Kevin Guest Returns as USANA CEO After 67% Stock Collapse Under Successor
January 8, 2026 · by Fintool Agent
Usana Health Sciences+0.84% ousted CEO Jim Brown on Wednesday and brought back his predecessor Kevin Guest to lead the troubled direct-selling nutritional company—a dramatic reversal that comes after the stock lost two-thirds of its value under Brown's watch and a botched compensation plan overhaul sent shares into freefall.
Guest, 63, who led USANA as CEO from 2015 to 2023 before handing the reins to Brown, returns immediately as both CEO and Chairman. Brown, who had been with the company for 19 years, will remain in an advisory role "at the discretion of the Board."
The stock rose 3.6% to $19.90 on the news—a modest reaction that barely registers against the carnage shareholders have endured. USANA closed at $61.26 on June 1, 2023, the day Brown officially became CEO. Today's price represents a 67.5% decline over his 30-month tenure.
What Went Wrong
The board's decision wasn't driven by a single failure but by a cascade of execution missteps that eroded investor confidence and destroyed shareholder value.
The most damaging was a badly handled compensation plan overhaul rolled out in Q3 2025. USANA's direct-selling model depends on "Brand Partners"—independent salespeople who earn commissions on product sales. The company announced changes designed to "modernize" the compensation structure, but the transition caused a sharp drop in Brand Partner productivity.
"While we expected a slowdown during this transition, it was more pronounced than anticipated and negatively affected our quarterly results," Brown admitted in an October 2025 press release.
The numbers tell the story:
| Metric | Q3 2024 | Q3 2025 | Change |
|---|---|---|---|
| Direct Selling Net Sales | $198M | $176M | -11.4% |
| Active Customers | 452,000 | 388,000 | -14.2% |
| Net Earnings | $10.6M | -$6.5M (loss) | N/A |
| Adjusted EPS | $0.56 | -$0.15 | N/A |
The Q3 preliminary results announced on October 9, 2025, sent the stock plunging over 20% in a single session. By the time the full quarter was reported, USANA had slashed its full-year EPS guidance by more than 50%—from a midpoint of $2.68 down to $1.73.
Ask Fintool AI AgentThe Geographic Collapse
The damage was most severe in USANA's critical Asia-Pacific markets, which generate the majority of revenue:
| Region | Q3 2025 YoY Change |
|---|---|
| Greater China | -9.5% |
| Southeast Asia Pacific | -21.7% |
| North Asia | -13.9% |
| Total Asia Pacific | -12.9% |
Active customer counts declined across every sub-region, with Southeast Asia Pacific down 20% year-over-year. The company's explanation—that word got out about compensation changes and caused "reservation" among Brand Partners—suggests leadership underestimated the disruption that overhauling a commission structure would cause.
Brown's Brief Tenure: By the Numbers
Jim Brown's 30 months as CEO will be remembered for:
- Stock decline: 67.5% from $61.26 to $19.90
- Peak-to-trough: Down 71.4% from the $69.60 high reached in July 2023
- Active Customer loss: 491,000 → 388,000 (-21%)
- EPS collapse: From ~$3.50 (FY2022) to $1.73 guidance (FY2025)
- Guidance cuts: Multiple revisions to 2025 outlook, culminating in a 50%+ EPS reduction
The succession plan announced in February 2023 described Brown as a "strategic, passionate, and effective leader" whose 15+ years at USANA made him the natural choice. The reality proved different.
Insiders Weren't Buying
One telling signal: zero insider purchases in the past two years, despite the stock's decline. Instead, executives were selling:
- Jim Brown: Sold 5,000 shares at $29.47 in March 2025
- David Mulham (Chief Sales Officer): Sold 873 shares in December 2025
- Gilbert Fuller (Lead Independent Director): Sold 1,057 shares in November 2025
The absence of insider buying during a 50%+ drawdown suggests even those closest to the company lacked conviction in a near-term turnaround.
Ask Fintool AI AgentWhy Kevin Guest?
The board's decision to bring back Guest, rather than conduct an external search, signals both urgency and a belief that USANA's problems are fixable with the right leadership.
Guest spent eight years as CEO (2015-2023) during which USANA:
- Expanded into new international markets
- Achieved record financial results
- Built strong relationships with the Brand Partner sales force
- Maintained operational discipline
"Kevin has the full support of the Board and the Company's senior leadership team. He also has good relationships with the Company's sales force and brings a combination of deep sales, organizational and strategic experience," said Gilbert Fuller, lead independent director.
The mention of "good relationships with the Company's sales force" is pointed. Brown's compensation plan changes alienated the very people USANA depends on to sell products. Guest's job is to repair those relationships—fast.
"I know firsthand the strength of our sales force and management team, the resilience of our culture, the differentiation of our science-based products, and the meaningful opportunities ahead," Guest said in a statement.
What Guest Inherits
The new/returning CEO faces significant challenges:
Immediate priorities:
- Stabilize Brand Partner attrition—388,000 active customers is the lowest in years
- Assess whether the new compensation plan should be modified or rolled back
- Rebuild credibility with institutional investors after multiple guidance cuts
- Integrate Hiya (78.8% owned children's health brand) which has underperformed expectations
Financial position:
- Cash: $145 million
- Debt: $0
- Share repurchase capacity: $34 million remaining
The clean balance sheet provides flexibility, and the zero-debt capital structure means Guest can focus on operations rather than managing creditor relationships.
Analyst View
Wall Street coverage of USANA is thin—just one analyst with formal coverage. The consensus rating is Hold with a price target of $20.50, barely above the current price.
The stock trades at just 11.5x the company's own 2025 adjusted EPS guidance of $1.73—cheap on an absolute basis, but appropriate given the operational deterioration and uncertain path to recovery.
Ask Fintool AI AgentWhat to Watch
Q4 2025 Earnings (Expected late February):
- Brand Partner productivity trends post-Q3 fallout
- Hiya subscriber growth trajectory
- Any reversal or modification to the compensation plan
- 2026 guidance—will Guest set a low bar to rebuild credibility?
Near-term catalysts:
- Compensation details for both Brown (severance) and Guest (returning CEO package) still pending
- Potential strategic announcements as Guest assesses the business
- Q1 2026 active customer count will be the first indicator of stabilization
The board's decision to bring back a known quantity rather than search externally suggests they believe USANA's core business model is sound—it just needs better execution. Whether Guest can engineer a turnaround after watching his chosen successor fail will determine if this $356 million market cap company can restore investor confidence.
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