Nature's Sunshine Products (NATR) Q4 2025 earnings summary

Executive summary

• Achieved record annual net sales of $480.1 million in 2025, up 5.7% year-over-year, with Q4 sales of $123.8 million, a 4.7% increase, driven by digital expansion and strong performance in North America, Asia, and Europe.

• Adjusted EBITDA grew 16% in Q4 to $11.9 million and 21.7% for the year to $49.4 million, fueled by digital business, new customer acquisition, and consultant partnerships.

• Gross margin improved to 72.4% for the year and 72.5% in Q4, reflecting cost-saving initiatives and favorable market mix.

• Net income for 2025 was $19.5 million ($1.06 per diluted share), up from $7.7 million in 2024, with Q4 net income of $4.1 million ($0.23 per share) versus a loss prior year.

• Maintained a strong balance sheet with $93.9 million in cash and no debt at year-end.

Financial highlights

• Q4 net sales: $123.8 million (+4.7% year-over-year); full year: $480.1 million (+5.7% year-over-year).

• Adjusted EBITDA for Q4: $11.9 million (+16%); full year: $49.4 million (+21.7%).

• Q4 GAAP net income: $4.1 million ($0.23 per diluted share) vs. a loss of $0.3 million prior year; full-year GAAP net income: $19.5 million ($1.06 per share).

• Gross margin improved to 72.5% in Q4 (+50–55 bps year-over-year); full-year gross margin at 72.4%, up 90 bps.

• Net cash from operations: $35.3 million; free cash flow: $28.8 million; 1.26 million shares repurchased for $16.3 million.

Outlook and guidance

• 2026 net sales expected between $500–$515 million (+4% to +7% year-over-year).

• Adjusted EBITDA guidance: $50–$54 million (+1% to +9% year-over-year), reflecting increased investments in technology, customer acquisition, and innovation.

• Focus on digital channel expansion, regional sales teams, international growth, and new products.

• Gross margin expected to remain in the upper 72% range in 2026.

• Margin drivers include sales growth, raw material optimization, manufacturing efficiencies, and SG&A cost control.