Core Insights - Natural Health Trends Corp. reported a 3% sequential increase in revenue for Q4 2025 despite a challenging macroeconomic environment, while full-year net sales decreased by 10% year over year [4][6][7] - The company has completed major restructuring initiatives aimed at achieving $1.5 million in annualized cost savings and has relocated 40% of its product sourcing to East Asia to mitigate tariff uncertainties [4][6] - The company declared a quarterly cash dividend of $0.10 per share, payable on February 27, 2026 [9] Fourth Quarter 2025 Financial Highlights - Revenue for Q4 2025 was $9.7 million, a 3% increase from $9.5 million in Q3 2025 but a 10% decline from $10.8 million in Q4 2024 [7] - Operating loss for Q4 2025 was $635,000, compared to losses of $495,000 in Q3 2025 and $421,000 in Q4 2024; excluding restructuring charges, the operating loss would have been $352,000 [7] - Net loss for Q4 2025 was $588,000, or $0.05 per diluted share, compared to a net loss of $431,000, or $0.04 per diluted share, in Q3 2025 and net income of $176,000, or $0.02 per diluted share, in Q4 2024 [7] Full Year 2025 Financial Highlights - Total revenue for 2025 was $39.8 million, down 7% from $43.0 million in 2024 [7] - The operating loss for the full year was $1.8 million, compared to a loss of $1.3 million in 2024 [7] - The net loss for 2025 was $882,000, or $0.08 per diluted share, compared to net income of $572,000, or $0.05 per diluted share, in 2024 [7] Balance Sheet and Cash Flow - As of December 31, 2025, total cash, cash equivalents, and marketable securities were $28.9 million, down from $32.0 million as of September 30, 2025 [8] - Net cash used in operating activities was $959,000 in Q4 2025, compared to net cash provided by operating activities of $88,000 in Q4 2024; total cash used in operating activities for 2025 was $6.0 million, up from $3.4 million in 2024 [8] - The company has fully paid the tax liability arising from the 2017 U.S. Tax Cuts and Jobs Act [8] Management Commentary - The President of Natural Health Trends Corp. highlighted the company's 25th Anniversary in 2026 as a significant milestone, with plans for a celebration in Hong Kong [4][5] - The company aims to leverage this anniversary to create renewed momentum in its business [5]

Core Viewpoint - Natural Health Trends Corp. will report its financial results for Q4 and the full year 2025 on February 4, 2026, with a conference call scheduled for the same day to discuss these results [1][2]. Group 1: Financial Reporting - The financial results for the fourth quarter and full year ended December 31, 2025, will be announced on February 4, 2026, at 9:00 a.m. Eastern Time [1]. - A conference call to discuss the financial results will take place on the same day at 11:30 a.m. Eastern Time [1][2]. - The dial-in number for the conference call is 1-800-330-6730, and the participant ID is 992974 [2]. Group 2: Company Overview - Natural Health Trends Corp. is a leading direct-selling and e-commerce company that markets premium quality personal care, wellness, and "quality of life" products under the NHT Global brand [1][3]. - The company operates internationally through subsidiaries in Asia, the Americas, and Europe [3]. - Additional information about the company can be found on its website [3].

Core Viewpoint - Natural Health Trends Corp. (NHTC) has experienced a significant decline in stock price following disappointing earnings results for the year ended September 30, 2025, with a 25.1% drop compared to a 0.6% decline in the S&P 500 Index during the same period [1] Financial Performance - NHTC's third-quarter 2025 revenue decreased by 11.4% to $9.5 million from $10.7 million, with a net loss of $0.4 million, or a loss of $0.04 per diluted share, compared to a net income of $35,000 in the same quarter of 2024 [2] - For the first nine months of 2025, revenue fell by 6.5% to $30 million from $32.1 million, resulting in a net loss of $0.3 million, or a loss of $0.03 per share, compared to a net income of $0.4 million in the prior-year period [3] Key Business Metrics - Orders decreased by 5% year over year in Q3 2025, although they improved by 5% sequentially, indicating some stabilization [4] - Active Members declined to 28,030 as of September 30, 2025, from 30,880 a year earlier, representing a 9.2% decrease [4] - Gross profit for the quarter was $6.9 million, down 11.8% from $7.9 million a year ago, with a gross margin of 73.7% compared to 74.1% in Q3 2024 [5] Expense Management - Commissions expense decreased by 10.5% year over year but rose slightly as a percentage of sales to 40.9% from 40.5% [6] - Selling, general, and administrative expenses decreased by 6.8% to $3.6 million from $3.9 million, indicating early cost control measures [6] Management Commentary and Strategic Initiatives - Management noted a challenging economic outlook in Hong Kong, which accounted for 81.4% of Q3 2025 sales, with an 8% year-over-year revenue decline [7] - A major restructuring is underway, expected to deliver $1.5 million in annualized savings by mid-2026, including a 10% workforce reduction and cost-cutting measures [7] - The company is transitioning U.S.-based product manufacturing closer to Asia to mitigate tariff risks and streamline logistics [7] Future Investments - Planned investments include an AI-enabled marketing app and new marketing initiatives aimed at expanding the member base [8] - The company is organizing recognition and training events to strengthen relationships and leadership development across markets [8] Performance Influencers - Weaker results are attributed to macroeconomic factors in Greater China and company-specific issues such as the timing of promotions and inventory write-offs [9][10] Cash Flow and Liquidity - Net cash used in operating activities was $5 million for the first nine months of 2025, compared to $3.5 million in the prior-year period [11] - Total cash and equivalents declined to $32 million as of September 30, 2025, from $43.9 million at year-end 2024, though liquidity remains adequate [11] Guidance and Capital Allocation - Management expects a one-time restructuring charge of approximately $250,000 in Q4 2025 and aims to realize $1.5 million in annualized cost savings by mid-2026 [12] - The company plans to reduce its quarterly cash dividend to $0.10 per share starting in Q1 of the next year [13] Product Innovation and Milestones - NHTC is energizing its network through product innovation, including the pre-launch of the Soo:vea skincare series in Hong Kong and a limited-edition anti-aging cream in Sweden [14] - The company is planning a year-long program of events and marketing campaigns for its 25th anniversary in 2026 to strengthen the brand [15]

Core Viewpoint - Natural Health Trends Corp. reported a decrease in net sales and orders for the third quarter of 2025 compared to the previous year, attributed to product promotion timing and the presale of a new skin care line [4]. Financial Performance - Net sales for the third quarter of 2025 decreased by 11% to $9.5 million compared to the third quarter of 2024 [4]. - Orders declined by 5% year-over-year, indicating a downward trend in demand [4].

Financial Data and Key Metrics Changes - Third quarter net sales decreased 11% to $9.5 million compared to $10.7 million in the third quarter of 2024 [3][7] - Gross profit margin was 73.7% for the third quarter, down from 74.1% last year due to inventory write-offs [7] - Net loss for the third quarter was $431,000, or 4 cents per diluted share, compared to net income of $35,000 in the same quarter of 2024 [8] Business Line Data and Key Metrics Changes - Sales in Hong Kong, which accounted for 82% of total sales, declined 8% year-over-year, or 4% when excluding the impact of product promotions [7] - Commissions expense as a percentage of total sales increased to 40.9% from 40.5% a year ago, primarily due to higher commissions earned by members [7] Market Data and Key Metrics Changes - The economic outlook in the largest market remains challenging, impacting sales and operations [3] - The company is transitioning U.S.-based product manufacturing closer to Asia to mitigate tariff uncertainties and streamline logistics [4] Company Strategy and Development Direction - The company is executing a targeted major restructuring plan expected to yield $1.5 million in annualized savings by mid-2026 [3] - Investments will be made in new systems and technologies, including an AI-enabled marketing app and a member-interface business suite [4] - A year-long celebration is planned to honor the company's 25-year history, aimed at deepening member engagement and creating growth opportunities [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledges near-term challenges in the largest market and emphasizes the importance of executing the restructuring plan [10] - The company aims to align costs with global sales performance to position itself for sustainable growth and long-term profitability [4][10] Other Important Information - A one-time charge of approximately $250,000 is expected in the fourth quarter due to restructuring initiatives [4] - The quarterly cash dividend will be reduced to $0.10 per share in the first quarter of the following year [4] Q&A Session Summary - No specific questions or answers were documented in the provided content.

Financial Performance - Net sales for Q3 2025 were $9,477,000, a decrease of 11.4% compared to $10,691,000 in Q3 2024[17] - Gross profit for Q3 2025 was $6,987,000, down 11.9% from $7,926,000 in Q3 2024[17] - The net loss for Q3 2025 was $431,000 compared to a net income of $35,000 in Q3 2024[19] - Comprehensive loss for Q3 2025 was $440,000, compared to comprehensive income of $324,000 in Q3 2024[19] - For the three months ended September 30, 2025, total net sales were $9,477,000, a decrease of 11.0% compared to $10,691,000 for the same period in 2024[42] - For the nine months ended September 30, 2025, total net sales were $30,027,000, down 6.5% from $32,117,000 in 2024[42] - The company reported a net loss available to common stockholders of $431,000 for the three months ended September 30, 2025, compared to a net income of $35,000 for the same period in 2024[42] - The company reported a loss before income taxes of $289,000 for the three months ended September 30, 2025, compared to income of $166,000 in the same period of 2024[83] Assets and Liabilities - Total current assets decreased to $37,888,000 in Q3 2025 from $50,983,000 in Q4 2024, representing a decline of 25.7%[15] - Total liabilities decreased to $16,103,000 in Q3 2025 from $22,487,000 in Q4 2024, a reduction of 28.5%[15] - The accumulated deficit increased to $33,547,000 in Q3 2025 from $26,344,000 in Q4 2024[15] - Total assets as of September 30, 2025, were $42,251,000, down from $55,359,000 as of December 31, 2024[84] - Cash and cash equivalents increased to $14,336,000 in Q3 2025 from $13,533,000 in Q4 2024, an increase of 5.9%[15] - Total cash, cash equivalents, and restricted cash at the end of the period was $14,371,000, down from $22,937,000 at the end of the same period in 2024[23] - Cash, cash equivalents, and marketable securities totaled $32.0 million as of September 30, 2025, a decrease of $11.9 million from December 31, 2024[119] - Working capital as of September 30, 2025, was $23.1 million, a decrease of $7.1 million compared to December 31, 2024[120] Operating Expenses - Operating expenses for Q3 2025 were $7,482,000, down 8.8% from $8,201,000 in Q3 2024[17] - Commissions expense for the three months ended September 30, 2025, was $3,832,000, a decrease from $4,256,000 in 2024[81] - Selling, general and administrative expenses decreased by $262,000 to $3.6 million for the three months ended September 30, 2025[113] - Cash used in operating activities for the nine months ended September 30, 2025, was $5,038,000, an increase from $3,455,000 in 2024[23] Dividends and Shareholder Returns - The company declared dividends of $0.20 per share, totaling $2,303,000 for the nine months ended September 30, 2025[20] - Dividends paid remained constant at $6,909,000 for both the nine months ended September 30, 2025, and 2024[23] - The Company declared and paid cash dividends of $0.20 per common share for the first three quarters of 2025, totaling $6.9 million, consistent with the same period in 2024[75] Inventory and Sales - Inventories increased by $1,161,000 in the nine months ended September 30, 2025, compared to an increase of $619,000 in 2024[23] - Finished goods inventory decreased to $1,798,000 as of September 30, 2025, from $2,770,000 as of December 31, 2024[46] - The company's inventories as of September 30, 2025, were valued at $1,663,000, compared to $2,617,000 as of December 31, 2024[84] - Actual sales returns were 1% of sales for both the nine months ended September 30, 2025, and 2024[37] International Operations - The company has an active presence in multiple international markets, including the Americas, Greater China, Southeast Asia, and Europe[25] - Approximately 93% of net sales are generated from subsidiaries located outside the Americas, highlighting the company's international focus[90] - The Hong Kong subsidiary generated approximately 83% of the company's revenue in the first nine months of 2025, primarily from sales delivered to members in China[91] Tariffs and Trade Impact - The U.S. imposed a 125% tariff on Chinese-origin goods in April 2025, which has affected sales and may lead to higher product prices in the future[94] - The company is actively evaluating options to transition production to other jurisdictions to mitigate the impact of U.S. tariffs, which may result in long-term cost savings[95] - The ongoing trade disputes may adversely affect trade and economic relations between the U.S. and China, impacting the company's operations and financial results[138] - The company may incur additional costs related to tariffs and may not be able to recover these costs through surcharges[138] Corporate Governance and Compliance - The company has not experienced any changes in internal control over financial reporting that materially affected its operations during the fiscal quarter ended September 30, 2025[133] - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2025[132] - There have been no material changes to the company's risk factors since the Annual Report for the year ended December 31, 2024[137] - There are no legal proceedings currently affecting the company[136]

Financial Performance - Revenue for Q3 2025 was $9.5 million, a decrease of 11% compared to $10.7 million in Q3 2024[6] - Operating loss for Q3 2025 was $495,000, compared to a loss of $275,000 in Q3 2024[6] - Net loss for Q3 2025 was $431,000, or $0.04 per diluted share, compared to net income of $35,000 in Q3 2024[6] - Year-to-date revenue for the first nine months of 2025 was $30.0 million, down 7% from $32.1 million in the same period of 2024[6] Membership Statistics - Active Members decreased to 28,030 as of September 30, 2025, down from 30,880 a year earlier[6] - The number of Active Members decreased by 9% from 30,870 at December 31, 2024[6] Cash and Dividends - A quarterly cash dividend of $0.20 per share was declared, payable on November 28, 2025[11] - Total cash, cash equivalents, and marketable securities decreased to $32.0 million as of September 30, 2025, down from $43.9 million at the end of 2024[11] Restructuring Initiatives - The company expects to achieve $1.5 million in annualized savings from restructuring initiatives by mid-2026[5] - The company incurred a one-time charge of approximately $250,000 related to restructuring in Q4 2025[5]

Core Insights - Natural Health Trends Corp. reported a net loss of $431,000 for Q3 2025, compared to a net income of $35,000 in Q3 2024, indicating a significant decline in profitability [7][15] - Revenue for Q3 2025 was $9.5 million, down 11% from $10.7 million in Q3 2024, attributed to the timing of product promotions and a presale of a new skincare line [7][15] - The company is undergoing a major restructuring expected to yield annualized savings of $1.5 million, with a one-time charge of approximately $250,000 anticipated in Q4 2025 [4][5] Financial Highlights - Orders decreased by 5% year-over-year but increased by 5% sequentially [6] - Active Members decreased to 28,030 as of September 30, 2025, down from 30,880 a year earlier [7] - The company declared a quarterly cash dividend of $0.20 per share, payable on November 28, 2025 [8] Year-to-Date Performance - Year-to-date revenue was $30.0 million, a decrease of 7% compared to $32.1 million in the first nine months of 2024 [7] - Operating loss for the first nine months of 2025 was $1.2 million, compared to a loss of $878,000 in the same period of 2024 [7] - Net cash used in operating activities was $5.0 million in the first nine months of 2025, compared to $3.5 million in the same period of 2024 [8] Balance Sheet Overview - Total cash, cash equivalents, and marketable securities were $32.0 million as of September 30, 2025, down from $43.9 million at the end of 2024 [8] - Total assets decreased to $42.3 million from $55.4 million at the end of 2024 [13][14] - Total liabilities were $16.1 million, down from $22.5 million at the end of 2024 [14] Management Commentary - The President of Natural Health Trends Corp. highlighted the challenging economic outlook in their largest market and emphasized the need for restructuring to align costs with global sales performance [4][5] - The company plans to invest in new systems and technologies, including an AI-enabled marketing app, to drive member growth and engagement [5]

Core Viewpoint - Natural Health Trends Corp. will report its third quarter financial results on November 5, 2025, at 9:00 a.m. Eastern Time, followed by a conference call at 11:30 a.m. Eastern Time to discuss the results [1]. Company Overview - Natural Health Trends Corp. is a leading international direct-selling and e-commerce company that markets premium quality personal care, wellness, and "quality of life" products under the NHT Global brand [3]. - The company operates through subsidiaries across Asia, the Americas, and Europe [3]. Conference Call Details - The conference call to discuss the third quarter 2025 financial results is scheduled for November 5, 2025, at 11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time [2]. - Dial-in number for the conference call is 1-800-330-6730, with participant ID 236986 [2]. - A replay of the call will be available on the Company's Investor Relations website for those unable to participate live [2].

Core Viewpoint - Natural Health Trends Corp. (NHTC) reported a decline in revenue and net income for the second quarter of 2025, primarily due to ongoing trade tensions affecting consumer confidence in its main market, Hong Kong, while the company is taking steps to realign its supply chain to mitigate these challenges [2][10][12]. Revenue and Earnings Performance - NHTC's second-quarter 2025 revenues were $9.8 million, a decrease of 6.3% from $10.5 million in the same quarter last year [2]. - Net income for the quarter was $15,000, down significantly from $173,000 a year ago, resulting in breakeven earnings per diluted share compared to $0.02 previously [2]. - For the first half of 2025, revenues totaled $20.6 million, a 4.1% decrease from $21.4 million in the first half of 2024 [3]. Sales Performance - Sales in Hong Kong, which accounted for 81.6% of total quarterly sales, declined by 5.5% year over year [4]. - Active members decreased to 29,260 as of June 30, 2025, a decline of 5.9% from 31,110 a year ago [6]. Financial Metrics - Gross profit for the second quarter was $7.3 million, down 6.7% from $7.8 million in the prior-year quarter, with a gross margin of 73.9% compared to 74.2% previously [5]. - Commissions expense rose to 40.9% of sales from 40.1% a year ago, while selling, general, and administrative expenses decreased by 6.2% year over year to $3.6 million [5]. Cash Flow and Operating Activities - Cash used in operating activities increased to $5.2 million in the first half of 2025 from $3 million a year ago [7]. - Total cash, cash equivalents, and marketable securities were $34.2 million at the end of June, down from $43.9 million at the end of 2024 [6]. Management Commentary - Management acknowledged challenges from global trade uncertainties and weak consumer sentiment in core markets, indicating a strategic shift of supply chain operations from the U.S. to Asia to reduce tariff exposure and improve cost efficiency [8][10]. - The company is also focusing on engaging its distributor base through training and incentive programs, with the launch of a new market in Colombia showing positive reception [9]. Strategic Outlook - NHTC did not provide specific forward-looking revenue or earnings guidance but expressed confidence in the strategic realignment of its supply chain and investments in products and programs to support long-term growth [12]. - A significant financial milestone was the full settlement of the company's U.S. Tax Cuts and Jobs Act liability, which impacted operating cash flow but removed a liability from the balance sheet [13].