Nu Skin Enterprises (NYSE:NUS) reported first-quarter 2026 results that management said were in line with expectations, as the company continued to invest in its Prysm iO wellness platform and emerging-market expansion while navigating macroeconomic pressures on consumers and supply chains.
President and CEO Ryan Napierski said the quarter reflected “continued progress” toward Nu Skin’s vision of becoming “the world’s leading intelligent beauty and wellness platform.” He pointed to the sales leader introduction of Prysm iO, sustained growth in Latin America and improving trends in mainland China tied to the rollout of the Tru Face anti-aging product line.
At the same time, Napierski said some reporting segments remained under pressure from broader macroeconomic and industry dynamics. He noted improving brand affiliate confidence in several regions and year-over-year growth in new sales leaders exiting the quarter, which he described as indicators of “improving energy” around Nu Skin’s entrepreneurial opportunity and product innovations.
First-Quarter Results Meet Guidance
Interim CFO Chelsea Lantz said Nu Skin generated first-quarter revenue of $320.6 million, within the company’s guidance range, including a 1% favorable foreign currency impact. GAAP earnings per share were $0.04, while adjusted earnings per share were $0.14, excluding costs related to the decision to wind down the company’s separate BeautyBio business and other charges. Adjusted EPS was also in line with guidance.
Adjusted gross margin was 67.9%, compared with 67.8% in the prior-year period. Within Nu Skin’s core business, gross margin improved 20 basis points to 76.9%, which Lantz attributed to operational efficiency initiatives and product mix optimization.
Consolidated selling expense was 34.3% of revenue, up from 32.5% a year earlier. In the core Nu Skin business, selling expense rose to 40.5% from 38.7%, which management said was consistent with efforts to reward sales leader productivity through compensation plan enhancements. Lantz said the company expects core selling expense to remain around 40% as it supports sales leader engagement and top-line growth initiatives.
General and administrative expenses declined by $9 million year over year on an adjusted basis. As a percentage of revenue, however, G&A rose to 29.9% from 28.9%, reflecting investments in technology and emerging market expansion, including India. Adjusted operating margin was 3.6%, down from 6.4% in the prior year.
Prysm iO Positioned as a Key Growth Platform
Napierski framed Prysm iO as one of Nu Skin’s two main growth drivers, alongside emerging-market expansion. The device enables users to conduct a 15-second fingertip scan and receive a wellness assessment across nutrition, fitness, lifestyle and supplementation, according to the company.
Since Prysm iO’s initial introduction in December, Napierski said Nu Skin has generated nearly 2 million scans from more than 30,000 devices globally. He said the data is being combined with more than 20 million historical scans from the company’s BioPhotonic Scanner to improve wellness algorithms, assessment accuracy and product recommendations.
Management said early indicators suggest the platform could help increase subscriptions. Napierski said subscription volume was up 5% year over year, while the percentage of subscribers to total customers was up 14%. He also said products certified to raise a user’s Prysm iO score are outperforming total product sales, and the company’s LifePak brand grew more than 10% year over year.
Napierski cautioned that adoption will take time, saying sales leaders are transitioning from using Prysm primarily as a product demonstration tool to positioning it as a household wellness device. He said this shift carries “near-term switching costs” as sales leaders build new skills and move toward a more consultative role.
In response to an analyst question, Napierski said the most successful early use cases have involved sales leaders positioning Prysm iO as part of a broader wellness assessment. He said training includes device and product education, guidance on the consumer journey, follow-up through customer relationship management tools and a “train-the-trainer” approach. Certifications are in place in multiple Asian markets, including Japan, Korea and China, and the company is working to extend those practices elsewhere.
Emerging Markets Remain a Strategic Focus
Nu Skin’s second major growth driver is expansion in developing and emerging markets, including Latin America, Southeast Asia, China and India. Napierski said Latin America remains an important growth region, supported by localized product solutions and refinements to the sales compensation structure designed to provide earlier rewards for product sales and team building.
In mainland China, management cited continued improvement and growing leader engagement around the Tru Face anti-aging rollout. Napierski said the company also sees opportunities to scale its emerging-market model across Southeast Asia and additional parts of China.
India remains a longer-term opportunity. Napierski said the company is in a pre-market entry phase and is working to solidify operations, infrastructure, manufacturing, quality, logistics, distribution and product formulas ahead of a planned formal launch by the end of the year.
During the Q&A session, Napierski described India as “a very important mid to long-term market,” noting that the direct selling industry there is still relatively small but fast-growing. He said Nu Skin is not forecasting significant India revenue into its current guidance and views 2026 primarily as a learning period for that market.
Balance Sheet, Capital Allocation and Outlook
Lantz said Nu Skin completed a refinancing of its credit facilities during the quarter, extending maturities through 2031 and improving its cost of borrowing. Proceeds were used to repay existing debt.
The company returned approximately $8 million to shareholders during the quarter, including $3 million in dividends and $5 million in share repurchases. Nu Skin ended the quarter with $137.3 million remaining under its share repurchase authorization.
Asked about capital allocation, Lantz said the company’s priorities remain unchanged: funding the business, investing in strategic opportunities, maintaining liquidity and returning value to shareholders through dividends and buybacks as appropriate. She also said debt paydown remains a focus under the new facility.
For the second quarter, Nu Skin expects:
- Revenue of $330 million to $360 million, assuming a relatively neutral foreign currency impact.
- Earnings per share of $0.15 to $0.25.
Lantz said both metrics would represent sequential improvement from the first quarter. The company is maintaining its annual guidance and expects to provide more clarity after the second quarter.
Management said it remains mindful of inflationary pressures and consumer sentiment risks tied to tariffs, fuel price increases and geopolitical conditions. Napierski said prolonged tariff and inflation pressures have affected raw materials, margins and consumers over time. Lantz added that Nu Skin is not currently anticipating a significant impact in its guidance model but is monitoring the situation and working on plans to mitigate risk.
In closing remarks, Napierski said Nu Skin is encouraged by “green shoots” among sales leaders and by year-over-year growth in new sales leaders exiting the quarter, which he said supports the company’s plans to return to growth in the second half of the year.
About Nu Skin Enterprises (NYSE:NUS)
Nu Skin Enterprises, Inc is a Utah-based direct selling company that develops and distributes personal care products and dietary supplements. Operating through a network marketing model, Nu Skin offers a portfolio of wellness, anti-aging skin care, hair care and nutritional products designed to support healthy living and appearance. The company leverages independent distributors to market its offerings directly to consumers across multiple channels, including online platforms and localized events.
Founded in 1984 by Blake M.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Where Should You Invest $1,000 Right Now?
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
The article "Nu Skin Enterprises Q1 Earnings Call Highlights" first appeared on MarketBeat.
