NATURE'S SUNSHINE PRODUCTS
November 4, 2026
LEHI, Utah - November 4, 2026
Nature's Sunshine Products reported third-quarter 2026 net sales of $116.6 million on November 4, down 9 percent from $128.3 million a year earlier, and cut its full-year outlook after a steep decline in China and a slowdown in its fast-growing digital business left results well short of the company's own expectations.
Excluding currency effects, sales fell 7 percent for the quarter ended September 30. Net income attributable to common shareholders dropped to $1.9 million, or $0.11 per diluted share, from $5.3 million, or $0.30 per share, in the third quarter of 2025. Adjusted EBITDA fell to $11.1 million from $15.2 million, and operating income declined to $5.3 million, or 4.5 percent of sales, from $9.0 million, or 7.0 percent of sales.
"Our third-quarter results were disappointing and fell short of our expectations," said Ken Romanzi, chief executive officer of the Lehi-based herbal and nutritional supplement maker. "We faced several challenges in our business, particularly in China and in our Digital business. In China, operational disruptions have had a more significant impact on our consultant leadership base than we initially anticipated which we have already begun rebuilding."
Romanzi added that following "several quarters of exceptional growth" in the digital business, the company is continuing to invest in that part of its portfolio "to position it for the next phase of growth," and said the company's confidence in its long-term potential "remains strong."
Asia, the company's largest region, generated $55.1 million in sales, down 14.9 percent in dollars and 11.2 percent in local currencies. On the company's earnings call, executives said China accounted for the majority of that decline, with sales there down 52 percent in constant currency, and that they expect China to remain a headwind into 2027 as the consultant leadership base adapts to changes the company has made. Outside China, weakness in Taiwan was partly offset by growth in Japan.
North America sales fell 6.1 percent to $34.0 million. Executives said digital sales slipped 1 percent from a year earlier after several quarters of strong growth, as the company lapped the rapid expansion of its social commerce business, while North American direct selling trends remained soft. Autoship subscriptions represented 40 percent of digital sales, up from 30 percent a year ago. Europe was essentially flat at $22.1 million, up 0.9 percent in local currency, with executives citing 7 percent growth in Eastern Europe and saying a market launch in Germany remains on track. Latin America and Other rose 3.4 percent to $5.5 million.
Gross margin slipped to 72.9 percent from 73.3 percent, which the company attributed mainly to unfavorable foreign exchange. Volume incentives, the commissions paid to the company's independent consultants, rose to 32.0 percent of net sales from 30.7 percent, reflecting the timing of promotional incentives and market mix. Selling, general and administrative expenses fell to $42.3 million from $45.7 million on lower variable selling expenses and cost management, though they rose as a share of sales to 36.3 percent.
The company noted that, following its December 2025 purchase of the noncontrolling interests in its China business, no net income was attributable to NSP China in the third quarter, compared with $1.0 million, or $0.06 per diluted share, a year earlier.
Operating cash flow for the first nine months of 2026 was $9.7 million, compared with $25.4 million in the same period of 2025, while capital expenditures rose to $6.8 million from $4.1 million. Through September, Nature's Sunshine repurchased 345,000 shares for $6.1 million, an average of $17.66 per share, and it ended the quarter with $89.4 million in cash and no debt. Executives said $11.3 million remains under the current share repurchase authorization.
Citing a stronger U.S. dollar and the recent challenges in China, Nature's Sunshine lowered its full-year 2026 guidance. It now expects net sales of $460 million to $470 million, down from a previous range of $490 million to $500 million, and adjusted EBITDA of $44 million to $48 million, down from $48 million to $52 million. For the fourth quarter, the company expects gross margin in the low 72 percent range, slightly below the prior year.
Nature's Sunshine manufactures most of its own products and markets them through independent consultants and digital channels in more than 40 countries.