NU Skin Reports Q3 2025 Results with Strong EPS Performance Despite Revenue Challenges

NU Skin Enterprises Inc. reported third quarter 2025 revenue of $364.2 million, adjusted net income of $17.1 million, and adjusted earnings per share of $0.34, according to coverage updates from Stonegate Capital Partners. These results fell at the low end of revenue guidance but exceeded earnings expectations, with the company beating estimates of $0.30 per share. The performance demonstrates management's ability to drive efficiency despite macroeconomic challenges, with disciplined spending contributing to improved profitability.

The company's Rhyz segment delivered $51.6 million in revenue, consisting of $47.6 million from manufacturing and $4.0 million from other Rhyz operations. Meanwhile, the core Nu Skin business maintained strong gross margins of 70.5% while reducing selling expenses to 35.8% company-wide and 41.7% within the core business. Management highlighted double-digit growth in Latin America and sequential improvement across several reporting segments, indicating regional strength despite overall headwinds in the direct selling industry.

Strategic initiatives are positioning NU Skin for future growth, with the company preparing a limited preview of its Prysm iO intelligent wellness platform for qualified leaders in late fourth quarter 2025. 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. Broader leader availability is scheduled for the first half of 2026, with full consumer launch planned for the second half of 2026.

Concurrently, NU Skin begins pre-market opening activities in India during fourth quarter 2025 ahead of a formal market launch in the second half of 2026. The company plans to apply its digital-first playbook that has proven successful in faster-growing regions. This strategic expansion into one of the world's largest consumer markets represents a significant growth opportunity for the direct selling company.

Key performance indicators showed declines year-over-year, with the company ending the quarter with 31,150 sales leaders, 130,096 paid affiliates, and 746,256 customers, representing decreases of 19%, 13%, and 10% respectively. 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.

NU Skin maintained a strong balance sheet with $251.7 million in cash on hand and net cash of $22.7 million. The company 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, management 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.

Valuation analysis indicates NU Skin currently trades at a forward price to adjusted EPS of 7.8x compared to comparable companies averaging 17.0x. Using fiscal year 2026 adjusted EPS with a P/E range of 8.0x to 12.0x and midpoint of 10.0x, the analysis suggests a valuation range of $11.37 to $17.05 with a midpoint of $14.21, representing potential upside as the company executes its growth initiatives and narrows the valuation gap with peers.