Skip to content
    NUS
    Earnings call· Jun 2026(Q2 FY26)

    NU SKIN ENTERPRISES Q2 FY26 earnings call NUS

    Aug 10, 2026 Source

    Executive summary

    Nu Skin Q2 FY26 — Prysm iO Rollout Progresses, India Launch Delayed, and Profitability Focus

    Nu Skin's second quarter saw continued progress in the global rollout of its Prysm iO intelligent anti-aging platform, with significant increases in device placements and scans, though initial usage patterns differed from expectations. The company maintained a focus on profitability, achieving adjusted EPS near guidance, but faced headwinds from foreign currency and non-cash impairment charges. Strategic priorities include refining the sales force compensation, optimizing the operating model, and delaying the India market launch to ensure long-term success.

    Highlights

    5

    • Prysm iO device placements increased by nearly 30% quarter-over-quarter to over 39,000 devices.

    • Prysm iO scans increased by 25% quarter-over-quarter to 2.5 million.

    • Adjusted EPS of $0.20 was near the midpoint of the previously communicated range.

    • Core Nu Skin gross margin improved to 77.7%, up 20 basis points from the prior year.

    • General and administrative expenses declined by $15.9 million year-over-year.

    Concerns

    5

    • Revenue of $320.1 million included an approximate 1% or $4 million foreign currency headwind.

    • Reported EPS was negative $5.14 due to a $78.9 million non-cash goodwill impairment and a $167.5 million non-cash deferred tax valuation allowance.

    • India's formal market launch was moved to the first half of 2027 to refine the business model and ensure readiness.

    • Recruiting and leadership development remain below the levels needed to return the business to sustainable growth.

    • Adjusted operating margin for the quarter was 6.1%, down from 8% in the prior year.

    Guidance & targets

    9
    CategoryTargetConfidence
    Q3 Revenue
    $310 million to $340 million
    high materiality
    High
    Q3 Adjusted EPS
    $0.10 to $0.20
    high materiality
    High
    Full-year 2026 Revenue
    $1.28 billion to $1.35 billion
    high materiality
    High
    Full-year 2026 Adjusted EPS
    $0.70 to $0.90
    high materiality
    High
    Prysm iO devices placed
    50,000 to 60,000
    medium materiality
    Medium
    Long-term core business gross margin
    approximately 80%
    medium materiality
    Medium
    Organizational transition costs
    $5 million to $10 million
    medium materiality
    High
    Full-year 2026 Adjusted Effective Tax Rate
    approximately 35%
    medium materiality
    High
    India formal market launch
    First half of 2027
    high materiality
    High

    Operational metrics

    17
    Revenue
    $320.1 milliondown from prior year
    Q2 FY26
    Adjusted EPS
    $0.20near midpoint of previously communicated range
    Q2 FY26
    Gross margin
    68.2%compared to 68.8% in prior year
    Q2 FY26
    Gross margin
    77.7%up 20 basis points from prior year
    Q2 FY26
    Selling expense as percentage of revenue
    33.7%compared to 33.2% in prior year
    Q2 FY26
    Selling expense as percentage of revenue
    39.8%down slightly from 40% in prior year
    Q2 FY26
    General and administrative expenses
    $15.9 milliondeclined year-over-year
    Q2 FY26
    General and administrative expenses as percentage of revenue
    28.4%compared to 27.6% in prior year
    Q2 FY26
    Adjusted operating margin
    6.1%compared to 8% in prior year
    Q2 FY26
    Effective tax rate
    36.6%compared to 23% in prior year
    Q2 FY26
    Cash and cash equivalents
    $189.6 million
    Q2 FY26 end
    Total debt
    $213.7 million
    Q2 FY26 end
    Dividends returned to shareholders
    $2.9 million
    Q2 FY26
    Share repurchase authorization remaining
    $137.3 million
    Q2 FY26 end
    Prysm iO devices placed
    39,000up nearly 30% quarter over quarter
    Q2 FY26
    Prysm iO scans
    2.5 millionup 25% over same quarterly comparison
    Q2 FY26
    ageLOC cumulative revenue
    $16 billion
    cumulative

    Industry KPIs

    1
    MetricValueDetails
    Productivity cost savings programMeaningful cost savingsqualitative

    Product announcements

    2
    ProductTypeDetails
    AI-enabled Prysm iO applaunch
    New range of products to support women's unique health needslaunch

    Risks & headwinds

    6
    Foreign currency headwindQ2 FY26

    approximate 1% or $4 million impact on Q2 revenue

    Mitigation: Not explicitly stated, but ongoing focus on profitability and cost optimization.

    Non-cash goodwill impairment chargeQ2 FY26

    $78.9 million

    Mitigation: Related to Rhyz manufacturing reporting unit, excluded from adjusted results as not indicative of ongoing operating performance.

    Non-cash valuation allowance on U.S. deferred tax assetsQ2 FY26

    $167.5 million

    Mitigation: Resulted from reassessment due to goodwill impairment, excluded from adjusted results.

    Difficult operating environmentOngoing

    Not quantified, but impacts sales force resilience.

    Mitigation: Redesigning compensation framework, new leadership achievement roadmap, increased investments in leadership achievements.

    Recruiting and leadership development below levels needed for sustainable growthOngoing

    Not quantified, but impacts business growth.

    Mitigation: Redesigning global compensation framework, introducing new leadership achievement roadmap, increased investments in leadership achievements.

    Mixed macroeconomic environment in Latin AmericaOngoing

    Not quantified

    Mitigation: Leaders demonstrating strong commitment and resilience.

    What to watch in Q3 FY26

    5

    India formal market launch

    Next quarter (leading up to H1 2027)
    CurrentMoved to H1 2027
    TargetProgress on business model refinement and operational readiness

    Why it matters

    India represents a significant long-term growth opportunity, and successful optimization of the business model is crucial for sustainable scaling.

    And as a result, we've decided to move our full market launch into the first half of 2027 to ensure business model, operational and field readiness for the significant long-term opportunity.

    Q&A highlights

    3

    What specific learnings led to the India launch delay, and what are the expected benefits of pushing it back?

    The delay allows for refinement of the business model to ensure Nu Skin's quality standards with local manufacturing, optimize logistics, integrate technology with local systems, and adapt the business model to local commercial practices for better network building. The goal is a more effective and sustainable long-term launch in H1 2027.

    “What we want to do as we evaluate the model moving forward is to ensure that the actual business model, in other words, how our affiliates will grow the business in India based upon our first 6 or 7 months of learning that we optimize in order to enable better network building capabilities in the market.”

    asked by Dave Storms · answered by Ryan Napierski

    2 min read6 chapters

    Detailed Narrative

    01

    Prysm iO Platform Evolution

    Nu Skin's next-gen anti-aging innovation, Prysm iO, has seen over 39,000 devices placed and 2.5 million scans, growing 30% and 25% QoQ respectively. Initial insights show sales leaders primarily use it as a wellness consultation tool rather than an in-home placement device, informing a refined commercial strategy. The company aims for 50,000 to 60,000 devices by year-end and will introduce an AI-enabled app in September for personalized assessments and plans.

    02

    Strategic Sales Force Empowerment

    The company is redesigning its global compensation framework to balance product selling, team building, and leadership development, with rollouts in Americas and Pacific in H1 2026 and other markets through 2027. A new leadership achievement roadmap will be introduced in the fall to provide clearer developmental pathways and stronger incentives, accompanied by increased investments in leadership achievements.

    03

    India Market Launch Refinement

    The formal launch in India has been moved to the first half of 2027. This delay is intentional, allowing for optimization of local product sourcing, logistics partnerships, technology integration, and refinement of the business model to better suit local commercial practices and enable more effective network building. The company believes this will position them for stronger, more sustainable growth.

    04

    Profitability and Operational Efficiency

    Nu Skin is focused on improving profitability through thoughtful price actions, supply chain efficiencies, and infrastructure improvements, targeting an 80% long-term gross margin in its core business. This includes strategic price increases and realigning manufacturing facilities to serve East and West markets more efficiently.

    05

    East-West Operating Model Transition

    To better support distinct market approaches, Nu Skin is transitioning from a 7-region structure to an East-West operating model over the next two quarters. This aims to create a more agile, efficient, and growth-oriented organization, expected to generate meaningful cost savings starting in H2 2026 with larger benefits in 2027, alongside $5 million to $10 million in cash-based organizational transition costs.

    06

    Anti-Aging Research and Innovation

    Building on nearly two decades of ageLOC science, Nu Skin is expanding its understanding of biological aging through new research and collaborations, informing its "aging response modulator science." This approach, incorporating epigenetics, is expected to fuel future innovations. Two new products supporting women's health needs will be introduced at the global live event in Japan.

    AI-generated summary of the company’s earnings call. Not investment advice.