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USANA Health Sciences Reports Second Quarter 2025 Results and Reiterates Full-Year Outlook

SALT LAKE CITY, July 22, 2025 (BUSINESS WIRE)—USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal second quarter ended June 28, 2025.

Key Financial Results
Second Quarter 2025 vs. Second Quarter 2024
•Net sales of $236 million versus $213 million, representing 11% year-over-year growth.
•Net earnings of $9.7 million versus $10.4 million.
•Diluted EPS of $0.52 as compared with $0.54.
•Adjusted diluted EPS(1) of $0.74 as compared with $0.54.
•Adjusted EBITDA(2) of $30 million versus $27 million.
•Direct selling Active Customers of 418,000 versus 468,000.
•Hiya Active Monthly Subscribers of 200,400.
•Company reiterates fiscal year 2025 outlook.

Q2 2025 Financial Performance
Consolidated Results
Year-Over-YearSequentially
Net Sales
$236 million
+11% (No meaningful FX impact)
-5%
Net Earnings
$9.7 million
-7%
+3%
Diluted EPS
$0.52
-4%
+6%
Adjusted Diluted EPS(1)
$0.74
+36%
+1%
Adjusted EBITDA(2)
$30.5 million
+13%
+2%
Net earnings, EPS and EBITDA figures represent amounts attributable to USANA and excludes the noncontrolling interest of 21.15% in Hiya



“USANA delivered positive second quarter results, highlighted by 11% year-over-year consolidated net sales growth,” said Jim Brown, President and Chief Executive Officer. “Our business performed in line with expectations, and we are maintaining our fiscal 2025 outlook.

Mr. Brown also reported: “We continue to execute our comprehensive commercial strategy for our direct sales business, which represents over two years of research, analysis, and planning. During the quarter, we made several important announcements to advance this strategy, including preliminary communications about the enhanced incentive offering we are currently rolling out to our sales force, as well as our adoption of “Brand Partner” as the terminology we will use to describe members of our direct sales business. We will make other important announcements to advance this strategy at our global convention in August (Salt Lake City, Utah), and throughout the third quarter, including the simplification of our direct sales model, additional enhanced sales incentives, improved personalized business support for our Brand Partners, refreshed USANA brand messaging, and several new and enhanced health products. The continued roll-out of this commercial strategy is intended to provide our Brand Partners with a more compelling opportunity to drive sustainable sales and Active Customer growth.

“Hiya, our direct-to-consumer business, had another strong quarter as year-over-year top line growth remained strong with improved profitability. Sequential sales and Active Monthly Subscriber trends were consistent with expectations, reflecting normal seasonality in this business. Notably, the Hiya team recently launched a new partnership with Disney which includes special edition Disney Lion King and Disney Princesses branded Multivitamin packs. Overall, we remain confident in the growth outlook of this business as the Hiya team continues to execute its strategies to further expand its product offering, distribution channels and geographic footprint.”

Q2 2025 Direct Selling Regional Results:
Asia Pacific Region
Year-Over-Year
Year-Over-Year (Constant Currency)
Sequentially
Net Sales
$163 million
-4%
-5%
-6%
Active Customers
336,000
-9%
N/A
-10%



Asia Pacific Sub-Regions
Year-Over-Year
Year-Over-Year (Constant Currency)
Sequentially
Greater ChinaNet Sales
$113 million
-2%
No meaningful FX impact
-5%
Active
231,000
-8%
N/A
-9%
Customers
North AsiaNet Sales
$17 million
-13%
-11%
-9%
Active
37,000
-12%
N/A
-18%
Customers
Southeast Asia PacificNet Sales
$33 million
-7%
-10%
-8%
Active
68,000
-12%
N/A
-9%
Customers

Americas and Europe Region
Year-Over-Year
Year-Over-Year (Constant Currency)
Sequentially
Net Sales
$39 million
-8%
-7%
-1%
Active Customers
82,000
-17%
N/A
-4%


Q2 2025 Hiya Direct to Consumer Results:
Hiya
Net Sales
$34 million
Active Monthly Subscribers200,400

Balance Sheet and Share Repurchase Activity
During the second quarter, the Company generated $13 million in operating cash flow and ended the quarter with $151 million in cash and cash equivalents and zero debt. The Company repurchased 528,000 shares during the second quarter for an investment of $15 million with approximately $34 million remaining under the current share repurchase authorization as of the end of the second quarter.

Fiscal Year 2025 Outlook


The Company is reiterating its outlook for fiscal year 2025, as follows:
Fiscal Year 2025 Outlook
Range
Consolidated net sales$920 million to $1.0 billion
Net earnings$29 million to $41 million
Diluted EPS$1.50 to $2.20
Adjusted Diluted EPS(1)
$2.35 to $3.00
Adjusted EBITDA(2)
$107 million to $123 million
Net earnings, EPS and EBITDA figures represent amounts attributable to USANA and excludes the noncontrolling interest of 21.15% in Hiya

“Second quarter operating results for both our core direct sales business and for Hiya were in line with internal expectations as we continued to execute our overall growth strategy,” said Doug Hekking, Chief Financial Officer. “During the quarter, we also repaid the $23 million draw on our credit facility deployed in the Hiya transaction and are again debt-free.
“We are reiterating our fiscal 2025 outlook and continue to anticipate consolidated net sales growth of 8% to 17%. The wider than normal range reflects the fluid operating environment and changes to our direct sales incentive offering. During the third quarter we anticipate a short-term increase in promotional costs in conjunction with the global launch of our enhanced direct sales compensation plan. Additionally, we anticipate increased spending on customer acquisition sequentially in our Hiya business during the third quarter, which reflects normal seasonal activity.”


The Company’s fiscal 2025 outlook reflects:
•Net sales from the direct selling business of $775 to $840 million;
•Net sales from Hiya of $145 to $160 million, reflecting year-over-year growth of +29% to +42%;
•Effective tax rate of 44.0% to 45.0%; and
•Fiscal 2025 is a 53-week year and includes one additional week of sales compared to fiscal 2024. Prior to 2025, the last 53-week year was in fiscal 2020.

_________________________


(1) Adjusted Diluted Earnings Per Share is a non-GAAP financial measure. The Company excludes acquisition-related costs, such as business transaction costs, integration expense and amortization expense from acquisition related intangible assets in calculating Adjusted Diluted Earnings Per Share. Please refer to “Non-GAAP Financial Measures” and “Reconciliation of Diluted Earnings Per Share (GAAP) to Adjusted Diluted Earnings Per Share (Non-GAAP)” in this press release for an explanation and reconciliation of this non-GAAP financial measure.
(2) Adjusted EBITDA is a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” and “Reconciliation of Net Earnings (GAAP) to Adjusted EBITDA (Non-GAAP)” in this press release for an explanation and reconciliation of this non-GAAP financial measure.


Non-GAAP Financial Measures
This press release contains the non-GAAP financial measures Adjusted EBITDA and Adjusted diluted EPS. Adjusted EBITDA is a Non-GAAP financial measure of earnings before interest, taxes, depreciation, and amortization that also excludes certain adjustments as indicated below in the reconciliation from net earnings. Adjusted diluted EPS is a Non-GAAP financial measure of diluted earnings per share that excludes certain adjustments as indicated below in the reconciliation from diluted EPS.

Adjusted EBITDA (non-GAAP) is net earnings (loss) (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (benefit from) provision for income taxes, depreciation and amortization, non-cash share-based compensation, and transaction-related expenses and integration costs for the Hiya acquisition. Adjusted EBITDA attributable to USANA (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to non-controlling interest related to Hiya.

Adjusted diluted earnings per share (non-GAAP) is diluted earnings (loss) per share (its most directly comparable GAAP financial measure) adjusted for amortization of intangible assets, transaction-related expenses, and integration costs related to the Hiya acquisition.



Management believes that Adjusted EBITDA (non-GAAP), Adjusted EBITDA attributable to USANA (non-GAAP), and Adjusted diluted earnings per share (non-GAAP), along with GAAP measures used by management, most appropriately reflect how the Company measures the business internally.

The Company prepares its financial statements using U.S. generally accepted accounting principles (“GAAP”) and investors should not directly compare with or infer relationship from any of the Company’s operating results presented in accordance with GAAP to Adjusted EBITDA and Adjusted diluted earnings per share. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of non-GAAP financial information as a tool for comparison. As a result, the non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation from, or as a substitute for financial information presented in accordance with GAAP.
















Reconciliation of Net Earnings (GAAP) to Adjusted EBITDA (non-GAAP)
(in thousands)
Quarter EndedSix Months Ended
June 28, 2025June 29, 2024June 28, 2025June 29, 2024
Net earnings attributable to USANA (GAAP)$9,655 $10,432 $19,057 $26,969 
Net earnings attributable to noncontrolling interest789 — 677 — 
Net earnings$10,444 $10,432 $19,734 $26,969 
Adjustments:
Income taxes$8,373 $9,771 $15,822 $20,345 
Interest (income) expense(360)(2,712)(672)(5,336)
Depreciation and amortization5,148 5,702 10,938 10,786 
Amortization of intangible assets - Hiya4,456 — 8,911 — 
Earnings before interest, taxes, depreciation, and amortization (EBITDA)$28,061 $23,193 $54,733 $52,764 
Add EBITDA adjustments:
Non-cash share-based compensation3,622 3,734 6,502 7,403 
Transaction, integration and transition costs - Hiya115 — 692 — 
Inventory step-up - Hiya544 — 1,126 — 
Consolidated adjusted EBITDA32,342 26,927 63,053 60,167 
Less: Adjusted EBITDA attributable to noncontrolling interest(1,847)— (2,801)— 
Adjusted EBITDA attributable to USANA$30,495 $26,927 $60,252 $60,167 


Reconciliation of Diluted Earnings Per Share (GAAP) to Adjusted Diluted Earnings Per Share (non-GAAP)
(in thousands, except per share data)

Quarter EndedSix Months Ended
June 28, 2025June 29, 2024June 28, 2025June 29, 2024
Net earnings attributable to USANA (GAAP)$9,655 $10,432 $19,057 $26,969 
Earnings per common share - Diluted (GAAP)$0.52 $0.54 $1.01 $1.40 
Weighted Average common shares outstanding - Diluted18,536 19,159 18,811 19,230 
Adjustment to net earnings:
Transaction, integration and transition costs - Hiya$115.00 $— $692.00 $— 
Inventory step-up - Hiya544 — 1,126 — 
Amortization of intangible assets - Hiya4,456 — 8,911 — 
Adjustments to net earnings attributable to noncontrolling interest(1,057)— (2,123)— 
Income tax effect of adjustments to net earnings— — (4)— 
Adjusted net earnings attributable to USANA$13,713 $10,432 $27,659 $26,969 
Adjusted earnings per common share - Diluted$0.74 $0.54 $1.47 $1.40 
Weighted average common shares outstanding - Diluted18,53619,15918,81119,230


Management Commentary Document and Conference Call
For further information on the USANA’s operating results, please see the Management Commentary document, which has been posted on the Company’s website (http://ir.usana.com) under the Investor Relations section. USANA’s management team will hold a conference call and webcast to discuss today’s announcement with investors on Wednesday, July 23, 2025 at 11:00 AM Eastern Time. Investors may listen to the call by accessing USANA’s website at http://ir.usana.com. The call will consist of brief opening remarks by the Company’s management team, followed by a questions and answers session.

Safe Harbor
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These forward-looking statements are based on current plans, expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “expect,” “enhance,” “drive,” “anticipate,” “intend,” “improve,” “promote,” “should,” “believe,” “continue,” “plan,” “goal,” “opportunity,” “estimate,” “predict,” “may,” “will,” “could,” and “would,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding Hiya’s strong growth in 2025 and continued growth in the future; statements about the Company’s long-term growth; and the statements under the sub-heading “Fiscal Year 2025 Outlook.” Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control, including: risks relating to global economic conditions generally, including continued inflationary pressure around the world and negative impact on our operating costs, consumer demand and consumer behavior in general; reliance upon our network of independent Brand Partners; risk that our Brand Partner compensation plan, or changes that we make to the compensation plan, will not produce desired results, benefit our business or, in some cases, could harm our business; risk associated with our launch of new products or reformulated existing products; risks related to governmental regulation of our products, manufacturing and direct selling business model in the United States, China and other key markets; potential negative effects of deteriorating foreign and/or trade


relations between or among the United States, China and other key markets, including potential adverse impact from tariffs, trade policies or other international disputes by and among the United States, China, or other markets that are important to the Company; potential negative effects from geopolitical relations and conflicts around the world, including the Russia-Ukraine conflict and the conflict in Israel; compliance with data privacy and security laws and regulations in our markets around the world; potential negative effects of material breaches of our information technology systems to the extent we experience a material breach; material failures of our information technology systems; adverse publicity risks globally; risks associated with early stage operations in India and future international expansion and operations; uncertainty relating to the fluctuation in U.S. and other international currencies; the potential for a resurgence of COVID-19, or another pandemic, in any of our markets in the future and any related impact on consumer health, domestic and world economies, including any negative impact on discretionary spending, consumer demand, and consumer behavior in general; risk that the Hiya acquisition disrupts each company’s current plans and operations; the diversion of the attention of the management teams of USANA and Hiya from ongoing business operations; the ability of to retain key personnel of Hiya; the ability to realize the benefits of the acquisition, including efficiencies and cost synergies; the ability to successfully integrate Hiya’s business with USANA’s business, at all or in a timely manner; and the amount of the costs, fees, expenses and charges related to the acquisition. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in our most recent filings with the Securities and Exchange Commission. The forward-looking statements in this press release set forth our beliefs as of the date hereof. We do not undertake any obligation to update any forward-looking statement after the date hereof or to conform such statements to actual results or changes in the Company’s expectations, except as required by law.


About USANA
USANA develops and manufactures high-quality nutritional supplements, functional foods and personal care products that are sold directly to Brand Partners and Preferred Customers throughout the United States, Canada, Australia, New Zealand, Hong Kong, China, Japan, Taiwan, South Korea, Singapore, Mexico, Malaysia, the Philippines, the Netherlands, the United Kingdom, Thailand, France, Belgium, Colombia, Indonesia, Germany, Spain, Romania, Italy,


and India. More information on USANA can be found at www.usana.com. USANA also owns a 78.8% controlling ownership stake in Hiya Health Products, a children's health and wellness company with a variety of clean-label products. More information on Hiya can be found at www.hiyahealth.com.



Investor contact: Andrew Masuda
Investor Relations
(801) 954-7201
investor.relations@usanainc.com

Media contact: Sarah Searle
(801) 954-7626
media@usanainc.com




USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

Quarter Ended
June 28,
2025		June 29,
2024
Net sales$235,848 $212,869 
Cost of sales50,184 40,333 
Gross profit185,664 172,536 
Operating expenses:
Brand Partner incentives87,040 90,371 
Selling, general and administrative81,906 64,325 
Total operating expenses168,946 154,696 
Earnings from operations16,718 17,840 
Other income (expense):
Interest income619 2,763 
Interest expense(259)(51)
Other, net1,739 (349)
Other income (expense), net2,099 2,363 
Earnings before income taxes18,817 20,203 
Income taxes8,373 9,771 
Net earnings10,444 10,432 
Less: Net earnings (loss) attributable to redeemable noncontrolling interest789 — 
Net earnings attributable to USANA$9,655 $10,432 
Earnings per common share attributable to USANA
Basic$0.52 $0.55 
Diluted$0.52 $0.54 
Weighted average common shares outstanding
Basic18,51319,073
Diluted18,53619,159



USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

As of
June 28,
2025		As of
December 28,
2024
ASSETS
Current assets
Cash and cash equivalents$151,338 $181,768 
Inventories83,269 69,735 
Prepaid expenses and other current assets27,259 27,684 
Total current assets261,866 279,187 
Property and equipment, net96,532 94,565 
Goodwill144,230 144,168 
Intangible assets, net142,747 151,823 
Deferred tax assets26,435 19,644 
Other assets*
62,716 58,806 
Total assets$734,526 $748,193 
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable$17,899 $11,984 
Line of credit— 23,000 
Other current liabilities103,726 104,641 
Total current liabilities121,625 139,625 
Deferred tax liabilities4,662 4,073 
Other long-term liabilities22,681 18,163 
Redeemable noncontrolling interest54,498 54,223 
Stockholders' equity attributable to USANA531,060 532,109 
Total liabilities, redeemable noncontrolling interest, and stockholders' equity$734,526 $748,193 


*Includes noncurrent inventories of $2,976 and $2,688 as of 28-Jun-25 and 28-Dec-24, respectively. Total inventories were $86,245 and $72,423 as of 28-Jun-25 and 28-Dec-24, respectively.


USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
SALES BY REGION
(in thousands)
(unaudited)

Quarter Ended
June 28,
2025		June 29,
2024		Change from prior
year		Percent changeCurrency impact on
sales		Percent change
excluding currency
impact
Direct Selling:
Asia Pacific
Greater China$113,171 48.0 %$115,513 54.3 %$(2,342)(2.0 %)$(14)(2.0 %)
Southeast Asia Pacific32,887 13.9 %35,402 16.6 %(2,515)(7.1 %)1,083 (10.2 %)
North Asia17,166 7.3 %19,710 9.3 %(2,544)(12.9 %)(342)(11.2 %)
Asia Pacific total163,224 69.2 %170,625 80.2 %(7,401)(4.3 %)727 (4.8 %)
Americas and Europe35,904 15.2 %40,583 19.0 %(4,679)(11.5 %)(699)(9.8 %)
Direct Selling total199,128 84.4 %211,208 99.2 %(12,080)(5.7 %)28 (5.7 %)
Hiya33,931 14.4 %— — %33,931 N/A— N/A
Other2,789 1.2 %1,661 0.8 %1,128 67.9 %— 67.9 %
Consolidated total$235,848 100.0 %$212,869 100.0 %$22,979 10.8 %$28 10.8 %


USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
DIRECT SELLING ACTIVE BRAND PARTNERS AND ACTIVE PREFERRED CUSTOMERS BY REGION
(unaudited)

Direct Selling Active Brand Partners by Region(1)
(unaudited)
As of
June 28, 2025		As of
June 29, 2024
Asia Pacific:
Greater China64,00037.2 %68,00035.2 %
Southeast Asia Pacific45,00026.2 %52,00027.0 %
North Asia26,00015.1 %28,00014.5 %
Asia Pacific Total135,00078.5 %148,00076.7 %
Americas and Europe37,00021.5 %45,00023.3 %
172,000100.0 %193,000100.0 %


Direct Selling Active Preferred Customers by Region(2)
(unaudited)
As of
June 28, 2025		As of
June 29, 2024
Asia Pacific:
Greater China167,00067.9 %182,00066.2 %
Southeast Asia Pacific23,0009.3 %25,0009.1 %
North Asia11,0004.5 %14,0005.1 %
Asia Pacific Total201,00081.7 %221,00080.4 %
Americas and Europe45,00018.3 %54,00019.6 %
246,000100.0 %275,000100.0 %
______________________________
(1)Brand Partners are independent distributors of our products who also purchase our products for their personal use. We only count as active those Brand Partners who have purchased from us any time during the most recent three-month period, either for personal use or resale.
(2)Preferred Customers purchase our products strictly for their personal use and are not permitted to resell or to distribute the products. We only count as active those Preferred Customers who have purchased from us any time during the most recent three-month period. China utilizes a Preferred Customer program that has been implemented specifically for that market.


USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
OPERATING RESULTS AS A PERCENTAGE OF NET SALES
(unaudited)

Quarter Ended
June 28, 2025June 29, 2024
Direct selling & Other
Hiya direct-to-consumer
Consolidated
Direct selling & Other
Hiya direct-to-consumer
Consolidated
Net sales100.0%100.0%100.0%100.0%N/A100.0%
Cost of sales18.8%36.2%21.3%18.9%N/A18.9%
Gross profit81.2%63.8%78.7%81.1%N/A81.1%
Operating expenses:
Brand Partner incentives43.1%—%36.9%42.5%N/A42.5%
Selling, general and administrative31.7%52.8%34.7%30.2%N/A30.2%
Total operating expenses74.8%52.8%71.6%72.7%N/A72.7%
Earnings from operations
6.4%11.0%7.1%8.4%N/A8.4%
Amortization of acquired intangible assets0.2%13.1%2.0%0.3%N/A0.3%
Six Months Ended
June 28, 2025June 29, 2024
Direct selling & Other
Hiya direct-to-consumer
Consolidated
Direct selling & Other
Hiya direct-to-consumer
Consolidated
Net sales100.0%100.0%100.0%100.0%N/A100.0%
Cost of sales18.4%37.2%21.1%18.9%N/A18.9%
Gross profit81.6%62.8%78.9%81.1%N/A81.1%
Operating expenses:
Brand Partner incentives42.7%—%36.5%42.2%N/A42.2%
Selling, general and administrative31.8%58.3%35.7%29.2%N/A29.2%
Total operating expenses74.5%58.3%72.2%71.4%N/A71.4%
Earnings from operations
7.1%4.5%6.7%9.7%N/A9.7%
Amortization of acquired intangible assets0.1%12.5%2.0%0.2%N/A0.2%