Investors

  • Mixed print: top-line miss vs consensus but EPS beat; continued margin progress and net cash expansion indicate improved underlying profitability and balance sheet resilience .
  • Guidance quality improved: FY revenue narrowed lower-top-end; EPS low-end raised on margin execution — favor EPS trajectories over near-term revenue growth .
  • Catalysts into Q4/Q1: Prysm iO limited intro (>10,000 devices planned) and India pre-market activities; monitor placement, subscription attach rates, and regional activation .
  • Regional lens: Lean into LATAM strength; watch sequential improvements in Europe/Africa, Korea, SE Asia, HK/Taiwan; remain cautious on North America and Mainland China recovery trajectory .
  • Risk management: Continued regulatory vigilance (direct selling), macro/tariffs in beauty/wellness categories; Q3’s unusual negative tax rate underscores potential volatility in quarterly EPS .
  • Capital returns: Dividend maintained at $0.06/share; opportunistic buybacks ($5M in Q3); authorization remains sizable ($152.4M) .
  • Trading setup: Near-term stock reaction likely keyed to narrative momentum (AI wellness device, India) and evidence of sequential stabilization; medium-term thesis hinges on intelligent wellness subscriptions driving higher LTV and margin mix shift .