Nu Skin Enterprises Q2 Earnings Call Highlights

Nu Skin Enterprises Q2 Earnings Call Highlights Nu Skin reported Q2 revenue of $320.1 million and adjusted EPS of $0.20 , while reported EPS was negative $5.14 due primarily to a $78.9 million goodwill impairment and a $167.5 million deferred-tax valuation allowance. Adjusted operating margin fell to 6.1% from 8% year over year. The Prysm iO rollout gained traction, with more than 39,000 devices placed and 2.5 million scans completed. Management is shifting the platform’s focus toward scalable wellness consultations and plans to launch an AI-enabled app with personalized assessments and product recommendations. Nu Skin maintained full-year guidance for revenue of $1.28 billion to $1.35 billion and adjusted EPS of $0.70 to $0.90, while delaying its formal India launch to the first half of 2027. Organizational restructuring is expected to generate cost savings beginning in late 2026, but will require $5 million to $10 million in transition costs. Nu Skin Enterprises NYSE: NUS reported second-quarter revenue of $320.1 million and adjusted earnings per share of $0.20, as the company continued the rollout of its Prysm iO wellness platform and pursued cost and margin initiatives. Reported earnings per share were negative $5.14 for the quarter, reflecting non-cash accounting charges related to goodwill impairment and a valuation allowance on U.S. deferred tax assets. Interim CFO Chelsea Lantz said the company recorded a $78.9 million non-cash goodwill impairment charge tied to its Rhyz manufacturing reporting unit, as well as a $167.5 million non-cash valuation allowance in income tax expense. Get Nu Skin Enterprises alerts: Sign Up 3 Mid Cap Dividend Growers Worth Buying “We have excluded these non-cash accounting adjustments from our adjusted results as we do not believe they are indicative of our ongoing operating performance,” Lantz said. Margins, expenses and cash position Second-quarter revenue included an approximately 1%, or $4 million, foreign-currency headwind. Consolidated gross margin was 68.2%, compared with 68.8% a year earlier, which Lantz attributed to the revenue mix between Nu Skin’s core business and Rhyz businesses. Within the core Nu Skin business, gross margin improved 20 basis points year over year to 77.7%. Selling expense represented 33.7% of revenue, compared with 33.2% a year earlier. Core Nu Skin selling expense declined slightly to 39.8% of revenue from 40%. General and administrative expenses fell $15.9 million from the prior-year quarter, though they rose as a share of revenue to 28.4% from 27.6%. Adjusted operating margin was 6.1%, down from 8% in the previous year’s quarter. The company generated $10.6 million in operating cash flow during the quarter and ended the period with $189.6 million in cash and cash equivalents. Total debt stood at $213.7 million. Nu Skin returned $2.9 million to shareholders through dividends, did not repurchase shares during the period, and had $137.3 million remaining under its repurchase authorization. Prysm iO rollout shifts toward wellness consultations President and CEO Ryan Napierski said the company has placed more than 39,000 Prysm iO devices, up nearly 30% sequentially, and completed 2.5 million scans, up 25% from the comparable quarterly period. Nu Skin expects to have placed between 50,000 and 60,000 devices by year-end. Management said an early finding from the rollout was that sales leaders are using Prysm iO primarily as a wellness consultation tool rather than as an in-home device, which had been an earlier expectation. The company is adjusting its commercial strategy to help affiliates conduct wellness consultations at greater scale. At a global live event in Japan in September...