Nu Skin Reports 12% Revenue Decline in Q2 2025, Despite Net Income Recovery

Nu Skin Enterprises, Inc. reported a decline in financial performance for the second quarter of 2025, with revenue decreasing by 12% to $386.1 million compared to $439.1 million in the same period last year. For the first half of 2025, revenue also fell by 12% to $750.6 million from $856.4 million in the prior year. The company attributed these declines to ongoing macroeconomic challenges affecting consumer spending and customer acquisition, alongside a 14% drop in customer counts and a 23% decrease in sales leaders year-over-year. Despite these challenges, the company recorded a net income of $21.1 million for the second quarter, a significant recovery from a net loss of $118.3 million in the prior-year period.

The company's gross profit margin for the second quarter was 68.8%, down from 70.0% in the previous year, while the gross profit for the first half of 2025 was 68.3%, compared to 70.2% in the same period last year. The decline in gross profit margin was influenced by the performance of the manufacturing segment, which has a lower margin compared to the core Nu Skin business. Selling expenses as a percentage of revenue decreased to 33.2% for the second quarter, down from 37.7% in the prior-year period, reflecting a reduction in the number of qualifying sales leaders and associated compensation.

Strategically, Nu Skin completed the sale of its Mavely entity in January 2025 for $230 million, resulting in a pre-tax gain of approximately $176.2 million. This transaction contributed positively to the company's financial results, offsetting some of the revenue declines. The company also recorded a $25.1 million impairment charge related to its BeautyBio asset group during the first quarter of 2025, reflecting a strategic shift in operations. Additionally, Nu Skin is focusing on optimizing its business model and expanding into new markets, including a limited preview of its connected device, Prysm iO, and preparations for a formal launch in India in mid-2026.

As of June 30, 2025, Nu Skin's total assets were reported at $1.44 billion, with total liabilities of $655.9 million, resulting in stockholders' equity of $787.8 million. The company had cash and cash equivalents of $264.2 million, an increase from $186.9 million at the end of 2024, primarily due to proceeds from the Mavely sale. Looking ahead, Nu Skin anticipates continued challenges in its markets but remains focused on strategic initiatives to enhance its sales performance and expand its product offerings. The company plans to maintain its quarterly cash dividends, reflecting confidence in its cash flow generation capabilities.