Natural Health Trends Q1 2026 Earnings Report

Natural Health Trends EPS Results

• Actual EPS: -$0.02
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Natural Health Trends Revenue Results

• Actual Revenue: $9.21 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Natural Health Trends Announcement Details

• Quarter: Q1 2026
• Date: 4/29/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, April 29, 2026
• Conference Call Time: 11:30AM ET

Natural Health Trends (NASDAQ:NHTC) is a U.S.-based holding company that develops, markets and distributes a range of plant-based health supplements, nutritional products and personal care items. The company’s product portfolio spans weight management, skin care, men’s health, nutritional supplements and wellness solutions designed to support overall health and beauty. Natural Health Trends focuses on delivering scientifically formulated products through modern e-commerce channels and direct selling platforms.

Through its principal subsidiaries in the People’s Republic of China—including Shanghai NHTC Health Products Co., Ltd. and NutriVision Pharma Co., Ltd.—Natural Health Trends operates an integrated digital sales model. The company leverages proprietary online storefronts, mobile applications and a network of independent distributors to reach consumers in urban and rural regions. Its direct selling approach combines social media marketing with virtual training events to engage end users and strengthen brand loyalty.

Founded in 2002 and headquartered in Irvine, California, Natural Health Trends has made the Chinese market its primary focus, where it generates the majority of its revenues. Over time, the company has expanded its research and development capabilities, established quality-control laboratories and forged strategic partnerships with packaging and logistics providers. This infrastructure supports its goal of delivering safe, compliant and high-purity products to a growing base of health-conscious consumers.

Natural Health Trends is led by President and Chief Executive Officer Winston Tan, whose background in international e-commerce and health sciences has guided the company’s digital growth strategy. Under his leadership, the management team continues to refine the company’s online distribution channels, enhance customer service platforms and explore product innovation opportunities within the global wellness market.

Natural Health Trends Q1 2026 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: Revenue fell to $9.2 million in Q1, down about 14% year-over-year and 6% sequentially, despite management saying the top line has "stabilized."
• Positive Sentiment: Restructuring is delivering tangible cost benefits — gross margin improved to 75% and operating expenses were reduced by roughly $300,000, supporting a clearer path toward profitability.
• Negative Sentiment: Profitability and cash flow remain under pressure: operating loss widened to $474,000, net loss was $154,000, and net cash used in operations was $797,000 for the quarter.
• Positive Sentiment: Company returned capital via a ~25.5% share repurchase and a declared quarterly dividend of $0.10 per share, while investing in digital initiatives and launching a new product to drive future growth.

Presentation

[Operator]

Day, welcome to the Natural Health Trends Corp first quarter 2026 earnings conference call. At this time, I would like to turn the conference over to Michelle Glidewell with Natural Health Trends. Please go ahead.

[Michelle Glidewell, Investor Relations at Natural Health Trends]

Thank you, and welcome to Natural Health Trends first 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 result 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 first quarter 2026 financial results. Scott Davidson, our Senior Vice President and Chief Financial Officer, is also here today. Our business was adversely impacted a year ago when trade war rhetoric between America and China intensified. Since then, despite continued macroeconomic pressure and subdued consumer spending, we have managed to stabilize our top line. Importantly, tangible benefits from the restructuring program implemented in the fourth quarter of last year have begun to materialize. During the first quarter, these efforts contributed to an improvement in gross profit margin and a reduction in operating expenses totaling approximately $300,000. Meanwhile, we continue to invest in improving our business efficiency. We just launched our enhanced nhtglobal.com website. The new site introduces refreshed branding, more robust product information, and a modern, intuitive customer journey.

[Chris Sharng, President at Natural Health Trends]

Also well underway are our new back-office platform, an AI-powered member app, and AI agents for logistics and member services. These technologies will support future growth by strengthening member productivity and knowledge, enhancing end-to-end selling and the customer experience, and improving our business insights. Just last week, we introduced our newest product, Super Nutri One, a tropical flavor greens powder for digestion, detox, and immunity. We are also looking forward to our 25th anniversary in Hong Kong later this year. A full calendar of events and brand initiatives is in the works. We look forward to marking this important milestone in our company's history. While external conditions remain challenging, we believe that by reducing costs, streamlining our business, and investing in technologies, we are positioned to navigate the current environment and grow our revenue.

[Chris Sharng, President at Natural Health Trends]

Our leaders are experienced, deeply committed, and actively engaged in both our business opportunity and our products as they pursue their personal success and wellness goals. We appreciate their dedication and hard work amid a challenging and complex sales landscape. 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 first quarter was $9.2 million, a decrease of 6% from $9.7 million in the fourth quarter of 2025, and a decline of 14% compared to $10.7 million in the first quarter of 2025. Turning to our cost and operating expenses. We are seeing the impact of executing on our previously announced restructuring program with improved margin and reduced operating expenses. Gross profit margin increased to 75% from 73.6% in the first quarter last year as we continued to transition much of our product manufacturing from the United States to East Asia, closer to our main markets. Commissions expense as a percent of total revenue for the first quarter was 41.8%, consistent with the prior year.

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

Selling, general, and administrative expenses for the quarter were $3.5 million, a decrease of $238,000 compared to a year ago. Operating loss for the quarter was $474,000, compared to $345,000 in the first quarter last year. Net loss for the first quarter was $154,000 or $0.02 per diluted share, compared to a net income of $122,000 or $0.01 per diluted share in the first quarter of 2025. I'll turn to our balance sheet and cash flow. Net cash used in operating activities was $797,000 during the first three months of 2026, compared to net cash provided by operating activities of $484,000 during the first quarter a year ago.

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

Total cash equivalents, and marketable securities were $21.2 million at March 31st, down from $28.9 million at December 31st, 2025, due to the repurchase of approximately 25.5% of our shares of common stock in February, as well as our quarterly dividend payment and cash used in operations. Returning capital to our stockholders remains a top priority. I am pleased to announce that on April 27th, our board of directors declared another quarterly cash dividend of $0.10 per share. This will be payable on May 22nd to stockholders of record as of May 12th. Referring back to Chris's earlier remarks, we have managed to stabilize our top line over the past four quarters despite a challenging operating environment, reflecting the resilience of our core markets.

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

As a result of the restructuring program and our focus on top line growth, we are on a clearer path towards profitability and improved financial performance. We look forward to celebrating our 25th anniversary with our leaders, members, and new customers later this year. The activities before, during, and after this milestone event are designed to drive engagement and strengthen the NHT Global brand as we build momentum into the next phase of the business. 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

• Chris Sharng, President
• Michelle Glidewell, Investor Relations
• Scott Davidson, SVP and CFO