Nature's Sunshine Products Q3 2025 Earnings Report

Nature's Sunshine Products EPS Results

• Actual EPS: $0.36
• Consensus EPS: $0.18
• Beat/Miss: Beat by +$0.18
• One Year Ago EPS: N/A

Nature's Sunshine Products Revenue Results

• Actual Revenue: $88.99 million
• Expected Revenue: $119.39 million
• Beat/Miss: Missed by -$30.40 million
• YoY Revenue Growth: N/A

Nature's Sunshine Products Announcement Details

• Quarter: Q3 2025
• Date: 11/6/2025
• Time: After Market Closes
• Conference Call Date: Thursday, November 6, 2025
• Conference Call Time: 2:00AM ET

Nature’s Sunshine Products, Inc. is a natural health and wellness company that develops, manufactures and distributes dietary supplements and related products. Its offerings include herbal supplements, vitamins, minerals, specialty nutritional formulas, essential oils and personal-care products, sold primarily under the Nature’s Sunshine and Synergy WorldWide brands.

Founded in 1972, the company has built its business around direct selling, supported by independent distributors and online sales channels. Its products are marketed to consumers seeking nutritional, herbal and wellness solutions, with an emphasis on ingredient sourcing, formulation and quality control.

Nature’s Sunshine serves customers in the United States and international markets, including countries across the Americas, Europe and Asia. The company is headquartered in Lehi, Utah, and its products are distributed through a combination of direct-selling operations, e-commerce platforms and other market-specific channels.

Nature's Sunshine Products Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record quarter and raised guidance. Q3 net sales were $128.3M (+12% YoY) and adjusted EBITDA rose 42% to $15.2M; management raised full‑year 2025 net sales guidance to $476–$480M and adjusted EBITDA to $47–$49M.
• Positive Sentiment: Digital and subscription momentum. North America digital sales accelerated 52% YoY, new digital customers more than doubled, DTC auto‑ship now represents >50% of DTC accounts, and APAC auto‑ship adoption (Japan ~50%, China ~12%) is driving repeatable recurring revenue.
• Negative Sentiment: APAC Q4 comparability and timing risk. Strong Q3 field activations likely pulled roughly $2M of revenue from Q4 into Q3 and, combined with a very tough Q4 2024 comp (21% CC growth), APAC is expected to be flat to slightly down in Q4 2025.
• Positive Sentiment: Margin improvement and supply‑chain actions. Gross margin improved 200 bps to 73.3% (highest in 15 quarters) from sourcing, manufacturing and logistics initiatives, though management expects margins to normalize to the upper‑72% range next quarter due to modest tariff impacts.
• Positive Sentiment: Strong balance sheet and capital returns. Cash of $95.6M, zero debt, inventory reduced to $67.3M, $25.4M operating cash flow in Q3 YTD, and $14.4M of share repurchases completed with $19.3M remaining on the buyback.

Presentation

[Operator]

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Nature's Sunshine's financial results for the third quarter ended September 30th 2025. Joining us today are Nature's Sunshine CEO, Ken Romanzi, CFO, Shane Jones, and General Counsel Nate Brower. Following their remarks, we'll open the call for analyst questions. Before we go further, I would like to turn the call over to Mr. Brower as he reads the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important provisions regarding forward-looking statements. Nate, please go ahead.

[Nate Brower, EVP, General Counsel, and Corporate Secretary at Nature's Sunshine]

Thank you, Sergio. Good afternoon, and thanks for joining our conference call to discuss our third quarter 2025 financial results. I'd like to remind everyone that this call is available for replay by telephonic dial-ins through November 20th and a live webcast that will be posted in the investor relations portion of our website at ir.naturesunshine.com. The information on this call contains forward-looking statements. These statements are often characterized by terms such as believe, hope, may, anticipate, expect, will, and other similar expressions. Forward-looking statements are not guarantees of future performance, and the actual results may be materially different from the results implied by forward-looking statements. Factors that could cause results to differ materially from those implied here include, but are not limited to, those factors disclosed in the company's annual report, Form 10-K under the caption Risk Factors, and other reports filed with the Securities and Exchange Commission.

[Nate Brower, EVP, General Counsel, and Corporate Secretary at Nature's Sunshine]

The information on this call speaks only as of today's date, and the company disclaims any duty to update the information provided herein. Now, I would like to turn the call over to our recently appointed CEO of Nature's Sunshine, Ken Romanzi. Ken.

[Ken Romanzi, CEO and Director at Nature's Sunshine]

Thank you, Nate, and good afternoon, everyone. Thank you for joining our third quarter earnings call. Before I turn the call over to Shane to discuss our strong third quarter performance, I'd like to quickly introduce myself. I want to share how excited and grateful I am to be the CEO of Nature's Sunshine. I joined just over a week ago, and I am absolutely honored to lead this iconic brand into its next chapter of growth. Throughout my career, I have had the privilege of leading organization transformations and driving growth of beloved iconic brands, many in your kitchens at home, at both public and private companies across the consumer packaged goods industry, including B&G Foods, Nabisco, now part of Mondelēz, Hasbro, Ocean Spray Cranberries, Cadbury Schweppes, and Frito-Lay, just to name a few. At each stage of my career, one thing has always been true.

[Ken Romanzi, CEO and Director at Nature's Sunshine]

Strong brands with great products and a clear mission. Create lasting value for customers, employees, and shareholders. That is exactly what drew me to Nature's Sunshine. The company possesses a strong legacy of foundation of trusted products. Passionate consultants and practitioners. A deep-rooted commitment to improving lives through natural health. As someone who is dedicated to health and wellness myself, I see tremendous potential to build on this foundation and accelerate growth globally. In my very short time here, I've met with our teams, listened to field leaders and employees, and immersed myself in our business. It is very evident that we have a mission-driven organization and a unique opportunity to strengthen our brand, leverage our vast direct sales network of amazing consultant entrepreneurs, expand our digital and direct-to-consumer capabilities, and deliver even greater value to our customers and shareholders.

[Ken Romanzi, CEO and Director at Nature's Sunshine]

I'd like to thank my predecessor, Terrence Moorehead, for his leadership and the strong platform that he and the Nature's Sunshine team have built. I am excited to lead the business through its next phase of growth, powered by our iconic brand, our operational excellence, and continued innovation in natural health and wellness. I look forward to meeting our various stakeholders over the coming months and addressing our shareholders more formally on our fourth quarter earnings call. Now, I'd like to turn it over to the real highlight of the show today, our CFO, Shane Jones, to provide details of our strong operational and financial performance in the third quarter. Shane.

[Shane Jones, CFO and EVP at Nature's Sunshine]

Thank you, Ken. I'd like to start by saying that I'm very happy to be working with Ken. He combines a wealth of knowledge and experience with outstanding values and leadership. He is the right person to take Nature's Sunshine to the next level, and I am more confident than ever in our future. We're pleased to report our best quarter ever, as the strategic investments we've made over the past two years, combined with strong execution and hard work, are yielding meaningful improvements across North America, Asia, and Europe. We're seeing a strong surge in new customers, better engagement from current customers, and improved activity with our distributors. Our efforts to modernize the business, expand digital capabilities, and strengthen field engagement are translating into tangible growth across our key regions. The combination of these initiatives, along with disciplined cost management.

[Shane Jones, CFO and EVP at Nature's Sunshine]

Positions us very well for continued profitable expansion despite the macroeconomic and trade headwinds that persist in many of our markets. Now diving into specific financial performance. Net sales in the third quarter were $128.3 million, a quarterly record compared to $114.6 million in the year-ago quarter. This represents a 12% increase versus the prior year, or an 11% increase excluding the impact of foreign exchange rates. Growth was driven by acceleration across Asia-Pacific, North America, and Europe. These results reinforce the traction we're seeing from our transformation initiatives and the strength of our product portfolio manufactured in-house with the very highest quality ingredients and our passionate and knowledgeable distributors combined with our 50+ year heritage and global brand. Looking at our results in more detail, starting with regional performance.

[Shane Jones, CFO and EVP at Nature's Sunshine]

In North America, we continue to see improved momentum as digital accelerates while maintaining our core business, especially retailers, practitioners, affiliates, and business builders. Q3 sales grew 7% year-over-year to $36.2 million. We're particularly excited about the strength in our digital business, where year-over-year growth accelerated to 52% in Q3. Our work to move to an improved platform, leverage digital tools, optimize our digital marketing, enhance customer experience, and increase lifetime value is paying off. Meaningful acceleration in new customers, combined with improved retention and frequency, have been key to this strength. As an example, the number of new digital customers making a purchase in Q3 more than doubled versus prior year. We're also pleased by the growth in our subscription auto ship program, which now represents more than half of DTC ordering accounts. Just as a reminder, our auto ship programs are a win-win for consumers and the company.

[Shane Jones, CFO and EVP at Nature's Sunshine]

They provide the strongest value proposition to the consumer while improving consistent use to ensure the best results for better health. In addition, they drive improved frequency and retention with a predictable recurring revenue stream for our products. Finally, we are also making progress with the efficiency of our digital marketing spend, resulting in meaningful improvements in customer acquisition cost and enhanced return on ad spend. The combination of these fundamentals validates the strategic investments we are making and strengthens our confidence in our ability to meet and exceed the goals we have set. As we've said many times, digital momentum is a key component of our broader transformation and represents an important long-term growth lever for our business. As digital continues to see robust growth, we expect continued strong growth in North America during Q4 and mid-single-digit growth in 2026. Asia-Pacific delivered 17%.

[Shane Jones, CFO and EVP at Nature's Sunshine]

Year-over-year net sales growth to $64.7 million, or 15% growth on a constant currency basis. Growth was driven by strong performance in Japan, China, and Korea, where sales increased 32%, 36%, and 12%, respectively, excluding the impact of foreign exchange. In each of these markets, our efforts to introduce more consumer-friendly products, enhance our subscription auto ship programs, and strengthen field activation have been key contributors to the improved momentum. The more consumer-friendly product bundles introduced last year in APAC continue to have strong appeal from both our customers and distributors, leading to increased acquisition along with better repeat. Likewise, our auto ship program continues to benefit consumers while driving predictable recurring sales growth. In Japan, auto ship now accounts for approximately 50% of the sales in that market.

[Shane Jones, CFO and EVP at Nature's Sunshine]

China launched an auto ship program earlier this year, and we are seeing a strong response as that program already accounts for 12% of sales and has helped to re-accelerate growth in that market. Finally, our field activation initiatives were particularly effective in Q3, driving exceptional results and likely accelerating some sales originally expected in the fourth quarter. Given the very difficult Q4 comparable, remember that APAC grew 21% in constant currency terms last Q4, combined with the fact that approximately $2 million of revenue was likely accelerated from Q4 to Q3 this year, APAC growth is likely to be flat to down slightly in Q4 2025. We are very pleased with the progress being made in APAC and expect continued mid-single-digit growth from this region in the coming year, but acknowledge the inherent lumpiness of sales due to the nature of our field activation efforts.

[Shane Jones, CFO and EVP at Nature's Sunshine]

Europe also continues to perform well, with Q3 sales up 13% versus the prior year to $22.1 million, or 10% on a constant currency basis. This growth was driven by 10% growth in Central Europe and 14% growth in Eastern Europe, both in local currency terms. In Central Europe, our expansion into the Baltics continues to progress very well, supported by steady demand for our power line products. We are encouraged by our team's ability to drive growth while successfully broadening our regional footprint. The growth in Eastern Europe has been fueled by improved product availability combined with outstanding execution from our distribution partners. This growth is remarkable given the current instability in that region and is a testament to the perseverance of our staff in that area. For Q4 and 2026, we expect continued growth from both of these markets, with Europe as a whole growing mid-single digits.

[Shane Jones, CFO and EVP at Nature's Sunshine]

Turning to gross margin, we continue to build on the progress we've made over the past several quarters as gross margin increased 200 basis points to 73.3%, compared to 71.3% a year ago. This improvement represents our highest gross margin in 15 quarters and reflects the benefit of our ongoing gross margin initiatives and favorable market mix. We've been talking about these margin improvement efforts for some time. These initiatives include renegotiating logistics contracts, better conversion costs to improve manufacturing efficiency, improved sourcing, more disciplined pricing, and other cost-saving measures. We're proud of our team's continued efforts to streamline our supply chain and pleased to see the benefit reflected in our results. As we look forward, despite our efforts to avoid and delay the impact of tariffs, we do anticipate a small impact on gross margin.

[Shane Jones, CFO and EVP at Nature's Sunshine]

Therefore, gross margins are likely to settle into the upper 72% range next quarter and into next year, which represents a significant step up from where we've been historically. Volume incentives, as a percentage of net sales, were 30.7% compared to 31% in the year-ago quarter. The decrease was primarily due to the strong growth in our digital business as well as changes in market mix. Selling, general, and administrative expenses during the third quarter were $45.7 million compared to $41 million in the year-ago quarter. As a percentage of net sales, SG&A expenses were 35.6% for the third quarter compared to 35.7% a year ago. The $4.7 million increase versus prior year was primarily related to digital ad spend, other variable costs associated with the sales increase, and non-recurring expenses.

[Shane Jones, CFO and EVP at Nature's Sunshine]

The decision to increase digital ad spend during Q3 was based upon the opportunity for very strong customer acquisition at a favorable customer acquisition cost. Similar to what occurred in Q3, we will continue to make additional investments in digital advertising when we can achieve an outstanding return on that investment. In Q4, we expect SG&A of $46 million-$47 million, which includes $1 million-$2 million of non-recurring expenses. Operating income increased to $9 million, or 7% of net sales, compared to $5.3 million, or 4.6% of net sales in the year-ago quarter. GAAP net income attributable to common shareholders for the third quarter was $5.3 million, or $0.30 per diluted common share, compared to net income of $4.3 million, or $0.23 per diluted common share in the year-ago quarter.

[Shane Jones, CFO and EVP at Nature's Sunshine]

Adjusted EBITDA, as defined in our earnings release, eclipsed our previous record, increasing 42% to $15.2 million compared to $10.7 million in the year-ago quarter. The increase was primarily driven by the increase in net sales and improvement in gross margin. Our balance sheet remains clean with cash and cash equivalents of $95.6 million and zero debt. Inventory decreased to $67.3 million at the end of the third quarter, a $2 million decrease versus Q2, driven by the very strong demand in Q3. We expect to rebuild that inventory during Q4 to ensure appropriate in-stock levels and fulfill continued strong demand in Q4. Net cash provided by operating activities was $25.4 million compared to $13.1 million in the prior year period. We repurchased 1.1 million shares for approximately $14.4 million during the nine months ended September 30th 2025, with $19.3 million remaining on our share repurchase program.

[Shane Jones, CFO and EVP at Nature's Sunshine]

Looking beyond share repurchases, our healthy capital allocation structure positions us well to continue our digital transformation and other strategic initiatives. Now turning to our 2025 outlook. Based on our strong Q3 results and the improved momentum in the business, we are raising our guidance for 2025. We now expect full year 2025 net sales to range between $476 million and $480 million, compared to previous guidance of $460 million-$475 million. This new range equates to year-over-year growth of 5%-6%. For adjusted EBITDA, we are now guiding to a range of $47 million-$49 million versus the prior range of $41 million-$45 million. This new range equates to year-over-year growth between 16% and 21%. This implies Q4 guidance of $119.7 million-$123.7 million of revenue and EBITDA between $9.6 million and $11.6 million.

[Shane Jones, CFO and EVP at Nature's Sunshine]

As a reminder, the fourth quarter of last year represented the largest single quarter in our company's history at that point, driven by very strong performance across Asia, Pacific, and Europe, which naturally creates tougher year-over-year comparisons. Overall, we continue to believe the business is well positioned to capitalize on current market opportunities and remain very optimistic about our future growth prospects. The strategic initiatives we've been implementing are working, and we're confident in our ability to continue to accelerate growth in sales, profitability, and free cash flow. Now I will turn the time back to the operator.

[Operator]

Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press the star followed by the number one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process.

[Operator]

Please press the star followed by the number two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Brian Holland from D.A. Davidson. Please go ahead. Mr. Holland.

[Brian Holland, Managing Director and Research Analyst at D.A. Davidson]

I'm so sorry about that. I'm sorry. Can you hear me now?

[Shane Jones, CFO and EVP at Nature's Sunshine]

Yes. Hey, Brian.

[Brian Holland, Managing Director and Research Analyst at D.A. Davidson]

Okay. Okay. Thank you. So I'll start again. I apologize. First of all, welcome and congratulations. Can't look forward to working with you. And then just digging into the quarter here. Shane, maybe to start naturally in the North America segment, particularly in light of the ongoing inflection in the digital business. Maybe just kind of. Maybe a multi-part question here, but one. Where are we seeing particular. Success as far as reaching the consumer? Which channels within digital? How is that informing investment? And then mindful of the particularly compelling combination of new customer acquisition and retention, which does not usually happen, usually trade one off for the other, right, from a growth perspective, especially when one is at magnitude. How do we think about the right level of investment going forward, leaning into this momentum and kind of peaking into 2026?

[Shane Jones, CFO and EVP at Nature's Sunshine]

Yeah. That is a great question, Brian. First of all, we are really pleased with what we are seeing in our digital channel, and it is really across multiple areas. Our Amazon business is doing very well. Our DTC business is doing well, and our social commerce business is also doing very well. Very encouraged by what we are seeing.

[Shane Jones, CFO and EVP at Nature's Sunshine]

The thing that's the most encouraging is we've seen an opportunity to really invest in digital advertising at a much lower CAC, customer acquisition cost, than what we've seen in the past, and which is driving a lot of new customers, which is obviously a good thing for the business now and go forward. We will continue to invest as long as our return on ad spend and our CAC continue to be at advantageous rates.

[Brian Holland, Managing Director and Research Analyst at D.A. Davidson]

Appreciate it. Good color. Maybe just quickly on the.

[Shane Jones, CFO and EVP at Nature's Sunshine]

I’d like to—this is—actually, sorry. Oh, yeah. I think Ken had something he wanted to add.

[Ken Romanzi, CEO and Director at Nature's Sunshine]

I'm sorry to interrupt, but I just wanted to add, just in my learning curve in the last week, I've heard a few amazing things. Number one, TikTok has become a really great social commerce ad avenue for us.

[Ken Romanzi, CEO and Director at Nature's Sunshine]

I had not even realized there was a store competing with Amazon on TikTok. I'm not a personal user, but that has been tremendous success over the last quarter. We have a tremendous opportunity for more auto ship. I love the auto ship program. It's working well around the world. In the U.S., if people's first experience and purchase for us is combined with an auto ship, the repeat, obviously, and the coming back nature of that customer is far greater than someone who just buys product once and doesn't sign up for auto ship. Auto ship is the gift that keeps on giving, and if we can get people into that early, it just creates much more retention and, of course, drives a lot of the great numbers that Shane was describing.

[Brian Holland, Managing Director and Research Analyst at D.A. Davidson]

I appreciate the color, Ken and Shane as well.

[Brian Holland, Managing Director and Research Analyst at D.A. Davidson]

Maybe moving over to APAC. There are obviously certain markets where the momentum has been in place, Japan, etc. China was, I think, a positive surprise here. Maybe just mindful of you guys spent a fair amount of time talking about the challenging macro backdrop and how that was flowing through on the business. That seems to me to be the biggest source of surprise here relative to what I was thinking, even just conceptually going into the quarter. It would be great to kind of double-click there on how that business is kind of flipping.

[Shane Jones, CFO and EVP at Nature's Sunshine]

Yeah. Yeah. We're very pleased with what we saw in Q3 and what we continue to see from China in that a lot of the trends that we had talked about six months ago are getting much, much better now.

[Shane Jones, CFO and EVP at Nature's Sunshine]

If we look at really what's driving that, there are a number of factors, but the biggest factor goes back to that auto ship program that Ken was talking about as well. We didn't have an auto ship program in China until earlier this year. We implemented a subscription auto ship program there similar to what we have in other markets already around the world. Already, it accounts for over 12% of total sales and is a big part of what's really driven around the economics and the fundamentals there to get that business running again. Once you've got the momentum going there, that actually helps feed the rest of the business as well.

[Brian Holland, Managing Director and Research Analyst at D.A. Davidson]

Maybe just a quick follow-up on China from your perspective. Is the underlying macro backdrop, as it pertains to your core consumer, has there been any improvement there, or is this really just about execution and self-help on your end, and the backdrop really has not changed that much?

[Shane Jones, CFO and EVP at Nature's Sunshine]

The macroeconomic environment there, we have seen it stabilize. I would not say it has gotten a lot better, but it has not gotten worse either. Just getting the stabilization there has helped us then to do some of the fundamental changes that we need to do to be able to re-accelerate that market.

[Brian Holland, Managing Director and Research Analyst at D.A. Davidson]

Great. I will be mindful of time here. Maybe one for Ken, and I will hop back in the queue. Ken, maybe just obviously, we saw in the press release and your introductory remarks today, a sense of the overlap here from a consumer-facing standpoint with some of the brands that you have dealt with before. Maybe just a little bit more, would love to understand as you think about the skills that you've developed over your career and applying them here at Nature's Sunshine. Obviously, the business is performing quite well year to date. Where do you see yourself spending disproportionate time here in the first hundred or so days? Where do you see particular opportunity to apply your expertise to the infrastructure here to maybe either improve or enhance what's in place?

[Ken Romanzi, CEO and Director at Nature's Sunshine]

I can't wait to see you one-on-one because I can take a long time answering that question. In the spirit of time, I will try to be as brief as possible and condense 43 years into a few minutes. Number one, my first hundred days just learn the business. Learn the people, the organization, and most of all, get out with leaders. I had my first meeting with a leader last night. It was so inspiring. A long-term practitioner in North America.

[Ken Romanzi, CEO and Director at Nature's Sunshine]

It was a fascinating meeting. I have pages of notes just from a 90-minute discussion with him. Learn the business and get out there and be with our frontline leaders. My particular inspiration about this company is great brand, great products, great—we are on a macro trend, mega trend with the wind in our sails. I have spent a lot of time trying to sell things against the wind, but the wind is in our sails on health and wellness and people looking for natural health and wellness cures, both young and old. It is a trend that has been around for a long time and will continue for a long time. That is what excites me about this. To me, I look at this company, and we have hundreds of thousands of salespeople in our company.

[Ken Romanzi, CEO and Director at Nature's Sunshine]

That's the way I see our consultants and practitioners and partners. When I started my career at a company called Frito-Lay, we used to brag that we had 10,000 route salesmen delivering to 300,000 retail accounts a day in the U.S. We used to brag we had 10,000. I have hundreds of thousands of salespeople. When I ran sales and distribution in Nabisco, I had 5,000 salespeople. We felt like we were like—we were some of the best food distribution companies in the world. We have hundreds of thousands of frontline salespeople. I worked in the soft drink business where I partnered with, as a franchise owner. We were the franchisors of soft drink brands, and we went through independently owned bottlers, soft drink bottlers, who do the bottling and sales and distribution of our products.

[Ken Romanzi, CEO and Director at Nature's Sunshine]

It may not be obvious to people, but that system is no different from this system. I have a brand. I do the marketing. I do the product development and the innovation and the thought leadership. And then I have to actually sell that syrup to a soft drink bottler who's an independent entrepreneur, many times third, fourth, and fifth generation entrepreneur, and has hundreds of millions of dollars invested in their system running route manufacturing operations and route trucks. I see no difference in selling through that mechanism than selling through this mechanism. I had a salesforce that they weren't employees, but we had to lead and motivate and influence them to build their business and our business mutually. I see that as a wonderful tangential experience that I can apply here. I grew up in marketing, so I'm a consumer marketer.

[Ken Romanzi, CEO and Director at Nature's Sunshine]

That's the way I step out of bed every morning. Since 1993, I've been a general manager. What can I bring? I mean, organizational leadership. I mean, we don't do anything without great people, and we have unbelievable people here. The passion and enthusiasm and dedication to our employees is amazing. We have a lot to build on from there. Just business management. Running a P&L and a balance sheet. I've been doing that for decades. Really motivating our people and focusing everybody on the highest leverage points to accelerate growth in our business. Motivating hundreds of thousands of leaders around the world, which our team does well.

[Ken Romanzi, CEO and Director at Nature's Sunshine]

I just met with our Head of North America earlier today, and I said, "Get up start booking me with customers." I will be with leaders in Southern California two weeks from now. I will be throughout five different countries in Asia in December. Our head of Europe already has me planned for January, February, and March in various markets there. I hope that starts to answer your question, and I appreciate it.

[Brian Holland, Managing Director and Research Analyst at D.A. Davidson]

Yep. Appreciate everything. Best of luck. Keep up the great work, guys.

[Ken Romanzi, CEO and Director at Nature's Sunshine]

Thank you.

[Operator]

Thank you. Your next question comes from Susan Anderson from Canaccord Genuity. Please go ahead.

[Alec Legg, VP of Equity Research at Canaccord Genuity]

Hi. Good evening. Alec Legg on for Susan. Welcome, Ken. We're definitely excited to work for you. We can hear the passion already coming through.

[Ken Romanzi, CEO and Director at Nature's Sunshine]

Thank you.

[Alec Legg, VP of Equity Research at Canaccord Genuity]

Question on—you're welcome. For third quarter, I mean, obviously, it was a big step change in growth going from low single digits to low double digits. I guess, was there.

[Alec Legg, VP of Equity Research at Canaccord Genuity]

Any one key factor or something that came together, or was it just the strategy that you've been executing, everything just coming together in the quarter?

[Shane Jones, CFO and EVP at Nature's Sunshine]

It really is the combination of all the work that we've done over the last couple of years coming to fruition and really starting to fire on all engines. We had very, very robust growth, as you see, in digital, which was a key part of that. In addition to that, we had very, very good growth in APAC. Some of the APAC is timing-based. Because of our field initiatives and the way the timing of what that was this year, it pushed some of the revenue that we would have normally seen in Q4 into Q3. There is about a $2 million slide in timing there.

[Shane Jones, CFO and EVP at Nature's Sunshine]

But then also just really, really robust growth and good things happening in Europe, both in Eastern and in Central Europe. All of that combined with strong gross margin, good cost containment as well. I think it's largely just the work that we're doing. It's great to actually see the strong momentum of those actions coming to fruition, combined with just a little bit of timing.

[Alec Legg, VP of Equity Research at Canaccord Genuity]

Thanks for that. I saw there was a new power line launch not too long ago. Is that a global rollout or just in North America, or is that also included in the Baltic region where that line is fairly popular?

[Shane Jones, CFO and EVP at Nature's Sunshine]

Right. We will be phasing the timing on that, but it will go to multiple markets. We'll start in the U.S. and then move to other markets as well.

[Alec Legg, VP of Equity Research at Canaccord Genuity]

Thank you. And then my last question on SG&A, a little bit of a step up there, it looks like on pretty good return on ad spend. Is that a new level that we should think of SG&A going forward, or is that pretty flexible just depending on the market?

[Shane Jones, CFO and EVP at Nature's Sunshine]

Yeah. A little bit going back to the question from the previous person. As we see strong opportunities to be able to invest and get a very strong return on digital ad spend, we will continue to make those investments. Right now, we see those opportunities. We have guided our SG&A for the next quarter to be in that $46 million-$47 million range with $1 million-$2 million of non-recurring. I think that is the right amount to think about for the short term. We will continue to respond as we have good opportunities that make sense.

[Shane Jones, CFO and EVP at Nature's Sunshine]

As I said, we have good returns, we will feed those returns.

[Alec Legg, VP of Equity Research at Canaccord Genuity]

Very helpful. Thank you.

[Operator]

Thank you. At this time, this concludes our question and answer session. I would now like to turn the call back over to Mr. Romanzi for closing remarks.

[Ken Romanzi, CEO and Director at Nature's Sunshine]

Thank you very much. As I said earlier, I'm just delighted to be leading Nature's Sunshine. I feel so privileged. And after hearing and learning about and hearing our third quarter results, which I have no association with, right? I didn't do anything to drive those results. But hearing those results and learning what Shane said about what drove all those results, the business is working on all cylinders. We have issues to address, but you saw a quarter where the strategies are working and the management team and leadership team is really delivering.

[Ken Romanzi, CEO and Director at Nature's Sunshine]

It just makes me so much more excited about the potential of the business, even more so than I was just a few days ago. I just want to thank everyone for listening and joining with us today and really look forward to speaking with you when we get together to report our fourth quarter 2025 results. I'm new, so I'll have much more to say on that call about kind of where we think we're taking it in the future. There will be a lot of the same of what's working now. I don't feel like I have to overturn the whole ship. I just feel very fortunate to be joining such a strong team with great results and a great strategy in place. With that, we wish you, again, thanks for joining us and wish you a good night.

[Operator]

Ladies and gentlemen, this concludes today's conference call. You may disconnect your lines at this time. Thank you all for your participation.

Participants

Analysts

• Brian Holland, Managing Director and Research Analyst at D.A. Davidson
• Shane Jones, CFO and EVP at Nature's Sunshine
• Nate Brower, EVP, General Counsel, and Corporate Secretary at Nature's Sunshine
• Alec Legg, VP of Equity Research at Canaccord Genuity
• Ken Romanzi, CEO and Director at Nature's Sunshine