Key Highlights

  • Net sales were USD 116.6 million against an estimate of USD 129.51 million and USD 128.3 million in 2025.
  • EPS was USD 0.14 against an estimate of USD 0.25, while GAAP diluted EPS was USD 0.11 against USD 0.30.
  • Net income was USD 1.89 million against USD 5.54 million; Operating Income was USD 5.28 million against USD 8.98 million.
  • Cash was USD 89.4 million at September 30, with no balances outstanding under either bank Credit agreement.

Nature's Sunshine Products (NASDAQ:NATR) did not publish numeric guidance for the rest of 2026, so the items it named are the closest guide to what lies ahead. The company said tariffs may affect its costs through year end, a trade-controls matter with the Office of Foreign Assets Control remains pending, and the conflict in Ukraine continues to reduce activity among consultants in the region. Net sales were USD 116.6 million against USD 128.3 million.

What Management Flagged for the Remainder of 2026

Management said tariffs had no material effect in the nine months of 2026 or 2025, but it continues to monitor price pressure on raw materials and ingredients. On the trade-controls review, the company made voluntary disclosures to the Bureau of Industry and Security and to the Office of Foreign Assets Control. The first closed the matter without further action, while the second remains pending. The company said the apparent violations represented less than 1% of net Revenue in each of the last three fiscal years.

Eastern Europe net sales were USD 14.8 million against USD 13.9 million, with operating income of USD 1.8 million. The company added that consultants there operate at a reduced level compared with before the conflict.

The Quarter in Detail

Net sales fell 9.1%, or 7.2% in local currencies, and currency movements reduced net sales by about 1.9%, or USD 2.5 million. EPS was USD 0.14 against an estimate of USD 0.25; GAAP diluted EPS was USD 0.11 against USD 0.30.

Gross profit was USD 85.0 million, or 72.9% of net sales, against 73.3%. Volume incentives were 32.0% of net sales against 30.7%, which management tied to promotional timing and market mix. Selling, general and administrative expenses were USD 42.3 million against USD 45.7 million, and the company linked the decrease to lower variable selling expenses and cost management. The effective tax rate was 64.8% against 42.8%, which the company attributed to a valuation allowance on foreign tax credits, a reserve for uncertain tax positions and non-deductible executive compensation.

For the nine months, net sales were USD 356.5 million against USD 356.3 million and diluted EPS was USD 0.59 against USD 0.83.

Regional and Market Detail

Asia net sales were USD 55.1 million against USD 64.7 million, a decrease of 14.9%, or 11.2% in local currencies. In China, net sales fell 48.8%, which the company attributed to the passing of two key leaders and sales disruptions from corrective actions involving consultants whose activities it considered inconsistent with its policies. Taiwan declined 14.8% on slower consumer acquisition, while Japan rose 5.2% in local currency on greater consultant activity and higher order values.

North America net sales were USD 34.0 million against USD 36.2 million, with U.S. sales down 6.0% on reduced consultant engagement. Europe declined 0.1% to USD 22.1 million, up 0.9% in local currencies.

Reference Points for Investors

Net sales of USD 116.6 million sit alongside Net Income of USD 1.89 million, cash of USD 89.4 million and Working Capital of USD 114.9 million.

Nine-month Operating Activities provided USD 9.7 million of cash, against USD 25.4 million a year earlier, and the company repurchased 345,000 shares for USD 6.1 million. USD 11.3 million remained available under the repurchase program. Management named the Tariff costs, the pending OFAC matter, Eastern Europe activity and its China consultant corrective actions as the items it is monitoring.