NU SKIN ENTERPRISES, INC. Q4 FY2025 earnings call

• Strategic priorities for 2026 include focusing on the wellness revolution with Prism IO launch, expanding global reach into India and other emerging markets, and improving operational performance and efficiencies. - Prism IO is an intelligent wellness platform with a large database of carotenoid health data, aiming to place over 100,000 devices by end of 2026 and reach 10,000,000 healthy households by 2030. - India premarket operations started in November 2025, with focus on establishing operational infrastructure, digital-first infrastructure, and acquiring customers ahead of formal market opening in late 2026. - Core business execution led to improved earnings, gross margin expansion, and disciplined expense management in 2025.

For 2025, the core Nu Skin business had a gross margin of 77.4%, an 80 basis point improvement over the prior year. Core Nu Skin selling expense for the year was 40.3%. Fourth quarter revenue was $370,000,000, within guidance range with approximately a $1,000,000 headwind from foreign currency. Full-year revenue was $1,490,000,000, landing within original guidance with a foreign currency headwind of approximately $13,400,000. The core Nu Skin business's gross margin in Q4 was 77.6%, up 100 basis points from the prior year, while selling expense in the core business was 40.8%.

• 2026 revenue projected in range of $1,350,000,000 to $1,500,000,000, including estimated foreign exchange headwind of $13,000,000 to $15,000,000. - EPS anticipated between $0.80 and $1.20, with expected tax rate of 35%. - Q1 2026 revenue projected between $320,000,000 and $340,000,000, with reported EPS in range of $0.10 to $0.20. - Aim to place over 100,000 Prism IO devices by end of 2026 and formal market opening in India anticipated in late 2026.

• Differences from forward-looking statements as actual results may materially differ. - Foreign currency impacts on financial results. - Execution risks related to strategic initiatives like Prism IO launch and India market expansion, including potential hurdles in infrastructure setup and market adoption.

Q: Could you provide more color on Prism IO revenue guidance?

A: We are not giving direct revenue guidance yet for Prism IO. It's early with only a month into placement. We see Prism leading into subscription revenue realm, with device placement of 100,000 units by end of 2026 and full consumer launch towards back half of 2026.

Q: What are the key hurdles for India market expansion?

A: Key hurdles include setting up local manufacturing to handle high import duties, ensuring proper logistics across a diverse market, and building digital infrastructure. We are being conservative on revenue impact for 2026 as formal launch is in late 2026.

Q: How does guidance for 2026 factor in tax and other items?

A: In 2026, we expect a 35% tax rate compared to 18.8% in 2025 due to an R&D tax credit in 2025. This affects earnings per share, with operating margin improvement but slightly lower EPS in 2026.

Q: Any other portfolio storylines to watch in 2026?

A: Restaging and rollout of Tru Face premium skincare line, performance in geographies like Latin America, China, and other regions including Japan, Korea, and Southeast Asia are areas to watch.