Nu Skin Enterprises (NUS) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $445.6 million, down 8.8% year-over-year but above guidance, with Rhyz segment up 28%.

• Adjusted EPS was $0.38, surpassing projections, while GAAP EPS was $(0.73) due to restructuring and other charges.

• Customer, paid affiliate, and sales leader counts declined double digits year-over-year.

• Sale of Mavely for $250 million generated a five-times return, strengthening the balance sheet.

• Three strategic priorities for 2025: strengthen core business, accelerate innovation, and improve operational efficiency.

Financial highlights

• Q4 gross margin was 62.7% (71.4% excluding inventory write-off), down from 72.1% prior year.

• Q4 operating margin was -11.9%, or 7.7% adjusted, compared to 3.3% or 6.4% prior year.

• Adjusted net income for Q4 was $18.9 million; adjusted EPS was $0.38.

• Free cash flow for Q4 was $12.6 million, down from $20.4 million prior year.

• Full-year revenue was $1.73 billion, within guidance, despite a $60 million FX headwind.

Outlook and guidance

• 2025 revenue projected at $1.48–$1.62 billion, including a $52.5 million FX headwind.

• Excluding Mavely, revenue expected to decline 3%–11% year-over-year.

• 2025 EPS guidance: $3.45–$3.85 GAAP; adjusted EPS: $0.90–$1.30, reflecting 7%–55% growth.

• Q1 2025 revenue expected at $345–$365 million; adjusted EPS: $0.10–$0.20.

• Management expects improving trends in some markets but continued challenges in Greater China and South Korea.