USANA Health Sciences | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 213.67 M

Revenue: As of FY2025 Q3, the actual value is USD 213.67 M, missing the estimate of USD 213.88 M.

EPS: As of FY2025 Q3, the actual value is USD -0.36, meeting the estimate of USD -0.36.

EBIT: As of FY2025 Q3, the actual value is USD 695 K.

Direct Selling Segment

• Net Sales: $175.8 million for the three months ended September 27, 2025, down from $198.5 million in the prior year quarter.
• Cost of Sales: $33.1 million for the three months ended September 27, 2025.
• Brand Partner Incentives: $77.6 million for the three months ended September 27, 2025.
• Selling, General and Administrative Expenses: $62.7 million for the three months ended September 27, 2025.
• Segment Earnings from Operations: $2.5 million for the three months ended September 27, 2025.

Hiya Direct-To-Consumer Segment

• Net Sales: $30.8 million for the three months ended September 27, 2025.
• Cost of Sales: $11.0 million for the three months ended September 27, 2025.
• Selling, General and Administrative Expenses: $20.5 million for the three months ended September 27, 2025.
• Segment Loss from Operations: -$0.6 million for the three months ended September 27, 2025.

Other Segment

• Net Sales: $7.0 million for the three months ended September 27, 2025.
• Cost of Sales: $4.7 million for the three months ended September 27, 2025.
• Brand Partner Incentives: $0.1 million for the three months ended September 27, 2025.
• Selling, General and Administrative Expenses: $2.8 million for the three months ended September 27, 2025.
• Segment Loss from Operations: -$0.6 million for the three months ended September 27, 2025.

Cash Flow

• Net Cash Provided by Operating Activities: $25.7 million for the nine months ended September 27, 2025.
• Net Cash Used in Investing Activities: -$11.2 million for the nine months ended September 27, 2025.
• Net Cash Used in Financing Activities: -$54.1 million for the nine months ended September 27, 2025.

Future Outlook and Strategy

• Direct Selling Segment: Focus on enhancing Brand Partner compensation plans and prioritizing in-person meetings for training and education to leverage product launches and compensation plan enhancements.
• Hiya Direct-To-Consumer Segment: Continued focus on subscription model to foster customer retention and loyalty, with emphasis on personalized offerings and efficient marketing.
• Other Segment: Includes Rise Bar Wellness, Inc. and Oola Global, LLC, focusing on health goals through clean and simple ingredients and personal development frameworks.

Priority

• Strategic Focus: Emphasis on modernizing business operations and enhancing Brand Partner compensation plans to position for long-term success.
• Operational Adjustments: Initiation of a comprehensive process to align costs globally, with an estimated one-time charge of $4.7 million in the fourth quarter of 2025.