UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2026

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO ____________

Commission File Number: 001-12421

	NU SKIN ENTERPRISES, INC.
	(Exact name of registrant as specified in its charter)

Delaware		87-0565309
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

	75 West Center Street Provo, Utah 84601
	(Address of principal executive offices, including zip code)

	(801) 345-1000
	(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A Common Stock, $.001 par value		NUS		New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☑
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of April 30, 2026, 48,550,543 shares of the registrant’s Class A common stock, $.001 par value per share, were outstanding.

NU SKIN ENTERPRISES, INC.

QUARTERLY REPORT ON FORM 10-Q – FIRST QUARTER 2026

TABLE OF CONTENTS


			Page
Part I.	Financial Information
	Item 1.	Financial Statements (Unaudited):
		Consolidated Balance Sheets	1
		Consolidated Statements of Income	2
		Consolidated Statements of Comprehensive Income	3
		Consolidated Statements of Stockholders' Equity	4
		Consolidated Statements of Cash Flows	5
		Notes to Consolidated Financial Statements	6
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	27
	Item 4.	Controls and Procedures	27


Part II.	Other Information
	Item 1.	Legal Proceedings	28
	Item 1A.	Risk Factors	28
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
	Item 3.	Defaults Upon Senior Securities	28
	Item 4.	Mine Safety Disclosures	28
	Item 5.	Other Information	28
	Item 6.	Exhibits	29

	Signature		30

In this Quarterly Report on Form 10-Q, references to “dollars” and “$” are to United States (“U.S.”) dollars.

Nu Skin, Pharmanex, and ageLOC are our trademarks. The italicized product names used in this Quarterly Report on Form 10-Q are product names and also, in certain cases, our trademarks.

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PART I. FINANCIAL INFORMATION

ITEM 1 FINANCIAL STATEMENTS

NU SKIN ENTERPRISES, INC.

Consolidated Balance Sheets (Unaudited)

(U.S. dollars in thousands)

	March 31,			December 31,
	2026			2025
ASSETS
Current assets:
Cash and cash equivalents	$	198,654		$	238,630
Current investments		1,751			1,211
Accounts receivable, net		45,013			39,544
Inventories, net		178,600			178,643
Prepaid expenses and other		98,870			89,670
Total current assets		522,888			547,698

Property and equipment, net		381,610			377,168
Operating lease right-of-use assets		70,350			74,021
Goodwill		83,625			83,625
Other intangible assets, net		39,290			42,614
Other assets		279,035			280,187
Total assets		1,376,798			1,405,313

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	28,815		$	26,183
Accrued expenses		208,182			217,551
Current portion of long-term debt		20,000			20,000
Total current liabilities		256,997			263,734

Operating lease liabilities		54,017			57,640
Long-term debt		203,593			204,187
Other liabilities		68,104			74,512
Total liabilities		582,711			600,073

Commitments and contingencies (Notes 6 and 12)

Stockholders’ equity:
Class A common stock – 500 million shares authorized, $0.001 par value, 90.6 million shares issued		91			91
Additional paid-in capital		613,890			635,994
Treasury stock, at cost – 42.0 million and 42.4 million shares		(1,560,799	)		(1,575,059	)
Accumulated other comprehensive loss		(118,377	)		(116,105	)
Retained earnings		1,859,282			1,860,319
Total stockholders' equity		794,087			805,240
Total liabilities and stockholders’ equity	$	1,376,798		$	1,405,313

The accompanying notes are an integral part of these consolidated financial statements.

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NU SKIN ENTERPRISES, INC.

Consolidated Statements of Income (Unaudited)

(U.S. dollars in thousands, except per share amounts)

	Three Months Ended
	March 31,
	2026		2025
Revenue	$	320,608	$	364,490
Cost of sales		106,145		117,529
Gross profit		214,463		246,961

Operating expenses:
Selling expenses		110,054		118,546
General and administrative expenses		98,544		113,204
Impairment expenses		1,839		25,114
Total operating expenses		210,437		256,864

Operating income (loss)		4,026		(9,903	)
Interest expense		4,250		3,283
Gain on sale of business		-		176,162
Other income (expense), net		2,823		(28,375	)

Income before provision for income taxes		2,599		134,601
Provision for income taxes		763		27,086

Net income	$	1,836	$	107,515

Net income per share (Note 7):
Basic	$	0.04	$	2.16
Diluted	$	0.04	$	2.14

Weighted-average common shares outstanding (000s):
Basic		48,202		49,764
Diluted		49,422		50,328

The accompanying notes are an integral part of these consolidated financial statements.

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NU SKIN ENTERPRISES, INC.

Consolidated Statements of Comprehensive Income (Unaudited)

(U.S. dollars in thousands)

	Three Months Ended
	March 31,
	2026			2025
Net income	$	1,836		$	107,515

Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(2,272	)		2,443
Net unrealized gains/(losses) on cash flow hedges, net of taxes of $0 and $(32) for the three months ended March 31, 2026 and 2025, respectively		-			119
Reclassification adjustment for realized losses/(gains) in current earnings, net of taxes of $0 and $456 for the three months ended March 31, 2026 and 2025, respectively		-			(1,654	)
		(2,272	)		908
Comprehensive income (loss)	$	(436	)	$	108,423

The accompanying notes are an integral part of these consolidated financial statements.

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NU SKIN ENTERPRISES, INC.

Consolidated Statements of Stockholders' Equity (Unaudited)

(U.S. dollars in thousands)

	For the Three Months Ended March 31, 2026
									Accumulated
	Class A		Additional						Other
	Common		Paid-in			Treasury			Comprehensive			Retained
	Stock		Capital			Stock			Loss			Earnings			Total
Balance at January 1, 2026	$	91		635,994			(1,575,059	)		(116,105	)		1,860,319			805,240

Net income		-		-			-			-			1,836			1,836
Other comprehensive loss, net of tax		-		-			-			(2,272	)		-			(2,272	)
Repurchase of Class A common stock (Note 7)		-		-			(5,011	)		-			-			(5,011	)
Exercise of employee stock options (0.9 million shares)/vesting of stock awards		-		(23,428	)		19,271			-			-			(4,157	)
Stock-based compensation		-		3,695			-			-			-			3,695
Purchase of noncontrolling interest				(2,371	)								-			(2,371	)
Cash dividends		-		-			-			-			(2,873	)		(2,873	)
Balance at March 31, 2026	$	91		613,890			(1,560,799	)		(118,377	)		1,859,282			794,087

	For the Three Months Ended March 31, 2025
									Accumulated
	Class A		Additional						Other
	Common		Paid-in			Treasury			Comprehensive			Retained
	Stock		Capital			Stock			Loss			Earnings			Total
Balance at January 1, 2025	$	91		627,787			(1,563,614	)		(124,758	)		1,711,949			651,455

Net income		-		-			-			-			107,515			107,515
Other comprehensive income, net of tax		-		-			-			908			-			908
Repurchase of Class A common stock (Note 7)		-		-			(5,012	)		-			-			(5,012	)
Exercise of employee stock options (0.3 million shares)/vesting of stock awards		-		(7,577	)		6,415			-			-			(1,162	)
Stock-based compensation		-		3,267			-			-			-			3,267
Cash dividends		-		-			-			-			(3,002	)		(3,002	)
Balance at March 31, 2025	$	91		623,477			(1,562,211	)		(123,850	)		1,816,462			753,969

The accompanying notes are an integral part of these consolidated financial statements.

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NU SKIN ENTERPRISES, INC.

Consolidated Statements of Cash Flows (Unaudited)

(U.S. dollars in thousands)

	Three Months Ended
	March 31,
	2026			2025
Cash flows from operating activities:
Net income	$	1,836		$	107,515
Adjustments to reconcile net income to cash flows from operating activities:
Gain on sale of business		-			(176,162	)
Impairment of goodwill, fixed assets and other intangibles		1,839			25,114
Unrealized losses on equity investments		-			28,077
Depreciation and amortization		12,342			14,206
Non-cash lease expense		6,451			6,438
Stock-based compensation		3,695			9,308
Inventory write-down		4,750			3,085
Foreign currency losses (gains)		(1,387	)		931
Loss on disposal of assets		303			58
Deferred taxes		1,723			631
Changes in operating assets and liabilities:
Accounts receivable, net		(5,737	)		(5,878	)
Inventories, net		(5,882	)		(32	)
Prepaid expenses and other		(9,138	)		9,612
Other assets		199			1,796
Accounts payable		2,750			(1,439	)
Accrued expenses		(14,696	)		(21,016	)
Other liabilities		(2,967	)		(1,855	)
Net cash (used in) provided by operating activities		(3,919	)		389

Cash flows from investing activities:
Purchases of property and equipment		(13,714	)		(13,584	)
Purchases of investments		(573	)		-
Proceeds on investment sales		-			1,403
Proceeds from sale of business, net		-			193,725
Net cash (used in) provided by investing activities		(14,287	)		181,544

Cash flows from financing activities:
Exercise of employee stock options and taxes paid related to the net shares settlement of stock awards		(4,157	)		(1,162	)
Payment of cash dividends		(2,873	)		(3,002	)
Repurchases of shares of common stock		(5,011	)		(5,012	)
Finance lease principal payments		(489	)		(621	)
Proceeds from debt		225,000			-
Payments of debt		(225,000	)		(155,000	)
Payment of debt issuance costs		(1,369	)		-
Purchase of noncontrolling interest		(6,500	)		(1,498	)
Net cash used in financing activities		(20,399	)		(166,295	)

Effect of exchange rate changes on cash		(1,371	)		1,249

Net (decrease) increase in cash and cash equivalents		(39,976	)		16,887

Cash and cash equivalents, beginning of period		238,630			186,883

Cash and cash equivalents, end of period	$	198,654		$	203,770

The accompanying notes are an integral part of these consolidated financial statements.

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NU SKIN ENTERPRISES, INC.

Notes to Consolidated Financial Statements

1. The Company

Nu Skin Enterprises, Inc. (the “Company”) is a holding company, with Nu Skin being the primary operating unit. Nu Skin develops and distributes premium-quality, innovative beauty and wellness products that are sold worldwide. The Company reports revenue from nine segments, consisting of its seven geographic Nu Skin segments—Americas, which includes Canada, Latin America and the United States; Southeast Asia/Pacific, which includes Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Australia, New Zealand, and other markets; Mainland China; Japan; Europe and Africa, which includes markets in Europe as well as South Africa; South Korea; and Hong Kong/Taiwan, which also includes Macau—and two Rhyz segments—Manufacturing, which includes manufacturing and packaging subsidiaries it has acquired; and Rhyz Other, which includes other investments by its Rhyz strategic investment arm (the Company’s subsidiaries operating within each segment are collectively referred to as the “Subsidiaries”). During the fourth quarter of 2025, the Company began pre-market activities in India, setting the operational foundation and infrastructure ahead of a full market opening anticipated in late 2026. This market’s financial results, which are included in the Southeast Asia/Pacific segment in this report, were insignificant for the first quarter of 2026.

2. Summary of Significant Accounting Policies

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. The unaudited consolidated financial statements include the accounts of the Company and its Subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company’s financial information as of March 31, 2026, and for the three-month periods ended March 31, 2026 and 2025. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the fiscal year. The consolidated balance sheet as of December 31, 2025 has been prepared using information from the audited financial statements at that date. For further information, refer to the consolidated financial statements and accompanying footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Purchase of noncontrolling interest

During the three months ended March 31, 2026, the Company acquired the remaining 30% equity interest in LifeDNA, Inc. (“LifeDNA”), for cash consideration of $6.5 million. The carrying amount of noncontrolling interest, which was previously included in other liabilities on the consolidated balance sheet, was reduced by $4.1 million, with the difference of $2.4 million recorded in additional paid-in capital. Following this transaction, LifeDNA became a wholly owned subsidiary. Due to the noncontrolling interest’s immaterial balance, the Company has historically not separately disclosed the noncontrolling interest balance or activity.

Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Topic 220). This standard requires disclosure of specific information about costs and expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the potential effect that the updated standard will have on its financial statement disclosures.

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In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The amendments remove references to development “stages,” clarify the probable-to-complete threshold for capitalization of internal-use software costs, relocate website development guidance into Subtopic 350-40, and require that capitalized internal-use software costs follow Topic 360 disclosure requirements regardless of balance-sheet presentation. The amendments are effective for annual periods beginning after December 15, 2027, and interim periods within those annual periods; early adoption is permitted as of the beginning of an annual period. Entities may adopt the guidance prospectively, retrospectively, or using a modified prospective transition approach. The Company is evaluating the impact of this guidance and the available transition alternatives on its consolidated financial statements and disclosures.

Inventories, net

Inventories, net consist of the following (U.S. dollars in thousands):

	March 31,		December 31,
	2026		2025
Raw materials	$	93,511	$	94,944
Finished goods		85,089		83,699
Total inventory, net	$	178,600	$	178,643

Reserves of inventories consist of the following (U.S. dollars in thousands):

	Three Months Ended
	March 31,
	2026			2025
Beginning balance	$	57,958		$	84,006
Additions		4,750			3,085
Write-offs		(12,533	)		(7,682	)
Ending balance	$	50,175		$	79,409

Revenue Recognition

Contract Liabilities – Customer Loyalty Programs

Contract liabilities, recorded as deferred revenue within the accrued expenses line in the consolidated balance sheets, include loyalty point program deferrals with certain customers which are accounted for as a reduction in the transaction price and are generally recognized as points are redeemed for additional products.

The balance of deferred revenue related to contract liabilities as of March 31, 2026 and December 31, 2025 was $6.2 million and $7.2 million, respectively. The contract liabilities' impact to revenue for the three-month periods ended March 31, 2026 and 2025 was an increase of $1.0 million and an increase of $0.3 million, respectively.

3. Gain on Sale

On January 2, 2025, the Company completed the sale of its Mavely entity to Clout.io Holdings, Inc. for $230 million in cash and shares of the purchaser’s common stock, subject to certain adjustments as set forth in the purchase agreement, including post-closing determination of net working capital and other elements of the purchase price. Following the completion of certain payments to other equity holders in Mavely and the payment of certain transaction expenses, the Company received net proceeds of $193.7 million and equity interest with an estimated fair value of $6.1 million. In the second quarter of 2025, the Company received an additional payment of $2.7 million and in the third quarter of 2025 received an additional $1.7 million. The estimated fair value was based on observable price changes and is classified as a level 3 fair value measurement and is accounted for under the measurement alternative described in ASC 321-10-35-2 for equity securities that lack readily determinable fair values. In the first quarter of 2025, the Company recorded a gain on sale of $176.2 million.

During the first quarter of 2025, the Company recorded $5.2 million of stock-based compensation expense related to profit interest units issued to the Mavely founders. This expense should have been recorded in the fourth quarter of 2024 when the performance conditions became probable of vesting. The impact of the adjustment to correct this item was immaterial to the current and prior period financial statements.

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4. Goodwill and Intangibles

Goodwill

The Company’s reporting units for goodwill are its operating segments, which are also its reportable segments, with the exception of Rhyz Other. The Rhyz Other segment is made up of two reporting units, which had goodwill of $4.7 million and $0.0, respectively, as of both March 31, 2026 and December 31, 2025.

The following table presents the change in carrying amount of goodwill by reporting unit for the three months ended March 31, 2026 (U.S. dollars in thousands):

	Nu Skin														Rhyz
			Southeast		Mainland				Europe &				Hong Kong/				Rhyz		Total
	Americas		Asia/Pacific		China		Japan		Africa		South Korea		Taiwan		Manufacturing		Other		Segments
Goodwill as of December 31, 2025	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	78,875	$	4,750	$	83,625
Goodwill as of March 31, 2026	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	78,875	$	4,750	$	83,625

Accumulated impairment losses for each segment as of March 31, 2026 and December 31, 2025 are as follows:

	Nu Skin														Rhyz
			Southeast		Mainland				Europe &				Hong Kong/				Rhyz		Total
	Americas		Asia/Pacific		China		Japan		Africa		South Korea		Taiwan		Manufacturing		Other		Segments
Accumulated impairment losses	$	9,449	$	18,537	$	32,179	$	16,019	$	2,875	$	29,261	$	6,634	$	-	$	19,587	$	134,541

Intangibles

The Company reviews long-lived assets for impairment when performance expectations, events or change in circumstances indicate that the assets’ carrying value may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows by comparing the carrying value of the asset group to the net undiscounted cash flows. If the evaluation indicates that the carrying amount of the assets may not be recoverable, any potential impairment is measured based upon the fair value of the related asset group.

During the first quarter of 2025, the Company decided to make a strategic shift in how it operates the BeautyBio asset group. These strategy changes included exiting certain sales channels, which reduced the forecasted revenues for BeautyBio. The Company concluded these actions were an interim impairment triggering event. As a result, the Company performed an interim impairment test of the asset group and assessed the recoverability of the related asset group by comparing the carrying value of the asset group to the net undiscounted cash flow expected to be generated. The recoverability test indicated that the asset group was impaired. The Company concluded the asset group’s carrying value exceeded its estimated fair value, which was determined utilizing the discounted projected future cash flows, which resulted in an impairment charge. The estimated fair value was based on expected future cash flows using level 3 inputs and utilized management estimates related to revenue growth rates, profitability margins and discount rates. As a result, during the three months ended March 31, 2025, the Company recorded an impairment charge of $25.1 million on the BeautyBio asset group, which is part of its Rhyz Other segment within impairment expenses on the consolidated statement of income. As of the impairment date, the BeautyBio asset group had a remaining carrying value of $2.3 million with a remaining weighted-average amortization period of approximately 7 years.

During the first quarter of 2026, the Company decided to wind down its separate BeautyBio business. As a result of this decision, the Company recorded an impairment charge of $1.8 million on the BeautyBio asset group, which is part of its Rhyz Other segment within impairment expenses on the consolidated statement of income. As of March 31, 2026, the BeautyBio asset group has no remaining carrying value.

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5. Debt

2022 Credit Agreement

On June 14, 2022, the Company entered into an Amended and Restated Credit Agreement (the “2022 Credit Agreement”) with several financial institutions as lenders and Bank of America, N.A., as administrative agent, which amended and restated the 2018 Credit Agreement. The 2022 Credit Agreement provided for a $400 million term loan facility and a $500 million revolving credit facility, each with a term of five years. Both facilities bore interest at the SOFR, plus a margin based on the Company’s consolidated leverage ratio. Commitment fees payable under the 2022 Credit Agreement were also based on the consolidated leverage ratio as defined in the 2022 Credit Agreement and range from 0.175% to 0.30% on the unused portion of the total lender commitments then in effect. The term loan facility amortized in quarterly installments in amounts resulting in an annual amortization of 2.5% during the first year and 5.0% during the second, third, fourth and fifth years after the closing date of the 2022 Credit Agreement, with the remainder payable at final maturity. The 2022 Credit Agreement was guaranteed by certain of the Company’s domestic subsidiaries and collateralized by assets of such subsidiaries, including a pledge of 65% of the capital stock of certain foreign subsidiaries. The 2022 Credit Agreement required the Company to maintain a consolidated leverage ratio not exceeding 2.75 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00.

Credit Agreement

On March 27, 2026, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with several financial institutions as lenders and Bank of America, N.A., as administrative agent, which amended and restated the 2022 Credit Agreement. The Credit Agreement provides for a $175 million term loan facility and a $75 million revolving credit facility, each with a term of five years. Both facilities bear interest at the SOFR, plus a margin based on the Company's consolidated leverage ratio. Commitment fees payable under the Credit Agreement are also based on the consolidated leverage ratio as defined in the Credit Agreement and range from 0.175% to 0.30% on the unused portion of the total lender commitments then in effect. The term loan facility will amortize in equal quarterly installments in amounts resulting in an annual amortization of $20 million per annum, with the remainder payable at final maturity. The Credit Agreement is guaranteed by certain of the Company's domestic subsidiaries and collateralized by assets of such subsidiaries, including a pledge of 65% of the capital stock of certain foreign subsidiaries. The Credit Agreement requires the Company to maintain a consolidated leverage ratio not exceeding 2.25 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00. As of March 31, 2026, the Company was in compliance with all covenants under the Credit Agreement.

The following table summarizes the Company’s debt facilities as of March 31, 2026 and December 31, 2025:

Facility or
Arrangement

Original

Principal

Amount

Balance as of

March 31,

2026⁽¹⁾⁽²⁾

Balance as of

December 31,

2025⁽¹⁾⁽²⁾

Interest Rate

Repayment Terms

2022 Credit Agreement term loan facility

$400.0 million

$225.0 million

Principal amount was paid in full during March 2026.

2022 Credit Agreement revolving credit facility

Principal amount was paid in full during September 2025 and credit line was closed during March 2026.

Credit Agreement term loan facility

$175.0 million

Variable 30 day: 5.43%

54.3% of the principal amount is payable in quarterly installments over a five-year period that begins on June 30, 2026, with the remainder payable at the end of the five-year term.

Credit Agreement revolving credit facility

$50.0 million

Variable 30 day: 5.43%

Revolving line of credit expires March 27, 2031.

(1)

As of March 31, 2026 and December 31, 2025, the current portion of the Company’s debt (i.e., becoming due in the next 12 months) included $20.0 million and $20.0 million, respectively, of the balance of its term loan under the Credit Agreement and 2022 Credit Agreement.

(2)

The carrying value of the debt reflects the amounts stated in the above table, less debt issuance costs of $1.4 million and $0.8 million as of March 31, 2026 and December 31, 2025, respectively, related to the Credit Agreement and 2022 Credit Agreement, which are not reflected in this table.

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6. Leases

As of March 31, 2026, the weighted-average remaining lease term was 6.2 and 3.6 years for operating and finance leases, respectively. As of March 31, 2026, the weighted-average discount rate was 3.8% and 6.6% for operating and finance leases, respectively.

The components of lease expense were as follows (U.S. dollars in thousands):

	Three Months Ended
	March 31,
	2026		2025
Operating lease expense
Operating lease cost	$	5,822	$	5,916
Variable lease cost		863		961
Finance lease expense
Amortization of right-of-use assets		512		530
Interest on lease liabilities		133		168
Total lease expense	$	7,330	$	7,575

Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands):

	Three Months Ended
	March 31,
	2026		2025
Operating cash outflow from operating leases	$	5,709	$	5,744
Operating cash outflow from finance leases	$	129	$	166
Financing cash outflow from finance leases	$	489	$	621
Right-of-use assets obtained in exchange for operating lease obligations	$	2,469	$	11,496
Right-of-use assets obtained in exchange for finance lease obligations	$	-	$	277

Maturities of lease liabilities were as follows (U.S. dollars in thousands):

	Operating		Finance
Year Ending December 31,	Leases		Leases
2026	$	16,095	$	1,797
2027		16,647		2,375
2028		12,345		2,340
2029		10,380		1,902
2030		5,449		6
Thereafter		19,379		-
Total		80,295		8,420
Less: Finance Charges		7,768		931
Total Principal Liability	$	72,527	$	7,489

The Company has additional lease liabilities of $37.6 million which have not yet commenced as of March 31, 2026, and as such, have not been recognized on the consolidated balance sheets.

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7. Capital Stock

Net income per share

Net income per share is computed based on the weighted-average number of common shares outstanding during the periods presented. Additionally, diluted earnings per share data gives effect to all potentially dilutive common shares that were outstanding during the periods presented. For the three-month periods ended March 31, 2026 and 2025, stock awards and options of 1.1 million and 2.4 million, respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive.

Dividends

In February 2026, the Company’s board of directors declared quarterly cash dividends of $0.06 per share. This quarterly cash dividend of $2.9 million was paid on March 11, 2026 to stockholders of record on February 27, 2026. In May 2026, the Company’s board of directors declared a quarterly cash dividend of $0.06 per share to be paid on June 10, 2026 to stockholders of record on May 29, 2026.

Repurchase of common stock

During the three-month periods ended March 31, 2026 and 2025, the Company repurchased 0.5 million and 0.6 million shares of its Class A common stock under its stock repurchase plan for $5.0 million and $5.0 million, respectively. As of March 31, 2026, $137.3 million was available for repurchases under the Company’s stock repurchase plan.

8. Fair Value and Equity Investments

Fair Value

The carrying value of financial instruments including cash and cash equivalents, accounts receivable and accounts payable approximates fair values due to the short-term nature of these instruments. The carrying value of debt approximates fair value due to the variable 30-day interest rate. Fair value estimates are made at a specific point in time, based on relevant market information.

The FASB Codification defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. On a quarterly basis, the Company measures at fair value certain financial assets, including cash equivalents. Accounting standards specify a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair-value hierarchy:

◾

Level 1 – quoted prices in active markets for identical assets or liabilities;

◾

Level 2 – inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

◾

Level 3 – unobservable inputs based on the Company’s own assumptions.

Accounting standards permit companies, at their option, to measure certain financial instruments and other eligible items at fair value. The Company has elected not to apply the fair value option to existing eligible items beyond what is required by US GAAP.

The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (U.S. dollars in thousands):

	Fair Value at March 31, 2026
	Level 1		Level 2		Level 3		Total
Financial assets:
Cash equivalents and current investments	$	16,127	$	-	$	-	$	16,127
Life insurance contracts		-		-		47,276		47,276
Total	$	16,127	$	-	$	47,276	$	63,403

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	Fair Value at December 31, 2025
	Level 1		Level 2		Level 3		Total
Financial assets:
Cash equivalents and current investments	$	39,084	$	-	$	-	$	39,084
Life insurance contracts		-		-		48,410		48,410
Total	$	39,084	$	-	$	48,410	$	87,494

The following table provides a summary of changes in fair value of the Company’s Level 3 life insurance contracts (U.S. dollars in thousands):

	2026			2025
Beginning balance at January 1	$	48,410		$	44,091
Actual return on plan assets		(1,134	)		(1,617	)
Ending balance at March 31	$	47,276		$	42,474

Life insurance contracts: Accounting Standards Codification ("ASC") 820 preserves practicability exceptions to fair value measurements provided by other applicable provisions of U.S. GAAP. The guidance in ASC 715-30-35-60 allows a reporting entity, as a practical expedient, to use cash surrender value or conversion value as an expedient for fair value when it is present. Accordingly, the Company determines the fair value of its life insurance contracts as the cash-surrender value of life insurance policies held in its Rabbi Trust.

Equity Investments

The Company maintains equity investments in companies which are accounted for under the measurement alternative described in ASC 321-10-35-2 for equity securities that lack readily determinable fair values. The carrying amount of an equity security held by the Company without readily determinable fair values was $0 both as of March 31, 2026 and December 31, 2025, respectively. In prior years, the Company recognized $18.1 million of cumulative upward fair value adjustments, based on the valuation of additional equity issued by the investee which was deemed to be an observable transaction of a similar investment under ASC 321. During the year ended December 31, 2025, based on significant deterioration of the business prospects of the investment, the Company recorded a $28.1 million impairment of the investment. These charges were recorded within Other income (expense), net on the Consolidated Statement of Income. The 2025 estimated fair value was determined using a market-based method with level 3 inputs, including revenue and earnings multiples. The Company also had equity securities held without readily determinable fair values of $14.3 million as of both March 31, 2026 and December 31, 2025, respectively

9. Income Taxes

Provision for income taxes for the first quarter of 2026 was $0.8 million, compared to $27.1 million for the prior-year period. The effective tax rates for the first quarter 2026 was 29.4% of pre-tax income compared to 20.1% in the prior-year period. The first quarter of 2026 effective tax rate is higher than the prior-year period due to the tax rate benefit from the sale of Mavely in the first quarter of 2025.

The Company accounts for income taxes in accordance with ASC Topic 740 “Income Taxes.” These standards establish financial accounting and reporting standards for the effects of income taxes that result from an enterprise’s activities during the current and preceding years. The Company takes an asset and liability approach for financial accounting and reporting of income taxes. The Company pays income taxes in many foreign jurisdictions based on the profits realized in those jurisdictions, which can be significantly impacted by terms of intercompany transactions between the Company and its foreign affiliates. Deferred tax assets and liabilities are created in this process. The Company has netted these deferred tax assets and deferred tax liabilities by jurisdiction. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be ultimately realized. The Company had net deferred tax assets of $171.8 million and $171.4 million as of March 31, 2026 and December 31, 2025, respectively.

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The Company evaluates its indefinite reinvestment assertions with respect to foreign earnings for each quarter. For all foreign earnings, the Company accrues the applicable foreign income taxes. For the earnings that have been indefinitely reinvested, the Company does not accrue foreign withholding taxes. Undistributed earnings that the Company has indefinitely reinvested, for which no foreign withholding taxes have been provided, aggregate to $60.0 million as of December 31, 2025. If the amount designated as indefinitely reinvested as of December 31, 2025 were repatriated to the United States, the amount of incremental taxes would be approximately $6.0 million. The Company intends to utilize the indefinitely reinvested offshore earnings to fund foreign investments, specifically capital expenditures

The Company files income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions. In 2009, the Company entered into a voluntary program with the IRS called Compliance Assurance Process (“CAP”). The objective of CAP is to contemporaneously work with the IRS to achieve federal tax compliance and resolve all or most of the issues prior to filing of the tax return. As of March 31, 2026, all tax years through 2024, with the exception of 2021, have been audited and are effectively closed to further examination. For tax year 2021, the Company was in the Bridge phase of the CAP program, pursuant to which the IRS will not accept disclosures, will not conduct reviews and will not provide letters of assurance for the Bridge years. There are limited circumstances that tax years in the Bridge phase will be opened for examination. For tax years 2025 and 2026, the Company has been accepted in the IRS's Bridge Plus program. The Company may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time. With a few exceptions, the Company is no longer subject to state and local income tax examination by tax authorities for the years before 2022. Foreign jurisdictions have varying lengths of statutes of limitations for income tax examinations. Some statutes are as short as three years and in certain markets may be as long as ten years. The Company is currently under examination in certain foreign jurisdictions; however, the outcomes of those reviews are not yet determinable.

In 2021, as part of the Organization for Economic Co-operation and Development's ("OECD") Inclusive Framework, 140 member countries agreed to the implementation of the Pillar Two Global Minimum Tax ("Pillar Two") of 15%. The OECD continues to release additional guidance, including administrative guidance on how Pillar Two rules should be interpreted and applied by jurisdictions as they adopt Pillar Two. A number of countries have utilized the administrative guidance as a starting point for legislation that went into effect January 1, 2024. On January 5, 2026, the OECD announced the acceptance of a “side-by-side” safe harbor election that exempts U.S.-parented multinational groups from certain minimum taxes prescribed under the Pillar Two rules. Based on current enacted legislation, the Company anticipates the impact of Pillar Two to be immaterial for 2026.

On July 4, 2025, U.S. legislation formally titled “An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14” (“the Act”) and commonly referred to as the One Big Beautiful Bill Act was signed into law. The Act, among other things, extended key provisions of the 2017 Tax Cuts and Jobs Act and introduced targeted changes to the U.S. federal income tax regime. The Act has not materially impacted the Company’s effective tax rate.

10. Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2025, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt.

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For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense/income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense/income as interest payments are made/received on the Company’s variable-rate debt.

During July of 2025, the Company’s four interest rate derivatives with a total notional amount of $200 million matured, leaving no outstanding derivatives as of March 31, 2026 and December 31, 2025.

Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss

The tables below present the effect of cash flow hedge accounting on Accumulated Other Comprehensive Loss.

	Amount of Gain Recognized in
	Other Comprehensive Income on Derivatives
	Three Months Ended
	March 31,
Derivatives in Cash Flow Hedging Relationships:	2026		2025
Interest Rate Swaps	$	-	$	151

		Amount of Gain Reclassified from
		Accumulated Other Comprehensive Income into Income
		Three Months Ended
		March 31,
Derivatives in Cash Flow Hedging Relationships:	Income Statement Location	2026		2025
Interest Rate Swaps	Interest expense	$	-	$	2,110

11. Segment Information

The Company reports revenue from nine segments, consisting of its seven geographic Nu Skin segments—Americas, Southeast Asia/Pacific, Mainland China, Japan, Europe & Africa, South Korea, and Hong Kong/Taiwan—and two Rhyz segments—Manufacturing and Rhyz Other. The Nu Skin Other category includes miscellaneous corporate revenue and related adjustments. The Rhyz Other segment includes two operating segments that are aggregated into one reporting segment and includes other investments by our Rhyz business arm. The Chief Executive Officer is the chief operating decision maker (“CODM”). These segments reflect the way the CODM evaluates the Company's business performance and allocates resources. Reported revenue includes only the revenue generated by sales to external customers.

Profitability by segment as determined under US GAAP is driven primarily by the Company’s transfer pricing policies. Segment contribution, which is the Company’s segment profitability metric presented in the table below, excludes certain intercompany charges, specifically royalties, license fees, transfer pricing, discrete charges and other miscellaneous items. These charges have been included in Corporate and other expenses. Corporate and other expenses also include costs related to the Company’s executive and administrative offices, information technology, research and development, and marketing and supply chain functions not recorded at the segment level.

The accounting policies of the segments are the same as those described in Note 2, “Summary of Significant Accounting Policies.” The Company evaluates the performance of its segments based on segment contribution. Each segment records direct expenses related to its employees and its operations.

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Summarized financial information for the Company’s reportable segments is shown in the following tables. Asset information is not reviewed or included with the Company’s internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment.

	Three Months Ended March 31, 2026
	Nu Skin														Rhyz
			Southeast Asia/		Mainland				Europe &		Hong Kong/		South					Rhyz			Total
	Americas		Pacific		China		Japan		Africa		Taiwan		Korea		Manufacturing⁽¹⁾			Other			Segments
Revenue	$	57,818	$	45,474	$	45,148	$	39,739	$	31,218	$	27,457	$	25,329	$	44,925		$	3,734		$	320,842
Cost of sales		14,226		11,184		8,005		8,583		8,007		4,320		5,486		38,889			4,354			103,054
Other segment items⁽²⁾		32,591		24,987		27,320		19,792		19,460		14,489		12,560		6,118			7,088			164,405
Segment contribution	$	11,001	$	9,303	$	9,823	$	11,364	$	3,751	$	8,648	$	7,283	$	(82	)	$	(7,708	)	$	53,383

	Three Months Ended March 31, 2025
	Nu Skin														Rhyz
			Southeast Asia/		Mainland				Europe &		Hong Kong/		South				Rhyz			Total
	Americas		Pacific		China		Japan		Africa		Taiwan		Korea		Manufacturing⁽¹⁾		Other			Segments
Revenue	$	69,058	$	52,172	$	47,775	$	42,765	$	33,021	$	28,447	$	32,515	$	55,290	$	2,918		$	363,961
Cost of sales		17,766		12,999		8,988		8,755		8,374		5,052		6,441		44,975		1,289			114,639
Other segment items⁽²⁾		35,545		27,023		28,235		22,156		19,985		13,705		15,321		8,536		4,009			174,515
Segment contribution	$	15,747	$	12,150	$	10,552	$	11,854	$	4,662	$	9,690	$	10,753	$	1,779	$	(2,380	)	$	74,807

(1)

The Manufacturing segment had $7.3 million and $8.9 million of intersegment revenue for the three months ended March 31, 2026 and 2025, respectively. Intersegment revenue is eliminated in the consolidated financial statements, as well as the reported segment revenue in the table above.

(2)

Other segment items primarily include selling expenses and general and administrative expenses.

	Three Months Ended
	March 31,
	2026			2025
Total segment revenue	$	320,842		$	363,961
Core Nu Skin Adjustments		(234	)		529
Total revenue	$	320,608		$	364,490

	Three Months Ended
	March 31,
	2026			2025
Total segment contribution	$	53,383		$	74,807
Corporate and Other		(49,357	)		(84,710	)
Operating income (loss)		4,026			(9,903	)
Interest expense		4,250			3,283
Gain on sale of business		-			176,162
Other income (expense), net		2,823			(28,375	)
Income before provision for income taxes	$	2,599		$	134,601

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Depreciation and Amortization

	Three Months Ended
	March 31,
(U.S. dollars in thousands)	2026		2025
Nu Skin
Americas	$	41	$	50
Southeast Asia/Pacific		169		190
Mainland China		1,785		2,068
Japan		55		57
Europe & Africa		171		264
Hong Kong/Taiwan		250		377
South Korea		87		174
Total Nu Skin		2,558		3,180
Rhyz
Manufacturing		3,250		3,334
Rhyz Other		340		912
Total Rhyz		3,590		4,246
Corporate and Other		6,194		6,780
Total	$	12,342	$	14,206

Capital Expenditures

	Three Months Ended
	March 31,
(U.S. dollars in thousands)	2026		2025
Nu Skin
Americas	$	7	$	13
Southeast Asia/Pacific		10		-
Mainland China		265		478
Japan		3		-
Europe & Africa		44		6
Hong Kong/Taiwan		23		68
South Korea		7		-
Total Nu Skin		359		565
Rhyz
Manufacturing		4,692		5,674
Rhyz Other		-		16
Total Rhyz		4,692		5,690
Corporate and other		8,663		7,329
Total	$	13,714	$	13,584

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12. Commitments and Contingencies

The Company is subject to government regulations pertaining to product formulation, labeling and packaging, product claims and advertising, and the Company’s direct selling system. The Company is also subject to the jurisdiction of numerous foreign tax and customs authorities. Any assertions or determination that either the Company or the Company’s sales force is not in compliance with existing statutes, laws, rules or regulations could have a material adverse effect on the Company’s operations. In addition, in any country or jurisdiction, the adoption of new statutes, laws, rules or regulations or changes in the interpretation of existing statutes, laws, rules or regulations could have a material adverse effect on the Company and its operations. No assurance can be given that the Company’s compliance with applicable statutes, laws, rules and regulations will not be challenged by foreign authorities or that such challenges will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company and its Subsidiaries are defendants in litigation, investigations and other proceedings involving various matters. Management believes that the ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows.

The Company is subject to regular audits by federal, state and foreign tax authorities. These audits may result in additional tax liabilities. The Company believes it has appropriately provided for income taxes for all years. Several factors drive the calculation of its tax reserves. Some of these factors include: (i) the expiration of various statutes of limitations; (ii) changes in tax law and regulations; (iii) issuance of tax rulings; and (iv) settlements with tax authorities. Changes in any of these factors may result in adjustments to the Company’s reserves, which would impact its reported financial results.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent our current expectations and beliefs. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws and include, but are not limited to, statements of management’s expectations regarding our performance, growth, initiatives, strategies, products, ingredients, product introductions and offerings, product portfolio optimization, restructuring and exit activities, acquisitions, the integration and performance of acquired companies, divestitures, opportunities and risks; statements of management’s expectations, plans and beliefs regarding global economic conditions and our markets (including India), sales force, sales compensation plan and customer base; statements regarding government policies and regulations relating to our industry, including government policies and regulations in or related to the United States and Mainland China; statements regarding tariffs and trade policies; statements regarding the outcome of litigation, audits, investigations, and other legal or regulatory matters; statements of projections and expectations regarding future sales, expenses, operating results, taxes, duties, capital expenditures, sources and uses of cash, foreign-currency fluctuations or devaluations, repatriation of undistributed earnings, and other financial items; statements regarding the payment of future dividends and stock repurchases; accounting estimates and assumptions; statements of belief; and statements of assumptions underlying any of the foregoing. In some cases, you can identify these statements by forward-looking words such as “believe,” “expect,” “enable,” “project,” “anticipate,” “determine,” “estimate,” “intend,” “plan,” “goal,” “objective,” “targets,” “become,” “likely,” “will,” “would,” “could,” “may,” “might,” the negative of these words and other similar words. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. We caution and advise readers that these statements are based on assumptions that may not be realized and involve important risks and uncertainties that could cause actual results to differ materially from the expectations and beliefs contained herein. For a summary of these risks, see the risk factors included in our Annual Report on Form 10-K for the 2025 fiscal year and in any of our subsequent Securities and Exchange Commission filings, including this Quarterly Report.

The following Management’s Discussion and Analysis should be read in conjunction with our consolidated financial statements and related notes and Management’s Discussion and Analysis included in our Annual Report on Form 10-K for the 2025 fiscal year, and our other reports filed with the Securities and Exchange Commission through the date of this Quarterly Report.

Overview

Revenue for the three-month period ended March 31, 2026 decreased 12.0% to $320.6 million, compared to $364.5 million in the prior-year period. Our revenue in the first quarter of 2026 was positively impacted by 1.1% from foreign-currency fluctuations. Our Customers, Paid Affiliates and Sales Leaders declined 14%, 8% and 13%, respectively, on a year-over-year basis.

The declines for the three-month period ended March 31, 2026 were largely driven by the continued macroeconomic challenges we have been facing in our markets, which have negatively impacted consumer spending and customer acquisition. In addition, while we continue to make progress on our long-term vision, we have experienced headwinds from the transformation process. Our priorities for 2026 focus on business model optimization, driven by the continued rollout of enhancements to our sales performance plan, the continued launch of our Prysm iO intelligent wellness platform and business expansion into India. In the first quarter of 2026, we predominately completed the Sales Leader previews of Prysm iO. We remain focused on the associated Sales Leader activation to enable a successful launch.

Earnings per share for the first quarter of 2026 decreased to $0.04, compared to $2.14 in the prior-year period. Our first quarter of 2026 earnings per share was negatively impacted by the decline in revenue and $5.9 million of charges associated with our decision to wind down our separate BeautyBio business. Our 2025 earnings per share benefited from the January 2025 sale of our Mavely business, which generated a pre-tax gain of approximately $176.2 million, partially offset by the associated taxes, an intangible asset group impairment of $25.1 million in our Rhyz Other segment and a non-cash loss on equity investment of $28.1 million.

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Segment Results

We report our business in nine segments to reflect our current management approach. These segments consist of our seven geographic Nu Skin segments—Americas, Mainland China, Southeast Asia/Pacific, Japan, Europe & Africa, South Korea and Hong Kong/Taiwan—and our two Rhyz segments—Manufacturing and Rhyz Other. The Nu Skin Other category includes miscellaneous corporate revenue and related adjustments.

The following table sets forth revenue for the three-month periods ended March 31, 2026 and 2025 for each of our reportable segments (U.S. dollars in thousands):

	Three Months Ended								Constant-
	March 31,								Currency
	2026			2025		Change			Change⁽¹⁾
Nu Skin
Americas	$	57,818		$	69,058		(16.3	)%		(12.6	)%
Southeast Asia/Pacific		45,474			52,172		(12.8	)%		(16.6	)%
Mainland China		45,148			47,775		(5.5	)%		(10.0	)%
Japan		39,739			42,765		(7.1	)%		(4.3	)%
Europe & Africa		31,218			33,021		(5.5	)%		(14.8	)%
Hong Kong/Taiwan		27,457			28,447		(3.5	)%		(5.9	)%
South Korea		25,329			32,515		(22.1	)%		(21.4	)%
Nu Skin Other		(234	)		529		(144.2	)%		(144.4	)%
Total Nu Skin		271,949			306,282		(11.2	)%		(12.5	)%
Rhyz
Manufacturing		44,925			55,290		(18.7	)%		(18.7	)%
Rhyz Other		3,734			2,918		28.0	%		28.0	%
Total Rhyz		48,659			58,208		(16.4	)%		(16.4	)%
Total	$	320,608		$	364,490		(12.0	)%		(13.1	)%

(1)

Constant-currency revenue change is a non-GAAP financial measure. See “Non-GAAP Financial Measures,” below.

The tables below set forth summarized financial information for each of our reportable segments for the three-month periods ended March 31, 2026 and 2025 (U.S. dollars in thousands). Segment contribution excludes certain intercompany charges, specifically royalties, license fees, transfer pricing and other miscellaneous items. We use segment contribution to measure the portion of profitability that the segment managers have the ability to control for their respective segments. For additional information regarding our segments and the calculation of segment contribution, see Note 11 to the consolidated financial statements contained in this report.

	Three Months Ended March 31, 2026
	Nu Skin																					Rhyz
				Southeast Asia/			Mainland						Europe &			Hong Kong/			South						Rhyz			Total
	Americas			Pacific			China			Japan			Africa			Taiwan			Korea			Manufacturing			Other			Segments
Revenue	$	57,818		$	45,474		$	45,148		$	39,739		$	31,218		$	27,457		$	25,329		$	44,925		$	3,734		$	320,842
Cost of sales		14,226			11,184			8,005			8,583			8,007			4,320			5,486			38,889			4,354			103,054
Other segment items		32,591			24,987			27,320			19,792			19,460			14,489			12,560			6,118			7,088			164,405
Segment contribution	$	11,001		$	9,303		$	9,823		$	11,364		$	3,751		$	8,648		$	7,283		$	(82	)	$	(7,708	)	$	53,383
Segment contribution as a percentage of revenue		19.0	%		20.5	%		21.8	%		28.6	%		12.0	%		31.5	%		28.8	%		(0.2	)%		(206.4	)%		16.6	%

	Three Months Ended March 31, 2025
	Nu Skin																					Rhyz
				Southeast Asia/			Mainland						Europe &			Hong Kong/			South						Rhyz			Total
	Americas			Pacific			China			Japan			Africa			Taiwan			Korea			Manufacturing			Other			Segments
Revenue	$	69,058		$	52,172		$	47,775		$	42,765		$	33,021		$	28,447		$	32,515		$	55,290		$	2,918		$	363,961
Cost of sales		17,766			12,999			8,988			8,755			8,374			5,052			6,441			44,975			1,289			114,639
Other segment items		35,545			27,023			28,235			22,156			19,985			13,705			15,321			8,536			4,009			174,515
Segment contribution	$	15,747		$	12,150		$	10,552		$	11,854		$	4,662		$	9,690		$	10,753		$	1,779		$	(2,380	)	$	74,807
Segment contribution as a percentage of revenue		22.8	%		23.3	%		22.1	%		27.7	%		14.1	%		34.1	%		33.1	%		3.2	%		(81.6	)%		20.6	%

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The following table provides information concerning the number of Customers, Paid Affiliates and Sales Leaders in our core Nu Skin business for the three-month periods ended March 31, 2026 and 2025.

●

“Customers” are persons who have purchased directly from the Company during the three months ended as of the date indicated. Our Customer numbers include members of our sales force who made such a purchase, including Paid Affiliates and those who qualify as Sales Leaders, but they do not include consumers who purchase directly from members of our sales force.

●

“Paid Affiliates” are any Brand Affiliates, as well as members of our sales force in Mainland China, who earned sales compensation during the three-month period. In all of our markets besides Mainland China, we refer to members of our independent sales force as “Brand Affiliates” because their primary role is to promote our brand and products through their personal social networks.

●

“Sales Leaders” are the three-month average of our monthly Brand Affiliates, as well as sales employees and independent marketers in Mainland China, who achieved certain qualification requirements as of the end of each month of the quarter.

	Three Months Ended
	March 31,
	2026		2025		Change
Customers
Americas		186,448		227,514		(18	)%
Southeast Asia/Pacific		67,461		74,584		(10	)%
Mainland China		104,721		122,474		(14	)%
Japan		102,392		107,742		(5	)%
Europe & Africa		115,343		130,154		(11	)%
Hong Kong/Taiwan		35,899		42,523		(16	)%
South Korea		57,271		71,721		(20	)%
Total Customers		669,535		776,712		(14	)%
Paid Affiliates
Americas		27,039		26,936		0	%
Southeast Asia/Pacific		18,163		22,296		(19	)%
Mainland China		18,064		19,859		(9	)%
Japan		19,224		21,073		(9	)%
Europe & Africa		13,607		15,184		(10	)%
Hong Kong/Taiwan		9,541		9,622		(1	)%
South Korea		15,212		16,548		(8	)%
Total Paid Affiliates		120,850		131,518		(8	)%
Sales Leaders
Americas		4,930		6,174		(20	)%
Southeast Asia/Pacific		3,769		4,542		(17	)%
Mainland China		5,489		6,214		(12	)%
Japan		5,943		6,210		(4	)%
Europe & Africa		2,314		2,839		(19	)%
Hong Kong/Taiwan		2,123		2,207		(4	)%
South Korea		2,347		2,850		(18	)%
Total Sales Leaders		26,915		31,036		(13	)%

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Following is a narrative discussion of our results in each segment, which supplements the tables above.

Americas. The results in our Americas segment reflect a continued decline in our North America markets, while our Latin America markets grew year-over-year. As our Sales Leaders prioritized Prysm iO and associated wellness products, we experienced switching costs in the first quarter of 2026 as many of our Sales Leaders began adapting to a greater focus on wellness products than previously. In addition, our reported revenue reflects negative impacts from unfavorable foreign currency fluctuations of 3.7% for the first quarter of 2026.

The year-over-year decrease in segment contribution for the first quarter of 2026 primarily reflects the overall decline in revenue, as well as a 3.5 percentage-point increase in selling expenses from additional incentives aimed at assisting the transition to the sales performance plan.

Southeast Asia/Pacific. The decline in revenue, Customers, Paid Affiliates and Sales Leaders for the first quarter of 2026 is primarily attributable to slowing momentum from the general macroeconomic factors in the markets. We remain focused on expansion of our developing market strategy in this region. In addition, our reported revenue reflects a benefit from favorable foreign currency fluctuations of 3.8% for the first quarter of 2026.

The year-over-year decrease in segment contribution for the first quarter of 2026 primarily reflects the decline in revenue as well as a slight increase in general and administrative cost associated with our pre-market activities in India in preparation for the full market opening in late 2026.

Mainland China. Our Mainland China market continued to be challenged during the first quarter of 2026, with ongoing macroeconomic factors, the associated decrease in consumer spending and a continued shift of market consumer awareness and demand to online product marketplaces. In addition, our reported revenue reflects a benefit from favorable foreign currency fluctuations of 4.5% for the first quarter of 2026.

The decrease in segment contribution for the first quarter of 2026 primarily reflects the decline in revenue.

Japan. The reduction in revenue, Customers, Paid Affiliates and Sales Leaders is partially attributable to consumer inflationary pressures which depressed spending. In addition, our reported revenue reflects negative impacts from unfavorable foreign currency fluctuations of 2.8% for the first quarter of 2026.

The year-over-year decrease in segment contribution is primarily attributable to the decreased revenue.

Europe & Africa. The reduction in revenue, Customers, Paid Affiliates and Sales Leaders reflects continued softness in these markets, as well as the macroeconomic factors that have led to a decline in the purchasing power of our customers. In addition, our reported revenue reflects a benefit from favorable foreign currency fluctuations of 9.3% for the first quarter of 2026.

The year-over-year decrease in segment contribution was primarily driven by an increase in general and administrative expenses with a decline in revenue.

Hong Kong/Taiwan. The declines in our Hong Kong/Taiwan segment for the first quarter of 2026 is attributable to macroeconomic issues, which are resulting in less purchasing power for our consumers. Our reported revenue reflects benefits from favorable foreign currency fluctuations of 2.4% for the first quarter of 2026.

The decrease in segment contribution for the first quarter of 2026 is partially attributable to a 2.1 percentage-point increase in selling expenses associated with our recent compensation plan enhancements, as well as the decline in revenue paired with the fixed nature of general and administrative expenses, partially offset by a 2.0 percentage point improvement in gross margin from less product write-offs and product promotions.

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South Korea. Our South Korea market was challenged by difficult macroeconomic trends, including inflationary pressures, political instability, and our associated price increases which negatively impacted our revenue, Customers, Paid Affiliates and Sales Leaders for the first quarter of 2026. In addition, in the first quarter of 2026, we lowered our commission to remain in compliance with the local law.

The year-over-year decline in segment contribution primarily reflects the decline in revenue, as well as a 1.9 percentage-point decrease in gross margin and a 1.5 percentage-point decrease in selling expenses from the reduction.

Manufacturing. Our Manufacturing segment revenue decreased 18.7% for the first quarter of 2026. The decrease is partially due to a tough comparison with a strong first quarter of 2025, as well as customer order delays related to the tariff and associated economic uncertainty.

The decrease in segment contribution is primarily due to the decline in revenue, as well as fixed cost pressure within cost of goods sold.

Rhyz Other. The increase in revenue for the first quarter of 2026 is primarily from our LifeDNA, Inc. (“LifeDNA”) entity, a DNA assessment and recommendation technology company, which revenue increased 96.1% for the first quarter of 2026. We are currently evaluating strategic opportunities with LifeDNA, including potentially divesting it, to maximize our return on investment. This was partially offset by a 66.9% decline in revenue at our BeautyBio entity, which we have decided to exit in the first quarter of 2026.

During the three months ended March 31, 2026, we acquired the remaining 30% equity interest in LifeDNA, for cash consideration of $6.5 million. The carrying amount of noncontrolling interest, which was previously included in other liabilities on the consolidated balance sheet, was reduced by $4.1 million, with the difference of $2.4 million recorded in additional paid-in capital. Following this transaction, LifeDNA became a wholly owned subsidiary. Due to the noncontrolling interest’s immaterial balance, we have not historically separately disclosed the noncontrolling interest balance or activity.

The decrease in segment contribution is primarily due to our decision to wind down our separate BeautyBio business and the associated $3.1 million inventory charge, $1.8 million of intangible impairment and $1.0 million in other associated costs.

Consolidated Results

Revenue

Revenue for the three-month period ended March 31, 2026 decreased 12.0% to $320.6 million, compared to $364.5 million in the prior-year period. Our revenue in the first quarter of 2026 was positively impacted by 1.1%, from foreign-currency fluctuations. For a discussion and analysis of these decreases in revenue, see “Overview” and “Segment Results,” above.

Gross profit

Gross profit as a percentage of revenue was 66.9% for the first quarter of 2026, compared to 67.8% for the prior-year period. Gross profit as a percentage of revenue for our Nu Skin business increased 0.2 percentage points to 76.9% for the first quarter of 2026.

Selling expenses

Selling expenses as a percentage of revenue increased to 34.3% for the first quarter of 2026, compared to 32.5% for the prior-year period. Core Nu Skin selling expenses as a percentage of revenue increased 1.8 percentage points to 40.5% for the first quarter of 2026. Selling expenses for our core Nu Skin business are driven by the specific performance of our individual Sales Leaders. Given the size of our sales force and the various components of our compensation and incentive programs, selling expenses as a percentage of revenue typically fluctuate plus or minus approximately 100 basis points from period to period.

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General and administrative expenses

General and administrative expenses decreased to $98.5 million in the first quarter of 2026, compared to $113.2 million in the prior-year period. The $14.7 million decline for the first quarter is from a $5.5 million contraction in labor expenses primarily from $5.2 million of stock-based compensation expense recorded in the first quarter of 2025 related to profit interest units issued to the Mavely founders and a $5.4 million decline in software and related contracts from continued cost management. General and administrative expenses as a percentage of revenue decreased to 30.7% for the first quarter of 2026, from 31.1% for the prior-year period.

Impairment expenses

Intangibles and fixed asset impairment. During the three months ended March 31, 2025, we decided to make a strategic shift in how we operate the BeautyBio asset group. These strategic changes included exiting certain sales channels, which reduced the forecasted revenues for BeautyBio. We concluded these actions were an interim impairment triggering event that required us to perform an interim impairment analysis on our BeautyBio asset group. We assessed the recoverability of the related asset group comparing the carrying value to the undiscounted cash flows expected to be generated. The recoverability test indicated the asset group was impaired. We concluded that the carrying value of the asset group exceeded the estimated fair value, which resulted in an impairment charge of $25.1 million in our Rhyz Other segment during the three months ended March 31, 2025.

During the three months ended March 31, 2026, we decided to wind down our separate BeautyBio business. As part of this exit, we incurred an impairment charge of $1.8 million.

Interest expense

Interest expense increased to $4.3 million in the first quarter of 2026, compared to $3.3 million in the prior-year period. The increase is primarily due to our interest rate swap arrangements that we entered into in 2020 maturing on July 31, 2025, at which time our effective interest rate increased.

Gain on sale of business

In January 2025, we completed the sale of our Mavely entity for $230 million in cash and shares of the purchaser’s common stock, subject to certain adjustments as set forth in the purchase agreement, including post-closing determination of net working capital and other elements of purchase price. Following the completion of certain payments to other equity holders in Mavely and the payment of certain transaction expenses, we received $193.7 million of cash and equity interest with an estimated fair value of $6.1 million. Following the finalization of net working capital, we received additional cash payments of $2.7 million and $1.7 million in the second and third quarter of 2025, respectively. In the first quarter of 2025, we recorded a pre-tax gain on disposition of $176.2 million.

Other income (expense), net

Other income (expense), net was $2.8 million for the first quarter of 2026 compared to $(28.4) million for the prior-year period. In the first quarter of 2025, we recorded a $28.1 million unrealized loss on investment. See Note 8 to the consolidated financial statements contained in this report for more information on the unrealized equity investment and the associated loss.

Provision (benefit) for income taxes

Provision for income taxes for the first quarter of 2026 was $0.8 million, compared to $27.1 million for the prior-year period. The effective tax rate was 29.4% of income before provision for income taxes during the first quarter of 2026 compared to 20.1% in the prior-year period. The first quarter of 2026 effective tax rate is higher than the prior-year period due to the tax rate benefit from the sale of Mavely in the first quarter of 2025.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We completed the initial assessment of the OBBBA corporate tax provisions as they relate to our financial statements in the third quarter of 2025. The enactment of the OBBBA did not have a material impact to our income tax benefit for the three months ended March 31, 2026. We will continue to evaluate the impacts of OBBBA and do not expect the OBBBA to have a material impact to our total tax provision.

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Net income

As a result of the foregoing factors, net income for the first quarter of 2026 was $1.8 million compared to $107.5 million in the prior-year period.

Liquidity and Capital Resources

Historically, our principal uses of cash have included operating expenses (particularly selling expenses) and working capital (principally inventory purchases), as well as capital expenditures, stock repurchases, dividends, and debt repayment. We have at times incurred long-term debt, or drawn on our revolving line of credit, to fund strategic transactions, stock repurchases, capital investments and short-term operating needs. We typically generate positive cash flow from operations due to favorable margins and have generally relied on cash from operations to fund operating activities. However, in the first three months of 2026, we had a net outflow of $3.9 million in cash from operations, compared to $0.4 million of cash provided by operations in the prior-year period. The decrease in cash flow from operations primarily reflects cash payments made in the first quarter of 2026 related to prepaid corporate income taxes. Cash and cash equivalents, including current investments, as of March 31, 2026 and December 31, 2025 were $200.4 million and $239.8 million, respectively, with the decrease being primarily driven by $13.7 million of capital expenditures, $6.5 million for the purchase of noncontrolling interest in LifeDNA and $5.0 million in share repurchases.

Working capital. As of March 31, 2026, working capital was $265.9 million, compared to $284.0 million as of December 31, 2025. Our decrease in working capital is primarily attributable to changes in our cash balance as explained above.

Capital expenditures. Capital expenditures for the three months ended March 31, 2026 were $13.7 million. We expect that our capital expenditures in 2026 will be primarily related to:

●

Rhyz plant expansion to increase capacity and capabilities;

●

purchases and expenditures for computer systems and equipment, software, and application development; and

●

the expansion and upgrade of facilities in our various markets.

We estimate that capital expenditures for the uses listed above will total approximately $40–60 million for 2026.

2022 Credit Agreement. On June 14, 2022, we entered into an Amended and Restated 2022 Credit Agreement (the “2022 Credit Agreement”) with various financial institutions as lenders and Bank of America, N.A., as administrative agent. The 2022 Credit Agreement provided for a $400.0 million term loan facility and a $500.0 million revolving credit facility, each with a term of five years. We used the proceeds of the term loan and the draw on the revolving facility to pay off the 2018 Credit Agreement. The interest rate applicable to the facilities was subject to adjustments based on our consolidated leverage ratio. The term loan facility amortized in quarterly installments in amounts resulting in an annual amortization of 2.5% during the first year and 5.0% during the subsequent years after the closing date of the 2022 Credit Agreement, with the remainder payable at final maturity. As of December 31, 2025, we had $0.0 million of outstanding borrowings under our revolving credit facility, and $225.0 million on our term loan facility. The carrying value of the debt also reflected debt issuance costs of $0.8 million as of December 31, 2025, related to the 2022 Credit Agreement. The 2022 Credit Agreement required us to maintain a consolidated leverage ratio not exceeding 2.75 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00. As of December 31, 2025, we were in compliance with all debt covenants under the 2022 Credit Agreement.

Credit Agreement. On March 27, 2026, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with several financial institutions as lenders and Bank of America, N.A., as administrative agent, which amended and restated the 2022 Credit Agreement. The Credit Agreement provides for a $175.0 million term loan facility and a $75.0 million revolving credit facility, each with a term of five years. Both facilities bear interest at the SOFR, plus a margin based on the Company's consolidated leverage ratio. Commitment fees payable under the Credit Agreement are also based on the consolidated leverage ratio as defined in the Credit Agreement and range from 0.175% to 0.30% on the unused portion of the total lender commitments then in effect. The term loan facility will amortize in equal quarterly installments in amounts resulting in an annual amortization of $20.0 million per annum, with the remainder payable at final maturity. The Credit Agreement is guaranteed by certain of the Company's domestic subsidiaries and collateralized by assets of such subsidiaries, including a pledge of 65% of the capital stock of certain foreign subsidiaries. As of March 31, 2026, we had $50.0 million of outstanding borrowings under our revolving credit facility, and $175.0 million on our term loan facility. The carrying value of the debt also reflected debt issuance costs of $1.4 million as of March 31, 2026, related to the Credit Agreement. The Credit Agreement requires the Company to maintain a consolidated leverage ratio not exceeding 2.25 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00.

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The Credit Agreement also includes other covenants, including covenants that, subject to certain exceptions, restrict the ability of the Company and its subsidiaries (i) to create, incur, assume or permit to exist any liens, (ii) to incur additional indebtedness, (iii) to make investments and acquisitions, (iv) to enter into mergers, consolidations or similar transactions, (v) to make certain dispositions of assets, (vi) to make dividends, distributions and prepayments of certain indebtedness, (vii) to change the nature of the Company’s business, (viii) to enter into certain transactions with affiliates, (ix) to enter into certain burdensome agreements, (x) to make certain amendments to certain agreements and organizational documents and (xi) to make certain accounting changes.

As of March 31, 2026, the Company was in compliance with all covenants under the Credit Agreement.

Derivative Instruments. During the third quarter of 2025, we had four interest rate swaps mature, with a total notional principal amount of $200 million. We entered into these interest rate swap arrangements during the third quarter of 2020 to hedge the variable cash flows associated with our variable-rate debt under the Credit Agreement.

Stock repurchase plan. In 2018, our board of directors approved a stock repurchase plan authorizing us to repurchase up to $500.0 million of our outstanding shares of Class A common stock on the open market or in private transactions. During the first quarter of 2026, we repurchased 0.5 million shares of our Class A common stock under the plan for $5.0 million. As of March 31, 2026, $137.3 million was available for repurchases under the plan. Our stock repurchases are used primarily to offset dilution from our equity incentive plans and for strategic initiatives.

Dividends. In February 2026, our board of directors declared quarterly cash dividends of $0.06 per share. This quarterly cash dividend of $2.9 million was paid on March 11, 2026 to stockholders of record on February 27, 2026. In May 2026, our board of directors declared a quarterly cash dividend of $0.06 per share to be paid on June 10, 2026 to stockholders of record on May 29, 2026. Currently, we anticipate that our board of directors will continue to declare quarterly cash dividends and that the cash flows from operations will be sufficient to fund our future dividend payments. However, the continued declaration of dividends is subject to the discretion of our board of directors and will depend upon various factors, including our net earnings, financial condition, cash requirements, future prospects and other relevant factors.

Cash from foreign subsidiaries. As of March 31, 2026 and December 31, 2025, we held $200.4 million and $239.8 million, respectively, in cash and cash equivalents, including current investments. These amounts include $159.8 million and $170.7 million as of March 31, 2026 and December 31, 2025, respectively, held in our operations outside of the U.S. Substantially all of our non-U.S. cash and cash equivalents are readily convertible into U.S. dollars or other currencies, subject to procedural or other requirements in certain markets, as well as an indefinite-reinvestment designation, as described below.

We typically fund the cash requirements of our operations in the U.S. through intercompany dividends, intercompany loans and intercompany charges for products, use of intangible property, and corporate services. However, some markets impose government-approval or other requirements for the repatriation of dividends. For example, in Mainland China, we are unable to repatriate cash from current operations in the form of dividends until we file the necessary statutory financial statements for the relevant period. As of March 31, 2026, we had $32.5 million in cash denominated in Chinese RMB. We also have experienced delays in repatriating cash from Argentina. As of March 31, 2026 and December 31, 2025, we had $28.0 million and $23.9 million, respectively, in intercompany receivables with our Argentina subsidiary. We also have intercompany loan arrangements in some of our markets, including Mainland China, that allow us to access available cash, subject to certain limits in Mainland China and other jurisdictions. We also have drawn on our revolving line of credit to address cash needs until we can repatriate cash from Mainland China or other markets, and we may continue to do so. Except for $60.0 million of earnings in Mainland China that we designated as indefinitely reinvested during the second quarter of 2018, we currently plan to repatriate undistributed earnings from our non-U.S. operations as necessary, considering the cash needs of our non-U.S. operations and the cash needs of our U.S. operations for dividends, stock repurchases, capital investments, debt repayment and strategic transactions. Repatriation of non-U.S. earnings is subject to withholding taxes in certain foreign jurisdictions. Accordingly, we have accrued the necessary withholding taxes related to the non-U.S. earnings.

We currently believe that existing cash balances, future cash flows from operations and existing lines of credit will be adequate to fund our cash needs on both a short- and long-term basis. The majority of our historical expenses have been variable in nature, and as such, a potential reduction in the level of revenue would reduce our cash flow needs. In the event that our current cash balances, future cash flow from operations and current lines of credit are not sufficient to meet our obligations or strategic needs, we would consider raising additional funds in the debt or equity markets or restructuring our current debt obligations. Additionally, we would consider realigning our strategic plans, including a reduction in capital spending, stock repurchases or dividend payments.

Contingent Liabilities

Please refer to Note 12 to the consolidated financial statements contained in this Quarterly Report for information regarding our contingent liabilities.

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Critical Accounting Policies and Estimates

There were no significant changes in our critical accounting policies or estimates during the first quarter of 2026.

Seasonality and Cyclicality

In addition to general economic factors, we are impacted by seasonal factors and trends such as major cultural events and vacation patterns. For example, most Asian markets celebrate their respective local New Year in the first quarter, which generally has a negative impact on that quarter. We believe that direct selling is also generally negatively impacted during the third quarter, when many individuals, including our sales force, traditionally take vacations.

Prior to making a product generally available for purchase in a market, we often do one or more introductory offerings of the product, such as a preview of the product to our Sales Leaders or other product introduction or promotion. These offerings sometimes generate significant activity and a high level of purchasing, which can result in a higher-than-normal increase in revenue, Sales Leaders, Paid Affiliates and/or Customers during the quarter and can skew year-over-year and sequential comparisons.

Non-GAAP Financial Measures

Constant-currency revenue change is a non-GAAP financial measure that removes the impact of fluctuations in foreign-currency exchange rates, thereby facilitating period-to-period comparisons of the Company’s performance. It is calculated by translating the current period’s revenue at the same average exchange rates in effect during the applicable prior-year period and then comparing that amount to the prior-year period’s revenue. We believe that constant-currency revenue change is useful to investors, lenders and analysts because such information enables them to gauge the impact of foreign-currency fluctuations on our revenue from period to period.

Available Information

Our website address is www.nuskin.com. We make available, free of charge on our Investor Relations website, ir.nuskin.com, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission.

We also use our Investor Relations website, ir.nuskin.com, as a channel of distribution of additional Company information that may be deemed material. Accordingly, investors should monitor this channel, in addition to following our press releases, Securities and Exchange Commission filings and public conference calls and webcasts. The contents of our website shall not be deemed to be incorporated herein by reference.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Currency Risk and Exchange Rate Information

A majority of our revenue and many of our expenses are recognized outside of the United States, except for inventory purchases, a significant portion of which are primarily transacted in U.S. dollars from vendors in the United States. The local currency of each of our Subsidiaries’ primary markets is considered the functional currency with the exception of our Asia product-distribution subsidiary in Singapore and, as discussed below, our subsidiary in Argentina. All revenue and expenses are translated at weighted-average exchange rates for the periods reported. Therefore, our reported revenue and earnings will be positively impacted by a weakening of the U.S. dollar and will be negatively impacted by a strengthening of the U.S. dollar. These impacts may be significant because a large portion of our business is derived from outside of the United States. Given the uncertainty of exchange rate fluctuations, it is difficult to predict the effect of these fluctuations on our future business, product pricing and results of operations or financial condition.

In the second quarter of 2018, published inflation indices indicated that the three-year cumulative inflation in Argentina exceeded 100 percent, and as of July 1, 2018, we elected to adopt highly inflationary accounting for our subsidiary in Argentina. Under highly inflationary accounting, the functional currency for our subsidiary in Argentina became the U.S. dollar, and the income statement and balance sheet for this subsidiary have been measured in U.S. dollars using both current and historical rates of exchange. The effect of changes in exchange rates on peso-denominated monetary assets and liabilities has been reflected in earnings in Other income (expense), net and was not material. As of March 31, 2026, our subsidiary in Argentina had a small net peso monetary position. Net sales of our subsidiary in Argentina were less than 4% of our consolidated net sales for the three-month periods ended March 31, 2026.

We may seek to reduce our exposure to fluctuations in foreign currency exchange rates through the use of foreign currency exchange contracts and through intercompany loans of foreign currency. We do not use derivative financial instruments for trading or speculative purposes. We regularly monitor our foreign currency risks and periodically take measures to reduce the impact of foreign exchange fluctuations on our operating results. As of March 31, 2026 and 2025, we did not hold material non-designated mark-to-market forward derivative contracts to hedge foreign denominated intercompany positions or third party foreign debt. As of March 31, 2026 and 2025, we did not hold any material forward contracts designated as foreign currency cash flow hedges. We continue to evaluate our foreign currency hedging policy.

For additional information about our market risk see Note 10 to the consolidated financial statements contained in this Quarterly Report.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this Quarterly Report, under the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on that evaluation, our CEO and our CFO concluded that our disclosure controls and procedures were effective as of March 31, 2026.

Changes in Internal Controls Over Financial Reporting.

We made no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the fiscal quarter ended March 31, 2026 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we are involved in legal proceedings arising in the ordinary course of business.

ITEM 1A. RISK FACTORS

There have been no material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the 2025 fiscal year.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Purchases of Equity Securities by the Issuer

	(a)		(b)		(c)		(d)
					Total Number of		Approximate Dollar
	Total				Shares Purchased		Value of Shares that May
	Number		Average		as Part of Publicly		Yet Be Purchased Under
	of Shares		Price Paid		Announced Plans		the Plans or Programs
Period	Purchased		per Share		or Programs		(in millions)⁽¹⁾
January 1 - 31, 2026		170,677	$	10.54		170,677	$	140.50
February 1 - 28, 2026		347,675		9.04		347,675	$	137.40
March 1 - 31, 2026		7,869		8.53		7,869	$	137.30
Total		526,221	$	9.52		526,221

(1)	In August 2018, we announced that our board of directors approved a stock repurchase plan. Under this plan, our board of directors authorized the repurchase of up to $500 million of our outstanding Class A common stock on the open market or in privately negotiated transactions.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

ITEM 5. OTHER INFORMATION

Trading Plan

On February 19, 2026, Edwina Woodbury, a member of our Board of Directors, adopted a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) to sell 40% of the shares of Class A common stock underlying her 18,008 restricted stock units that will vest on May 28, 2026. The sale is scheduled to occur on the vesting date of May 28, 2026 or the next possible business day.

Table of Contents

ITEM 6. EXHIBITS


Exhibits Regulation S-K Number		Description
10.1		Second Amendment and Restatement Agreement in connection with the Second Amended and Restated Credit Agreement among the Company, various financial institutions, and Bank of America, N.A. as administrative agent, dated as of March 27, 2026.
10.2		Form of Amended and Restated 2024 Omnibus Incentive Plan (“Amended and Restated 2024 Plan”) Restricted Stock Unit Grant Agreement.
10.3		Form of Amended and Restated 2024 Plan Performance Restricted Stock Unit Grant Agreement.
31.1		Certification by Ryan S. Napierski, Chief Executive Officer, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification by Chelsea K. Lantz, Chief Financial Officer, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification by Ryan S. Napierski, Chief Executive Officer, pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certification by Chelsea K. Lantz, Chief Financial Officer, pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)


NU SKIN ENTERPRISES, INC.

By:	/s/ Chelsea K. Lantz
	Chelsea K. Lantz
	Chief Financial Officer
	(Duly Authorized Officer and Principal Financial Officer)