Stonegate Capital Partners has updated its coverage on Nu Skin Enterprises Inc. (NYSE: NUS), highlighting a mixed first quarter where revenue came in near the low end of guidance but adjusted EPS remained within range. For the first quarter of 2026, Nu Skin reported revenue of $320.6 million, adjusted net income of $6.8 million, and adjusted EPS of $0.14, compared to Stonegate's estimates of $329.7 million, $7.7 million, and $0.15, respectively. The company continued investing behind its Prysm iO platform and emerging markets while maintaining cost discipline.
Core Nu Skin gross margin improved 20 basis points year-over-year to 76.9%, but adjusted operating margin fell to 3.6% from 6.4% in the prior year. Despite these headwinds, management noted that brand affiliate confidence improved and new sales leaders grew year-over-year exiting the quarter, suggesting early field stabilization as Prysm iO training and leader engagement scale. According to the full announcement, nearly 2 million scans across over 30,000 Prysm iO devices support early adoption, while 5% year-over-year subscription volume growth indicates the platform is beginning to improve customer engagement and recurring revenue quality.
Key performance indicators remain under pressure, with sales leaders, paid affiliates, and customers declining 13%, 8%, and 14% year-over-year, respectively. However, management's commentary on improving brand affiliate confidence and the growth in new sales leaders exiting the quarter provides a cautiously optimistic outlook. The company maintained its full-year 2026 revenue guidance of $1.35 billion to $1.50 billion and adjusted EPS guidance of $0.80 to $1.20, supported by broader Prysm iO adoption, India's planned year-end launch, and continued cost discipline.
Stonegate Capital Partners, a leading capital markets advisory firm, provides equity research and investor relations services. The update underscores the importance of Nu Skin's strategic focus on Prysm iO as a core commercialization catalyst, which could drive a second-half improvement cadence. Investors will be watching for sustained field stabilization and subscriber growth as key indicators of a turnaround.
