Natural Health Trends (NHTC) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $9.2 million, down 14% year-over-year, mainly due to a 17% decline in Hong Kong sales, which are primarily delivered to members in China.

• Gross profit margin improved to 75.0% from 73.6% a year ago, attributed to shifting manufacturing to East Asia and restructuring efforts.

• Net loss for Q1 2026 was $154,000 ($0.02 per diluted share), compared to net income of $122,000 ($0.01 per share) in Q1 2025.

• Active members declined to 26,400 as of March 31, 2026, from 30,180 a year earlier.

• Investments in technology, new product launches, and preparations for the 25th anniversary in Hong Kong aim to support future growth.

Financial highlights

• Net sales for Q1 2026 were $9.2 million, down from $10.7 million in Q1 2025.

• Gross profit was $6.9 million (75.0% margin) vs. $7.9 million (73.6% margin) year-over-year.

• Operating loss was $474,000, compared to $345,000 in Q1 2025.

• Net cash used in operations was $797,000, compared to net cash provided of $484,000 a year ago.

• Cash, equivalents, and marketable securities totaled $21.2 million at quarter-end, down from $28.9 million at year-end 2025.

Outlook and guidance

• Management expects continued cost savings from restructuring and technology investments, with $1.5 million in annualized savings anticipated, though not all will be realized in 2026.

• Anniversary events and brand initiatives are expected to boost engagement and momentum.

• The company is monitoring tariffs and may impose surcharges on products sold into China if necessary.