NU Skin Reports Strong Earnings Performance Amid Revenue Challenges, Announces Major India Expansion and AI Wellness Platform

NU Skin Enterprises Inc. reported third-quarter financial results that demonstrated disciplined cost management amid revenue challenges, with earnings per share exceeding analyst expectations. The company posted revenue of $364.2 million, adjusted net income of $17.1 million, and adjusted EPS of $0.34, compared to Stonegate Capital Partners estimates of $374.2 million, $14.7 million, and $0.30 respectively. The results positioned the company at the low end of revenue guidance but the high end of EPS guidance, reflecting improved operational efficiency.

Management highlighted double-digit growth in Latin America and sequential improvement across several reporting segments, attributing the EPS performance to execution and efficiency despite a challenging macroeconomic environment. The Rhyz segment contributed $51.6 million in revenue, including $47.6 million from manufacturing operations. Strategic initiatives took center stage in the company's forward-looking plans, with significant implications for Texas-based operations and global expansion.

NU Skin is preparing a limited preview of its Prysm iO intelligent wellness platform for qualified leaders in late fourth quarter, with broader leader availability planned for the first half of 2026 and full consumer launch in the second half of 2026. The AI-enabled device leverages a database of approximately 20 million scans to deliver personalized insights and subscription recommendations designed to enhance lifetime value in the nutrition portfolio. This technological advancement represents a significant innovation in the wellness industry that could reshape consumer engagement models.

Concurrently, the company begins pre-market opening activities in India during fourth quarter 2025 ahead of a formal market launch in the second half of 2026. This expansion positions the business to apply its digital-first approach that has proven successful in faster-growing regions. The deliberate market entry strategy reflects management's careful planning for one of the world's largest consumer markets, potentially opening substantial growth opportunities for the Texas-based enterprise.

Key performance indicators showed declines year-over-year, with sales leaders decreasing 19% to 31,150, paid affiliates down 13% to 130,096, and customers declining 10% to 746,256. However, management noted positive sequential trends in several regions, including continued double-digit growth in Latin America and sequential growth in Southeast Asia/Pacific. The upcoming India entry and Prysm iO commercialization are expected to drive sponsor activity and improve conversion from customers to paid affiliates.

The company maintained a strong balance sheet position with $251.7 million in cash on hand and net cash of $22.7 million. Management reiterated its focus on further net-cash expansion to support the Prysm iO preview, India pre-opening activities, and ongoing product and digital investments. For fourth quarter 2025, NU Skin guides revenue of $365 million to $400 million and EPS of $0.25 to $0.35, with full-year 2025 revenue projected at $1.48 billion to $1.51 billion.

Stonegate Capital Partners maintains its valuation assessment using Price to Adjusted EPS comparison, noting that NU Skin currently trades at a forward multiple of 7.8x compared to comparable companies averaging 17.0x. The firm's analysis suggests a valuation range of $11.37 to $17.05 with a midpoint of $14.21, positioning the company closer to peer valuation levels as strategic initiatives progress. This valuation assessment provides important context for investors monitoring Texas-based companies with global expansion strategies.