Nu Skin Enterprises (NUS) Financials

Nu Skin Enterprises (NYSE: NUS) is showing a mixed but still pressured operating profile. The company has recently returned to modest profitability after a very weak 2024, but revenue remains below prior-year levels, operating margins are thin, and cash flow has been volatile. The balance sheet is still manageable, though debt and working-capital pressure remain important watch items for investors.

• Profitability improved sharply from last year’s losses. In Q1 2026, Nu Skin reported net income of $1.8 million versus a $107.5 million gain in Q1 2025 and losses in several 2024 periods; quarterly results in late 2025 were also positive.
• Gross margin remains healthy. Q1 2026 gross profit was $214.5 million on revenue of $320.6 million, suggesting the core product economics are still intact.
• Operating cash flow turned positive in Q4 2025. After a weak Q1 2026, the prior quarter generated $16.6 million of operating cash flow, showing the business can still produce cash when working capital moves favorably.
• Liquidity looks adequate for now. As of Q1 2026, the company had $200.4 million in cash and short-term investments combined, providing a cushion for near-term obligations.
• Inventory levels are lower than they were a year ago. Inventories fell to $178.6 million in Q1 2026 from $188.8 million in Q1 2025 and far below the 2023 peak, which may help reduce inventory risk.
• Revenue is stabilizing, but not growing meaningfully. Q1 2026 revenue of $320.6 million was down from $370.3 million in Q4 2025 and below the $364.5 million posted in Q1 2025.
• SG&A remains a very large expense base. Q1 2026 SG&A was $208.6 million, nearly as large as gross profit, which leaves very little room for earnings expansion without better sales leverage.
• Share count has not been dramatically reduced. Diluted shares were 49.4 million in Q1 2026, roughly in line with recent quarters, so buybacks are not materially boosting per-share results.
• The company continues to spend on capex and return capital. Q1 2026 included $13.7 million of capital spending, $9.4 million of dividends, and $5.0 million of share repurchases, which supports the shareholder return profile but also uses cash.
• Operating cash flow was negative in Q1 2026. The company used $3.9 million in operating cash, reflecting a weak start to the year and heavier working-capital usage.
• Leverage remains a concern. Q1 2026 total debt was about $223.6 million, including $20.0 million short-term debt and $203.6 million long-term debt, while liabilities totaled $582.7 million.
• Working capital pressure remains elevated. Accrued expenses were $208.2 million in Q1 2026, and the company’s operating capital line was a major drag on cash flow.
• The business has had uneven results over the last four years. 2024 was especially weak, with negative operating income in multiple quarters and a steep Q4 2024 loss driven by a large restructuring charge.
• Margins are still fragile. In Q1 2026, operating income was only $4.0 million on more than $320 million of sales, showing how little cushion the company has if revenue softens.

Bottom line: Nu Skin is no longer in the same stress state it was during the worst parts of 2024, but the recovery is not yet convincing. Investors should watch for sustained revenue stabilization, continued positive operating cash flow, and progress on lowering debt and SG&A before assuming a durable turnaround.