Natural Health Trend | 10-Q: FY2025 Q3 Revenue: USD 9.477 M

Revenue: As of FY2025 Q3, the actual value is USD 9.477 M.

EPS: As of FY2025 Q3, the actual value is USD -0.04.

EBIT: As of FY2025 Q3, the actual value is USD -495 K.

Segment Revenue

• Primary Reporting Unit: $9,135,000 for the three months ended September 30, 2025, and $29,034,000 for the nine months ended September 30, 2025.
• China: $237,000 for the three months ended September 30, 2025, and $690,000 for the nine months ended September 30, 2025.
• Russia and Kazakhstan: $105,000 for the three months ended September 30, 2025, and $303,000 for the nine months ended September 30, 2025.

Operational Metrics

• Net Income (Loss): Net loss of $431,000 for the three months ended September 30, 2025, compared to net income of $35,000 for the same period in 2024. Net loss of $294,000 for the nine months ended September 30, 2025, compared to net income of $396,000 for the same period in 2024.
• Gross Margin: 73.7% for the three months ended September 30, 2025, compared to 74.1% for the same period in 2024. 73.8% for the nine months ended September 30, 2025, compared to 73.9% for the same period in 2024.
• Operating Profit: Loss from operations of $495,000 for the three months ended September 30, 2025, compared to a loss of $275,000 for the same period in 2024. Loss from operations of $1,173,000 for the nine months ended September 30, 2025, compared to a loss of $878,000 for the same period in 2024.

Cash Flow

• Operating Cash Flow: Net cash used in operating activities was $5,038,000 for the nine months ended September 30, 2025, compared to $3,455,000 for the same period in 2024.
• Free Cash Flow: Not explicitly stated, but cash flows provided by investing activities totaled $12,545,000 during the first nine months of 2025.

Unique Metrics

• Deferred Revenue: $6,011,000 as of September 30, 2025, consisting of $4,491,000 for unshipped product orders and unredeemed product vouchers, and $1,520,000 in auto ship advances.

Future Outlook and Strategy

• Core Business Focus: The company plans to focus resources on Greater China and countries where existing members have connections to recruit prospects and sell products, such as Southeast Asia, India, South America, and Europe. The company is also considering transitioning production of certain products to other jurisdictions to mitigate the effect of tariffs.
• Non-Core Business: The company is actively evaluating options to mitigate the impact of trade policy changes and is considering the transition of production to other jurisdictions, including Asia, to reduce costs associated with tariffs.