NU Skin Enterprises, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 7 May 2026: press release. Guidance figures: 4 new, 3 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue fell 12.0% year over year: Revenue was $320.6 million against $364.5 million. Constant-currency revenue fell 13.1%, with currency adding $3.9 million. Source
• Diluted EPS of $0.14 excluding charges: Excluding inventory write-off, impairment and other charges, diluted EPS was $0.14, against $0.23 a year earlier excluding the Mavely gain and other charges. Source
• South Korea and Americas declined most: South Korea revenue fell 22.1% to $25.3 million and Americas fell 16.3% to $57.8 million, the largest declines among the core segments. Source
• Customers down 14% year over year: Customers were 669,535, down from 776,712. South Korea (20%) and Americas (18%) had the largest declines by region. Source
• Early signs of affiliate improvement: Management said it saw early signs of improving paid affiliates and new sales leader development in several markets as leaders integrate Prysm iO. Source
• Gross margin steady excluding write-off: Gross margin was 66.9%, or 67.9% excluding a $3.1 million inventory write-off, against 67.8%. Nu Skin business gross margin was 76.9% against 76.7%. Source
• Second-quarter ranges newly given: The prior release set first-quarter and full-year ranges. This release adds second-quarter revenue and EPS ranges. Source

“We delivered first quarter revenue in line with our expectations and made further progress in our strategic priorities while operating in a volatile environment,”

Ryan Napierski, Nu Skin president and CEO

Guidance

What changed from last quarter

• New guidance: Second-quarter revenue and EPS ranges were given for the first time. The prior release set first-quarter and full-year ranges. Source
• Guidance kept: The full-year revenue range and the adjusted full-year EPS range are held at the levels in the prior release. Source
• New guidance: A GAAP full-year EPS range of $0.70 to $1.10 appears alongside the adjusted range. Source
• New: The release names Chelsea Lantz as interim chief financial officer. The prior release quoted James D. Thomas as chief financial officer. Source
• Ended: Other charges for the first quarter include $1.0 million tied to the wind down of the separate BeautyBio business. Source
• New: The company said it refinanced its debt, which extends its liquidity while it invests in growth. Source

Revenue and earnings

• Revenue fell 12.0% year over year: Revenue was $320.6 million against $364.5 million. Constant-currency revenue fell 13.1%, with currency adding $3.9 million. Source
• Net income and prior-year gain: Net income was $1.8 million, and diluted EPS was $0.04. The prior-year figure of $2.14 included a $176.2 million gain on the Mavely sale. Source
• Diluted EPS of $0.14 excluding charges: Excluding inventory write-off, impairment and other charges, diluted EPS was $0.14, against $0.23 a year earlier excluding the Mavely gain and other charges. Source

Segments and regions

• South Korea and Americas declined most: South Korea revenue fell 22.1% to $25.3 million and Americas fell 16.3% to $57.8 million, the largest declines among the core segments. Source
• Southeast Asia/Pacific revenue lower: Southeast Asia/Pacific revenue fell 12.8% to $45.5 million. Europe & Africa and Mainland China each fell 5.5%, to $31.2 million and $45.1 million. Source
• Mainland China and Japan figures: Mainland China revenue was $45.1 million, down 5.5% or 10.0% in constant currency. Japan was $39.7 million, down 7.1%. Source
• Rhyz revenue down 16.4%: Rhyz total was $48.7 million. Rhyz Manufacturing fell 18.7% to $44.9 million, while Rhyz Other rose 28.0% to $3.7 million. Source

“While these initiatives will take time to develop, we remain confident that they will increase sales leader engagement and expand our global reach over time to drive the next phase of growth for Nu Skin.”

Ryan Napierski, Nu Skin president and CEO

Customers and sales force

• Customers down 14% year over year: Customers were 669,535, down from 776,712. South Korea (20%) and Americas (18%) had the largest declines by region. Source
• Americas affiliates flat, leaders down: Americas Paid Affiliates were flat at 27,039. Americas Sales Leaders fell 20% to 4,930. Source
• Early signs of affiliate improvement: Management said it saw early signs of improving paid affiliates and new sales leader development in several markets as leaders integrate Prysm iO. Source
• Tru Face brand emphasized: Management cited continued building of the anti-aging Tru Face brand alongside the Prysm iO push. Source

Costs, margins and charges

• Gross margin steady excluding write-off: Gross margin was 66.9%, or 67.9% excluding a $3.1 million inventory write-off, against 67.8%. Nu Skin business gross margin was 76.9% against 76.7%. Source
• Selling expenses higher as share of revenue: Selling expenses were 34.3% of revenue against 32.5%. For the Nu Skin business they were 40.5% against 38.7%. Source
• G&A ratio higher, excluding charges: G&A was 30.7% of revenue, or 29.9% excluding $2.6 million of other charges, against 31.1%, or 28.9% excluding charges a year earlier. Source
• Operating margin 1.3%, adjusted 3.6%: Operating margin was 1.3%, or 3.6% excluding certain charges, against (2.7)%. Impairment was $1.8 million against $25.1 million a year earlier. Source
• Tax rate and other income: Income tax rate was 29.4% against 20.1%. Other income was $2.8 million against $(28.4) million, which included a $28.1 million unrealized loss in the prior year. Source

““In addition to delivering on revenue and adjusted earnings, we returned $8 million to shareholders in the form of dividends and share repurchases,” said Chelsea Lantz, interim chief financial officer.”

Chelsea Lantz, interim chief financial officer

Guidance structure

• Adjusted and GAAP EPS ranges differ: Full-year GAAP and adjusted EPS ranges differ by $0.10 a share at both ends, from an inventory write-off, other charges and impairment, net of tax. Source
• Second-quarter ranges newly given: The prior release set first-quarter and full-year ranges. This release adds second-quarter revenue and EPS ranges. Source
• Currency effect near zero in Q2: Management projects the second-quarter foreign currency impact at approximately zero, after a favorable currency effect in the first quarter. Source

Cash and shareholder returns

• Cash balance declined: Cash and cash equivalents were $198.7 million at March 31, down from $238.6 million at December 31, 2025. Debt totalled about $223.6 million. Source
• Dividends and buybacks in quarter: Dividends were $2.9 million and stock repurchases were $5.0 million, leaving $137.3 million in the repurchase authorization. Source
• Receivables up, inventory flat: Accounts receivable rose to $45.0 million from $39.5 million. Inventories were $178.6 million, essentially unchanged from year-end. Source

Strategy and emerging markets

• Groundwork for emerging markets: Management said it continues investing in groundwork to expand its presence in emerging markets. Source
• Operational discipline emphasized: Management said it continues improving operational discipline to return value to shareholders, alongside investment in growth initiatives. Source
• Prysm iO scaled through sales leaders: Management said it is focused on empowering sales leaders to scale the intelligent wellness platform, with Prysm iO as its latest innovation. Source

Coming up, as management said on 7 May 2026

• India formal launch late 2026: Management anticipates the formal launch of India in late 2026. The prior release said the full market opening was anticipated in the back half of the year. Source
• Wellness subscriptions to follow: Management said it is preparing to drive customer subscriptions for its wellness products, using Prysm iO biomarker tracking to expand the channel. Source

Figures management reported

Risks management discussed

• Operational: The company recorded a $3.1 million inventory write-off within cost of sales, which lowered gross profit in the quarter. Source
• Demand: Management said the initiatives will take time to develop, while customer, paid affiliate and sales leader counts declined. Source
• External: Management said it is extending liquidity as it invests in growth and navigates market volatility. Source

Earlier plans management reported on

• Met: Management said first-quarter revenue was within the range given in the prior release, which was $320 to $340 million. Revenue was $320.6 million. Source
• Not stated: Management said the full consumer rollout of Prysm iO is planned for the second half. The prior release also set a second-half consumer launch. Source

Other quarters

• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.