Mannatech Reports Decline in Sales and Increased Net Loss for Q2 2025

Mannatech, Incorporated reported a decline in financial performance for the second quarter of 2025, with net sales of $25.7 million, down 7.4% from $27.7 million in the same period last year. For the first half of 2025, the company generated $52.2 million in sales, an 8.6% decrease from $57.1 million in the first half of 2024. The decrease in revenue is attributed to weakened demand in certain regions, exacerbated by unfavorable economic conditions. The company also experienced a significant foreign currency loss of $2.7 million in the second quarter, compared to a gain of $1.1 million in the prior year, primarily due to the strengthening of the U.S. dollar against other currencies.

Mannatech's net loss for the second quarter was $4.3 million, or $2.27 per diluted share, compared to a loss of $0.6 million, or $0.33 per diluted share, in the same quarter of 2024. For the first half of 2025, the net loss reached $5.8 million, or $3.07 per diluted share, contrasting with a net income of $0.6 million, or $0.30 per diluted share, in the first half of 2024. The company’s gross profit also declined, falling to $18.9 million in the second quarter, a decrease of 11.6% from $21.4 million in the previous year, largely due to increased product costs and markdowns.

Operationally, Mannatech reported a decrease in the number of active independent associates and preferred customers, which fell by 14.6% in the second quarter. This decline was partially offset by a 2.3% increase in revenue per active associate. The company’s total active associates and preferred customers stood at approximately 125,000 as of June 30, 2025. The Americas region accounted for 32.3% of total sales, while the Asia/Pacific region contributed 59.5%, indicating a shift in sales dynamics.

In terms of strategic developments, Mannatech continues to focus on its network marketing model, which it believes is the most effective way to introduce products and communicate with consumers. The company is also exploring international expansion opportunities, particularly through its subsidiary in China, which operates under a cross-border e-commerce model. However, the company has acknowledged the need for a business reorganization plan aimed at revenue growth, margin improvement, and cost control to navigate the current economic challenges.

Looking ahead, Mannatech's management expressed cautious optimism regarding future operations, emphasizing the importance of maintaining cash flows to support business objectives. The company’s liquidity position has been impacted, with cash and cash equivalents decreasing by 51.5% to $5.5 million as of June 30, 2025, from $11.4 million at the end of 2024. The management is focused on improving operational efficiency and is prepared to raise additional funds if necessary to support ongoing business needs.