MTEX · Mannatech, Incorporated

Mannatech faced significant headwinds in 2025, reporting an 8.3% decline in full-year net sales to $108.0 million. The revenue decrease was driven by a combination of unfavorable foreign currency exchange impacts ($1.9 million reduction), persistent economic challenges in the Asia/Pacific region, and implementation issues with a new ordering system in North America which management cited as responsible for approximately 15% of the region's revenue decline. Gross margin compressed by 270 basis points to 74.9% for the year, attributed to rising tariffs, global supply chain pressures, and increased freight costs.

While the core business operated near breakeven with an operating loss of $0.4 million, the bottom line was heavily impacted by a $12.3 million income tax provision. This charge was predominantly non-cash, resulting from valuation allowances on deferred tax assets and the recording of a deferred tax liability related to foreign subsidiaries. Consequently, the company reported a net loss of $15.2 million, or $8.00 per diluted share, compared to net income of $2.5 million in the prior year.

Liquidity position weakened, with cash and cash equivalents falling to $6.2 million from $11.4 million at year-end 2024. The company experienced a net operating cash outflow of $2.8 million, though management noted underlying cash consumption was less than $1.1 million before working capital movements. Operational discipline was demonstrated through a $2.1 million reduction in selling and administrative expenses and a $6.6 million decrease in commissions and incentives. Management remains focused on expense management and implementing new revenue programs to navigate the challenging macroeconomic environment.