Nu Skin Enterprises reported third‑quarter 2025 revenue of $364.2 million, a 15.3 % decline year‑over‑year, and earnings per share of $0.34, beating the consensus estimate of $0.29–$0.30 by $0.04–$0.05 (a 17 % beat). The revenue miss reflects a 15 % drop in North American and China sales, driven by softer consumer sentiment and a decline in affiliate and customer counts, while Latin America delivered double‑digit growth that partially offset the downturn.
Gross margin improved to 70.5 % from 70.1 % in Q3 2024, and operating margin rose to 5.9 % from 4.2 %. The margin expansion is largely attributable to disciplined cost control—selling‑expense ratio fell to 35.8 % from 39.0 % and G&A ratio dropped to 28.8 % from 26.9 %—and a favorable product mix that shifted toward higher‑margin items. Interest expense was reduced to $4.1 million from $6.5 million, further supporting profitability.
Management guided for Q4 2025 revenue of $365 million to $400 million and EPS of $0.25 to $0.35, a slight tightening that signals caution about near‑term demand while maintaining confidence in cost discipline. Full‑year 2025 guidance remains $1.48 billion to $1.51 billion in revenue and $3.15 to $3.25 in diluted EPS, unchanged from the prior guidance, indicating steady expectations for long‑term growth.
Nu Skin highlighted the upcoming launch of its Prysm iO intelligent wellness platform in Q4 and a pre‑market opening in India, both positioned as catalysts for future revenue growth. The company’s Latin America region again posted strong double‑digit year‑over‑year growth, underscoring the importance of emerging markets in offsetting mature‑market softness. CEO Ryan Napierski noted, “Our Latin America region once again delivered strong, double‑digit year‑over‑year growth, and we’re encouraged by positive trends in several of our reporting segments.” CFO James Thomas added, “We continue to realize the benefits of our operational discipline with continued improvements in gross margin and further expansion of our net cash position.”
Market reaction was tempered by the revenue miss and ongoing year‑over‑year decline, despite the EPS beat. Investors focused on the 15 % top‑line contraction and the need for the company to accelerate growth in key markets, while the strategic initiatives—Prysm iO and India expansion—were viewed as long‑term growth drivers that may not immediately offset current revenue weakness.
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.