Nu Skin Enterprises (NYSE:NUS) reported second-quarter revenue of $320.1 million and adjusted earnings per share of $0.20, as the company continued the rollout of its Prysm iO wellness platform and pursued cost and margin initiatives.
Reported earnings per share were negative $5.14 for the quarter, reflecting non-cash accounting charges related to goodwill impairment and a valuation allowance on U.S. deferred tax assets. Interim CFO Chelsea Lantz said the company recorded a $78.9 million non-cash goodwill impairment charge tied to its Rhyz manufacturing reporting unit, as well as a $167.5 million non-cash valuation allowance in income tax expense.
Margins, expenses and cash position
Second-quarter revenue included an approximately 1%, or $4 million, foreign-currency headwind. Consolidated gross margin was 68.2%, compared with 68.8% a year earlier, which Lantz attributed to the revenue mix between Nu Skin’s core business and Rhyz businesses.
Within the core Nu Skin business, gross margin improved 20 basis points year over year to 77.7%. Selling expense represented 33.7% of revenue, compared with 33.2% a year earlier. Core Nu Skin selling expense declined slightly to 39.8% of revenue from 40%.
General and administrative expenses fell $15.9 million from the prior-year quarter, though they rose as a share of revenue to 28.4% from 27.6%. Adjusted operating margin was 6.1%, down from 8% in the previous year’s quarter.
The company generated $10.6 million in operating cash flow during the quarter and ended the period with $189.6 million in cash and cash equivalents. Total debt stood at $213.7 million. Nu Skin returned $2.9 million to shareholders through dividends, did not repurchase shares during the period, and had $137.3 million remaining under its repurchase authorization.
Prysm iO rollout shifts toward wellness consultations
President and CEO Ryan Napierski said the company has placed more than 39,000 Prysm iO devices, up nearly 30% sequentially, and completed 2.5 million scans, up 25% from the comparable quarterly period. Nu Skin expects to have placed between 50,000 and 60,000 devices by year-end.
Management said an early finding from the rollout was that sales leaders are using Prysm iO primarily as a wellness consultation tool rather than as an in-home device, which had been an earlier expectation. The company is adjusting its commercial strategy to help affiliates conduct wellness consultations at greater scale.
At a global live event in Japan in September, Nu Skin plans to introduce an AI-enabled Prysm iO application powered by its Nu Intelligence platform. Napierski said the app is intended to provide personalized wellness assessments, product recommendations and 90-day wellness plans.
Nu Skin also plans to introduce products aimed at women’s health needs, including products intended to support hormonal balance. The company said its ongoing research in epigenetics and biological aging is informing its “Aging Response Modulator” science approach.
Sales-force changes and organizational restructuring
Napierski said recruiting and leadership development remain below the levels required for sustainable growth despite the resilience of the company’s field organization. Nu Skin is revising its global compensation framework to place greater emphasis on product selling, team building and leadership development, while retaining flexibility for local markets.
The framework was rolled out across the Americas and Pacific markets during the first half of 2026 and is expected to expand into other markets through 2027. The company also plans to introduce a leadership achievement roadmap this fall, with clearer development pathways, recognition and incentives for sales leaders.
Nu Skin is also moving toward an East-West operating model from its current structure of seven distinct regions. The transition, expected over the next two quarters, is designed to align resources with market needs and improve organizational agility and efficiency.
Lantz said the changes are expected to produce cost savings beginning in the second half of 2026, with a larger benefit anticipated in 2027. The company expects $5 million to $10 million in cash-based organizational transition costs through the rest of the year; those costs are excluded from adjusted earnings guidance.
India launch delayed to first half of 2027
Nu Skin pushed its formal India market opening into the first half of 2027 as it refines its business model, operational setup and field readiness. Napierski said India remains a long-term growth opportunity but requires further work on local manufacturing quality standards, logistics partnerships, technology integration and affiliate business-building practices.
The company said it can currently facilitate business in India through products and network development, but it intends to optimize the model before its formal launch.
Updated outlook
For the third quarter, Nu Skin forecast revenue of $310 million to $340 million, including an expected 2% to 3% foreign-currency headwind. The company projected reported EPS of zero to $0.09 and adjusted EPS of $0.10 to $0.20.
For the full year, Nu Skin now expects:
- Revenue of $1.28 billion to $1.35 billion, including an anticipated foreign-currency headwind of about 1%.
- Reported EPS of negative $4.90 to negative $4.73.
- Adjusted EPS of $0.70 to $0.90.
The company said its adjusted outlook excludes certain first-quarter charges, the second-quarter goodwill impairment, anticipated organizational transition costs and the deferred tax valuation allowance. Its adjusted guidance assumes an effective tax rate of approximately 35%.
About Nu Skin Enterprises (NYSE:NUS)
Nu Skin Enterprises, Inc is a Utah-based direct selling company that develops and distributes personal care products and dietary supplements. Operating through a network marketing model, Nu Skin offers a portfolio of wellness, anti-aging skin care, hair care and nutritional products designed to support healthy living and appearance. The company leverages independent distributors to market its offerings directly to consumers across multiple channels, including online platforms and localized events.
Founded in 1984 by Blake M.
