USANA Health Sciences (USNA) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 increased to $249.5 million, up 9.5–12% year-over-year in constant currency, driven by the Hiya acquisition and strong performance in China.

• Net earnings attributable to USANA fell 43% year-over-year to $9.4 million, impacted by Hiya-related costs, lower direct selling sales, and currency headwinds.

• Hiya contributed $37.1 million in net sales and 224,000 active monthly subscribers, diversifying revenue streams and expanding the US presence.

• Direct selling active customers declined 7.1% year-over-year to 459,000, but grew modestly sequentially; China and South Korea saw sequential growth.

• Leadership and sales events, new product launches, and Hiya integration supported business momentum and operational synergies.

Financial highlights

• Q1 2025 net sales were $249.5 million, up from $227.8 million; gross margin was 79.0%, and operating margin was 6.3%.

• Diluted EPS was $0.49, down from $0.86; adjusted diluted EPS was $0.73.

• Adjusted EBITDA was $30.7 million, down from $33.2 million year-over-year.

• Free cash flow for the trailing twelve months was $49 million, with a margin of 6%.

• Cash and cash equivalents ended Q1 at $180 million, with $23 million in debt.

Outlook and guidance

• Fiscal 2025 net sales guidance is $920 million to $1.0 billion, with 8–17% top-line growth expected.

• Net earnings guidance: $29 million to $41 million; adjusted diluted EPS: $2.35 to $3.00.

• Hiya net sales projected at $145 million to $160 million, up 29–42% year-over-year.

• Direct selling net sales expected at $775 million to $840 million, with a -4% FX impact.

• No potential tariff impacts are reflected in current guidance due to ongoing uncertainty.