Natural Health Trends (NHTC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $10.7 million, down 2% year-over-year, with Hong Kong contributing 85% of revenue, primarily from sales delivered to members in China.

• Orders increased 9% sequentially from Q4 2024, reflecting sustained product demand.

• Active member base declined to 30,180 at March 31, 2025, down 5% year-over-year and slightly from December 31.

• The company continues to focus resources on Greater China and markets with strong member networks, while navigating regulatory and geopolitical risks.

• New product launches, a nine-city roadshow in China and Hong Kong, and a new office in Bogota, Colombia supported brand engagement and Latin American expansion.

Financial highlights

• Gross profit margin rose to 73.6% from 73.4% in Q1 2024, with gross profit at $7.9 million.

• Operating loss narrowed to $345,000 from $365,000 year-over-year.

• Net income was $122,000 ($0.01 per diluted share), down from $188,000 ($0.02 per diluted share) in Q1 2024.

• Net cash from operating activities was $484,000, compared to $549,000 a year ago.

• Cash, cash equivalents, and marketable securities totaled $41.9 million at quarter-end, down from $43.9 million at December 31, 2024.

Outlook and guidance

• Management is monitoring and mitigating the impact of new U.S.-China tariffs and international trade changes.

• Strategic initiatives include optimizing supply chain, logistics, and investing in China-based manufacturing and infrastructure.

• The company expects to continue paying a quarterly cash dividend of $0.20 per share, subject to Board discretion.