Nu Skin Enterprises Inc (NYSE:NUS) reported fourth-quarter and full-year 2025 financial results that met its own guidance but fell short of Wall Street's expectations on the top line, leading to a sharp decline in its share price in after-hours trading.
Earnings and Revenue Versus Estimates
The direct-selling beauty and wellness company posted Q4 revenue of $370.3 million, a 16.9% decline from the prior-year period. This result came in below the analyst consensus estimate of approximately $386.5 million. On the bottom line, the company reported earnings per share (EPS) of $0.29, which was slightly below the estimated $0.303.
For the full year 2025, revenue was $1.49 billion, down 14.3% year-over-year. The company highlighted that earnings grew by more than 50% for the full year, a result of significant margin improvement and cost optimization efforts, even as sales faced pressure.
Market Reaction and Price Action
The market's reaction was decisively negative following the earnings release. In after-hours trading, the stock was down approximately 16.7%. This sell-off appears to be a direct response to the revenue miss and the ongoing challenges reflected in the company's declining sales force and customer metrics. The weak forward guidance further contributed to investor pessimism.
Key Elements from the Earnings Report
The earnings release painted a picture of a company in transition, grappling with top-line contraction while working to improve profitability and position for future growth.
- Declining Sales Force Metrics: The core driver of Nu Skin's revenue—its active sales force—continued to shrink in Q4.
- Customers: 748,796, down 10%
- Paid Affiliates: 129,311, down 11%
- Sales Leaders: 30,045, down 19%
- Improved Profitability: Despite lower sales, the company made significant strides in its margins.
- Gross margin improved to 70.7% from 62.7% in the prior-year quarter.
- Operating margin was 6.3%, a stark recovery from an operating loss of (11.9)% in Q4 2024.
- Strategic Initiatives for Growth: Management emphasized two key initiatives for a return to growth:
- The global rollout of the Prysm iO intelligent wellness platform, with a consumer launch planned for the second half of 2026.
- Preparations to enter the India market, with a full opening anticipated in the back half of 2026.
Forward Outlook Versus Analyst Estimates
The company provided guidance for Q1 and the full year 2026 that sets a cautious tone, with projections generally below current analyst expectations.
- Q1 2026 Outlook: Nu Skin forecasts revenue between $320 million and $340 million and EPS of $0.10 to $0.20. This revenue range is below the analyst sales estimate of approximately $360.4 million for the quarter.
- Full-Year 2026 Outlook: The company expects full-year revenue in a range of $1.35 billion to $1.50 billion and EPS between $0.80 and $1.20. The midpoint of this revenue guidance ($1.425 billion) is below the current analyst sales consensus of $1.545 billion. Management stated it anticipates a return to year-over-year revenue growth by the end of 2026.
For a detailed look at historical performance and future analyst estimates for Nu Skin Enterprises, you can review the earnings and estimates data here.
Conclusion
Nu Skin's Q4 report underscores the difficult balancing act the company faces. While aggressive cost management and the divestiture of its Mavely business have successfully restored profitability, the core challenge of reigniting sales growth remains unresolved. The significant after-hours stock decline reflects investor concern over the persistent decline in the sales force and the subdued revenue guidance for the coming year. The company's future now hinges on the successful execution and market adoption of its Prysm iO platform and its expansion into India, which it hopes will drive sustainable growth in the latter half of 2026 and beyond.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
