Nu Skin Enterprises, Inc. (NYSE: NUS) released its financial results for the second quarter of 2025, presenting a mixed outlook.
While revenue and customer base remained under pressure, the company highlighted significant improvements in profitability, a strengthened balance sheet and encouraging progress in key initiatives aimed at driving future growth, particularly in the multilevel marketing space.
Key Financial Results:
- Revenue: Declined 12.1% year-over-year, totaling $386.1 million.
- Business base: Contracted significantly. Customer numbers fell 14% (771,407), paid affiliates dropped 16% (130,799) and sales leaders decreased 23% (29,593).
- Mixed profitability: Nu Skin’s core business gross margin improved slightly (from 76.1% to 77.5%), but overall consolidated gross margin fell by nearly 2 percentage points. EPS came in at $0.43
- Balance sheet strength: A key milestone was reaching a net cash positive position for the first time in over four years, ahead of schedule. Operating margin for the quarter was 8%.
Outlook and Projections:
For full-year 2025, Nu Skin adjusted its guidance. Revenue is projected between $1.48 billion and $1.55 billion. EPS is estimated between $3.05 and $3.25 (adjusted EPS between $1.15 and $1.35).
For the third quarter (Q3), the company anticipates revenue between $360 million and $390 million, with EPS projected in the range of $0.25 to $0.35.
Strategy and Leadership Commentary
Nu Skin President and CEO Ryan Napierski expressed satisfaction with the quarter’s performance, particularly in surpassing EPS expectations and delivering solid operating margins (8%) despite revenue pressure. Beyond the numbers, Napierski emphasized critical strategic advances for the future of the sales network and growth:
Rhyz Manufacturing
This segment continues to shine, delivering 17% year-over-year revenue growth.
Sales leader engagement
The company reported “significant progress” in generating engagement and alignment among sales leaders with key initiatives planned for late 2025 and 2026. This is essential for the health of any multilevel marketing network, as leaders drive both growth and retention.
Wellness innovation
Prysm iO: The company confirmed it remains on track for a limited preview in mid-Q4 of its smart wellness device, Prysm iO. Positioned as “the next level” of its best-selling beauty and wellness systems, the device incorporates AI for wellness assessments and personalized nutritional product recommendations.
Nu Skin expects this tool to boost the supplements business through subscriptions and increase customer lifetime value. This technological bet aims to revitalize the value proposition for end consumers and potentially attract new distributors.
International expansion
Building on successes in markets such as Latin America (which reported 107% year-over-year revenue growth), Nu Skin is moving forward with pre-opening activities in India in Q4, targeting a formal launch in mid-2026. Replicating successful strategies in new emerging markets represents a substantial growth opportunity for the global network.
“We are pleased with our solid performance in the second quarter… and are excited about our ongoing operational optimization efforts,” said Napierski. “We believe we are well positioned with our strategy to return to growth and drive shareholder value.”
