Nature's Sunshine Products (NATR) Q2 2026 earnings summary

Executive summary

• Net sales reached $117 million in Q2 2026, up 2% year-over-year (4% in constant currency), with growth in Asia, Europe, and North America, but declines in China and certain Asian markets due to operational and currency issues.

• Gross margin expanded by 194 basis points to 73.7%, the highest in over four years, reflecting cost-saving initiatives and favorable market mix.

• Operating income rose 28.2% to $5.5 million, while net income declined 35.9% to $3.5 million due to higher taxes and FX losses.

• Adjusted EBITDA was stable at $11.3 million, up 0.6% year-over-year.

• Digital sales in North America grew 26%, and Asia Pacific sales rose 5% in constant currency.

Financial highlights

• Net sales: $117 million, up 2% year-over-year (4% constant currency).

• Gross margin: 73.7%, up nearly 200 basis points from prior year.

• Adjusted EBITDA: $11.3 million, up 0.6% year-over-year.

• Diluted EPS: $0.19 (down from $0.28); Adjusted diluted EPS: $0.21 (down from $0.35).

• Cash and cash equivalents: $82.5 million; zero debt as of June 30, 2026.

Outlook and guidance

• 2026 net sales guidance lowered to $490–$500 million (2–4% growth) from $500–$515 million.

• 2026 EBITDA guidance reduced to $48–$52 million from $50–$54 million.

• Gross margins expected to average low to mid 73% range for the remainder of 2026.

• Guidance reflects a stronger U.S. dollar, China market softness, and ongoing geopolitical risks.

• SG&A expected to remain $45–$47 million per quarter as investments continue.