USANA
October 9, 2025
SALT LAKE CITY, Utah -- October 9, 2025
USANA Health Sciences said it expects to report a third-quarter net loss after sales and Brand Partner productivity fell short of expectations during the rollout of its enhanced Brand Partner compensation plan. Preliminary third-quarter net sales were about 214 million dollars, up from 200 million dollars a year earlier, but earnings from operations dropped to about 1.2 million dollars from 15.6 million dollars.
The company expects a net loss of 6.5 million dollars, or 0.36 dollars per diluted share, compared with net earnings of 10.6 million dollars, or 0.56 dollars, a year earlier. Adjusted EBITDA is expected to fall to 13.8 million dollars from 24.6 million dollars. Chief Financial Officer Doug Hekking said lower earnings and the concentration of costs in the United States pushed the estimated annual tax rate to 65 percent from 45 percent, producing a 471 percent tax rate for the quarter.
Chief Executive Jim Brown said a slowdown had been expected during the compensation plan transition but was more pronounced than anticipated, and the Hiya children's health business also posted softer sales on lower customer acquisition. USANA said full-year sales are expected to come in at or near the low end of its 920 million to 1.0 billion dollar outlook and earnings per share below the range, and that it will work to align costs with operating performance.