Mannatech, Incorporated reported a decline in financial performance for the fiscal year ending December 31, 2025, with consolidated net sales of $108.0 million, down from $117.9 million in 2024, representing an 8.3% decrease. The company incurred a net loss of $15.2 million, or $8.00 per diluted share, compared to a net income of $2.5 million, or $1.32 per diluted share, in the previous year. The decrease in sales was attributed to a decline in the number of active independent associates and preferred customers, which fell from approximately 133,000 in 2024 to 114,000 in 2025. The company also faced unfavorable foreign exchange impacts, which contributed to a $1.9 million decrease in GAAP net sales.
In terms of operational changes, Mannatech's cost of sales increased to $27.1 million, representing 25.1% of net sales, compared to 22.4% in 2024. The gross profit margin decreased to 74.9% from 77.6% the previous year, primarily due to rising supply chain costs. The company implemented a cost reduction plan aimed at aligning its cost structure with current operations, which included suspending non-essential capital expenditures and reducing fixed selling, general, and administrative expenses. Additionally, the company recorded a significant non-cash income tax charge of approximately $12.3 million, largely due to adjustments related to deferred tax assets and liabilities.
Mannatech's strategic developments included a focus on enhancing its product offerings and expanding its market presence. The company launched several new products in 2025, including Chocolate Osolean and Essentials Collagen Chews in the United States, and Rose Beauty Collagen in Korea, Hong Kong, and China. However, the company also faced challenges in its international operations, particularly in China, where it operates under a non-direct selling model due to regulatory restrictions. The company continues to evaluate its international strategies and market conditions to ensure compliance and optimize performance.
Looking ahead, Mannatech's management expressed a commitment to improving financial results and stabilizing revenue through various initiatives, including margin improvement strategies and a focus on attracting and retaining independent associates. The company is also exploring options for external capital injection to enhance liquidity. However, there remains substantial doubt about its ability to continue as a going concern, given the current economic conditions and operational challenges. The management's plans to address these issues include implementing cost-cutting measures and prioritizing revenue growth initiatives to support improved operating performance and liquidity.
About MANNATECH INC
Mannatech, Incorporated is a global wellness solutions provider specializing in proprietary nutritional supplements, skin care, anti-aging, and weight-management products. Operating primarily through a network marketing model, it serves markets worldwide with a focus on scientifically supported, natural ingredients. The company emphasizes innovation, quality, and a strong independent associate network to deliver health benefits and business opportunities.
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