Nu Skin Enterprises Q2 2026 Earnings Report

Nu Skin Enterprises EPS Results

• Actual EPS: $0.20
• Consensus EPS: $0.20
• Beat/Miss: Met Expectations
• One Year Ago EPS: N/A

Nu Skin Enterprises Revenue Results

• Actual Revenue: $320.11 million
• Expected Revenue: $345.20 million
• Beat/Miss: Missed by -$25.09 million
• YoY Revenue Growth: N/A

Nu Skin Enterprises Announcement Details

• Quarter: Q2 2026
• Date: 8/10/2026
• Time: After Market Closes
• Conference Call Date: Monday, August 10, 2026
• Conference Call Time: 5:00PM ET

Nu Skin Enterprises (NYSE:NUS) is a global direct-selling company that develops and markets personal-care and wellness products. Its portfolio includes skin-care products, beauty devices, nutritional supplements and other wellness offerings sold primarily through a network of independent distributors and digital commerce channels.

The company markets its products under several brands, including Nu Skin, which focuses on personal care and beauty, and Pharmanex, which offers nutritional supplements. Its ageLOC line includes skin-care products and beauty devices designed around the company’s anti-aging product platform.

Founded in 1984 and headquartered in Provo, Utah, Nu Skin serves customers across multiple regions, including North America, Asia, Europe and other international markets. The company has historically built much of its business around direct selling, combining distributor-led product recommendations with online sales and customer services.

Nu Skin Enterprises Q2 2026 Earnings Call Transcript

Key Takeaways

• Neutral Sentiment: Second-quarter revenue was $320.1 million, including a $4 million foreign-currency headwind, while adjusted EPS was near the midpoint of guidance. Adjusted operating margin declined to 6.1% from 8.0% year over year.
• Positive Sentiment: Prysm iO adoption continued to build, with more than 39,000 devices placed—up nearly 30% quarter over quarter—and 2.5 million scans. Nu Skin expects 50,000–60,000 placements by year-end and plans to launch an AI-enabled app to improve personalization, conversion, and customer engagement.
• Negative Sentiment: Nu Skin delayed the formal India market launch to the first half of 2027 while it refines local manufacturing, logistics, technology integration, and the affiliate business model.
• Negative Sentiment: Management said recruiting and leadership development remain below the levels needed for sustainable growth, while affiliates are still adapting to selling the wellness-focused Prysm iO product rather than the company’s historically stronger beauty offerings.
• Negative Sentiment: Full-year guidance now calls for revenue of $1.28 billion–$1.35 billion and adjusted EPS of $0.70–$0.90. Reported results included a $78.9 million goodwill impairment and a $167.5 million deferred-tax valuation allowance, while the planned East-West restructuring is expected to incur $5 million–$10 million in cash transition costs.

Presentation

[Operator]

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, B.G. Hunt, Investor Relations. Please go ahead.

[B.G. Hunt, VP of Treasurer, Head of Investor Relations and Admin Services at Nu Skin]

Thanks, Daniel, and good afternoon, everyone. I am joined by Ryan Napierski, President and CEO, and by our Interim CFO, Chelsea Lantz. Today, we will be sharing Nu Skin's Q2 2026 results and providing guidance for the remainder of the year. Before I turn time over to Ryan, let me point out that on today's call, comments will be made that include forward-looking statements. These statements involve important risks and uncertainties, and actual results may differ materially from those discussed or anticipated. Please refer to today's earnings release and our SEC filings for a complete discussion of these risks. Also during the call, certain financial numbers may be discussed that differ from comparable numbers obtained in our financial statements. We believe these non-GAAP numbers assist in comparing period-to-period results in a more consistent manner. Please refer to our investor website, ir.nuskin.com, for any required reconciliation of these non-GAAP numbers.

[B.G. Hunt, VP of Treasurer, Head of Investor Relations and Admin Services at Nu Skin]

With that, I would like to turn the call over to Ryan.

[Ryan Napierski, President and CEO at Nu Skin]

Thanks, B.G. Good afternoon, everyone. Thanks for joining the call. Over the past quarter, our team around the world has been focused upon aligning our top leaders around the next era of opportunity for Nu Skin as we extend our anti-aging leadership position with the introduction of our new innovation, Prysm iO. The field is now learning, adapting, and incorporating this new technology into their business models, which contributed to second quarter revenue of approximately $320 million. Our focus on profitability and operational efficiency helped us achieve adjusted earnings per share near the midpoint of our previously communicated range. We have made meaningful progress on our strategic priorities, including expanding our Prysm iO platform and global rollout, working to align and activate our sales leaders via an enhanced Leader Elite achievement and incentive roadmap, and preparing India for formal opening.

[Ryan Napierski, President and CEO at Nu Skin]

We're building capabilities that we believe will strengthen our competitive position and create sustainable growth over time as we advance our vision to becoming the world's number one leadership company, powering our intelligent anti-aging platform. As we have greater clarity and line of sight on the remainder of the year, we are updating our full-year revenue and EPS guidance, which Chelsea will cover in just a few minutes. Let me briefly update you on the three strategic priorities that continue to guide our business forward. Our first priority is extending Nu Skin's leadership position in intelligent anti-aging. For nearly two decades, ageLOC has differentiated Nu Skin through world-class anti-aging science, generating approximately $16 billion in cumulative revenue. Today, advances in epigenetics and biological aging research are creating an entirely new frontier.

[Ryan Napierski, President and CEO at Nu Skin]

Our next major anti-aging innovation, Prysm iO, remains in the early stages of its global rollout, with more than 39,000 devices placed to date, up nearly 30% quarter-over-quarter, and 2.5 million scans, which is up 25% over the same quarterly comparison. We're learning a lot from the nascent technology, including consumer lifestyle behavior and habits, as well as overall nutrition health status and trends around the world. Our next objective is to turn these learnings into increasing engagement opportunities to improve customer health and wellness by improving their nutritional health scores. On the business frontier, one of our biggest learnings to date has been how our sales leaders are using this device to grow their businesses.

[Ryan Napierski, President and CEO at Nu Skin]

Many of our sales leaders are primarily using Prysm iO as a wellness consultation tool to invite consumers into their own personal wellness journey, which is different from our earlier hypothesis of the Prysm iO being an in-home placement device. These early insights are helping us refine our commercial strategy as we enter our next phase of global deployment to better assist our brand affiliates in performing wellness consultations at scale. As we work towards the longer-term vision of placing a Prysm iO in every healthy household. We expect to place 50,000 to 60,000 devices by year's end. At our global live event in Japan this September, we plan to introduce the next generation of AI-enabled Prysm iO app, powered by our proprietary Nu Intelligence platform to deliver even more personalized wellness assessments, product recommendations, and 90-day wellness plans to improve customer engagement, conversion, and lifetime value.

[Ryan Napierski, President and CEO at Nu Skin]

In the future, the Nu Intelligence proprietary trained agent will also assist our affiliates in their personalized wellness and business journeys with Nu Skin. Based upon early findings with Prysm iO, as well as new scientific research from institutions including Shanghai Jiao Tong University, Yonsei University in South Korea, and our collaborators such as Dr. Anne Friedlander at Stanford Medicine, we are expanding our understanding of how nutritional and lifestyle impact biological aging, reinforcing our belief that the future of wellness will increasingly focus on extending health span or the quality of years lived, not only the quantity or longevity of those years. This work is now informing the next stage of anti-aging research and our Aging Response Modulator science, an approach to anti-aging research incorporating epigenetics that we believe will fuel our next generation of innovation.

[Ryan Napierski, President and CEO at Nu Skin]

In addition to supporting the continued rollout of Prysm iO, we will introduce a new range of products at our live event, including two new products to support women's unique health needs, helping support hormonal balance, and empowering women through every stage of life. These innovations further demonstrate our commitment to advancing our intelligent anti-aging leadership position. Our second strategic priority is engaging, aligning, and empowering our sales force to grow the channel. While our field continues to demonstrate resilience in a difficult operating environment, recruiting and leadership development remain below the levels needed to return the business to sustainable growth. Over the past several months, we've been redesigning how we reward, recognize, and empower leadership globally to empower them to do what they do best, build the network of independent entrepreneurs.

[Ryan Napierski, President and CEO at Nu Skin]

We continue to refine our global compensation framework to place greater emphasis on balancing product selling, team building, and leadership development while maintaining appropriate flexibility for local market needs, including modifications to Mainland China's distinct business model. This revised framework has been rolled out across the Americas and Pacific in the first half of 2026, and will continue into other markets throughout 2027. Our greatest strength is our global leadership, and this fall, we will begin introducing a new leadership achievement roadmap, which will provide clearer developmental pathways, stronger recognition, and incentives that reinforce long-term leadership building. This progressive system will be accompanied by increasing investments in leadership achievements by working more closely with our field leaders to better assist in training and development of new affiliates on the skills and capabilities required for today's evolving environment.

[Ryan Napierski, President and CEO at Nu Skin]

Sustainable growth begins with successful leaders who find, develop, and mentor the next generation of aspiring entrepreneurs, and strengthening our commitment to our talented leadership remains one of our top priorities. Our third strategic priority is expanding our growth opportunities in emerging markets. Across Latin America, we continue to navigate a mixed macroeconomic environment while remaining encouraged by the long-term opportunities in the region. Our leaders throughout the region continue to demonstrate strong commitment and resilience to building the business in spite of persistent disruptions. In India, our focus during the first half of the year has been on building the operational foundation necessary for long-term success, including high-quality local product sourcing, integrated supply chain, technology, and regulatory readiness. As we progress, we've identified additional opportunities to refine elements of our business model before formally launching into the market.

[Ryan Napierski, President and CEO at Nu Skin]

As a result, we've decided to move our full market launch into the first half of 2027 to ensure business model, operational, and field readiness for this significant long-term opportunity. While this extends our formal opening timeline for India, we believe taking the time to optimize the model today will position us for stronger and more sustainable growth once we scale the market. In parallel with our growth initiatives, we'll equally focus on improving profitability along the way. We continue to optimize our gross margin through thoughtful price actions, supply chain efficiencies, and infrastructure improvements as we work towards our long-term objective of approximately 80% gross margin in our core business. This includes strategic price increases to offset rising costs of goods around the globe, as well as realigning manufacturing to further leverage our facilities in China for our Asia-based businesses and our U.S. facilities for our Western businesses.

[Ryan Napierski, President and CEO at Nu Skin]

From an operations perspective, our East and West markets each deploy unique approaches to the business. To better enable our leaders and business to grow in these adjacent models, our Chief Operating Officer, Chayce Clark, is leading an effort to build out a more distinct East-West structure, which marks a shift from our current approach, focusing on seven distinct regions, and will result in our global teams being better positioned to support our customers and sales leaders. This transition will occur over the next two quarters and is intended to create a more agile, efficient, and growth-oriented organization. With that, I'll turn the time over to Chelsea to go through some of the financial details.

[Chelsea Lantz, Interim CFO at Nu Skin]

Thanks, Ryan, and good afternoon, everyone. Today, I'll review our second quarter results, discuss our outlook for the third quarter, and provide an update to our full year guidance. Second quarter revenue was $320.1 million, including an approximate 1% or $4 million foreign currency headwind. Reported earnings per share were negative $5.14, or a positive $0.20, excluding non-cash accounting charges related to a goodwill impairment and a valuation allowance on our U.S. deferred tax assets. Adjusted earnings per share were in line with our guidance range. Gross margin for the quarter was 68.2% compared to 68.8% in the prior year, reflecting the revenue mix between the Nu Skin core and Rhyz businesses. Within the core Nu Skin business, gross margin improved to 77.7%, up 20 basis points from the prior year, reflecting continued progress on our margin improvement initiatives.

[Chelsea Lantz, Interim CFO at Nu Skin]

Selling expense as a percentage of revenue was 33.7%, compared to 33.2% in the prior year. Within the core Nu Skin business, selling expense was 39.8%, down slightly from 40% in the prior year. General and administrative expenses declined by $15.9 million year-over-year, reflecting continued cost discipline while maintaining investments in our strategic priorities. G&A represented 28.4% of revenue, compared to 27.6% in the prior year. Adjusted operating margin for the quarter was 6.1%, compared to 8% in the prior year. Following the year-to-date changes in our market capitalization, we performed an interim goodwill impairment assessment resulting in a $78.9 million non-cash goodwill impairment charge related to our Rhyz manufacturing reporting unit. The goodwill impairment also led us to reassess the realizability of our deferred tax assets, resulting in a $167.5 million non-cash valuation allowance within income tax expense.

[Chelsea Lantz, Interim CFO at Nu Skin]

We have excluded these non-cash accounting adjustments from our adjusted results as we do not believe they are indicative of our ongoing operating performance. Our effective tax rate for the quarter was negative 295.4%, or positive 36.6% on an adjusted basis, compared to 23% in the prior year. As Ryan discussed, we will be implementing an East-West operating model designed to better align our resources with the needs of our markets while creating a more agile organization. We expect these changes to improve operating efficiency and generate meaningful cost savings beginning in the second half of this year, with a larger benefit in 2027. We currently anticipate approximately $5 million-$10 million in cash-based organizational transition costs through the remainder of the year, which are excluded from our adjusted earnings guidance. On the balance sheet, we continue to maintain a strong liquidity position and remain focused on disciplined capital allocation.

[Chelsea Lantz, Interim CFO at Nu Skin]

During the quarter, we generated $10.6 million of operating cash flow and ended the quarter with $189.6 million of cash and cash equivalents. Total debt at quarter end was $213.7 million. We also returned $2.9 million to shareholders through dividends during the quarter. We did not repurchase shares and ended the period with $137.3 million remaining under our current authorization. Looking ahead, our adjusted guidance reflects current business trends and our expectations for the remainder of the year. For the third quarter, we expect revenue in the range of $310 million-$340 million, including an anticipated 2%-3% foreign currency headwind. We expect reported earnings per share in the range of zero to $0.09, or adjusted earnings per share of $0.10 to $0.20. For the full year, we now expect revenue of $1.28 billion-$1.35 billion, including an anticipated foreign currency headwind of approximately 1%.

[Chelsea Lantz, Interim CFO at Nu Skin]

We expect annual reported earnings per share of negative $4.90 to negative $4.73 or adjusted earnings per share of $0.70 to $0.90. Our adjusted EPS guidance excludes certain first quarter charges, the second quarter goodwill impairment, anticipated second half organizational transition costs, and the deferred tax valuation allowance. After these adjustments, our guidance reflects an effective tax rate of approximately 35%. Our outlook incorporates the continued adoption of our strategic initiatives as well as the expected benefits from our ongoing cost optimization and margin improvement initiatives. As we move forward, our focus remains on disciplined execution, improving profitability, and continuing to invest in the initiatives that strengthen our business and position us for sustainable growth. With that, operator, we will now open the line for questions.

[Operator]

As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. Please stand by while we compile the Q&A roster. Our first question comes from Dave Storms with Stonegate. Your line is open.

[Dave Storms, Analyst at Stonegate]

Afternoon, and appreciate you taking my questions. I wanted to maybe start with India. Ryan, you mentioned that the scam pushed back a little bit. Sounds very intentional. Maybe you could just spend a little more time talking about what you have learned and what the pushback should yield.

[Ryan Napierski, President and CEO at Nu Skin]

Yeah, Dave. With respect to India, as we look to that market, clearly India is one of the more robust growing direct selling markets in the world, continues to report strong year-over-year growth across the industry, but it is also a very nuanced market. As we have begun our exploration in Q4 of this past year, several of the key learnings that we have taken out of that include, one, how do we ensure Nu Skin's standard of quality for our products is maintained through local manufacturing partners? How do we improve that and ensure that that is on par with our success quality process? Two, logistics in the market are unique and complex. Moving forward, how do we get the right partnerships that know the local market needs beyond maybe more of the global considerations as we go?

[Ryan Napierski, President and CEO at Nu Skin]

Three, technologically, we have good partners there in our Infosys managed service provider, but how do we ensure that we integrate our systems effectively into the government structure, payment systems, et cetera? All three of those areas for us have been, we have been refining in the first half of this year, and they are on track. What we want to do as we evaluate the model moving forward is to ensure that the actual business model, in other words, how our affiliates will grow the business in India based upon our first six or seven months of learning, that we optimize in order to enable better network building capabilities in the market. Every business is a little different, and India is as well.

[Ryan Napierski, President and CEO at Nu Skin]

We are taking this time now to refine the business model, make sure that it syncs well with local practices, commercial practices there to enable ourselves to build longer term more effectively. We anticipate it being a first half opening. The market today, we are able to facilitate business in terms of products and building out our network. But in terms of actual opening, we want to make sure to have all of these elements dialed in most effectively. The business model is where we are going to be focusing here over the next few months to ensure that we have that right.

[Dave Storms, Analyst at Stonegate]

That is great. I appreciate it. I also wanted to ask maybe a question around the sales force, and I wanted to ask it maybe through the lens of Prysm. With Prysm being maybe more of a wellness than a beauty product, does that open up the aperture of the profile of someone who could be maybe a sales leader? Or does that shift the focus of someone who could be a sales leader?

[Ryan Napierski, President and CEO at Nu Skin]

No

[Dave Storms, Analyst at Stonegate]

It might be a little nuanced, but yeah.

[Ryan Napierski, President and CEO at Nu Skin]

Yeah, Dave, that's actually a very helpful question, and insightful for two different reasons. One is the question you're asking, which is, in the western part of the world for us, particularly the Americas and Europe, our business is predominantly beauty. And so when we put a new innovation into the market, or it's become more beauty, I should say. We've historically been balanced between beauty and wellness, almost 50/50, but different geographies perform differently. As we take a new product or device like Prysm iO, which is an intelligent wellness journey, there is a learning curve for those beauty consultants or affiliates, to really learn, not only how to explain, a wellness product for themselves, but also how to then sell it and build a network or a sales team around that.

[Ryan Napierski, President and CEO at Nu Skin]

That learning process for sure is one of the factors that kind of drove results on the first half being a bit below where we see them, being. Moving into the future, however, it does lend well towards We've found that beauty and wellness play well together because typically, consumers who are interested in one category are interested in the other. So we see long-term there to be synergies between the two. It's kind of overcoming the near term implications of just beauty folks trying to learn how to sell wellness. And that will typically happen in different cycles, as we go. So that's kind of our focus right now is getting those salespeople oriented to be able to sell wellness and Prysm iO effectively.

[Dave Storms, Analyst at Stonegate]

Understood. I really appreciate that. And then maybe just one more, wanting to touch on guidance real quick here. It's implying that Q4 will be pretty strong, from an adjusted EPS standpoint. I got to imagine most of that is as you get closer to that 50, 60 devices by year-end. Is there anything else that we should be looking into maybe the second half of the year that could put you on either the higher or lower end of guidance?

[Ryan Napierski, President and CEO at Nu Skin]

Yeah, no, I think the few things that we're looking at for the second half of this year, number one, and I think you mentioned that already is as we continue to see interest and excitement building on Prysm iO, that's helpful. Two, coming out of the live event, this is really our opportunity. It happens only once every couple of years where we're able to really sit down and align with our leadership around the globe, deeper than just our top tier leaders. This year in Japan, we expect over 10,000 attendees, that are largely made up of the mid to higher level leadership in the company.

[Ryan Napierski, President and CEO at Nu Skin]

To be able to really align with them, explain to them what we've learned so far about Prysm, what the new opportunities are with this AI-enabled app that will help them more effectively create conversion and opportunities for depth of customer, lifetime value creation. As well as this new Aging Response Modulator science, that we're pretty excited about from an epigenetic standpoint. We're going to be able to talk with them and get them comfortable with where we see our anti-aging platform going. The third part of it in Q4, traditionally it is a strong promotion quarter. Obviously Black Friday and various holiday-based promotions, but also promotions in the East that tend to drive the fourth quarter better as well. So those are our opportunities as we look forward into the fourth quarter.

[Dave Storms, Analyst at Stonegate]

That's perfect. I appreciate the time and wish you luck in the next quarter.

[Ryan Napierski, President and CEO at Nu Skin]

Thanks, Dave.

[Chelsea Lantz, Interim CFO at Nu Skin]

Thank you.

[Operator]

Thank you. I am showing no further questions at this time. I would now like to turn it back to Ryan Napierski for closing remarks.

[Ryan Napierski, President and CEO at Nu Skin]

Well, thank you very much. Just closing up, we talked about the important elements that are coming forward in the second half of our year. We are building out our intelligent wellness platform that combines the world-class anti-aging accomplishments of ageLOC with this new burgeoning Aging Response Modulator science, and combining that with the power of our AI platform, and Prysm iO. We are strengthening the foundation of our sales force with an improved compensation and incentive structure, and we are positioning the company to grow more effectively through our emerging markets, particularly India, in this mid to long-term opportunity that we see as very vibrant moving forward. As we do all of those things, we are creating a more effective organization capable of delivering stronger growth and profitability, both in the Eastern and Western hemispheres over time.

[Ryan Napierski, President and CEO at Nu Skin]

We look forward to this upcoming global live event where we can meet with our top leaders to align with them around our Aging Response Modulator science, showcasing this next phase of Prysm iO and AI innovation, aligning with our field leadership on the go-forward plan and our Leader Elite roadmap, and continuing to prepare for India and the formal launch of that in the first half of 2027. While there is still significant work ahead, we remain confident that these initiatives position Nu Skin to create greater long-term value for our customers, affiliates, shareholders, and all of our stakeholders moving forward. With that, thank you for joining us. We will keep you updated as we go.

[Operator]

This concludes today's conference call. Thank you for participating. You may now disconnect.

Participants

Analysts

• B.G. Hunt, VP of Treasurer, Head of Investor Relations and Admin Services at Nu Skin
• Ryan Napierski, President and CEO at Nu Skin
• Chelsea Lantz, Interim CFO at Nu Skin
• Dave Storms, Analyst at Stonegate