Mannatech Q3 Sales Fall 14.6% to $24.9 Million as Field Shrinks to 111,000; Net Profit Driven by Non-Cash Tax Benefit

FLOWER MOUND, Texas - November 12, 2026

Mannatech, the Texas-based network marketing company best known for its glyconutrient supplements, reported a 14.6% drop in third-quarter sales on November 12, and said that the eye-catching net profit it booked for the quarter came almost entirely from a one-time accounting entry rather than from any improvement in the business.

Net sales for the three months ended September 30, 2026 came to $24.9 million, down $4.3 million from $29.2 million in the same quarter of 2025. Mannatech said currency movements had no effect on the comparison, and its quarterly report attributed the decline principally to slowing demand in some of the regions where it operates. For the first nine months of the year, sales totaled $76.4 million, down about 6% from $81.4 million a year earlier.

The company's field also continued to shrink. Mannatech said approximately 111,000 independent associate and preferred customer positions were tied to product purchases as of September 30, compared with 119,000 a year earlier. Recruiting of new associates and preferred customers fell 30.5% from the third quarter of 2025.

Profitability from operations thinned sharply. Gross margin slipped to 74.7% of sales from 76.4%, and although selling and administrative expenses fell 4.1% to $8.7 million, they rose to 35% of sales from 31.1%. Commissions and incentives paid to the field fell to $9.6 million from $11.2 million. Income from operations was $272,000, compared with $2.0 million in the prior-year quarter. A $2.1 million foreign currency loss, against a $0.6 million gain a year earlier, pushed the company to a pre-tax loss of about $2.0 million.

Even so, Mannatech reported net income of $8.9 million, or $4.61 per diluted share, up from $1.9 million, or $1.01 per share, a year ago. The difference was a $10.9 million income tax benefit, which the company described as a non-cash remeasurement of deferred tax liabilities tied to withholding taxes on unremitted earnings of its foreign subsidiaries, chiefly its Korean subsidiary. Mannatech stated plainly that the benefit did not generate cash and does not reflect an improvement in operating performance.

The tax entry stems from an internal restructuring of certain foreign subsidiaries that Mannatech completed on October 14. That reorganization increased the company's reported stockholders' equity, and two days later Nasdaq's listing staff notified Mannatech that it once again met the exchange's minimum stockholders' equity requirement.

Cash remains tight. Mannatech ended September with $5.4 million in cash and cash equivalents, down 12.4% from $6.2 million at the end of 2025. In its management statement, the company also warned that changes in trade policy, including tariffs, could affect its cost structure and profitability, and that its ability to offset those costs may be limited in the short term by supply chain constraints.

Mannatech's shares trade on the Nasdaq under the symbol MTEX.