Teleconferência de Resultados do 3º Trimestre de 2026 da Natural Health Trends (NHTC): Receita Cai 20%, Prejuízo Diminui

A Natural Health Trends Corp. (NHTC) relatou uma receita no terceiro trimestre de 2026 de US$ 7,6 milhões, estável em relação ao trimestre anterior, mas com queda de 20% na comparação anual. Reduções de custos e uma taxa de comissão menor reduziram o prejuízo operacional, apesar da fraqueza contínua na China.

Destaques

• A receita no 3T26 foi de US$ 7,6 milhões, estável em relação ao 2T26 e com queda de 20% em comparação aos US$ 9,5 milhões no 3T25.
• O prejuízo operacional diminuiu para US$ 277.000, em comparação a US$ 643.000 no 2T26 e US$ 495.000 um ano antes.
• O prejuízo líquido melhorou para US$ 232.000, ou US$ 0,03 por ação diluída, comparado a US$ 451.000, ou US$ 0,05 por ação, no 2T26.
• A margem bruta atingiu 74,2%, caindo em relação aos 75,2% do trimestre anterior devido ao mix promocional, mas acima dos 73,7% no 3T25, refletindo principalmente a migração da fabricação para o Leste Asiático.
• A administração atribuiu a queda anual da receita em grande parte a incentivos adicionais e pacotes de menor preço introduzidos em meio à cautela dos consumidores, à incerteza regulatória na China e a desvios de conduta de membros relatados anteriormente.
• O caixa, equivalentes de caixa e títulos negociáveis somaram US$ 17,6 milhões em 30 de setembro de 2026, abaixo dos US$ 28,9 milhões registrados no final de 2025.

Principais Dados Financeiros

Desempenho Operacional e dos Negócios

A China permaneceu como o maior desafio operacional da empresa. A administração citou o pessimismo do consumidor, o comportamento cauteloso de gastos e investimentos, a incerteza regulatória e os efeitos remanescentes de desvios de conduta de membros relatados anteriormente. Incentivos adicionais e pacotes de menor preço ajudaram a aumentar o número de membros e a estabilizar a receita em relação ao 2T, mas responderam pela maior parte da queda de vendas na comparação anual.

As iniciativas de reestruturação lançadas no final de 2025 reduziram as despesas operacionais trimestrais em quase US$ 500.000 e geraram uma economia de US$ 1,1 milhão no acumulado do ano. Consequentemente, o prejuízo operacional apresentou uma melhora de 57% em relação ao 2T26.

Fora de Hong Kong e da China, metade dos mercados da empresa aumentou as vendas no comparativo trimestral. A Natural Health Trends também realizou seu evento de 25º aniversário em Hong Kong, com a presença de aproximadamente 1.000 membros e convidados.

A empresa introduziu um aplicativo de marketing e comunicação movido a IA para membros chineses. A administração afirmou que as adições planejadas incluem busca com suporte de IA e treinamento de produtos. A Natural Health Trends também espera lançar o Move Prime, uma mistura em pó para bebida voltada à saúde articular com sabor de frutas cítricas, nas próximas semanas, e está preparando um produto de medicina tradicional chinesa para a China nos próximos meses.

A empresa recomprou 85.291 ações ordinárias por um total de US$ 84.000 durante o 3T até o início de outubro. Seu conselho de administração autorizou posteriormente a continuidade das recompras no âmbito do programa existente, permanecendo US$ 15,8 milhões disponíveis.

Riscos e Pontos de Atenção

• A administração identificou o pessimismo do consumidor e o comportamento cauteloso de compra na China como os principais desafios.
• A incerteza regulatória na China e o impacto contínuo dos desvios de conduta de membros permanecem como ventos contrários operacionais.
• Promoções e pacotes de menor preço sustentaram o número de membros e a estabilidade trimestral da receita, mas pesaram sobre as vendas na comparação anual e sobre a margem bruta trimestral.
• A liquidez diminuiu durante os primeiros nove meses de 2026 devido a recompras de ações, dividendos e caixa utilizado nas operações.

Transcrição Completa da Teleconferência de Resultados

Transcrição completa da teleconferência de resultados

Comentários da administração

Operator

Good day, and welcome to the Natural Health Trends Corp. Third Quarter 2026 Conference Call. At this time, I would like to turn the conference over to Michelle Glidewell with Natural Health Trends Corp. Please go ahead.

Michelle Glidewell

Thank you, and welcome to Natural Health Trends Third Quarter 2026 Earnings Conference Call. During today's call, there may be statements made relating to the future results of the company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements due to the result of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission.

It should also be noted that a replay of today's call can be found on the Investors section of the company's corporate website at naturalhealthtrendscorp.com.

At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.

Chris Sharng

Thank you, Michelle. Good morning, and thanks to everyone joining us to discuss our third quarter 2026 financial results. Scott Davidson, our Senior Vice President and Chief Financial Officer, is also here today. Third quarter net sales were $7.6 million or flat compared to the second quarter this year and were down 20% from $9.5 million when compared to the same quarter last year. Consumer pessimism in our largest and most important market remains one of our biggest challenges. The uncertainty is making people cautious about both spending and investing, and we saw that caution show up in purchasing decisions.

We also continue to see lingering effects from the regulatory uncertainty in China and member misconduct we previously reported. To address this difficult economic environment, we introduced additional incentives and lower-priced packages, which accounted for most of the revenue decline compared to a year ago, but managed to lift the member count and steady the top line compared to the preceding second quarter. Partially offsetting these headwinds, our restructuring initiatives from late last year improved gross margin and cut operating expenses by almost $500,000 this quarter, bringing year-to-date savings to $1.1 million. As such, we were able to reduce our operating loss by 57% compared to the preceding quarter.

During the quarter, we celebrated our 25th anniversary with a landmark event in Hong Kong, bringing together approximately 1,000 members and guests from our international teams. Celebrating this milestone together was a highlight of the quarter, and the event reinforced the strength of our community at a time when engagement matters most. We rolled out an AI-powered marketing and communication app for our Chinese members. This mobile-friendly tool helps facilitate direct communication with additional features to come, including AI-enabled search and product training.

In the coming weeks, we're excited to launch a new joint health supplement called Move Prime, a citrus-flavored powder drink mix designed to support joint comfort and mobility. We're also readying a new traditional Chinese medicine product for our China market and to be introduced in the coming months.

Turning to the rest of our global footprint. They remain an important part of our long-term growth story. Half of our markets outside of Hong Kong and China managed to increase their sales over the second quarter. Going forward, our priorities are straightforward: maintain financial discipline, invest where we can strengthen our competitive position and equip our field with innovative products, better digital tools and meaningful engagement. We believe this positions us to benefit as market conditions improve.

We also continue to return capital to shareholders as the Board has authorized continued repurchases under our existing program with $15.8 million currently remaining available. It reflects our confidence in the business and our commitment to shareholder returns.

With that, I'd like to turn the call over to our CFO, Scott Davidson, to discuss our financial results in greater detail. Scott?

Timothy Davidson

Thank you, Chris. Total revenue for the second quarter (sic) [ third quarter ] of $7.6 million was steady compared to $7.6 million in the second quarter of 2026 and declined 20% compared to $9.5 million in the third quarter of 2025. As Chris mentioned, the operating environment remains challenging in China.

Turning to our cost and operating expenses. We continue to see the impact of strong execution on our previously announced restructuring program reflected in improved margins and reduced operating expenses. Gross profit margin was 74.2%, down from 75.2% in the second quarter of 2026 due to the mix of promotions offered during the third quarter to support our teams and members. However, gross profit margin improved from 73.7% in the third quarter of 2025, largely as a result of our shift to manufacturing in East Asia.

Commissions expense as a percent of total revenue for the second quarter (sic) [ third quarter ] was 35.9%, down from 40.9% reported in each of the second quarter of 2026 and the third quarter last year, primarily due to lower weekly commissions earned following disciplinary action taken against certain members as a result of the previously reported code of conduct matter. Selling, general and administrative expenses for the quarter were $3.2 million, a decrease of $80,000 compared to the second quarter of 2026 and down $433,000 compared to the third quarter a year ago.

Operating loss for the third quarter was $277,000, an improvement compared to $643,000 in the second quarter of 2026 and $495,000 in the third quarter of 2025. Net loss for the third quarter was $232,000 or $0.03 per diluted share, also an improvement compared to $451,000 or $0.05 per diluted share in the second quarter of 2026 and $431,000 or $0.04 per diluted share in the third quarter of 2025.

Now I'll turn to our balance sheet and cash flow. Net cash used in operating activities was $3.3 million during the first 9 months of 2026 compared to $5 million in the first 9 months of 2025. Total cash, cash equivalents and marketable securities were $17.6 million at September 30, down from $28.9 million at December 31, 2025, primarily due to repurchase of shares of common stock, dividends paid and cash used in operations during the first 9 months of 2026.

We repurchased 85,291 shares of our common stock in the open market for an aggregate purchase price of $84,000 during the third quarter through early October. Our Board of Directors has since authorized additional share repurchases under our existing stock repurchase program with $15.8 million remaining available.

Our 25th anniversary celebration in Hong Kong was a great success, and I was inspired by the loyalty and enthusiasm of our members and customers. We remain focused on executing our strategy of launching innovative new products, digital tools that drive engagement and support member training and returning value to our shareholders.

That concludes our prepared remarks. I will now turn the call back over to the operator.

Operator

This does conclude today's call. Thank you for your participation. You may now disconnect.