Stonegate Capital Partners Updates Coverage on NU Skin Enterprises, Highlighting Prysm iO as Key Catalyst Amid Early Field Stabilization

Stonegate Capital Partners has updated its coverage on NU Skin Enterprises Inc. (NYSE: NUS) following the company's first-quarter 2026 results. The company reported revenue of $320.6 million, adjusted net income of $6.8 million, and adjusted earnings per share of $0.14, compared to Stonegate's estimates of $329.7 million, $7.7 million, and $0.15, respectively. Revenue came in near the low end of guidance, while adjusted EPS remained within range as management continued investing behind Prysm iO and emerging markets while maintaining cost discipline.

Core Nu Skin gross margin improved 20 basis points year-over-year to 76.9%, though adjusted operating margin fell to 3.6% from 6.4% in the prior year. More importantly, management noted that brand affiliate confidence improved and new sales leaders grew year-over-year exiting the quarter, suggesting early field stabilization as Prysm iO training and leader engagement scale.

According to the full announcement, key takeaways include that Prysm iO remains the core commercialization catalyst. Nearly 2 million scans across over 30,000 devices support early adoption, while 5% year-over-year subscription volume growth suggests the platform is beginning to improve customer engagement and recurring revenue quality.

Field trends are showing early stabilization despite pressured headline KPIs. Sales leaders, paid affiliates, and customers declined 13%, 8%, and 14% year-over-year, respectively, but management cited improving brand affiliate confidence and year-over-year growth in new sales leaders exiting the quarter.

Guidance implies confidence in a second-half 2026 improvement cadence. NU Skin maintained its full-year 2026 revenue and adjusted EPS guidance of $1.35 billion to $1.50 billion and $0.80 to $1.20, supported by broader Prysm iO adoption, India's planned year-end launch, and continued cost discipline.

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), provides a full spectrum of investment banking services for public and private companies.