Nu Skin Enterprises NYSE: NUS reported third-quarter 2026 revenue of $311 million and adjusted earnings of $0.10 per share, both within its guidance ranges, as growth in its Rhyz manufacturing business helped offset pressure in its core operations.
The company reported a loss of $0.02 per share under generally accepted accounting principles. Interim Chief Financial Officer Chelsea Lantz said adjusted earnings excluded organizational transition costs associated with a new East-West operating model and certain other charges.
Chief Executive Officer Ryan Napierski said overall customer and sales metrics remained under pressure. The company is focusing on its wellness products, sales channel development, a planned launch in India and operating efficiency.
Margins Contract Despite Lower Expenses
Third-quarter gross margin fell to 65% from 70.5% a year earlier, primarily because of the revenue mix between the core Nu Skin and Rhyz businesses, Lantz said. Core Nu Skin gross margin declined to 76.6% from 77.7%.
Selling expenses were 33.2% of total revenue, down from 35.8% a year earlier. Within the core business, selling expenses fell to 40.9% of revenue from 41.7%. Lantz said the company continues to target a core selling expense rate of around 40%.
General and administrative expenses declined by $10.9 million year over year but rose as a share of revenue to 30.2% from 28.8%. Adjusted operating margin decreased to 3.7% from 5.9%.
Nu Skin ended the quarter with $164.9 million in cash and cash equivalents and $203.7 million in total debt. It paid $2.9 million in dividends and made no share repurchases, leaving $137.3 million available under its authorization.
Prysm Adoption and Sales Channel
Napierski said Nu Skin had placed approximately 41,000 Prysm iO devices globally and completed 4.5 million scans through the end of the third quarter. The device is part of the company’s personalized wellness platform, which connects nutritional assessments with product recommendations.
Following an app update in late August that incorporated artificial intelligence features, the scan-to-purchase conversion rate more than doubled to 10%, Napierski said. He described the figure as an aggregate measure and said scans can serve both customer acquisition and retention. He expects room for improvement but did not provide a target.
Sales of LifePak, the company’s flagship nutritional supplement, grew nearly 3% year to date, Napierski said. Nu Skin also previewed anti-aging products focused on women’s health, which it expects to begin rolling out in mid-2027.
To strengthen its sales channel, the company is investing in leadership training and adjusting compensation and incentive programs. Napierski said the emphasis is on sustained development of customer acquisition and sales skills rather than short-term promotions. Many customers now buy directly through the company’s platform using links shared by affiliates, he said.
India Launch and Operating Changes
Nu Skin is preparing for a formal launch in India in the first half of 2027. Napierski said the company is using lessons from its pre-marketing period to refine its operational, product and commercial preparations.
The company is also reorganizing around an East-West structure and plans to use manufacturing hubs in the United States and China to serve their respective regions. Napierski said producing closer to customers is expected to improve gross margin, speed to market and fixed-cost efficiency over time.
Lantz said Nu Skin expects approximately $5 million in remaining cash-based organizational transition costs in the fourth quarter. Those costs are excluded from its adjusted earnings forecast.
Fourth-Quarter and Full-Year Outlook
For the fourth quarter, Nu Skin forecast revenue of $310 million to $340 million, including an expected foreign currency tailwind of approximately 1%. It projected reported earnings of $0.05 to $0.15 per share and adjusted earnings of $0.11 to $0.21 per share. Napierski said the company anticipates sequential revenue growth as it seeks to increase customer and affiliate engagement during the holiday season.
For the full year, the company expects revenue of $1.26 billion to $1.29 billion and adjusted earnings of $0.55 to $0.65 per share. Its reported outlook calls for a loss of $5.08 to $4.98 per share, reflecting a second-quarter goodwill impairment and deferred tax valuation allowance. Lantz said those items did not affect the company’s cash position.
About Nu Skin Enterprises (NYSE:NUS)
Nu Skin Enterprises, Inc is a global direct-selling company that develops and distributes personal care and wellness products. Its portfolio includes skincare, beauty and personal care products, nutritional supplements, and wellness-related devices and technologies. The company markets products under brands including Nu Skin and Pharmanex, with its ageLOC product line focused on skincare and age-related wellness.
Founded in 1984 and headquartered in Provo, Utah, Nu Skin sells its products primarily through a network of independent distributors, supported by digital commerce and other direct-to-consumer channels.
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