0001437749-26-017043
SEC filingMannatech reported a net income of $950K in Q1 2026, a significant improvement from a net loss of $1.5M in Q1 2025, driven by improved operating income and cash flow.
Revenue for the first quarter of 2026 was $24.9 million, a decrease of 6.2% compared to $26.6 million in the same period last year. The decline was principally due to slowing demand in certain regions we operate within, as noted in Management's Discussion and Analysis.
Gross profit decreased 4.4% to $18.9 million, but gross margin expanded to 75.7% from 74.3% in the prior year quarter. This improvement reflects higher sales prices and lower inventory reserves, consistent with management's assessment that net realizable value of inventory typically exceeds cost.
Operating loss improved significantly to $180 thousand from $833 thousand in the prior year quarter, a 78.4% improvement. This was driven by lower selling, general and administrative expenses. Net income was $950 thousand, or $0.49 per diluted share, compared to a net loss of $1.5 million, or $(0.80) per share, in the first quarter of 2025. The turnaround was aided by the improved operating results.
Management continues to monitor liquidity levels and trends. The company's ability to generate positive cash flow will depend on sustaining revenue and controlling costs. Key risks include further associate attrition and the ability to regain Nasdaq compliance. The favorable foreign exchange environment may not persist, and the company's reliance on foreign exchange gains for profitability is a concern. Investors should monitor associate recruitment trends and the outcome of the Nasdaq compliance plan.