USANA Health Sciences (USNA) investor relations material

Executive summary

• Net sales grew 11% year-over-year to $236 million in Q2 2025, driven by Hiya's contribution, while direct selling experienced declines due to lower active customer counts and economic challenges.

• Adjusted diluted EPS rose 36% to $0.74, but net earnings declined 7% to $9.7 million, impacted by amortization, lower net interest income, and reduced direct selling sales.

• Ended the quarter debt free after repaying the line of credit, holding $151 million in cash.

• Strategic initiatives underway include modernizing direct sales, enhancing compensation, and improving brand messaging, with further incentives and product launches planned.

• Hiya and RiseBar acquisitions delivered strong top-line growth and improved profitability, with Hiya reaching 200,400 active monthly subscribers.

Financial highlights

• Q2 2025 net sales rose 11% year-over-year to $236 million; adjusted EBITDA increased 13% to $30.5 million.

• Adjusted diluted EPS grew 36% to $0.74; GAAP diluted EPS was $0.52.

• Gross margin was 78.7%, down from 81.1% year-over-year, mainly due to Hiya's lower margins.

• Operating margin was 7.1%, down from 8.4% in Q2 2024.

• Ended Q2 with $151 million in cash and no debt.

Outlook and guidance

• Fiscal 2025 consolidated net sales expected between $920 million and $1.0 billion, with 8% to 17% growth.

• Adjusted diluted EPS guidance of $2.35 to $3.00; adjusted EBITDA of $107 million to $123 million.

• Management expects current liquidity and cash flow from operations to be sufficient for ongoing operations and capital needs.

• Investments in Q3 for global convention, product launches, and compensation plan expected to create short-term margin pressure, already included in annual guidance.

• Fiscal 2025 includes an extra week of sales; effective tax rate expected at 44.0%–45.0%.