USANA Health Sciences (USNA) Q4 2025 earnings summary

Executive summary

• Leadership transition with the CEO returning to drive renewed and sustainable growth, emphasizing strategic focus and operational discipline.

• Q4 2025 net sales reached $226.2M, up 6% year-over-year and sequentially, with full-year 2025 net sales at $925.3M, an 8% increase year-over-year, driven by Hiya's full-year contribution and growth in omnichannel brands.

• Net earnings for 2025 were $10.8M, down 74% year-over-year, with diluted EPS at $0.58 and adjusted diluted EPS at $1.93; Q4 2025 saw a net loss of $1.8M and diluted EPS of -$0.10.

• Strategic priorities include strengthening global brand positioning, enhancing customer and partner experience, reinvigorating sales, advancing product innovation, improving operational efficiency, and executing with accountability.

• Focus on evolving from a legacy direct selling model to a modern, science-driven nutritional products company.

Financial highlights

• Fiscal 2026 consolidated net sales expected to grow 4% at the midpoint, projected between $925M and $1.0B (flat to 8% growth), driven by Rise Wellness and Hiya.

• Inventory increased $35 million (48%) year-over-year to $107 million, mainly to support Rise Wellness and Hiya expansion and in-house production.

• Cost realignment in Q4 reduced workforce by about 10%, resulting in $10+ million in net savings, primarily in SG&A.

• Adjusted EBITDA for 2025 was $101.3M, down 8% year-over-year; Q4 2025 adjusted EBITDA was $27.3M, up 7% sequentially.

• Share repurchases totaled $28M in 2025, with $34M remaining authorized.

Outlook and guidance

• Fiscal 2026 guidance reflects a 52-week year, one week less than 2025.

• Net earnings for 2026 projected at $20.3M–$26.6M, with diluted EPS of $1.11–$1.45 and adjusted diluted EPS at $1.95–$2.29.

• Technology modernization and omni-channel expansion are key strategic initiatives, with incremental tech investments not yet included in 2026 outlook.

• Effective tax rate for 2026 expected between 55% and 60%, impacted by geographic revenue-cost misalignment and one-time costs.

• Seasonality expected, with stronger Q1 due to Chinese New Year promotions, a lull in Q3, and recovery in Q4.