Nature’s Sunshine Q3 Sales Fall 9.1% on Asia and North America Weakness

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) reported lower third-quarter 2026 sales and earnings as weakness in Asia and North America outweighed steadier results in Europe and Latin America. Net sales fell 9.1% year over year to $116.6 million, while adjusted EBITDA declined 26.7% to $11.1 million.

Gross margin narrowed 42 basis points to 72.9%, reflecting inventory reserves and unfavorable foreign-exchange movements. Selling, general and administrative expenses decreased 7.5% to $42.3 million, primarily because of lower variable expenses and cost-management efforts, but the reduction was not enough to offset weaker sales and gross margin.

Operating income fell 41.1% to $5.3 million. Net income attributable to common shareholders declined 64.6% to $1.9 million, and diluted earnings per share decreased to $0.11 from $0.30 a year earlier.

Asia Leads Regional Decline

Asia, the company’s largest operating segment, recorded sales of $55.1 million, down 14.9% from $64.7 million. Excluding currency effects, regional sales declined 11.2%.

North American sales decreased 6.1% to $34.0 million, or 6.0% excluding currency movements. Europe generated $22.1 million in sales, nearly unchanged on a reported basis and up 0.9% in constant currency.

Latin America and Other sales rose 3.4% to $5.5 million, although they were down 0.1% excluding foreign-exchange effects. Across the company, currency movements reduced quarterly sales by about $2.5 million; constant-currency net sales declined 7.2%.

For the trailing 12 months through the third quarter, Nature’s Sunshine reported revenue of $480.3 million and adjusted EBITDA of $49.0 million.

Cash Flow Weakens, Balance Sheet Remains Debt-Free

Cash and cash equivalents totaled $89.4 million at Sept. 30, 2026, compared with $93.9 million at the end of 2025. The company had no debt, while total stockholders’ equity increased to $171.7 million from $161.6 million.

Cash from operations for the period ended Sept. 30 totaled $9.7 million, down from $25.4 million in the comparable 2025 period. Capital expenditures increased to $6.8 million from $4.1 million, leaving free cash flow—defined as operating cash flow less capital expenditures—of $2.9 million, compared with $21.3 million a year earlier.

Nature’s Sunshine repurchased $6.1 million of shares during the first nine months of 2026 at an average price of $17.66 per share. It had $11.3 million remaining under its repurchase authorization as of Sept. 30.

Growth and Capital Priorities

Management identified digital-channel expansion, stronger regionally focused sales teams, international growth and new products as potential revenue drivers. Its margin priorities include raw-material optimization, manufacturing improvements, reduced waste, logistics efficiencies and tighter SG&A management.

The company’s capital-allocation plan calls for continued investment in organic growth, process improvement and supply-chain initiatives, along with potential strategic acquisitions and share repurchases.

The presentation cautioned that future results remain exposed to foreign-exchange fluctuations, economic conditions, supply-chain and manufacturing disruptions, regulatory requirements, direct-selling restrictions, the company’s ability to attract and retain independent consultants, cybersecurity threats and geopolitical developments. Forward-looking expectations, including anticipated improvement in gross profit and gross margin, are subject to those risks and uncertainties.