Nu Skin Enterprises Reports Mixed Q3 Results While Advancing Strategic Wellness Platform and India Market Entry

Nu Skin Enterprises Inc. reported third quarter revenue of $364.2 million, falling short of Stonegate Capital Partners' $374.2 million estimate but exceeding earnings expectations with adjusted net income of $17.1 million and adjusted EPS of $0.34 compared to projected $14.7 million and $0.30 respectively. The results positioned the company at the low end of revenue guidance but the high end of EPS guidance, demonstrating effective cost management amid challenging market conditions. Management attributed the earnings performance to disciplined spending and operational efficiency, with selling expense declining to 35.8% company-wide and 41.7% within the core business.

The company's strategic initiatives are gaining momentum with the upcoming limited preview of its Prysm iO intelligent wellness platform for qualified leaders in late fourth quarter. This AI-enabled device leverages a database of approximately 20 million scans to deliver personalized insights and subscription recommendations designed to enhance lifetime value in the nutrition portfolio. The broader leader availability is scheduled for first half 2026 with full consumer launch in second half 2026. Simultaneously, Nu Skin is initiating pre-market opening activities in India during fourth quarter 2025 ahead of a formal market launch in the second half of 2026, applying its successful digital-first approach from faster-growing regions to this substantial new market opportunity.

Despite year-over-year declines in key performance indicators including sales leaders (down 19% to 31,150), paid affiliates (down 13% to 130,096), and customers (down 10% to 746,256), management highlighted positive sequential trends across several regions. Latin America continued to show double-digit growth while Southeast Asia/Pacific demonstrated sequential improvement. The Rhyz segment contributed $51.6 million in revenue, comprising $47.6 million from Manufacturing and $4.0 million from Rhyz Other operations, while the core Nu Skin business maintained a strong 70.5% gross margin.

Financially, the company maintains a robust position with $251.7 million in cash and net cash of $22.7 million, supporting strategic investments in Prysm iO development, India market entry, and ongoing digital initiatives. For fourth quarter 2025, Nu Skin projects revenue between $365 million and $400 million with EPS guidance of $0.25 to $0.35. Full-year 2025 expectations include revenue of $1.48 billion to $1.51 billion with GAAP EPS of $3.15 to $3.25 and adjusted EPS of $1.25 to $1.35, excluding the Mavely gain and other charges. Stonegate Capital Partners values Nu Skin using forward Price to Adjusted EPS methodology, noting the company trades at 7.8x compared to comparable companies averaging 17.0x, suggesting potential valuation upside as strategic initiatives mature.