Mannatech Incorporated (MTEX) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 were $25.7M, down 7.4% year-over-year, mainly due to weakened demand in key regions and adverse currency effects.

• Net loss for Q2 2025 was $4.3M ($2.27 per share), compared to a $0.6M loss in Q2 2024.

• Cash and cash equivalents fell 51.5% to $5.5M as of June 30, 2025, compared to $11.4M at year-end 2024.

• Active associates and preferred customers declined 12–14.6% year-over-year, with recruiting down 22.7%.

• Gross profit margin declined to 73.6% from 77.1% year-over-year, impacted by higher freight costs and sales promotions.

Financial highlights

• Gross profit for Q2 2025 was $18.9M (73.6% margin), down from $21.4M (77.1%) in Q2 2024.

• Operating loss for Q2 2025 was $1.4M, compared to $1.1M in Q2 2024.

• Commission expenses decreased 14.4% to $9.5M; commissions as a percentage of net sales fell to 37.0% from 40.0%.

• Selling and administrative expenses as a percentage of net sales increased to 42.0% in Q2 2025 from 39.1% in Q2 2024.

• Net cash used in operations was $5.1M for the first half of 2025, compared to $0.8M used in the prior year.

Outlook and guidance

• Management expects existing liquidity and cash flows from operations to be adequate for the next twelve months, but further sales declines or supply chain disruptions could negatively impact liquidity.

• A business reorganization plan is underway, focusing on revenue growth, margin improvement, and cost control.