Stonegate Capital Partners Updates Coverage on NU Skin Enterprises Following Q4 Results

Stonegate Capital Partners has updated its coverage on NU Skin Enterprises Inc. following the company's fourth-quarter financial results. 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. These figures compared to Stonegate's estimates of $380.2 million, $15.1 million, and $0.30, respectively, placing actual results at the low end of revenue guidance and the high end of EPS guidance.

The company's Rhyz segment contributed $48.52 million in revenue, comprising $42.45 million from manufacturing and $6.07 million from other Rhyz activities. Meanwhile, the core Nu Skin business maintained a gross margin of 77.6% and continued to benefit from disciplined spending, with selling expense declining to 40.8% of the core business. Management identified strategic penetration into India and other emerging markets, overall margin expansion, and a one-time tax benefit as key factors driving EPS results for fiscal year 2025.

Despite revenue coming in weaker than anticipated, management remains focused on executing strategic initiatives. The Prism iO rollout is advancing in the first half of 2026, while India pre-launch activities are underway with a full opening expected in the second half of 2026. For fiscal year 2026, the company has provided EPS guidance with a midpoint of $1.00. To view the full announcement, including downloadable images and additional details, visit https://www.stonegateinc.com.

The update from Stonegate Capital Partners highlights both challenges and opportunities for NU Skin Enterprises. While top-line performance fell short of expectations, the company's ability to maintain strong margins and control expenses helped deliver earnings at the high end of guidance. The strategic focus on emerging markets, particularly India, represents a significant growth opportunity as the company expands its global footprint.

Investors will be watching closely as NU Skin executes its expansion plans in key markets while managing costs in a competitive environment. The company's performance in emerging markets and successful implementation of the Prism iO platform will be critical factors in achieving its fiscal year 2026 guidance. The full research report and additional analysis are available through Stonegate Capital Partners' research platform.