Natural Health Trends Q3 2026 Earnings Results & Report

Natural Health Trends EPS Results

• Actual EPS: -$0.03
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Natural Health Trends Revenue Results

• Actual Revenue: $7.56 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Natural Health Trends (NASDAQ:NHTC) is a direct-selling company that develops and distributes health, wellness and beauty products under the NHT Global brand. Its product portfolio includes nutritional supplements, personal-care products, skin-care items and lifestyle goods.

The company markets its products through a network of independent distributors and customers rather than primarily through traditional retail channels. Its direct-selling model supports product distribution, customer enrollment and sales across several international markets.

Natural Health Trends has historically focused much of its business in Asia, including Hong Kong and mainland China, while also serving customers and distributors in other regions. The company is incorporated in Delaware and maintains corporate operations in the United States.

Natural Health Trends Q3 2026 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: Third-quarter revenue fell 20% year over year to $7.6 million, reflecting consumer pessimism in China, regulatory uncertainty, and lingering effects from member misconduct. Revenue was flat sequentially after the company introduced lower-priced packages and additional incentives.
• Positive Sentiment: Restructuring efforts continued to improve profitability, with operating expenses down nearly $500,000 during the quarter and year-to-date savings reaching $1.1 million. The operating loss narrowed to $277,000 from $643,000 sequentially, while the net loss improved to $232,000, or $0.03 per diluted share.
• Neutral Sentiment: The company is investing in future engagement and growth through an AI-powered marketing and communication app for Chinese members, the upcoming Move Prime joint-health supplement, and a traditional Chinese medicine product planned for China. Management said half of its markets outside Hong Kong and China increased sales during the quarter.
• Negative Sentiment: Cash, cash equivalents, and marketable securities declined to $17.6 million at September 30 from $28.9 million at year-end, driven largely by share repurchases, dividends, and operating cash use. The company used $3.3 million in operating cash during the first nine months, although the board authorized further repurchases with $15.8 million remaining under the program.

Presentation

[Operator]

Good day, and welcome to the Natural Health Trends Corp third quarter 2026 conference call. At this time, I would like to turn the conference over to Michelle Glidewell with Natural Health Trends Corp. Please go ahead.

[Michelle Glidewell, Senior Manager at Natural Health Trends Corp]

Thank you, and welcome to Natural Health Trends third quarter 2026 earnings conference call. During today's call, there may be statements made relating to the future results of the company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results, performance, or achievements could differ materially from those anticipated in such forward-looking statements through the results of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission. It should also be noted that a replay of today's call can be found on the investor section of the company's corporate website at naturalhealthtrendscorp.com. At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.

[Chris Sharng, President at Natural Health Trends]

Thank you, Michelle. Good morning, and thanks to everyone joining us to discuss our third quarter 2026 financial results. Scott Davidson, our Senior Vice President and Chief Financial Officer, is also here today. Q3 net sales were $7.6 million, or flat compared to the Q2 this year, and were down 20% from $9.5 million when compared to the same quarter last year. Consumer pessimism in our largest and most important market remains one of our biggest challenges. The uncertainty is making people cautious about both spending and investing, and we saw that caution show up in purchasing decisions. We also continue to see lingering effects from the regulatory uncertainty in China and member misconduct we previously reported.

[Chris Sharng, President at Natural Health Trends]

To address this difficult economic environment, we introduced additional incentives and lower priced packages, which accounted for most of the revenue decline compared to a year ago, but managed to lift the member count and steady the top line compared to the preceding Q3. Partially offsetting these headwinds are restructuring initiatives from late last year, improved gross margin, and cut operating expenses by almost $500,000 this quarter, bringing year-to-date savings to $1.1 million. As such, we were able to reduce our operating loss by 57% compared to the preceding quarter. During the quarter, we celebrated our 25th anniversary with a landmark event in Hong Kong, bringing together approximately 1,000 members and guests from our international teams. Celebrating this milestone together was a highlight of the quarter, and the event reinforced the strength of our community at a time when engagement matters most.

[Chris Sharng, President at Natural Health Trends]

We rolled out an AI-powered marketing and communication app for our Chinese members. This mobile-friendly tool helps facilitate direct communication with additional features to come, including AI-enabled search and product training. In the coming weeks, we're excited to launch a new joint health supplement called Move Prime, a citrus-flavored powder drink mix designed to support joint comfort and mobility. We're also readying a new traditional Chinese medicine product for our China market and to be introduced in the coming months. Turning to the rest of our global footprint, they remain an important part of our long-term growth story. Half of our markets outside of Hong Kong and China managed to increase their sales over Q3. Going forward, our priorities are straightforward: maintain financial discipline, invest where we can strengthen our competitive position, and equip our field with innovative products, better digital tools, and meaningful engagement.

[Chris Sharng, President at Natural Health Trends]

We believe this positions us to benefit as market conditions improve. We also continue to return capital to shareholders as the board has authorized continued repurchases under our existing program, with $15.8 million currently remaining available. It reflects our confidence in the business and our commitment to shareholder returns. With that, I'd like to turn the call over to our CFO, Scott Davidson, to discuss our financial results in greater detail. Scott?

[Scott Davidson, SVP and CFO at Natural Health Trends]

Thank you, Chris. Total revenue for the third quarter of $7.6 million was steady compared to $7.6 million in the Q2 of 2026 and declined 20% compared to $9.5 million in the Q3 of 2025. As Chris mentioned, the operating environment remains challenging in China. Turning to our cost and operating expenses, we continue to see the impact of strong execution on our previously announced restructuring program, reflected in improved margins and reduced operating expenses. Gross profit margin was 74.2%, down from 75.2% in the Q2 of 2026, due to the mix of promotions offered during the Q3 to support our teams and members. However, gross profit margin improved from 73.7% in the Q3 of 2025, largely as a result of our shift to manufacturing in East Asia.

[Scott Davidson, SVP and CFO at Natural Health Trends]

Commissions expense as a percent of total revenue for the third quarter was 35.9%, down from 40.9% reported in each of the Q2 of 2026 and the Q3 last year, primarily due to lower weekly commissions earned following disciplinary action taken against certain members as a result of the previously reported code of conduct matter. Selling, general and administrative expenses for the quarter were $3.2 million, a decrease of $80,000 compared to the Q2 of 2026 and down $433,000 compared to the Q3 a year ago. Operating loss for the Q3 was $277,000, an improvement compared to $643,000 in the Q2 of 2026 and $495,000 in the Q3 of 2025.

[Scott Davidson, SVP and CFO at Natural Health Trends]

Net loss for the Q3 was $232,000, or $0.03 per diluted share, also an improvement compared to $451,000 or $0.05 per diluted share in the Q2 of 2026 and $431,000 or $0.04 per diluted share in the Q3 of 2025. Now I'll turn to our balance sheet and cash flow. Net cash used in operating activities was $3.3 million during the first nine months of 2026, compared to $5 million in the first nine months of 2025. Total cash equivalents, and marketable securities were $17.6 million at September 30, down from $28.9 million at December 31, 2025, primarily due to repurchase of shares of common stock, dividends paid, and cash used in operations during the first nine months of 2026.

[Scott Davidson, SVP and CFO at Natural Health Trends]

We repurchased 85,291 shares of our common stock in the open market for an aggregate purchase price of $84,000 during the Q3 through early October. Our board of directors has since authorized additional share repurchases under our existing stock repurchase program, with $15.8 million remaining available. Our 25th anniversary celebration in Hong Kong was a great success, and I was inspired by the loyalty and enthusiasm of our members and customers. We remain focused on executing our strategy of launching innovative new products, digital tools that drive engagement and support member training, and returning value to our shareholders. That concludes our prepared remarks. I will now turn the call back over to the operator.

[Operator]

This does conclude today's call. Thank you for your participation. You may now disconnect.

Participants

Executives

• Michelle Glidewell, Senior Manager
• Chris Sharng, President
• Scott Davidson, SVP and CFO