USNA · USANA Health Sciences, Inc.

USANA's Q1 2026 results show a company in transition, with consolidated net sales holding flat at $250 million year-over-year despite a $8 million positive FX impact, reflecting ongoing challenges in customer retention offset by sequential gains. Core Nutritional, the largest segment at $204 million in sales (-3% YoY, +7% sequentially), benefited from 4% active customer growth to 404,000, primarily driven by promotional activity in Greater China where sales rose 4% YoY to $123 million and 23% sequentially. However, declines persisted in North Asia (-19% YoY), Southeast Asia Pacific (-14% YoY), and Americas/Europe (-6% YoY). Hiya Health posted $32 million in sales (-13% YoY) amid higher customer acquisition costs from Meta disruptions, but showed +7% sequential growth and +2% in active monthly subscribers to 186,000, with expansions into Canada, UK, and Target stores setting up stronger H2 performance. Rise Wellness exploded to $14 million (+741% YoY, +143% sequentially) on Protein Pop's nationwide Costco rollout, though at thin 7.1% gross margins during its investment phase.

Profitability softened with net earnings at $7.5 million (-20% YoY) and diluted EPS at $0.41 (-16% YoY), pressured by gross margin contraction to 76.2% (-280 bps YoY) from Rise Wellness mix and a 55% effective tax rate. Adjusted metrics held relatively steady, with adjusted EBITDA at $28.4 million (-5% YoY, +4% sequentially) and adjusted EPS at $0.61. Management highlights progress on omnichannel transformation, enhanced Brand Partner incentives, product innovation, and technology modernization funded via efficiencies. A healthy balance sheet with $163 million cash supports investments, and no share repurchases occurred despite $34 million authorization remaining.

Reiterating FY2026 guidance signals confidence, with consolidated sales outlook of $925M-$1.0B implying 5-12% growth over FY2025 (adjusted for 52 vs. 53 weeks and FX), driven by Hiya/Rise comprising >20% of sales vs. 16% last year. CEO Guest emphasized multiple growth engines, while CFO Hekking noted financial strength funding priorities. Risks include direct selling reliance, Hiya's digital marketing volatility, Rise's retailer dependence, and global economic pressures.