Nu Skin Enterprises, Inc.

Second-quarter revenue was $320.1 million, including an approximate 1% or $4 million foreign currency headwind. Reported EPS was negative $5.14, or positive $0.20 excluding non-cash accounting charges related to a goodwill impairment and deferred tax asset valuation allowance; adjusted EPS was in line with guidance. Gross margin was 68.2% versus 68.8% in the prior year, while core Nu Skin gross margin improved to 77.7% from 77.7%? actually up 20 basis points from the prior year. Adjusted operating margin was 6.1% versus 8% a year ago. Nu Skin recorded a $78.9 million non-cash goodwill impairment charge and a $167.5 million non-cash valuation allowance. For Q3, management expects revenue of $310 million to $340 million, with adjusted EPS of $0.10 to $0.20. For the full year, revenue is now expected to be $1.28 billion to $1.35 billion and adjusted EPS $0.70 to $0.90, with about a 1% foreign currency headwind and an effective tax rate of approximately 35% on adjusted results.

Ryan Napierski framed the quarter around three strategic priorities: expanding intelligent anti-aging with Prysm iO, reworking sales-force incentives, and building emerging markets. He emphasized that the company is learning how Prysm iO is actually being used, notably as a wellness consultation tool rather than purely an in-home placement device, and said those learnings are shaping the next phase of global rollout. His tone was constructive but realistic, repeatedly noting that recruiting and leadership development are still below what is needed for sustainable growth.

Chelsea Lantz said the quarter included $320.1 million of revenue, a 68.2% gross margin, and adjusted EPS that was in line with the company’s range. She highlighted a $15.9 million year-over-year decline in G&A, $10.6 million of operating cash flow, $189.6 million of cash and cash equivalents, and $213.7 million of total debt. She also detailed the non-cash charges: a $78.9 million goodwill impairment and a $167.5 million valuation allowance, and said the East-West operating model change should produce meaningful cost savings starting in the second half of this year, with larger benefits in 2027.

Analysts focused on India, Prysm iO’s impact on the sales force, and whether the company can hit its second-half guidance. Management said India’s delay reflects lessons on local manufacturing quality, logistics, systems integration, and tailoring the affiliate business model to local practices, and reiterated that formal opening is now targeted for the first half of 2027. On Prysm iO, Ryan said it is creating a learning curve for beauty-oriented affiliates but should create long-term synergy between beauty and wellness, while Q4 support should come from growing device interest, the Japan live event, and seasonal promotions.