NU Skin Enterprises Reports Mixed Q3 Results Amid Strategic Expansion Plans

NU Skin Enterprises Inc. reported third-quarter financial results that demonstrated operational efficiency despite revenue challenges, with the company simultaneously advancing significant strategic initiatives including international expansion and new product development. The direct selling wellness company posted revenue of $364.2 million, adjusted net income of $17.1 million, and adjusted earnings per share of $0.34, coming in at the low end of revenue guidance but exceeding earnings expectations.

The company's performance highlights the ongoing challenge of balancing top-line growth with profitability in the current economic environment. While revenue fell short of Stonegate Capital Partners' estimate of $374.2 million, NU Skin delivered better-than-expected earnings compared to the firm's projected $0.30 per share. This earnings outperformance was driven by disciplined spending and operational efficiency, with selling expenses declining to 35.8% company-wide and 41.7% within the core Nu Skin business.

Management emphasized double-digit growth in Latin America and sequential improvement across several reporting segments as positive indicators. The Rhyz segment contributed $51.6 million in revenue, comprising $47.6 million from manufacturing and $4.0 million from other Rhyz operations. The core Nu Skin business maintained a strong 70.5% gross margin, demonstrating the company's ability to preserve profitability despite macroeconomic headwinds.

Looking forward, NU Skin is preparing for two major strategic initiatives that could significantly impact its future trajectory. The company will conduct a limited preview of its Prysm iO intelligent wellness platform for qualified leaders in late fourth quarter, with broader leader availability planned for the first half of 2026 and full consumer launch in the second half of 2026. 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.

Simultaneously, NU Skin is executing its international expansion strategy with pre-market opening activities in India beginning in fourth quarter 2025 ahead of a formal market launch in the second half of 2026. The company plans to apply its digital-first playbook that has proven successful in faster-growing regions, representing a significant opportunity in one of the world's largest consumer markets.

The company's key performance indicators showed declines year-over-year, with 31,150 sales leaders (down 19%), 130,096 paid affiliates (down 13%), and 746,256 customers (down 10%). However, management noted positive sequential trends in several regions, suggesting potential stabilization in the business fundamentals.

Financially, NU Skin maintains a strong balance sheet with $251.7 million in cash and net cash of $22.7 million according to Stonegate calculations. This financial stability supports the company's strategic investments in the Prysm iO preview, India market entry, and ongoing digital initiatives.

For the fourth quarter, management guides revenue between $365 million and $400 million with EPS of $0.25 to $0.35. Full-year 2025 projections indicate 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 maintains a valuation assessment using Price to Adjusted EPS comparisons, noting that NU Skin currently trades at a forward multiple of 7.8x compared to comparable companies averaging 17.0x. The firm's analysis suggests a valuation range of $11.37 to $17.05 with a midpoint of $14.21, positioning the stock for potential appreciation as strategic initiatives mature and market conditions evolve.