Nature’s Sunshine Products (NASDAQ:NATR) reported fourth-quarter and full-year 2025 results that management described as record-setting, citing continued momentum in its digital business, increased adoption of subscription programs, and improved gross margin.
Fourth-quarter and full-year results
CFO Shane Jones said fourth-quarter net sales were $123.8 million, the company’s “second-largest quarter” and “strongest fourth quarter ever,” up 5% from $118.2 million a year earlier (or 4% excluding foreign exchange). Adjusted EBITDA increased to $11.9 million, up 16% from $10.3 million in the prior-year quarter, which Jones attributed primarily to higher sales and improved gross margin.
GAAP net income attributable to common shareholders in the fourth quarter was $4.1 million, or $0.23 per diluted share, compared with a loss of $0.3 million, or $0.02 per diluted share, in the year-ago period. Operating income rose to $5.3 million, or 4.3% of net sales, from $4.6 million, or 3.8%, a year earlier.
Regional performance highlights
Jones pointed to strength in North America and Europe, alongside a slight decline in Asia-Pacific due to a difficult year-over-year comparison.
- North America: Fourth-quarter sales increased 6% to $37.4 million. Jones said the company’s digital business grew 47% year over year. He noted that new digital customers “nearly double[d]” versus the prior year and that subscription autoship adoption continued to rise. Digital subscriptions through the company’s website increased 260 basis points to 47% of digital revenue, and subscription autoship on TikTok reached 25% of TikTok revenue.
- Asia-Pacific: Sales declined 1% to $55.7 million, also down 1% on a constant currency basis. Jones said the quarter was a “very difficult compare” because sales increased 21% in constant currency terms in Q4 2024. Within the region, he highlighted constant-currency sales increases of 35% in China and 21% in Japan. He added that Japan has sustained 20%+ growth for six consecutive quarters, while China has seen a “meaningful turnaround.” Subscription autoship accounted for nearly half of Japan sales, and in China it rose from 12% of sales in Q3 2025 to 18% in Q4.
- Europe: Fourth-quarter sales increased 18% to $25.2 million, or 14% on a constant currency basis. Jones said results were driven by 23% growth in Eastern Europe (local currency), supported by improved product availability, consultant execution, and “some economic stabilization,” while noting the continued war in the region.
Margins, expenses, and cash flow
Gross margin improved 55 basis points to 72.5% from 72.0% a year earlier. Jones attributed the improvement to ongoing initiatives such as logistics contract renegotiations, manufacturing efficiencies, improved sourcing, more disciplined pricing, and other cost-saving efforts, as well as favorable market mix. He also cautioned that uncertainty remains around tariffs and inflation, and said gross margin is “likely to settle into the upper 72% range” during 2026.
Volume incentives fell to 29.1% of net sales from 31.1% a year earlier, driven mainly by the mix shift toward digital and other market-mix changes.
Selling, general, and administrative expenses increased to $48.4 million from $43.7 million. As a percentage of sales, SG&A was 39.1% versus 35.7% in the prior-year quarter. Jones said the increase reflected higher digital ad spend, variable costs tied to higher sales, and non-recurring expenses. Looking ahead, he guided to quarterly SG&A of $46 million to $48 million in 2026.
Nature’s Sunshine ended the year with $93.9 million in cash and cash equivalents and no debt. Inventory was $68.3 million at quarter-end, up $1 million from Q3, as the company replenished stock following strong growth in the second half. Jones said inventory is expected to increase moderately in 2026 to support in-stock levels and demand.
Net cash provided by operating activities was $35.3 million, up from $25.3 million a year earlier. The company repurchased 1.3 million shares for $16.3 million during 2025 at an average price of $12.95 per share, with $17.4 million remaining under its repurchase authorization.
2026 guidance and investment posture
For 2026, management guided to net sales of $500 million to $515 million (4% to 7% growth versus 2025) and adjusted EBITDA of $50 million to $54 million (1% to 9% growth). Jones said the outlook includes “measured investments” in technology infrastructure, customer acquisition, geographic expansion, deeper penetration in existing markets, and product innovation—investments he said could temper EBITDA growth in 2026 but are intended to position the company for “more rapid, sustained growth in 2027 and beyond.”
On the Q&A, Jones said the wider EBITDA range reflects uncertainty around tariffs and inflation, broader macro risks including impacts from ongoing war, and the timing of benefits from investments that may be weighted more to 2027 and beyond. He added that the company was still seeing “very strong consumer demand” early in 2026 and had not yet observed a change in trends in the current quarter.
CEO outlines growth vision and digital ecosystem strategy
CEO Ken Romanzi, who said he has been with the company for 131 days, said Nature’s Sunshine delivered “another terrific quarter,” with sales up 5% and EBITDA up 10%, and emphasized the company’s global footprint, in-house manufacturing and product development capabilities, consultant base, and “rock-solid balance sheet with nearly $100 million in cash and no debt.”
Romanzi said the company is “doubling down” in 2026 and set a goal of reaching $1 billion in sales with improved profitability, describing an “accelerated growth plan” dubbed the Nature’s Sunshine Vision for Growth. He outlined seven drivers:
- Rapid expansion of the digital business into new channels
- Deeper penetration in core direct-selling markets
- Geographic expansion in new high-value markets
- Exploring opportunities in retail channels
- Deepening consumer relationships through brand positioning, marketing, and product innovation for Nature’s Sunshine and Synergy
- Leveraging the supply chain for scale efficiencies
- Searching for complementary, accretive M&A opportunities
In discussing digital customer acquisition, management described an “ecosystem” in which customers move across TikTok, Amazon, the company’s website, and independent consultants. Romanzi cited an example involving a TikTok influencer promoting a product called “Lymphatic Drainage,” which he said moved from about number 83 in the North America lineup to the company’s number one item last year and drove demand across TikTok Shop, Amazon, nsp.com, and the consultant channel.
Romanzi also addressed potential channel conflict, noting that some customers introduced through consultants may later purchase on Amazon. He said the company believes it can manage growth through product differentiation and its product pipeline, while also “open[ing] up” to new channels to meet consumers where they shop.
About Nature’s Sunshine Products (NASDAQ:NATR)
Nature’s Sunshine Products, Inc is a global manufacturer and direct seller of nutritional supplements, herbal remedies, and personal care products. The company’s core business centers on research, development and distribution of vitamins, minerals, botanicals and essential oil-based formulations designed to support overall health and wellness. Operating under a network-marketing model, Nature’s Sunshine works through a network of independent distributors who promote and sell its product line directly to consumers.
The company’s product portfolio spans dietary supplements such as single-ingredient vitamins, proprietary herbal blends, sports nutrition formulas and weight-management solutions, along with skin and hair care items based on botanical extracts and essential oils.
