Executive Summary

Q1 2025 delivered 10% YoY net sales growth to $249.5M (12% cc) with Adjusted diluted EPS of $0.73 and GAAP diluted EPS of $0.49; management reiterated FY25 guidance, signaling confidence despite tariff/macro uncertainty .
Revenue and Adjusted EPS were modest beats versus S&P Global consensus: $249.5M vs $243.0M revenue and $0.73 vs $0.70 Adjusted EPS; GAAP EPS was $0.49 as amortization and integration costs from Hiya weighed on GAAP results (1 estimate for Q1) [Values retrieved from S&P Global]* .
Hiya contributed $37M of net sales and reached 224K Active Monthly Subscribers; momentum expected to continue with new products, another strategic partnership, and channel expansion in 2025 .
Sequential stabilization in core direct selling: Mainland China net sales +5% and Active Customers +3% QoQ, with promotional cadence supporting China and Korea; management continues to monitor tariffs and has built targeted inventory and alternative sourcing to mitigate risk .

What Went Well and What Went Wrong

What Went Well
- Beat on revenue and Adjusted EPS vs S&P Global consensus; management executed to internal plan while reiterating FY25 guide [Values retrieved from S&P Global]* .
- Hiya strength: $37M revenue and 224K subscribers; “Hiya delivered strong growth… momentum remains strong” with multiple product launches and a new partnership planned in 2025 .
- Early signs of stabilization in China/Korea: “sequential first quarter net sales and active customers in… Mainland China, grew 6% and 4%,” supported by promotions; Korea also improved sequentially with incentive response .
What Went Wrong
- Mix pressure on margins: consolidated gross margin fell 210 bps YoY to 79.0% as Hiya carries lower gross margins; SG&A ratio rose 830 bps to 36.6% on Hiya mix and amortization .
- Direct selling softness YoY: Asia Pacific -6% (cc -4%); Americas & Europe -10% YoY, reflecting continued challenges in attracting new customers and lower average spend in some markets .
- Tax rate drag: effective tax rate increased to 44.5% (vs 39.0% in 2024), weighing on GAAP EPS; management cites market mix of pre-tax income .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$200.221	$213.613	$249.539
Diluted EPS (GAAP)	$0.56	$0.23	$0.49
Adjusted Diluted EPS (Non-GAAP)	$0.56	$0.64	$0.73
Adjusted EBITDA ($USD Millions)	$24.616	$25	$30

Consensus vs Actual (S&P Global)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue Estimate ($USD)	$205.8M*	$208.8M*	$243.0M*
Revenue Actual ($USD)	$200.221M	$213.613M	$249.539M
EPS Estimate ($)	$0.485*	$0.49*	$0.70*
EPS Actual ($, Adjusted)	$0.56	$0.64	$0.73
# of Estimates (Rev / EPS)	2 / 2*	2 / 2*	1 / 1*

Note: Primary EPS appears on a non-GAAP/Adjusted basis for USNA; Wall Street typically anchors on this for quarterly EPS. Values retrieved from S&P Global.*

Q1 2025 Margins (Consolidated and Mix)

Metric	Q1 2025
Gross Margin % (Consolidated)	79.0%
Associate Incentives % of Sales	36.1%
SG&A % of Sales	36.6%
Operating Margin %	6.3%
Gross Margin Δ YoY	-210 bps; mix pressure from Hiya

Q1 2025 Segment/Region Mix

Segment/Region	Net Sales ($USD)	YoY %	YoY % cc	Mix %
Direct Selling – Asia Pacific	$173.407M	-6.3%	-4.2%	69.5%
- Greater China	$118.746M	-6.9%	-5.4%	47.6%
- North Asia	$18.941M	-11.6%	-3.6%	7.6%
- SE Asia Pacific	$35.720M	-1.0%	~-0.6%	14.3%
Direct Selling – Americas & Europe	$37.044M	-9.8%	-5.5%	14.8%
Hiya (DTC)	$37.089M	N/A	N/A	14.9%
Other	$1.999M	+21.0%	+21.0%	0.8%
Consolidated Total	$249.539M	+9.5%	+12.0%	100.0%

KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
Direct Selling Active Customers (Total)	452,000	454,000	459,000
Hiya Active Monthly Subscribers	N/A	~N/A (less than one week in Q4)	224,000
China Active Customers	243,000	246,000	254,000

Balance Sheet/Cash Returns (Q1 2025)

Cash & equivalents $179.6M; Debt $23M; Operating cash flow $15M; Buybacks: 399K shares for $12M; ~$49M remaining authorization .

Guidance Changes

Metric	Period	Previous Guidance (2/25/25)	Current Guidance (4/22/25)	Change
Consolidated Net Sales	FY 2025	$920M – $1.0B	$920M – $1.0B	Maintained
Net Earnings (GAAP)	FY 2025	$29M – $41M	$29M – $41M	Maintained
Diluted EPS (GAAP)	FY 2025	$1.50 – $2.20	$1.50 – $2.20	Maintained
Adjusted Diluted EPS	FY 2025	$2.35 – $3.00	$2.35 – $3.00	Maintained
Adjusted EBITDA	FY 2025	$107M – $123M	$107M – $123M	Maintained
Direct Selling Net Sales	FY 2025	$775M – $840M; FX headwind ~$30M (-4%)	$775M – $840M; FX headwind ~$30M (-4%)	Maintained
Hiya Net Sales	FY 2025	$145M – $160M (+29% to +42% YoY)	$145M – $160M (+29% to +42% YoY)	Maintained
Effective Tax Rate	FY 2025	41.5% – 45.0%	41.5% – 45.0%	Maintained
53-Week Year	FY 2025	Includes one extra week	Includes one extra week	Maintained

Management notes no tariff impact included in guidance given uncertainty; inventory builds and alternative sourcing being used to mitigate potential impacts .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24, Q4’24)	Current Period (Q1’25)	Trend
Tariffs/Macro	Cautious consumer sentiment; FY24 guide trimmed; strong cash/clean balance sheet	“Impact… remains highly uncertain; not reflected in guidance;” built inventory, alternative sourcing	Elevated focus; mitigation in place
Product Pipeline	Q3: launched Celavive Resurfacing Serum, Whey Protein Isolate; raised cadence goal	New products rolled in several markets; larger cadence in H2; China chewable calcium exceeded forecast	Accelerating into H2
China / Regional Trends	Q3: China challenging; Q4: APAC slightly down, A&E improved sequentially	China and Korea improved sequentially; incentives effective; China event with 13K attendees	Sequential stabilization
Hiya Integration	Introduced metrics post-acquisition; set FY25 contribution targets	Strong growth, new partnership soon; synergy workstreams (ops/IT) but paced to avoid distraction	Positive momentum; measured integration
Incentives/Promotions	Q4 plan for promo activity; strategy to enhance associate incentives	Promotional cadence aided CN/KR sequential growth; planned promos each quarter in 2025	Targeted, ongoing
SG&A/Amortization Mix	Noted DTC acquisition; implied future amortization	SG&A up 830 bps YoY; amortization of intangibles meaningful; Hiya seasonality in marketing	Mix headwind near-term

Management Commentary

“USANA is off to a solid start to the year… consolidated net sales grew 12% year-over-year in constant currency… Net sales and active customers in our direct selling business grew modestly on a sequential basis for the second consecutive quarter.” — Jim Brown, CEO .
“Hiya delivered strong growth in net sales and Active Monthly Subscribers… plans to launch several new products this year, unveil another strategic partnership, and expand to additional channels.” — Jim Brown .
“The impact of potential trade policies and tariffs remains highly uncertain… we have not reflected any potential impact in our financial guidance.” — Jim Brown .
“Gross margin decreased 210 basis points… largely attributed to… Hiya… SG&A … increased 830 basis points… [including] amortization of intangible assets attributable to our acquisition of Hiya.” — Management Commentary .

Q&A Highlights

Promotional strategy and China/Korea: Q1 sequential improvements in China and Korea were aided by timed promotions; management plans incentive activity each quarter during 2025; China hosted a 13,000-attendee event in Nanjing, boosting momentum .
Hiya roadmap and synergies: Multiple launches and a new relationship early May; synergy work in ops/IT underway but sequenced to avoid distracting Hiya’s growth plan; benefits expected to accrue over time rather than immediate .
Tariff preparedness: Only ~6% of raw materials sourced from China; company increased raw material inventories and shipped finished goods to markets to mitigate potential tariffs; multi-sourcing efforts continue .
China products: New chewable calcium for children beat forecasts; additional USANA nutritionals introduced via cross-border e-commerce; bulk of new introductions expected in H2 around the August convention .

Estimates Context

Q1 2025 revenue beat: $249.5M actual vs $243.0M consensus; Adjusted EPS beat: $0.73 vs $0.70; only one covering estimate for Q1, limiting statistical confidence [Values retrieved from S&P Global]* .
Prior quarters: Q4 2024 revenue beat and EPS beat vs consensus; Q3 2024 slight revenue miss but EPS beat [Values retrieved from S&P Global]* .
Implications: Mix- and amortization-driven GAAP/EPS gap will continue; Street likely revisits FY25 cadence to reflect Hiya strength, higher H2 product cadence, and tariff watch (guidance currently excludes tariff impacts) .

Key Takeaways for Investors

USANA delivered a clean beat-and-raise-style signal without raising: revenue and Adjusted EPS beat while full-year guidance was reiterated, suggesting confidence and room for upside if macro/tariff headwinds remain manageable [Values retrieved from S&P Global]*.
Hiya is proving to be a growth engine near-term (top-line and AOV tailwind) but a mix headwind to margins; amortization and seasonal marketing spend will keep GAAP EPS below Adjusted EPS in 2025 .
Sequential stabilization in China and Korea, with planned promotions and a heavier H2 product cadence, supports a potential inflection in core direct selling if consumer sentiment gradually improves .
Tariff risk is the primary swing factor; current guidance excludes any tariff effects, but inventory builds and alternative sourcing lower near-term disruption risk .
Cash-rich balance sheet, modest leverage, and active buybacks (~$49M remaining) provide downside support and capital allocation flexibility through 2025 .
Watch H2 catalysts: August convention and product launches, Hiya new partnership/channel expansion, and region-specific incentives could drive reacceleration and estimate revisions .

Footnote: All S&P Global consensus values marked with an asterisk (*) are Values retrieved from S&P Global.

USANA HEALTH SCIENCES INC (USNA)·Q1 2025 Earnings Summary