Mannatech Reports 9.6% Decline in Net Sales and $1.5 Million Net Loss in Q1 2025

Mannatech, Incorporated reported a decline in financial performance for the first quarter of 2025, with net sales totaling $26.6 million, down 9.6% from $29.4 million in the same period last year. The decrease in revenue was attributed primarily to weakened demand in the Asia-Pacific region, exacerbated by unfavorable economic conditions. The company also experienced a net loss of $1.5 million, or $0.80 per diluted share, compared to a net income of $1.2 million, or $0.63 per diluted share, in the prior year. This shift in profitability reflects a significant change in the company's financial landscape, as it grapples with both declining sales and increased operational costs.

In terms of operational metrics, Mannatech reported a decrease in the number of active independent associates and preferred customers, which fell by 12% to approximately 129,000. The company noted a 1.5% decrease in the number of orders processed, alongside a decline in average order value. The Asia-Pacific region saw a particularly sharp decline in sales, dropping by 9.9% to $15.4 million, while the Americas experienced an 11.8% decrease to $9.0 million. Conversely, the EMEA region reported a slight increase in sales, rising 4.8% to $2.2 million, driven by improved revenue per associate.

Mannatech's operational expenses also reflected the challenging environment, with total operating expenses decreasing to $20.6 million from $22.3 million in the previous year. Commissions and incentives, which are closely tied to sales performance, decreased by 9.7% to $10.6 million. However, selling and administrative expenses remained relatively stable, with a slight reduction to $10.0 million. The company also faced a foreign currency loss of $0.4 million, contrasting with a gain of $0.9 million in the prior year, further impacting overall financial results.

Looking ahead, Mannatech's management has indicated a focus on reorganization plans aimed at revenue growth, margin improvement, and cost control. The company is exploring strategies to enhance its product offerings and streamline operations, which may include price adjustments and modifications to its compensation plans. Despite the current challenges, Mannatech believes that its existing liquidity and cash flows from operations will be sufficient to support its business operations over the next twelve months. However, the company acknowledges that any further disruptions in supply chains or declines in consumer demand could adversely affect its financial stability and operational plans.