Stonegate Capital Partners has updated its coverage of NU Skin Enterprises Inc. following the company's fourth-quarter financial results, providing Texas investors with critical insights into a business making economic impacts through strategic international expansion. NU Skin reported revenue of $370.3 million, adjusted net income of $14.5 million, and adjusted earnings per share of $0.29 for the period, coming in slightly below Stonegate's estimates of $380.2 million in revenue, $15.1 million in adjusted net income, and $0.30 in adjusted EPS. Management noted the results were at the low end of revenue guidance and the high end of EPS guidance, indicating disciplined financial management despite revenue challenges.
The company's Rhyz segment contributed $48.52 million in revenue, with $42.45 million coming from manufacturing and $6.07 million from other Rhyz operations, demonstrating diversified revenue streams within the organization. Meanwhile, the core Nu Skin business maintained a robust gross margin of 77.6% and benefited from disciplined spending as selling expenses declined to 40.8% of the core business. This margin discipline represents a significant competitive advantage in the current economic environment, particularly for Texas-based investors seeking companies with strong operational efficiency.
Management highlighted several factors contributing to the earnings results, including strategic penetration into India and other emerging markets, overall margin expansion, and a one-time tax benefit during fiscal year 2025. The company is advancing the rollout of its Prism iO platform in the first half of 2026 and has an India pre-launch underway with full market opening expected in the second half of 2026. For the full fiscal year 2026, management provided EPS guidance with a midpoint of $1.00, signaling confidence in the company's strategic direction despite current revenue challenges.
The update from Stonegate Capital Partners provides investors with analysis of NU Skin's performance and strategic positioning, noting that while top-line results were below expectations, the company's margin discipline and international expansion efforts, particularly in emerging markets like India, represent important growth drivers. The full research announcement, including downloadable images and additional details, is available through Stonegate's reporting platform at https://www.stonegateinc.com. Investors can access the complete analysis to view the full announcement for more comprehensive coverage of NU Skin's financial position and strategic outlook, which has implications for Texas investment portfolios focused on companies with global growth potential.
For Texas businesses and investors monitoring companies making economic impacts through international expansion, NU Skin's strategic moves into India represent a case study in balancing short-term revenue challenges with long-term growth initiatives. The company's ability to maintain strong margins while investing in emerging markets demonstrates operational discipline that could serve as a model for other Texas-based companies looking to expand globally. The implications extend beyond direct investment opportunities to broader economic impacts as successful international expansion by companies like NU Skin can create supply chain opportunities, knowledge transfer, and market access that benefits the entire Texas business ecosystem.
