Natural Health Trends Corp. announced its financial results for the second quarter ended June 30, 2025, reporting a 6% year-over-year decline in net sales to $9.8 million. This decrease was primarily driven by a 5% reduction in Hong Kong net sales to $8.004 million, attributed to heightened economic uncertainty and evolving trade tensions in its largest market.
The company's net income for Q2 2025 was $15,000, a notable decrease from $173,000 in Q2 2024. Despite the decline in profitability, the gross profit margin remained relatively consistent at 73.9%, and selling, general and administrative expenses decreased by $235,000 to $3.6 million, reflecting operational discipline.
For the first six months of 2025, net cash used in operating activities was $5.2 million, which included a final $5.1 million installment payment for the U.S. Tax Cuts and Jobs Act repatriation tax. Excluding this payment, cash used in operations was a modest $97,000, indicating a more stable underlying operational cash flow.
As of June 30, 2025, Natural Health Trends maintained strong liquidity with $34.2 million in cash, cash equivalents, and marketable securities. The company's current ratio stood at a healthy 2.7 to 1, with working capital of $25.9 million, providing ample resources for ongoing operations.
In a significant strategic move, NHTC is transitioning its U.S.-based supply chain to manufacturing partners in Asia. This realignment aims to reduce exposure to tariffs, streamline logistics, lower costs, and enhance access to specialized R&D resources, positioning the company for long-term value creation.
The company also introduced new products, including a raspberry lemonade flavored Collagen Supreme, Root Revive (a topical hair serum), Twin Slim Coffee, and Twin Slim Tomato Soup. These new offerings, coupled with ongoing training and leadership programs, are designed to drive customer acquisition and retention, while the active member base declined to 29,260 at June 30, 2025, from 31,110 a year prior.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.