Q4 2025 NU Skin Enterprises Inc Earnings Call

February 12, 2026

Operator: Good day, and thank you for standing by. Welcome to the Q4 2025 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question, please press star one one on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the call over to Nu Skin's Vice President, Treasurer, and Investor Relations, B.G. Hunt, please go ahead.

Speaker #1: Good day, and thank you for standing by. Welcome to the Q4 2025 conference call. At this time, all participants are in a listen-only mode.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question, please press star 11 on your telephone. You will then hear an automated message advising that your hand is raised.

Speaker #1: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the call over to NU SKIN President, Treasurer, and Investor Relations.

Speaker #1: B.G. Hunt, please go ahead.

Speaker #2: Thanks, Tanya. And good afternoon, everyone. I'm joined by Ryan Napierski, President and CEO, and James Thomas, CFO. We are excited to share NU SKIN's 2025 results and provide guidance for 2026.

B.G. Hunt: Thanks, Tanya, and good afternoon, everyone. I'm joined by Ryan Napierski, President and CEO, and James Thomas, CFO. We are excited to share Nu Skin's 2025 results and provide guidance for 2026. Before I turn the time over to Ryan, let me point out that on today's call, comments will be made that include forward-looking statements. These statements involve important risks and uncertainties, and actual results may differ materially from those discussed or anticipated. Please refer to today's earnings release and our SEC filings for a complete discussion of these risks. Also, during the call, certain financial numbers may be discussed that differ from comparable numbers obtained in our financial statements. We believe these non-GAAP numbers assist in comparing period-to-period results in a more consistent manner. Please refer to our investor website, ir.nuskin.com, for any required reconciliation of these non-GAAP numbers.

Speaker #2: Before I turn the time over to Ryan, let me point out that on today's call, comments will be made that include forward-looking statements. These statements involve important risks and uncertainties, and actual results may differ materially from those discussed or anticipated.

Speaker #2: Please refer to today's earnings release and our SEC filings for a complete discussion of these risks. Also, during the call, certain financial numbers may be discussed that differ from comparable numbers obtained in our financial statements.

Speaker #2: We believe these non-GAAP numbers assist in comparing period-to-period results in a more consistent manner. Please refer to our investor website, ir.nuskin.com, for any required reconciliation of these non-GAAP numbers.

Speaker #2: And with that, I'd like now to turn the call over to Ryan.

B.G. Hunt: With that, I'd like now to turn the call over to Ryan.

Speaker #3: Thanks, B.G. Good afternoon, everyone. Thanks for joining the call. I'm pleased to report that we delivered fourth quarter and 2025 results within our guidance range with a strong improvement in earnings, which resulted in a 40% increase in stock price for the year as we continue to focus on improving shareholder value amidst our strategic transformation.

Ryan Napierski: Thanks, B.G. Good afternoon, everyone. Thanks for joining the call. I'm pleased to report that we delivered Q4 and 2025 results within our guidance range with a strong improvement in earnings, which resulted in a 40% increase in stock price for the year as we continue to focus on improving shareholder value amidst our strategic transformation. This past year was very important for the company as we worked to realign our business following the successful transaction of Mavely, which further strengthened our balance sheet and has enabled us to more assertively pursue our vision of becoming the world's leading intelligent beauty, wellness, and lifestyle leadership opportunity platform. We've worked hard towards this by investing in the build-out of our intelligent wellness platform in preparation for the introduction of Prysm iO to the world, which is now underway.

Speaker #3: This past year was very important for the company as we worked to realign our business following the successful transaction of Maybelline, which further strengthened our balance sheet and has enabled us to more assertively pursue our vision of becoming the world's leading intelligent beauty wellness and lifestyle leadership opportunity platform.

Speaker #3: We've worked hard towards this by investing in the build-out of our intelligent wellness platform in preparation for the introduction of Prism IO to the world, which is now underway.

Speaker #3: We also initiated pre-market operations in India this past November in preparations for a formal market opening anticipated in late 2026 as we work towards expanding our footprint into this and other future growth opportunities in the emerging markets.

Ryan Napierski: We also initiated pre-market operations in India this past November in preparations for a formal market opening, anticipated in late 2026, as we work towards expanding our footprint into this and other future growth opportunities in the emerging markets. While transitioning our business to enable these strategic priorities has come with some inherent switching costs in 25 and into early 2026, as our company and channel realign business practices, we believe these shifts are critical to our mid- to long-term success to enable our return to growth by end of 2026. 2026 represents a pivotal year for Nu Skin as we accelerate our transformation towards our vision. We're entering this new chapter with three strategic priorities: One, to focus our business on the burgeoning $6.8 trillion dollar wellness revolution currently underway with the launch of our Prism IO Intelligent Wellness Platform.

Speaker #3: While transitioning our business to enable these strategic priorities has come with some inherent switching costs in '25 and into early 2026, as our company and channel realign business practices, we believe these shifts are critical to our mid to long-term success to enable our return to growth by end of 2026.

Speaker #3: 2026 represents a pivotal year for NU SKIN as we accelerate our transformation towards our vision. We're entering this new chapter with three strategic priorities.

Speaker #3: One, to focus our business on the burgeoning 6.8 trillion wellness revolution currently underway with the launch of our Prism IO intelligent wellness platform. Two, expanding our global reach into India and other critical emerging markets in years to come.

Ryan Napierski: Two, expanding our global reach into India and other critical emerging markets in years to come. And three, improving our operational performance and efficiencies. We are clearly defining the future growth trajectory of the company, which we believe will lead to a stronger core business and a return to meaningful long-term growth. First, let me dive into Prism IO, our truly intelligent wellness platform. Building on our Euromonitor acclaimed position as the world's leading beauty and wellness device systems brand, we've developed a revolutionary technology, which we believe will play a vital role in the rapidly expanding intelligent wellness market, empowering people around the world to more accurately measure, track, and improve their nutritional health. Prism IO represents the culmination of decades of nutraceutical-grade science and research and development across the integrated beauty and wellness industries.

Speaker #3: And three, improving our operational performance and efficiencies. We are clearly defining the future growth trajectory of the company which we believe will lead to a stronger core business and a return to meaningful long-term growth.

Speaker #3: First, let me dive into Prism IO, our truly intelligent wellness platform. Building on our Euro monitor acclaimed position as the world's leading beauty and wellness device systems brand, we've developed a revolutionary technology which we believe will play a vital role in the rapidly expanding intelligent wellness market.

Speaker #3: Empowering people around the world to more accurately measure, track, and improve their nutritional health. Prism IO represents the culmination of decades of nutraceutical-grade science and research and development across the integrated beauty and wellness industries.

Speaker #3: We've been working towards establishing ourselves as the intelligent beauty leader for the past several years with the introduction of Age Lock LumaSpa IO, WellSpa IO, and RenewSpa IO.

Ryan Napierski: We've been working towards establishing ourselves as the intelligent beauty leader for the past several years with the introduction of ageLOC LumiSpa iO, WellSpa iO, and RenuSpa iO. We're now taking these IoT-derived learnings and combining them with the proprietary science and technology behind our biophotonic scanner. This enables a much greater scale and depth of intelligent wellness in the introduction of Prysm iO, a non-invasive carotenoid measurement device that provides intelligent insights into nutritional health across four critical domains of diet, fitness, lifestyle, and nutritional supplementation. We've now amassed a nutritional health database already containing nearly 400 million intelligent wellness data points from 21 million scans of more than 10 million people in 50 countries around the globe. These data points are repeatable signals tied to real consumer behaviors that indicate profile and context, behavior and habits, and repeatable engagements and activations over time.

Speaker #3: We're now taking these IoT-derived learnings and combining them with the proprietary science and technology behind our biophotonic scanner. This enables a much greater scale and depth of intelligent wellness in the introduction of Prism IO, a non-invasive carotenoid measurement device that provides intelligent insights into nutritional health across four critical domains of diet, fitness, lifestyle, and nutritional supplementation.

Speaker #3: We've now amassed a nutritional health database already containing nearly 400 million intelligent wellness data points from 21 million scans of more than 10 million people in 50 countries around the globe.

Speaker #3: These data points are repeatable signals tied to real consumer behaviors that indicate profile and context, behavior and habits, and repeatable engagements and activations over time.

Speaker #3: All of this data compiled into a single-source represents what we believe to be the world's largest database on carotenoid health. In combination with our other beauty and wellness IoT-connected devices, where we've gathered more than 1 billion data points and insights, this trove of data will better inform consumer decisions and purchasing habits.

Ryan Napierski: All of this data, compiled into a single source, represents what we believe to be the world's largest database on carotenoid health. In combination with our other beauty and wellness IoT-connected devices, where we've gathered more than 1 billion data points and insights, this trove of data will better inform consumer decisions and purchasing habits. It also provides us with far deeper aggregated insights into the needs of our customers in order to empower their personalized wellness journeys, improve customer engagement, and lead to greater customer lifetime value. Our next chapter is now underway as we power these data insights with AI in our proprietary new intelligence database to inform three distinct applications. First, intelligent scoring, which will leverage AI to compare personal results against our database of 21 million scans. Second, intelligent insights, which will provide customers with personalized recommendations for their diet, fitness, lifestyle, nutritional supplementation.

Speaker #3: It also provides us with far deeper aggregated insights into the needs of our customers in order to empower, their personalized wellness journeys, improve customer engagement, and lead to greater customer lifetime value.

Speaker #3: Our next chapter is now underway as we power these data insights with AI in our proprietary new intelligence database. To inform three distinct applications: first, intelligent scoring, which will leverage AI to compare personal results against our database of 21 million scans.

Speaker #3: Second, intelligent insights, which will provide customers with personalized recommendations for their diet, fitness, lifestyle, and nutritional supplementation. And third, intelligent product recommendations, which will be based upon a customer's intelligent insights through which we provide nutritional supplementation options to help them in their wellness journey.

Ryan Napierski: And third, intelligent product recommendations, which will be based upon a customer's intelligent insights, through which we provide nutritional supplementation options to help them in their wellness journey. All of these insights culminate in Nu Skin developing a proprietary wellness biomarker based on skin carotenoid levels that we're calling the Nutritional Health Score, a universal score that gives customers insights into their nutritional health. We have long understood the importance of eating a healthy, balanced diet, including fruits and vegetables, avoiding harmful pollution, and making critical lifestyle choices. But until now, consumers have been unable to non-invasively measure at scale the impact of these choices. This revolutionary biomarker, offered through Prysm iO, provides critical nutritional health insights to consumers, something that has been missing in the wellness space until now. You deserve to know with Prysm iO. From a business perspective, the unit economics are compelling.

Speaker #3: All of these insights culminate in NU SKIN developing a proprietary wellness biomarker based on skin carotenoid levels that we're calling the Nutritional Health Score.

Speaker #3: A universal score that gives customers insights into their nutritional health. We have long understood the importance of eating a healthy, balanced diet, including fruits and vegetables, avoiding harmful pollution, and making critical lifestyle choices.

Speaker #3: But until now, consumers have been unable to non-invasively measure at scale the impact of these choices. This revolutionary biomarker offered through Prism IO provides critical nutritional health insights to consumers—something that has been missing in the wellness space until now.

Speaker #3: You deserve to know what Prism IO. From a business perspective, the unit economics are compelling. Prism IO serves as a powerful customer acquisition tool for our sales force, combined with subscription-based revenue that provides more than six times greater customer lifetime value.

Ryan Napierski: Prysm iO serves as a powerful customer acquisition tool for our sales force, combined with subscription-based revenue that provides more than 6 times greater customer lifetime value. For 2026, we are aiming to place more than 100,000 Prysm iO devices by the end of this year, since the introduction in late 2025. Looking further into the future, we envision Prysm iO becoming the leading platform for consumers to gather deeper, more intelligent insights into their personal and family's health. We have set an internal aspiration with our global sales force of bringing this cutting-edge wellness platform to 10 million healthy households by 2030, as we partner with our dedicated sales force in nearly 50 markets around the world to accomplish this goal. Our go-to-market rollout strategy is deliberately designed to maximize long-term success.

Speaker #3: For 2026, we are aiming to place more than 100,000 Prism IO devices by the end of this year, since the introduction in late '25.

Speaker #3: Looking further into the future, we envision Prism IO becoming the leading platform for consumers to gather deeper, more intelligent insights into their personal and family's health.

Speaker #3: We have set an internal aspiration with our global sales force of bringing this cutting-edge wellness platform to 10 million healthy households by 2030 as we partner with our dedicated sales force in nearly 50 markets around the world to accomplish this goal.

Speaker #3: Our go-to-market rollout strategy is deliberately designed to maximize long-term success. We're currently engaging aligning and activating our sales force in the first half of 2026 as they acquire and place Prism IO devices followed by consumer launches around the world beginning in the second half.

Ryan Napierski: We're currently engaging, aligning, and activating our sales force in the first half of 2026, as they acquire and place Prysm iO devices, followed by consumer launches around the world beginning in the second half. This approach prepares and aligns our dedicated channel as we scale to full consumer availability throughout the year. This is only the beginning for Prysm iO as we delve deeper into the vast dimensions of intelligent wellness, including its impact on beauty, which we all understand begins from the inside out. Our second strategic priority focuses on broadening our emerging market footprint with our formal opening of India, anticipated in late 2026. With more than 1.4 billion people and a rapidly growing middle class, India represents one of our most significant long-term geographic growth opportunities.

Speaker #3: This approach prepares and aligns our dedicated channel as we scale the full consumer availability throughout the year. This is only the beginning for Prism IO as we delve deeper into the vast dimensions of intelligent wellness, including its impact on beauty, which we all understand begins from the inside out.

Speaker #3: Our second strategic priority focuses on broadening our emerging market footprint, with our formal opening of India anticipated in late 2026. With more than 1.4 billion people and a rapidly growing middle class, India represents one of our most significant long-term geographic growth opportunities.

Speaker #3: Our ongoing growth in Latin America where we've built our emerging market model is providing greater insights into how we will expand our global footprint into new emerging markets.

Ryan Napierski: Our ongoing growth in Latin America, where we've built our emerging market model, is providing greater insights into how we will expand our global footprint into new emerging markets. This refined operating model for India includes a localized product portfolio priced for India's growing middle class, a modified compensation plan, and a digital-first infrastructure through our partnership with Infosys. We began pre-market entry operations in mid-November and are currently focused on three key areas. First, establishing operational infrastructure, including high-quality local manufacturing and effective market-wide logistics partnerships. Second, building a robust digital-first infrastructure across the market to enable fast, simple, and scalable business processes. Third, acquiring customers and brand affiliates to begin building brand awareness and demand generation ahead of the formal market opening.

Speaker #3: This refined operating model for India includes a localized

Speaker #1: Product portfolio priced for India's growing middle class . A modified compensation plan and a digital first infrastructure through our partnership with Infosys , we began pre entry operations in mid-November and are currently focused on three key areas .

Speaker #1: First , establishing operational infrastructure including high quality local manufacturing and effective market wide logistics partnerships Second , building robust digital first infrastructure across the market to enable fast , simple and scalable business processes .

Speaker #1: And third , acquiring customers and brand affiliates to begin building brand awareness and demand generation ahead of the formal market opening . Early learnings to date indicate that the market is advancing quickly towards a more developing status , with strong digital first aspirations .

Ryan Napierski: Early learnings to date indicate that the market is advancing quickly towards a more developing status with strong digital-first aspirations, though local infrastructure still has room to improve. Also, India consumers and micro-entrepreneurs are highly aspirational, but financially conservative, with beauty and wellness being more aspirational categories for the broader market, leading to typically longer sales and activation cycles. Nevertheless, we see great mid to long-term potential as we scale investment and operations along the way of our formal market opening later this year. So in summary, in 2026, it is all about accelerating our evolution towards our intelligent beauty and wellness platform vision as we launch Prysm iO around the globe and expand our emerging market footprint by continuing growth in Latin America and expanding into India.

Speaker #1: The local infrastructure still has room to improve Also , India consumers and micro entrepreneurs are highly aspirational , but financially conservative , with beauty and wellness being more aspirational .

Speaker #1: Categories for the broader market, leading to typically longer sales and activation cycles. Nevertheless, we see great mid- to long-term potential as we scale investment and operations along the way of our formal market opening later this year.

Speaker #1: So in summary , in 2026 , it is all about accelerating our evolution towards our intelligent beauty and wellness platform vision . As we launch Prizm I o around the globe and expand our emerging market footprint by continuing growth in Latin America and expanding into India .

Speaker #1: In late 2026 . As we pursue these strategic growth priorities . We will continue to drive our third critical priority of improving operational performance and efficiency to return value to shareholders , which James will discuss in just a moment Together , these initiatives advance our vision of becoming the world's leading intelligent beauty , wellness and lifestyle leadership opportunity platform and create a powerful foundation for sustainable growth .

Ryan Napierski: In late 2026, as we pursue these strategic growth priorities, we will continue to drive our third critical priority of improving operational performance and efficiency to return value to shareholders, which James will discuss in just a moment. Together, these initiatives advance our vision of becoming the world's leading intelligent beauty, wellness, and lifestyle leadership opportunity platform, and create a powerful foundation for sustainable growth. Our dedicated global sales force plays a crucial role in our strategic transformation as awareness generators, intelligent wellness consultants, and community and network builders. We are empowering them with greater intelligence, consisting of data and insights into their business as we transform into a technology-enabled, intelligent beauty and wellness platform. Our near-term focus remains on engaging, aligning, and activating our sales force around these transformational opportunities, while maintaining disciplined execution and financial performance, as we seek to return to growth by year's end.

Speaker #1: Our dedicated global sales force plays a crucial role in our strategic transformation as awareness generators , intelligent wellness consultants and community and network builders .

Speaker #1: We are empowering them with greater intelligence consisting of data and insights into their business . As we transform into a technology enabled intelligent beauty and wellness platform .

Speaker #1: Our near-term focus remains on engaging, aligning, and activating our sales force around these transformational opportunities, while maintaining disciplined execution and financial performance.

Speaker #1: As we seek to return to growth by year's end . So with that , I'll turn the time over to James to discuss our 2020 financial performance and outlook for 26 in greater detail .

Ryan Napierski: So with that, I'll turn the time over to James to discuss our 2025 financial performance and outlook for 2026 in greater detail. James?

Speaker #1: James .

Speaker #2: Thank you , Ryan , and thanks to everyone for joining us today . Before I walk through the quarter , I want to begin with the full year story because at best reflects our execution in 2025 on an adjusted basis .

James D. Thomas: Thank you, Ryan, and thanks to everyone for joining us today. Before I walk through the quarter, I want to begin with the full year story, because it best reflects our execution in 2025. On an adjusted basis, we delivered $1.27 in earnings per share, up from $0.84 last year, representing about 51% growth. That improvement was driven by gross margin expansion throughout the year, ongoing selling expense optimization, and disciplined G&A management. Importantly, we achieved this while also strengthening our balance sheet and generating free cash flows to provide meaningful returns to our shareholders. I'll now cover Q4 results, then come back to a few full year highlights and conclude with our outlook for the Q1 and full year of 2026. I'll be speaking to adjusted non-GAAP financial measures.

James Thomas: Thank you, Ryan, and thanks to everyone for joining us today. Before I walk through the quarter, I want to begin with the full year story, because it best reflects our execution in 2025. On an adjusted basis, we delivered $1.27 in earnings per share, up from $0.84 last year, representing about 51% growth. That improvement was driven by gross margin expansion throughout the year, ongoing selling expense optimization, and disciplined G&A management. Importantly, we achieved this while also strengthening our balance sheet and generating free cash flows to provide meaningful returns to our shareholders. I'll now cover Q4 results, then come back to a few full year highlights and conclude with our outlook for the Q1 and full year of 2026. I'll be speaking to adjusted non-GAAP financial measures.

Speaker #2: We delivered $1.27 in earnings per share , up from $0.84 last year , representing about 51% growth . That improvement was driven by gross margin expansion throughout the year .

Speaker #2: Ongoing selling expense optimization and disciplined G&A management Importantly , we achieved this while also strengthening our balance sheet and generating free cash flow to provide meaningful returns to our shareholders .

Speaker #2: I'll now cover fourth quarter results . Then come back to a few full year highlights and conclude with our outlook for the first quarter and full year 2026 .

Speaker #2: I'll be speaking to adjusted non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures can be found on our Investor Relations website.

James D. Thomas: Reconciliations to the most directly comparable GAAP measures can be found on our investor relations website. For the fourth quarter, we delivered revenue inside our guidance range at $370 million, with approximately $1 million headwind from foreign currency. Earnings per share was $0.29 in line with expectations, which closed out our annual performance near the high end of our original guidance range. Our gross margin for the quarter was 70.7%, compared to 71.4% in the prior year. The decrease was primarily due to revenue mix of Rhyz entities and Nu Skin segments. Within our core Nu Skin business, gross margin was 77.6%, up 100 basis points from the prior year.

James Thomas: Reconciliations to the most directly comparable GAAP measures can be found on our investor relations website. For the fourth quarter, we delivered revenue inside our guidance range at $370 million, with approximately $1 million headwind from foreign currency. Earnings per share was $0.29 in line with expectations, which closed out our annual performance near the high end of our original guidance range. Our gross margin for the quarter was 70.7%, compared to 71.4% in the prior year. The decrease was primarily due to revenue mix of Rhyz entities and Nu Skin segments. Within our core Nu Skin business, gross margin was 77.6%, up 100 basis points from the prior year.

Speaker #2: For the fourth quarter . We delivered revenue inside our guidance range at $370 million , with approximately $1 million headwind , $1 million headwind from foreign currency .

Speaker #2: Earnings per share was $0.29, in line with expectations, which closed out our annual performance near the high end of our original guidance range.

Speaker #2: Our gross margin for the quarter was 70.7%, compared to 71.4% in the prior year. The decrease was primarily due to the revenue mix of RISE entities and new skin segments.

Speaker #2: Within our core new skin business . Gross margin was 77.6% , up 100 basis points from the prior year . Selling expense was 35.5% for the quarter , down from 37.1% in the prior year , primarily reflecting mix between our core business and rise , as well as the prior year period , including mainly within the core new skin business .

James D. Thomas: Selling expense was 35.5% for the quarter, down from 37.1% in the prior year, primarily reflecting mix between our core business and Rhyz, as well as the prior year period, including Mavely. Within the core Nu Skin business, selling expense was 40.8%, consistent with our compensation plan alignment and continued progress in leader engagement. General and administrative expenses remain well managed and aligned with our efficiency initiatives, and operating margin for the quarter was 6.3%. With that view on Q4, let me step back to the full year results. For the full year, we generated $1.49 billion in revenue, landing within our original guidance with a foreign currency headwind of approximately $13.4 million.

James Thomas: Selling expense was 35.5% for the quarter, down from 37.1% in the prior year, primarily reflecting mix between our core business and Rhyz, as well as the prior year period, including Mavely. Within the core Nu Skin business, selling expense was 40.8%, consistent with our compensation plan alignment and continued progress in leader engagement. General and administrative expenses remain well managed and aligned with our efficiency initiatives, and operating margin for the quarter was 6.3%. With that view on Q4, let me step back to the full year results. For the full year, we generated $1.49 billion in revenue, landing within our original guidance with a foreign currency headwind of approximately $13.4 million.

Speaker #2: Selling expense was 40.8% , consistent with our compensation plan alignment , and continued progress in leader engagement General and administrative expenses remain well managed and aligned with our efficiency initiatives and operating margin for the quarter was 6.3% .

Speaker #2: With that view on Q4 , let me step back to the full year results for the full year we generated $1.49 billion in revenue landing within our original guidance with a foreign currency headwind of approximately $13.4 million .

Speaker #2: Within our core new skin business , gross margin finished at 77.4% and 80 basis point improvement over the prior year . We delivered sequential improvement through the first three quarters , and as expected , gross margin was modestly lower by ten basis points in the fourth quarter due to a higher promotional period Overall , we're seeing the benefits of portfolio optimization and product mix improvements , and we believe with our current inventory levels , that remains opportunity to expand gross margin further .

James D. Thomas: Within our core Nu Skin business, gross margin finished at 77.4%, an 80 basis point improvement over the prior year. We delivered sequential improvement through the first three quarters, and as expected, gross margin was modestly lower by 10 basis points in the fourth quarter due to a higher promotional period. Overall, we're seeing the benefits of portfolio optimization and product mix improvements, and we believe with our current inventory levels, there remains opportunity to expand gross margin further in 2026. Core Nu Skin selling expense for the year was 40.3%. Looking ahead, we expect selling expense in the core business to remain around 40% as we continue to drive adoption of our enhanced compensation plan and focus investments on initiatives with the greatest impact on supporting top-line growth.

James Thomas: Within our core Nu Skin business, gross margin finished at 77.4%, an 80 basis point improvement over the prior year. We delivered sequential improvement through the first three quarters, and as expected, gross margin was modestly lower by 10 basis points in the fourth quarter due to a higher promotional period. Overall, we're seeing the benefits of portfolio optimization and product mix improvements, and we believe with our current inventory levels, there remains opportunity to expand gross margin further in 2026. Core Nu Skin selling expense for the year was 40.3%. Looking ahead, we expect selling expense in the core business to remain around 40% as we continue to drive adoption of our enhanced compensation plan and focus investments on initiatives with the greatest impact on supporting top-line growth.

Speaker #2: In 2026 . Core new skin selling expense for the year was 40.3% . Looking ahead , we expect selling expense in the core business to remain around 40% as we continue to drive adoption of our enhanced compensation plan and focus investments on initiatives with the greatest impact on supporting top line growth On G&A , we remain committed to managing overhead in line with revenue while maintaining an appropriately scaled cost structure These actions drove 26% growth in operating margin compared to the prior year Adjusted operating margin was 6.7% , up 140 basis points from 5.3% in the prior year .

James D. Thomas: On G&A, we remain committed to managing overhead in line with revenue while maintaining an appropriately scaled cost structure. These actions drove 26% growth in operating margin compared to the prior year. Adjusted operating margin was 6.7%, up 140 basis points from 5.3% in the prior year. Below the line, we benefited from an R&D tax credit, which reduced tax expense by approximately $8.1 million, resulting in a reported effective tax rate of 18.8%. Finally, adjusted earnings per share was $1.27, excluding the Mavely gain and other items, compared to $0.84 last year, excluding restructuring and other charges. Stepping back, the actions we've taken have strengthened our foundation and improved the flexibility of our cost structure.

James Thomas: On G&A, we remain committed to managing overhead in line with revenue while maintaining an appropriately scaled cost structure. These actions drove 26% growth in operating margin compared to the prior year. Adjusted operating margin was 6.7%, up 140 basis points from 5.3% in the prior year. Below the line, we benefited from an R&D tax credit, which reduced tax expense by approximately $8.1 million, resulting in a reported effective tax rate of 18.8%. Finally, adjusted earnings per share was $1.27, excluding the Mavely gain and other items, compared to $0.84 last year, excluding restructuring and other charges. Stepping back, the actions we've taken have strengthened our foundation and improved the flexibility of our cost structure.

Speaker #2: Below the line, we benefited from an R&D tax credit, which reduced tax expense by approximately $8.1 million, resulting in a reported effective tax rate of 18.8%.

Speaker #2: Finally , adjusted earnings per share was $1.27 , excluding the Mavli gain and other items , compared to $0.84 last year . Excluding restructuring and other charges Stepping back , the actions we've taken have strengthened our foundation and improved the flexibility of our cost structure .

Speaker #2: We're better aligned to our revenue base and will continue to rightsize expenses and prioritize investments as trends evolve . With that foundation in place , we're focused on execution and building long term value Now , turning to the balance sheet and cash flow .

James D. Thomas: We're better aligned to our revenue base, and we'll continue to rightsize expenses and prioritize investments as trends evolve. With that foundation in place, we're focused on execution and building long-term value. Now, turning to the balance sheet and cash flow. We continue to strengthen liquidity and improve flexibility through disciplined capital management. We ended the quarter with approximately $240 million in cash and reduced outstanding debt to $224 million, resulting in an expanded net cash position. For the full year, cash flow from operations was $80.3 million, reflecting disciplined working capital management and improved profitability. We also returned capital to shareholders, including approximately $11.8 million in dividends and $20 million of share repurchases during the year. We have $142.3 million remaining under our current share repurchase authorization.

James Thomas: We're better aligned to our revenue base, and we'll continue to rightsize expenses and prioritize investments as trends evolve. With that foundation in place, we're focused on execution and building long-term value. Now, turning to the balance sheet and cash flow. We continue to strengthen liquidity and improve flexibility through disciplined capital management. We ended the quarter with approximately $240 million in cash and reduced outstanding debt to $224 million, resulting in an expanded net cash position. For the full year, cash flow from operations was $80.3 million, reflecting disciplined working capital management and improved profitability. We also returned capital to shareholders, including approximately $11.8 million in dividends and $20 million of share repurchases during the year. We have $142.3 million remaining under our current share repurchase authorization.

Speaker #2: We continue to strengthen liquidity and improve flexibility through disciplined capital management. We ended the quarter with approximately $240 million in cash and reduced outstanding debt to $224 million, resulting in an expanded net cash position for the full year.

Speaker #2: Cash flow from operations was $80.3 million , reflecting disciplined working capital management and improved profitability . We also returned capital to shareholders , including approximately $11.8 million in dividends and $20 million of share repurchases during the year .

Speaker #2: We have $142.3 million remaining under our current share repurchase authorization . Our capital allocation priorities remain consistent . Investing in innovation and growth , maintaining a strong balance sheet while continuing to deliver , and returning capital to shareholders where appropriate Looking ahead , we remain focused on executing on our strategic priorities to drive growth .

James D. Thomas: Our capital allocation priorities remain consistent, investing in innovation and growth, maintaining a strong balance sheet while continuing to delever, and returning capital to shareholders where appropriate. Looking ahead, we remain focused on executing on our strategic priorities to drive growth by the end of 2026. The launch of our Prysm iO intelligent wellness device remains on track for full consumer launch in the back half of the year, representing a major milestone in our transformation towards personalized AI-powered wellness. We're also encouraged by continued momentum in developing markets, particularly Latin America, which remains a strong performer, and by our upcoming full market opening in India, where we're laying the groundwork for an expansive opportunity for our brand affiliates. For our RISE segments, we are projecting year-over-year growth, supported by expanding capabilities and capacity for manufacturing.

James Thomas: Our capital allocation priorities remain consistent, investing in innovation and growth, maintaining a strong balance sheet while continuing to delever, and returning capital to shareholders where appropriate. Looking ahead, we remain focused on executing on our strategic priorities to drive growth by the end of 2026. The launch of our Prysm iO intelligent wellness device remains on track for full consumer launch in the back half of the year, representing a major milestone in our transformation towards personalized AI-powered wellness. We're also encouraged by continued momentum in developing markets, particularly Latin America, which remains a strong performer, and by our upcoming full market opening in India, where we're laying the groundwork for an expansive opportunity for our brand affiliates. For our RISE segments, we are projecting year-over-year growth, supported by expanding capabilities and capacity for manufacturing.

Speaker #2: By the end of 2026, the launch of our PRISM I Intelligent Wellness Device is on track for full consumer launch in the back half of the year, representing a major milestone in our transformation towards personalized, AI-powered wellness.

Speaker #2: We're also encouraged by continued momentum in developing markets , particularly Latin America , which remains a strong performer , and by our upcoming full market opening in India , where we're laying the groundwork for an expansive opportunity for our brand affiliates .

Speaker #2: For our RHI segments , we are projecting year over year over year growth , supported by expanding capabilities and capacity for manufacturing . We are also evaluating opportunities with live DNA to maximize our return on investment with with those priorities in mind .

James D. Thomas: We are also evaluating opportunities with LifeDNA to maximize our return on investment. With that, with those priorities in mind, let me share our expectations for the full year and Q1 of 2026. For 2026, we project revenue in the range of $1.35 billion to $1.5 billion, including an estimated foreign exchange headwind of $13 million to $15 million, or approximately 1%. We anticipate earnings per share between $0.80 and $1.20, reflecting an expected tax rate of 35%. We project Q1 revenue between $320 million and $340 million, factoring in an expected foreign currency headwind of approximately 1%. Reported earnings per share is anticipated to be in the range of $0.10 to $0.20.

James Thomas: We are also evaluating opportunities with LifeDNA to maximize our return on investment. With that, with those priorities in mind, let me share our expectations for the full year and Q1 of 2026. For 2026, we project revenue in the range of $1.35 billion to $1.5 billion, including an estimated foreign exchange headwind of $13 million to $15 million, or approximately 1%. We anticipate earnings per share between $0.80 and $1.20, reflecting an expected tax rate of 35%. We project Q1 revenue between $320 million and $340 million, factoring in an expected foreign currency headwind of approximately 1%. Reported earnings per share is anticipated to be in the range of $0.10 to $0.20.

Speaker #2: Let me share our expectations for the full year and first quarter of 2026 . For 2026 , we project revenue in the range of $1.35 billion to $1.5 billion , including an estimated foreign exchange headwind of 13 million to $15 million , or approximately 1% .

Speaker #2: We anticipate earnings per share between $0.80 and $1.20 , reflecting expected tax rate of 35% . We project first quarter revenue between 300 and $20 million and $340 million , factoring in an expected foreign currency headwind of approximately 1% , reported earnings per share is anticipated to be in the range of $0.10 to $0.20 .

Speaker #2: As a reminder , Q1 is historically our lowest quarter due to the seasonality of our business . So , to wrap up , 2025 demonstrated the strength of our execution .

James D. Thomas: As a reminder, Q1 is historically our lowest quarter due to the seasonality of our business. So to wrap up, 2025 demonstrated the strength of our execution. We delivered meaningful earnings and operating margin improvement, generated solid cash flow, strengthened the balance sheet and returned capital to shareholders, all while continuing to invest in the initiatives that position Nu Skin for the future. As we look to 2026, we're focused on advancing our strategic priorities, driving continued profitability, scaling our momentum in developing markets, and progressing our innovation pipeline, including the Prysm iO launch, which we believe will meaningfully strengthen our affiliate value proposition and enhance their ability to attract and retain customers. While we remain mindful of ongoing top-line pressures in certain markets, we believe the operating foundation we've built gives us the flexibility to invest where we see the best returns can deliver long-term value.

James Thomas: As a reminder, Q1 is historically our lowest quarter due to the seasonality of our business. So to wrap up, 2025 demonstrated the strength of our execution. We delivered meaningful earnings and operating margin improvement, generated solid cash flow, strengthened the balance sheet and returned capital to shareholders, all while continuing to invest in the initiatives that position Nu Skin for the future. As we look to 2026, we're focused on advancing our strategic priorities, driving continued profitability, scaling our momentum in developing markets, and progressing our innovation pipeline, including the Prysm iO launch, which we believe will meaningfully strengthen our affiliate value proposition and enhance their ability to attract and retain customers. While we remain mindful of ongoing top-line pressures in certain markets, we believe the operating foundation we've built gives us the flexibility to invest where we see the best returns can deliver long-term value.

Speaker #2: We delivered meaningful earnings and operating margin improvement , generated solid cash flow , strengthened the balance sheet and return capital to shareholders . All while continuing to invest in the initiatives that position new skin for the future .

Speaker #2: As we look to 2026 , we're focused on advancing our strategic priorities , driving continued profitability , scaling our momentum in developing markets and progressing our innovation pipeline , including the prism .

Speaker #2: I launch , which we believe will meaningfully strengthen our affiliate value proposition and enhance their ability to attract and retain customers While we remain mindful of ongoing top line pressures in certain markets , we believe the operating foundation we've built gives us the flexibility to invest where we see the best returns can deliver long term value .

Speaker #2: And with that operator , we'll now open up the call for questions

James D. Thomas: With that, operator, we'll now open up the call for questions.

James Thomas: With that, operator, we'll now open up the call for questions.

Speaker #3: Certainly as a reminder to ask a question , please press star one one on your telephone and wait for your name to be announced .

Operator: Certainly. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile our Q&A roster. Our first question will be coming from Dave Storms of Stonegate. Your line is open.

Speaker #3: To withdraw your question, please press star one one again. Please stand by while we compile our Q&A roster, and our first question will be coming from Dave Storms of Stonegate.

Speaker #3: Your line is open

Speaker #4: Hello, and thank you all for taking my questions.

Dave Storms: Hello, and thank you all for taking my questions.

Speaker #1: Hi Dave .

James D. Thomas: Hi, Dave.

James Thomas: Hi, Dave.

Speaker #4: I wanted to start, maybe, with diving into Prism a little bit more. I'm very excited for that to kind of come online towards the end of the year.

Dave Storms: Wanted to start maybe with diving into Prysm iO a little bit more. Very excited for that to kind of come online towards the end of the year, but would love to get a little more color around maybe a revenue guide or any of your thoughts on, you know, what Prysm iO can really contribute to the top line. It sounds like there could be a lot of recurrent revenue there, and just love to hear more thoughts around that.

Speaker #4: We would love to get a little more color around , maybe a revenue guide or any of your thoughts on what prism can really contribute to the top line ?

Speaker #4: It sounds like there could be a lot of recurrent revenue there, and I'd just love to hear more thoughts around that.

Speaker #1: Yeah , yeah , the you know , as I was discussing , we're looking from the key to Prism as we envision it is the placement of these devices that will lead to subscriptions from customers over time .

James D. Thomas: Yeah, yeah. You know, as I was discussing, we're looking from the key to Prysm, as we envision it, is the placement of these devices that will lead to subscriptions from customers over time. And so that really is the unit economic model that we're driving here. And so, as I mentioned, we have the 100,000 estimate that we anticipate placing through year's end. And of that, you know, subscription uptake, which we're still really learning, Dave, it's, I mean, it's so early, we're only a month into this, what that will actually be. So we're not really yet at the point of saying exactly what the revenue conversion will be.

James Thomas: Yeah, yeah. You know, as I was discussing, we're looking from the key to Prysm, as we envision it, is the placement of these devices that will lead to subscriptions from customers over time. And so that really is the unit economic model that we're driving here. And so, as I mentioned, we have the 100,000 estimate that we anticipate placing through year's end. And of that, you know, subscription uptake, which we're still really learning, Dave, it's, I mean, it's so early, we're only a month into this, what that will actually be. So we're not really yet at the point of saying exactly what the revenue conversion will be.

Speaker #1: And so, that really is the unit economic model that we're driving here. And so, as I mentioned, we have the 100,000 estimate that we anticipate placing through year's end.

Speaker #1: And of that subscription uptake , which we're still really learning . Dave , I mean , it's so early . We're only a month into this .

Speaker #1: What that will actually be . So we're not really yet at the point of saying exactly what the what the revenue conversion will be I think one way to look at this over time is that we've historically on a revenue split basis , have , you know , our business has been roughly half beauty and half wellness with wellness leading , you know , much more towards subscription revenue .

James D. Thomas: I think one way to look at this over time is that we've historically, on a revenue split basis, half, you know, our business has been roughly half beauty and half wellness, with wellness leading, you know, much more towards subscription revenue. And so we see Prysm really, you know, leading us more and more into the subscription realm for the wellness side. And then, of course, as we apply it into beauty, later on, we see it playing there. So we're not giving direct revenue guidance on it yet for Prysm, although I think the math for just the device is pretty simple. You know, I think the market value right now per device is around $300, and, you know, we anticipate 100,000 units, so that would be like $30 million in devices.

James Thomas: I think one way to look at this over time is that we've historically, on a revenue split basis, half, you know, our business has been roughly half beauty and half wellness, with wellness leading, you know, much more towards subscription revenue. And so we see Prysm really, you know, leading us more and more into the subscription realm for the wellness side. And then, of course, as we apply it into beauty, later on, we see it playing there. So we're not giving direct revenue guidance on it yet for Prysm, although I think the math for just the device is pretty simple. You know, I think the market value right now per device is around $300, and, you know, we anticipate 100,000 units, so that would be like $30 million in devices.

Speaker #1: And so we see prism really , you know , leading us more and more into the subscription realm for the wellness side . And then of course , as we apply it into beauty later on , we see it playing there .

Speaker #1: So we're not giving direct revenue guidance on it yet . For Prism , although I think the math for just the device is pretty simple .

Speaker #1: You know , I think the market value right now per device is around 300 USD . And , you know , we had paid 100,000 units .

Speaker #1: So that would be like 30 million in devices . But how we then monetize that through subscriptions , we'll be learning that . James .

James D. Thomas: But how we then monetize that through subscriptions, we'll be learning that. James, anything you'd add to that? Yeah, Dave, appreciate the question. I think as you're thinking about it from a modeling perspective going forward, it's gonna be centered around, like, the timing of the full consumer launch, where we would start to begin to see scale with the placement of units through our leaders in the first half, and then full consumer launch towards the back half of 2026, is how we see that coming in. And so we're looking at a stronger back half forecast in Q3 and Q4 of 2026.

James Thomas: But how we then monetize that through subscriptions, we'll be learning that. James, anything you'd add to that? Yeah, Dave, appreciate the question. I think as you're thinking about it from a modeling perspective going forward, it's gonna be centered around, like, the timing of the full consumer launch, where we would start to begin to see scale with the placement of units through our leaders in the first half, and then full consumer launch towards the back half of 2026, is how we see that coming in. And so we're looking at a stronger back half forecast in Q3 and Q4 of 2026.

Speaker #1: Anything you'd add to that?

Speaker #2: Yeah . Dave , appreciate the question . I think I think as you're thinking about it from a modeling perspective , going forward , it's going to be centered around like the timing of the full consumer launch , where we would start to begin to see scale with the placement of units through our leaders in the first half and then full consumer launch towards the the , the back half of 2026 is how we see that coming in .

Speaker #2: And so we're looking at a stronger back half forecast in Q3 and Q4 of 2026.

Speaker #4: That's great . I really appreciate that . I have a second question here in a similar vein around India , maybe just a little more around your thoughts of what a bull case or a bear case could be there .

Dave Storms: That's great. I really appreciate that. I have a second question here in the similar vein around India. Maybe just a little more around your thoughts of what a bull case or a bear case could be there. It sounds like, you know, if you get the infrastructure set up, there could be a lot of room to run early there. Maybe just, you know, how quickly you could get that set up, you know, what the key hurdles could be. Anything like that would be very helpful.

Speaker #4: It sounds like if you get the infrastructure set up, there could be a lot of room to run early there. Maybe just how quickly you could get that set up.

Speaker #4: You know, what key hurdles could be? Anything like that would be very helpful.

Speaker #1: Yeah , yeah . India for us , we do see very , you know , very good long term potential or mid to long term I think for you know , as we mentioned we're really focused on getting all of the local infrastructure set up properly .

James D. Thomas: Yeah, yeah. India, for us, we do see very, you know, very good long-term potential, or mid- to long-term. I think... You know, as we mentioned, we're really focused on getting-

James Thomas: Yeah, yeah. India, for us, we do see very, you know, very good long-term potential, or mid- to long-term. I think... You know, as we mentioned, we're really focused on getting-

Ryan Napierski: ... all of the local infrastructure set up properly. I mean, local manufacturing is one of our top priorities there because the, obviously, import duties are so high, and we want to ensure high quality, great products to at the right price there. And so that's our big focus. Now, logistics throughout a pretty, you know, diverse market, are critical, and then, of course, the digital infrastructure. So 2026 is very much about that. We don't anticipate the formal launch being until late in 2026, so we're being pretty, very conservative from a revenue input perspective on the actual impact for the year. James, any more detail we-

Speaker #1: I mean local manufacturing is one of our top priorities . There because the obviously import duties are so high and we want to ensure high quality , great products at the right price .

Speaker #1: There . And so that's our big focus now . Logistics throughout a pretty , you know , diverse market , our our critical .

Speaker #1: And then, of course, the digital infrastructure. So '26 is very much about that. We don't anticipate the formal launch being until late in '26.

Speaker #1: So we're being pretty very conservative from a revenue input perspective on on the actual impact for the year . James , any more detail ?

Speaker #1: We

Speaker #2: Know . I mean , India , for us is an exciting opportunity for our sales leaders . It's an opportunity to go in and expand in a region that we have not been a part of .

James D. Thomas: No, I mean, India, for us, is an exciting opportunity for our sales leaders. It's an opportunity to go in and expand in a region that we have not been a part of. For us, for the year, I mean, we're being a little bit cautious in how much we're actually forecasting in India, so we've tailored that back. But we believe in the high long-term potential of that market and our ability to go in with a developing market strategy to go in and penetrate into India and look forward to that even beyond 2026 into 2027, to see how far we can go.

James Thomas: No, I mean, India, for us, is an exciting opportunity for our sales leaders. It's an opportunity to go in and expand in a region that we have not been a part of. For us, for the year, I mean, we're being a little bit cautious in how much we're actually forecasting in India, so we've tailored that back. But we believe in the high long-term potential of that market and our ability to go in with a developing market strategy to go in and penetrate into India and look forward to that even beyond 2026 into 2027, to see how far we can go.

Speaker #2: And so for us , for the year , I mean , we're being a little bit cautious in how much we're actually forecasting in India .

Speaker #2: So we've tailored that back . But we believe in the high long term potential of that market . And our ability to go in with the developing market strategy to go in and penetrate into India and look forward to that even beyond 26 into 27 , to see how far we can go

Speaker #4: Understood . I appreciate that commentary , James . I did have maybe a another question here for you . I would love to get your thoughts on maybe some of the puts and takes in the guidance and where you see maybe key spots of leverage , you know , whether that's the PNA or , you know , just kind of your thoughts around guidance .

Dave Storms: Understood. I appreciate that commentary. James, I did have maybe another question here for you. I would love to get your thoughts on maybe some of the puts and takes in the guidance and where you see maybe key spots of leverage, you know, whether that's the GNA or you know, just kind of your thoughts around guidance.

Speaker #2: Yeah . Appreciate that . Dave . You know , looking forward to 2026 . We're we are modeling . You know , as per our guide in the release , we are 1% growth on the high end of our guidance and a down 9% on the low end of guidance as we look due to the weighting of the timing of the launch of the new product , introductions towards the back half of the year .

James D. Thomas: Yeah, appreciate that, Dave. You know, looking forward to 2026, we are modeling, you know, as per our guide in the release, we are about 1% growth on the high end of our guidance and a down 9% on the low end of guidance as we look due to the weighting of, or the timing of the launch of the new product introductions towards the back half of the year. So looking to exit 2026 with growth towards the Q3 year-over-year growth to Q3 to Q4 timeframe against our compares in 2025. So starting at the top line of revenue, when we come down, you know, we look at gross margin, and we, you know, this last year, even starting in 2024, we started to see expansion in our gross margin.

James Thomas: Yeah, appreciate that, Dave. You know, looking forward to 2026, we are modeling, you know, as per our guide in the release, we are about 1% growth on the high end of our guidance and a down 9% on the low end of guidance as we look due to the weighting of, or the timing of the launch of the new product introductions towards the back half of the year. So looking to exit 2026 with growth towards the Q3 year-over-year growth to Q3 to Q4 timeframe against our compares in 2025. So starting at the top line of revenue, when we come down, you know, we look at gross margin, and we, you know, this last year, even starting in 2024, we started to see expansion in our gross margin.

Speaker #2: So looking to exit 2026 with growth towards the Q3 , year over year growth to Q3 to Q4 timeframe against our compares in 25 .

Speaker #2: So starting at the top line of revenue , when we come down , you know , we look at gross margin and we , you know , this this last year , even starting in 24 , we started to see expansion in our gross margin .

Speaker #2: We had five consecutive quarters of gross margin expansion and growth until this last quarter. In Q4, which is a higher promotional period.

James D. Thomas: We had five consecutive quarters of gross margin expansion and growth until this last quarter in Q4, which is a higher promotional period. We believe, with the way we're stacked in inventory and some of the moves that we can make around the globe, around our distribution and supply chain, we believe that we can continue to expand that. So from modeling perspective, I would look at what the gross margin expansion was in 2025 and replicate that into 2026, is a good barometer for how to treat gross margin. Selling expense, you know, we go between 40% and 42% on given years, where we have certain events associated with our sales leader base, but we try to target that around 40 to 41%, on any given year.

James Thomas: We had five consecutive quarters of gross margin expansion and growth until this last quarter in Q4, which is a higher promotional period. We believe, with the way we're stacked in inventory and some of the moves that we can make around the globe, around our distribution and supply chain, we believe that we can continue to expand that. So from modeling perspective, I would look at what the gross margin expansion was in 2025 and replicate that into 2026, is a good barometer for how to treat gross margin. Selling expense, you know, we go between 40% and 42% on given years, where we have certain events associated with our sales leader base, but we try to target that around 40 to 41%, on any given year.

Speaker #2: We believe, with the way we're stacked in inventory and some of the moves that we can make around the globe, around our distribution and supply chain, we believe that we can continue to expand that.

Speaker #2: So for modeling perspective , I would look at what the gross margin expansion was in 2025 and replicate that into 26 is a good barometer for how to treat gross margin .

Speaker #2: Selling expense . You know , we we go between 40% and 42% on given years where where we have certain events associated with our sales leader , be sales leader base .

Speaker #2: But we try to target that around 40 to 41% on any given year . So that will stay somewhat consistent . And then our G&A , we're working to to bring our costs in line with revenue .

James D. Thomas: So that will stay somewhat consistent. And then our G&A, we're working to bring our costs in line with revenue. So as we go throughout the quarters in 2026, we'll continue to work on our overhead. And we're continuing to refine that to get that to levels that are in line with our top line. And then the one last thing that I would call out from year-over-year is, 2025, we did have, we did benefit from an R&D tax credit, which created a lower tax rate in 2025 than we believe that we'll see in 2026.

James Thomas: So that will stay somewhat consistent. And then our G&A, we're working to bring our costs in line with revenue. So as we go throughout the quarters in 2026, we'll continue to work on our overhead. And we're continuing to refine that to get that to levels that are in line with our top line. And then the one last thing that I would call out from year-over-year is, 2025, we did have, we did benefit from an R&D tax credit, which created a lower tax rate in 2025 than we believe that we'll see in 2026.

Speaker #2: So as we go throughout the quarters in 2026 , we'll continue to work on our our overhead . And we're continuing to refine that , to get that to into levels that are that are in line with our top line .

Speaker #2: And then the one last thing that I would call out from year over year is 2025 . We did have we did benefit from an R&D tax credit , which created a lower tax rate in 25 than we believe that we'll see in 26 .

Speaker #2: So you have to when you're looking at earnings per share , the guide on earnings per share , you have to take into consideration a 35% tax rate that we're kind of looking at right now as we forecast and project out the year .

James D. Thomas: So you have to, when you're looking at earnings per share, the guide on earnings per share, you have to take into consideration a 35% tax rate that we're kind of looking at right now as we forecast and project out the year. So that creates that, you know, from $1.27 in 2025 to where we model out at $1.20. We're actually showing, in 2026, an operating margin improvement, but a slightly lower earnings per share just because of below-the-line items on tax. So that's how I would look at it forward in your model.

James Thomas: So you have to, when you're looking at earnings per share, the guide on earnings per share, you have to take into consideration a 35% tax rate that we're kind of looking at right now as we forecast and project out the year. So that creates that, you know, from $1.27 in 2025 to where we model out at $1.20. We're actually showing, in 2026, an operating margin improvement, but a slightly lower earnings per share just because of below-the-line items on tax. So that's how I would look at it forward in your model.

Speaker #2: So that creates that that , you know , from from a dollar $27 , 27 and 25 to where we model out at $1.20 , we're actually showing in 26 an operating margin improvement .

Speaker #2: But a slightly lower earnings per share, just because of below-the-line items on tax. So that's how I would look at it going forward in your model.

Speaker #4: I appreciate all that color there . One last for me . You know , there's a lot of excitement around Brisbane , India for for obvious reasons .

Dave Storms: I appreciate all that color there. One last for me. You know, there's a lot of excitement around Prysm in India for, for obvious reasons, but I don't wanna lose track of, you know, the rest of your portfolio. I know, mainly in China, the US had nice quarter-over-quarter revenue growths. Any other storylines that we should be keeping an eye on as we start 2026? Any geographies or thoughts around that?

Speaker #4: But I don't want to lose track of , you know , the rest of your portfolio . I know mainland China , the US had nice quarter over quarter revenue growths .

Speaker #4: Are there any other storylines that we should be keeping an eye on as we start 2026? Any geographies or thoughts around that?

Speaker #1: Yeah , no . I'm glad you mentioned the the other , you know , portfolio . One one thing that we we didn't discuss here is the restaging and rollout of True Face , which is our , our premium skincare line that has really been , you know , reformulated and restaged with sustainable packaging .

Ryan Napierski: Yeah. No, I'm glad you mentioned the other, you know, portfolio. One thing that we didn't discuss here is the restaging and rollout of True Face, which is our premium skincare line, that has really been, you know, reformulated and restaged with sustainable packaging. It's doing really well, getting very good reception as it rolls out around the globe, in different geographies. I think, you know, areas where we continue to be interested in seeing improvement, obviously, Latin America continues to do really well, and looking forward, you know, we're excited to see what will happen there, as we're just continue to learn about this emerging market.

Speaker #1: It's doing really well , getting very good reception as it rolls out around the globe in different geographies . I think , you know , areas where we continue to be interested in seeing improvement .

Speaker #1: Obviously , Latin America continues to do really well and looking forward . You know , we're excited to see what will happen there as we're just continuing to learn about this emerging market .

Speaker #1: You know , broader segment of emerging markets around the globe . You know , improvements in China , you know , improvements across Europe , markets within Southeast Asia .

Ryan Napierski: You know, broader segment of emerging markets around the globe, you know, improvements in China, you know, improvements across Europe, markets within Southeast Asia, happy to see those things improving. You know, Japan and Korea, I think our focuses right now are ensuring we've got China, Japan, and Korea, and then North America improving through Prysm iO and the adoption of that, as well as, you know, the True Face line from the beauty side of the business, continue to perform better as we move forward.

Speaker #1: Happy to see those things improving . You know , Japan and and Korea . I think our focus is right now are ensuring we've got China , Japan and and Korea and then North America improving through prism , I o and the adoption of that as well as , you know , the the true face line from the beauty side of the business continue to perform better as we move forward

Speaker #4: That's great . I appreciate you all taking my questions . Congrats on the quarter and good luck in 2026 .

Dave Storms: That's great. I appreciate you all taking my questions. Congrats on the quarter, and good luck in 2026.

Speaker #1: Thanks , Dave .

Ryan Napierski: Thanks, Dave.

Speaker #5: Thanks , Dave .

James D. Thomas: Thanks, Dave.

James Thomas: Thanks, Dave.

Speaker #3: As a reminder to ask a question , please press star one one on your telephone and wait for your name to be announced And I'm showing no further questions .

Operator: As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. I'm showing no further questions. I would now like to turn the conference back to Ryan Napierski for closing remarks.

Speaker #3: I would now like to turn the conference back to Ryan Napierski for closing remarks .

Speaker #1: Yeah , well , thank you very much for joining the call . Our roadmap is very clear for us as we move forward towards our vision of becoming the world's leading intelligent beauty and wellness platform , powered by our committed and dedicated global sales force .

Ryan Napierski: Yeah. Well, thank you very much for joining the call. Our, our roadmap is very clear for us as we move forward towards our vision of becoming the world's leading intelligent beauty and wellness platform, powered by our committed and dedicated global sales force. With the launching of Prysm iO in 2026, we believe that the world, will continue to learn more and more about their nutritional health, and that we will be, the proprietary company providing, that, that capability to them. We'll continue to focus and update you on India and our progress throughout the year as we prepare for our launch, at the-- towards the end of this year. And with that, we'll, we'll end this call and look forward to chatting with you in the next quarter update. Thank you.

Speaker #1: With the launching of Prism Bio in 2026, we believe that the world will continue to learn more and more about their nutritional health, and that we will be the proprietary company providing that capability to them.

Speaker #1: We'll continue to focus and update you on India and our progress throughout the year as we prepare for our launch towards the end of this year.

Speaker #1: And with that , we'll we'll end this call and look forward to chatting with you in the next quarter . Update . Thank you .

Operator: This concludes today's program. Thank you for participating. You may now disconnect. Your Q4 2025 Nu Skin Enterprises Earnings Conference Call.

Q4 2025 NU Skin Enterprises Inc Earnings Call

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