Earnings release
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USANA Health Sciences Reports Third Quarter 2025 Results and Updates Full-Year Outlook SALT LAKE CITY, October 22, 2025 (BUSINESS WIRE)—USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal third quarter ended September 27, 2025. Key Financial Results Third Quarter 2025 vs. Third Quarter 2024 • Net sales of $214 million versus $200 million, representing 7% year-over-year growth. • Net loss of -$6.5 million versus net earnings of $10.6 million. • Diluted EPS of -$0.36 as compared with $0.56. • Adjusted diluted EPS of -$0.15 as compared with $0.56. • Adjusted EBITDA of $13.8 million versus $24.6 million. • Direct selling Active Customers of 388,000 versus 452,000. • Hiya Active Monthly Subscribers of 193,400. Q3 2025 Financial Performance Consolidated Results Year-Over-Year Sequentially Net Sales $214 million +7% (No meaningful FX impact) -9% Net (Loss) Earnings* -$6.5 million N/A N/A Diluted EPS -$0.36 N/A N/A Adjusted Diluted EPS -$0.15 N/A N/A Adjusted EBITDA $13.8 million -44% -55% *Pretax earnings for Q3 2025 totaled $1.8 million with income tax expense of $8.5 million. The adjustment to income taxes during the period, as a result of updating the annual effective tax rate, is about $7.6 million greater than what would have been expected using the previously guided 45% tax rate. Net earnings, EPS and EBITDA figures represent amounts attributable to USANA and excludes the noncontrolling interest of 21.15% in Hiya. (1) (2) (1) (2)
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“USANA provided third quarter results in line with the preliminary results we announced on October 9, 2025,” said Jim Brown, President and Chief Executive Officer. “We rolled out our enhanced Brand Partner compensation plan during the third quarter. Since this launch, our commercial team has been actively training, educating and supporting Brand Partners across our global markets to help them leverage the new plan. We are encouraged by the pickup in sales activity and leader productivity in recent weeks. Our enhanced compensation plan represents a bold and strategic move to modernize our business and better position our Brand Partners, and the Company, for long- term success in a competitive landscape. “We held a successful Global Convention in Salt Lake City during the third quarter where we launched several new and upgraded products, recognized our Brand Partners, and trained them on our enhanced compensation plan. Our commercial team will continue to work alongside our Brand Partners over the next several quarters to help promote our new products and compensation plan. We remain confident that our product and opportunity strategy will position the Company to drive growth in our direct selling business and deliver long-term value for our stakeholders. “Hiya, our direct-to-consumer (DTC) business, has delivered 26% year-to-date sales growth, and made significant progress on several integration initiatives during the quarter, including the transition to a new logistics partner, which is anticipated to drive operational efficiency. We are also leveraging USANA’s manufacturing expertise to support Hiya and will begin bringing their products in-house over the next several months. We continue to expect Hiya to generate double-digit sales growth for 2025 and remain confident in their long-term growth.” Q3 2025 Direct Selling Regional Results: Asia Pacific Region Year-Over-Year Year-Over-Year (ConstantCurrency) Sequentially Net Sales $140 million -13% -13% -15% Active Customers 308,000 -14% N/A -8%
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Asia Pacific Sub-Regions Year-Over-Year Year-Over-Year (ConstantCurrency) Sequentially GreaterChina Net Sales $93 million -9% No meaningful FX impact-18% Active 210,000 -14% N/A -9%Customers North Asia Net Sales $18 million -14% -12% +3% Active 37,000 -10% N/A —%Customers SoutheastAsia Pacific Net Sales $29 million -22% -23% -11% Active 61,000 -20% N/A -10%Customers Americas and Europe Region Year-Over-Year Year-Over-Year(Constant Currency)Sequentially Net Sales* $43 million +8% +8% +12% Active Customers 80,000 -13% N/A -2% *Includes $7 million of ‘Other’ Q3 2025 Hiya Direct to Consumer Results: Hiya Net Sales $31 million Active Monthly Subscribers 193,400 Balance Sheet The Company ended the quarter with $145 million in cash and cash equivalents and no debt. The Company has approximately $34 million remaining under the current share repurchase authorization as of the end of the third quarter. Fiscal Year 2025 Outlook The Company is updating its outlook for fiscal year 2025, as follows:
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Fiscal Year 2025 Outlook Updated Estimate Previous Range Consolidated net sales $920 million $920 million to $1.0 billion Net earnings $15 million $29 million to $41 million Diluted EPS $0.78 $1.50 to $2.20 Adjusted Diluted EPS $1.73 $2.35 to $3.00 Adjusted EBITDA $98 million $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. Doug Hekking, Chief Financial Officer, commented, “Short-term profitability was burdened during the third quarter due to softer than anticipated sales, meaningful investments to support the roll out of our enhanced Brand Partner compensation plan, and a change in the estimated annual effective income tax rate that disproportionately impacted the current year quarter. Specifically, lower than expected earnings coupled with the concentration of operating and administrative expenses in the United States resulted in a meaningful increase in the annualized effective income tax rate in the third quarter from 45% to 65%. The adjustment was approximately $7.6 million greater than what would have been expected using the previously guided 45% tax rate. “Our revised outlook reflects modest sequential improvement in both our direct sales and DTC businesses, albeit from a lower customer base as a result of third quarter performance. We have initiated and are executing a comprehensive process to align all costs throughout the business globally with our current level of sales. As a result of this realignment and rightsizing process, we expect to incur an estimated one-time charge of $4.7 million in the fourth quarter, which is reflected in our updated outlook. We will provide an update on this process, including the actual charge, when we report our fourth quarter and full-year results early next year.” The Company’s fiscal 2025 outlook reflects: • Net sales from the direct selling business of approximately $788 million; • Net sales from Hiya of approximately $132 million, reflecting year-over-year growth of 16%; • 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) (2)
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_________________________ (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 (Loss) Earnings Per Share (GAAP) to Adjusted Diluted (Loss) 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 (Loss) 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.
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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.
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Reconciliation of Net (Loss) Earnings (GAAP) to Adjusted EBITDA (non-GAAP) (in thousands) Quarter Ended Nine months ended September 27,2025 September 28,2024 September 27,2025 September 28,2024 Net earnings (loss) attributable to USANA(GAAP) $ (6,522) $ 10,607 $ 12,535 $ 37,576 Net earnings (loss) attributable to noncontrollinginterest (140) — 537 — Net earnings (loss) $ (6,662) $ 10,607 $ 13,072 $ 37,576 Adjustments: Income taxes $ 8,456 $ 8,001 $ 24,278 $ 28,346 Interest (income) expense (529) (3,093) (1,201) (8,429) Depreciation and amortization 5,112 5,559 16,050 16,345 Amortization of intangible assets - Hiya 4,455 — 13,366 — Earnings before interest, taxes, depreciation,and amortization (EBITDA) $ 10,832 $ 21,074 $ 65,565 $ 73,838 Add EBITDA adjustments: Non-cash share-based compensation 3,576 3,542 10,078 10,945 Transaction, integration and transition costs -Hiya 179 — 871 — Inventory step-up - Hiya — — 1,126 — Consolidated adjusted EBITDA 14,587 24,616 77,640 84,783 Less: Adjusted EBITDA attributable tononcontrolling interest (804) — (3,604) — Adjusted EBITDA attributable to USANA $ 13,783 $ 24,616 $ 74,036 $ 84,783
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Reconciliation of Diluted (Loss) Earnings Per Share (GAAP) to Adjusted Diluted (Loss) Earnings Per Share (non-GAAP) (in thousands, except per share data) Quarter Ended Nine months ended September 27,2025 September 28,2024 September 27,2025 September 28,2024 Net earnings (loss) attributable to USANA(GAAP) $ (6,522) $ 10,607 $ 12,535 $ 37,576 Earnings (loss) per common share - Diluted(GAAP) $ (0.36) $ 0.56 $ 0.67 $ 1.96 Weighted Average common shares outstanding -Diluted 18,293 19,083 18,671 19,181 Adjustment to net earnings (loss): Transaction, integration and transition costs -Hiya $ 179 $ — $ 871 $ — Inventory step-up - Hiya — — 1,126 — Amortization of intangible assets - Hiya 4,455 — 13,366 — Adjustments to net earnings (loss)attributable to noncontrolling interest (941) — (3,066) — Income tax effect of adjustments to netearnings (loss) — — (4) — Adjusted net earnings (loss) attributable toUSANA $ (2,829) $ 10,607 $ 24,828 $ 37,576 Adjusted earnings (loss) per common share -Diluted $ (0.15) $ 0.56 $ 1.33 $ 1.96 Weighted average common shares outstanding -Diluted 18,293 19,083 18,671 19,181
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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 Thursday, October 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 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
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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,
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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
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USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended September 27,2025 September 28,2024 Net sales $ 213,670 $ 200,221 Cost of sales 48,815 39,257 Gross profit 164,855 160,964 Operating expenses: Brand Partner incentives 77,684 84,068 Selling, general and administrative 85,947 61,295 Total operating expenses 163,631 145,363 Earnings from operations 1,224 15,601 Other income (expense): Interest income 578 3,142 Interest expense (49) (49) Other, net 41 (86) Other income (expense), net 570 3,007 Earnings before income taxes 1,794 18,608 Income taxes 8,456 8,001 Net (loss) earnings (6,662) 10,607 Less: Net (loss) earnings attributable to redeemable noncontrolling interest (140) — Net (loss) earnings attributable to USANA $ (6,522) $ 10,607 (Loss) earnings per common share attributable to USANA Basic $ (0.36) $ 0.56 Diluted $ (0.36) $ 0.56 Weighted average common shares outstanding Basic 18,293 19,078 Diluted 18,293 19,083
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USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) As ofSeptember 27,2025 As ofDecember 28,2024 ASSETS Current assets Cash and cash equivalents $ 145,349 $ 181,768 Inventories 90,781 69,735 Prepaid expenses and other current assets 27,935 27,684 Total current assets 264,065 279,187 Property and equipment, net 96,212 94,565 Goodwill 144,288 144,168 Intangible assets, net 138,159 151,823 Deferred tax assets 24,157 19,644 Other assets* 59,710 58,806 Total assets $ 726,591 $ 748,193 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, ANDSTOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 17,095 $ 11,984 Line of credit — 23,000 Other current liabilities 101,569 104,641 Total current liabilities 118,664 139,625 Deferred tax liabilities 4,467 4,073 Other long-term liabilities 21,907 18,163 Redeemable noncontrolling interest 53,479 54,223 Total stockholders' equity attributable to USANA 528,074 532,109 Total liabilities, redeemable noncontrolling interest, and stockholders' equity $ 726,591 $ 748,193 *Includes noncurrent inventories of $2,802 and $2,688 as of 27-Sep-25 and 28-Dec-24, respectively. Total inventories were $93,583 and$72,423 as of 27-Sep-25 and 28-Dec-24, respectively.
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USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES SALES BY REGION (in thousands) (unaudited) Quarter Ended September 27,2025 September 28,2024 Changefrom prioryear Percentchange Currencyimpact onsales Percentchangeexcludingcurrencyimpact Direct Selling: Asia Pacific Greater China $ 92,571 43.3 % $ 102,261 51.1 % $ (9,690) (9.5%) $ 504 (10.0%) Southeast AsiaPacific 29,178 13.7 % 37,267 18.6 % (8,089) (21.7%) 393 (22.8%) North Asia 17,690 8.3 % 20,541 10.2 % (2,851) (13.9%) (403) (11.9%) Asia Pacific total 139,439 65.3 % 160,069 79.9 % (20,630) (12.9%) 494 (13.2%) Americas and Europe 36,386 17.0 % 38,398 19.2 % (2,012) (5.2%) 72 (5.4%) Direct Selling total 175,825 82.3 % 198,467 99.1 % (22,642) (11.4%) 566 (11.7%) Hiya 30,846 14.4 % — — % 30,846 N/A — N/A Other 6,999 3.3 % 1,754 0.9 % 5,245 299.0% — 299.0% Consolidated total $ 213,670 100.0 % $ 200,221 100.0 % $ 13,449 6.7% $ 566 6.4%
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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 (unaudited) As of September 27, 2025 As of September 28, 2024 Asia Pacific Greater China 61,000 36.3 % 65,000 34.6 % Southeast Asia Pacific 43,000 25.6 % 52,000 27.6 % North Asia 27,000 16.1 % 28,000 14.9 % Asia Pacific Total 131,000 78.0 % 145,000 77.1 % Americas and Europe 37,000 22.0 % 43,000 22.9 % 168,000 100.0 % 188,000 100.0 % Direct Selling Active Preferred Customers by Region (unaudited) As of September 27, 2025 As of September 28, 2024 Asia Pacific Greater China 149,000 67.7 % 178,000 67.4 % Southeast Asia Pacific 18,000 8.2 % 24,000 9.1 % North Asia 10,000 4.6 % 13,000 4.9 % Asia Pacific Total 177,000 80.5 % 215,000 81.4 % Americas and Europe 43,000 19.5 % 49,000 18.6 % 220,000 100.0 % 264,000 100.0 % ______________________________ 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. 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. (1) (2) (1) (2)
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USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES OPERATING RESULTS AS A PERCENTAGE OF NET SALES (unaudited) Quarter Ended September 27, 2025 September 28, 2024 Direct selling &Other Hiya direct-to-consumer Consolidated Direct selling &Other Hiya direct-to-consumer Consolidated Net sales 100.0% 100.0% 100.0% 100.0% N/A 100.0% Cost of sales 20.7% 35.6% 22.8% 19.6% N/A 19.6% Gross profit 79.3% 64.4% 77.2% 80.4% N/A 80.4% Operating expenses: Brand Partner incentives 42.5% —% 36.4% 42.0% N/A 42.0% Selling, general andadministrative 35.8% 66.5% 40.2% 30.6% N/A 30.6% Total operatingexpenses 78.3% 66.5% 76.6% 72.6% N/A 72.6% Earnings (loss) fromoperations 1.0% (2.1)% 0.6% 7.8% N/A 7.8% Amortization of acquiredintangible assets 0.2% 14.5% 2.2% 0.1% N/A 0.1% Nine months ended September 27, 2025 September 28, 2024 Direct selling &Other Hiya direct-to-consumer Consolidated Direct selling &Other Hiya direct-to-consumer Consolidated Net sales 100.0% 100.0% 100.0% 100.0% N/A 100.0% Cost of sales 19.1% 36.7% 21.7% 19.1% N/A 19.1% Gross profit 80.9% 63.3% 78.3% 80.9% N/A 80.9% Operating expenses: Brand Partner incentives 42.7% —% 36.4% 42.2% N/A 42.2% Selling, general andadministrative 33.0% 60.8% 37.1% 29.6% N/A 29.6% Total operating expenses 75.7% 60.8% 73.5% 71.8% N/A 71.8% Earnings from operations 5.2% 2.5% 4.8% 9.1% N/A 9.1% Amortization of acquiredintangible assets 0.2% 13.1% 2.0% 0.2% N/A 0.2%