NU Skin Enterprises Inc. reported third quarter 2025 revenue of $364.2 million with 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 positioned the company at the low end of revenue guidance but the high end of EPS guidance, demonstrating effective cost management amid challenging market conditions.
The company's performance reflects broader trends in the wellness and direct selling industry, where disciplined spending and operational efficiency have become critical for maintaining profitability. NU Skin achieved a 70.5% gross margin in its core business while reducing selling expenses to 35.8% company-wide and 41.7% within the core operations. Management highlighted double-digit growth in Latin America and sequential improvement across several reporting segments as key drivers of the positive earnings performance.
Strategic initiatives currently underway signal NU Skin's adaptation to evolving consumer preferences and global market opportunities. The company is preparing a limited preview of its Prysm iO intelligent wellness platform for qualified leaders in late fourth quarter 2025, with broader leader availability planned for the first half of 2026 and full consumer launch in the second half of 2026. This 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.
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 approach that has proven successful in faster-growing regions. This expansion into one of the world's largest consumer markets represents a significant growth opportunity for the direct selling industry and could establish new benchmarks for international market entry strategies.
The company's key performance indicators showed declines year-over-year, 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 maintains a strong financial position with $251.7 million in cash on hand and a net cash level 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, NU Skin 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.
Current valuation metrics show NU Skin trading at a forward Price to Adjusted EPS of 7.8x compared to comparable companies averaging 17.0x. Stonegate Capital Partners' analysis suggests a valuation range of $11.37 to $17.05 with a midpoint of $14.21, indicating potential upside as the company executes its strategic initiatives. The combination of new technology platforms and geographic expansion positions NU Skin to potentially capture significant market share in the evolving wellness industry.
