Nature Stock Earnings Reports

Nature's Sunshine reported a record third quarter (Q3 2025) with net sales of $128.3 million, up 12% year-over-year (11% ex-FX). Management highlighted broad-based acceleration across Asia Pacific, North America and Europe. Key drivers included a 52% YoY increase in North American digital sales (strong DTC, Amazon and social commerce performance), meaningful expansion of subscription/auto-ship programs (now >50% of U.S. DTC accounts; ~50% of Japan sales; ~12% of China sales since launch), and continued field activation in APAC. APAC grew 17% (15% constant currency) with especially strong results in Japan, China and Korea; Europe grew 13% (10% constant currency). Gross margin expanded 200 basis points to 73.3% (highest in 15 quarters) on manufacturing, sourcing and logistics improvements, though management expects margins to settle in the upper-72% range going forward and anticipates a small tariff impact. SG&A rose vs. prior year driven by higher digital ad spend and variable costs; management will continue to invest in digital when returns are attractive. Operating income was $9.0 million (7% of sales); GAAP net income was $5.3 million ($0.30 per diluted share). Adjusted EBITDA was a record $15.2 million, up 42% YoY. Balance sheet remains strong with $95.6 million cash, zero debt, inventory at $67.3 million (to be rebuilt in Q4), and active share repurchases (1.1M shares repurchased YTD for $14.4M; $19.3M remaining authorization). Management raised full-year 2025 guidance: net sales $476–480M (up 5–6% YoY) and adjusted EBITDA $47–49M (up 16–21% YoY). Q4 guidance implies revenue $119.7–123.7M and EBITDA $9.6–11.6M, while noting tough Q4 2024 comps and some timing/lumpiness from field activity. New CEO Ken Romanzi (appointed ~1 week prior to the call) emphasized his focus on learning the business, leveraging the consultant/distributor network, and accelerating autoship and digital initiatives.