USANA Health Sciences Reports 6.7% Sales Increase but $6.5 Million Net Loss in Q3 2025

USANA Health Sciences, Inc. reported its financial results for the third quarter of 2025, revealing a net sales increase of 6.7% to $213.7 million compared to $200.2 million in the same period last year. The growth was primarily driven by the addition of $30.8 million in sales from the Hiya direct-to-consumer segment, which the company acquired in December 2024, and a $5.2 million increase in the "other" category. However, the direct selling segment experienced a decline, attributed to lower Brand Partner productivity during the rollout of a new compensation plan, which the company anticipated would slow sales temporarily.

The company reported a net loss of $6.5 million for the quarter, a significant decrease from net earnings of $10.6 million in the prior year. This shift was largely due to an increase in the effective income tax rate from 45% to 65%, resulting in an additional tax expense of approximately $7.6 million. The decline in earnings was also influenced by higher operating expenses, including increased amortization costs related to the Hiya acquisition and lower interest income as cash reserves were utilized for the acquisition.

Operationally, USANA's active customer base in the direct selling segment decreased to approximately 388,000, down 14.2% from the previous year. The decline was particularly pronounced in the Asia Pacific region, where active customers fell by 14.4%. In contrast, Hiya reported approximately 193,400 active monthly subscribers, reflecting a successful integration into USANA's business model. The company continues to focus on enhancing customer engagement and training for Brand Partners to leverage recent product launches and compensation plan changes.

Geographically, USANA's sales in the Asia Pacific region totaled $139.4 million, down 12.9% year-over-year, while sales in the Americas and Europe increased to $74.2 million, up from $40.2 million in the prior year, largely due to the inclusion of Hiya's sales. The company noted that fluctuations in currency exchange rates significantly impacted its reported sales figures, with net sales outside the United States representing 90.6% of total direct selling net sales.

Looking ahead, USANA plans to continue its strategic focus on integrating Hiya and enhancing its direct selling operations. The company anticipates that the recent changes to its Brand Partner compensation plan will ultimately position it for long-term success, despite the short-term challenges. Management remains committed to improving operational efficiencies and exploring new market opportunities while maintaining a strong liquidity position, with cash and cash equivalents reported at $145.3 million as of September 27, 2025.