Nature's Sunshine Products (NATR) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales increased 2% year-over-year to $113.2 million ($115 million constant currency), led by strong growth in Asia (notably Japan and Taiwan) and Europe, offsetting declines in North America and Latin America.

• Adjusted EBITDA grew 20% to $11 million, reflecting operational improvements and strong execution in Asia-Pacific and Europe.

• Net income attributable to common shareholders more than doubled to $4.7 million ($0.25 per diluted share), with basic EPS at $0.26.

• Digital sales surged 19% year-over-year, outpacing industry growth and driving share gains.

• Board authorized an additional $25 million share repurchase, supplementing $8.3 million remaining from prior authorization; 38,000 shares repurchased for $0.5 million in Q1.

Financial highlights

• Gross margin improved to 72.1% from 71.2% year-over-year, with sequential improvement from Q4.

• Operating income rose to $6.2 million (5.4% of net sales), up from $4.6 million (4.2%) in Q1 2024.

• SG&A expenses were $40.6 million (35.8% of net sales), down from $40.8 million (36.7%) a year ago.

• Cash and cash equivalents totaled $86.5 million as of March 31, 2025, with zero debt.

• Operating cash flow was $2.6 million, up from $2.2 million in the prior year period.

Outlook and guidance

• Full-year 2025 net sales expected between $445 million and $470 million, including a $5 million FX headwind.

• Adjusted EBITDA guidance for 2025 is $38 million to $44 million, with gross margin expected flat to modestly higher.

• Guidance reflects ongoing macroeconomic, tariff, and geopolitical uncertainties, including inflation and trade policy changes.

• The company believes cash from operations and current liquidity are sufficient for both short- and long-term needs.