USANA Health Sciences (USNA) Q2 2026 earnings summary

Executive summary

• Transformation to a diversified omni-channel health and wellness company is progressing, with a focus on science, innovation, and consumer loyalty.

• Net sales for Q2 2026 were $223 million, down 5% year-over-year, with a 3% positive FX impact.

• Core nutritional business remains stable and is gaining momentum, especially in Mainland China, which is showing renewed strength.

• Hiya and Rise Wellness brands faced near-term challenges but continue to build momentum in retail, e-commerce, and international expansion.

• Leadership expresses strong confidence in long-term growth potential across all business segments.

Financial highlights

• Recorded a preliminary non-cash goodwill impairment charge of $29 million related to Hiya, reflecting updated performance and valuation assumptions.

• Net loss of $21.4 million for Q2 2026, including the Hiya impairment charge.

• Adjusted EBITDA was $27.8 million, down 9% year-over-year.

• Ended the quarter with $169 million in cash, zero debt, and generated $20 million in free cash flow, aided by improved working capital management.

• Gross profit margin was 78.3% for the quarter.

Outlook and guidance

• Fiscal 2026 consolidated net sales outlook updated to $910 million, down from $925 million to $1.0 billion.

• Net loss for the year now expected at $(11) million, revised from prior guidance of $20–$27 million in net earnings.

• Adjusted EBITDA guidance lowered to $87 million from $101–$109 million.

• Full-year outlook for 2026 has been lowered due to a tougher digital marketing environment for Hiya and lower near-term net sales from Rise Wellness.

• Elevated tax rate expected to persist through the year due to ongoing pressures in venture companies.