NU Skin Enterprises Inc. (NYSE: NUS) reported fourth-quarter financial results that fell slightly below analyst estimates while maintaining disciplined spending and expanding into new international markets. The company posted 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 Capital Partners' estimates of $380.2 million in revenue, $15.1 million in adjusted net income, and $0.30 in adjusted earnings per share.
The results positioned NU Skin at the low end of its revenue guidance but at the high end of its earnings per share guidance, indicating effective cost management despite revenue challenges. The company's Rhyz segment contributed $48.52 million in revenue, consisting of $42.45 million from manufacturing operations and $6.07 million from other Rhyz activities. Meanwhile, the core Nu Skin business maintained strong profitability with a 77.6% gross margin while reducing selling expenses to 40.8% of the core business.
Management identified several key factors contributing to the earnings performance, including strategic penetration into India and other emerging markets, overall margin expansion, and a one-time tax benefit. The company's expansion into India represents a significant growth opportunity, with pre-launch activities currently underway and a full market opening expected in the second half of 2026. This international expansion strategy comes as the company continues to advance its Prism iO technology rollout, scheduled for implementation in the first half of 2026.
Despite weaker-than-expected top-line performance, company leadership emphasized their commitment to executing strategic initiatives aimed at long-term growth. The disciplined approach to spending has allowed NU Skin to maintain profitability even as revenue fell short of projections. The company's focus on margin improvement and cost control has become increasingly important in a competitive global market where consumer spending patterns remain uncertain.
Looking forward, NU Skin has provided earnings guidance for fiscal year 2026 with a midpoint projection of $1.00 per share. This forward-looking guidance suggests management confidence in their strategic direction despite recent revenue challenges. The company's ability to maintain profitability through disciplined operations while investing in international expansion demonstrates a balanced approach to navigating current market conditions while positioning for future growth opportunities in emerging economies.
Stonegate Capital Partners continues to monitor NU Skin's performance as the company implements its strategic initiatives. Additional details about the company's financial results and strategic direction are available through the firm's research coverage. The full announcement including downloadable images and comprehensive analysis can be accessed at https://www.stonegateinc.com.
