Nature's Sunshine Products (NATR) Q1 2026 earnings summary

Executive summary

• Net sales rose 9% year-over-year to $122.9 million in Q1 2026, with growth across all regions and strong digital channel engagement.

• Adjusted EBITDA increased 33% to $14.6 million, and operating income rose 54.7% to $9.5 million, reflecting disciplined execution and margin improvement.

• Net income attributable to common shareholders was $5.1 million, up from $4.7 million, with diluted EPS at $0.29, a 16% increase.

• Growth was broad-based, led by North America, Asia-Pacific, and Europe, fueled by digital and subscription autoship programs.

• Strategic focus remains on digital transformation, product innovation, and geographic expansion to drive sustainable long-term growth.

Financial highlights

• Net sales reached $122.9 million, up 9% year-over-year (7% excluding FX), marking the strongest Q1 in company history.

• Gross margin improved 116 bps to 73.2%, driven by cost savings, market mix, and favorable FX.

• SG&A expenses were $43.5 million (35.4% of net sales), up 7.3% but down as a percentage of sales.

• Cash and cash equivalents stood at $87.6 million with zero debt as of March 31, 2026.

• Free cash flow was negative at $(4.3) million, and net cash used by operating activities was $1.8 million.

Outlook and guidance

• 2026 net sales guidance is $500–$515 million (4–7% growth) and adjusted EBITDA of $50–$54 million (1–9% growth).

• Guidance incorporates investments in technology, customer acquisition, and market expansion, with EBITDA growth moderating due to these investments.

• Management expects continued growth in international markets, with foreign currency fluctuations and geopolitical risks as key factors.