Natural Health Trends (NASDAQ:NHTC) reported first-quarter 2026 results showing lower revenue year over year, while management pointed to early benefits from a restructuring program and ongoing investments in technology aimed at improving efficiency and supporting future growth.
Management cites stabilization efforts amid challenging conditions
President Chris Sharng said the company’s business was “adversely impacted a year ago when trade war rhetoric between America and China intensified.” He added that, despite continued macroeconomic pressure and “subdued consumer spending,” the company has “managed to stabilize our top line” over the past year.
Revenue falls year over year; margins improve
Senior Vice President and Chief Financial Officer Scott Davidson reported total revenue of $9.2 million for the first quarter, down 6% from $9.7 million in the fourth quarter of 2025 and down 14% from $10.7 million in the first quarter of 2025.
On profitability metrics, Davidson said the restructuring initiative is contributing to improved margin and lower operating expenses. Gross profit margin rose to 75% from 73.6% in the first quarter of 2025, which Davidson attributed to continued progress in shifting “much of our product manufacturing from the United States to East Asia, closer to our main markets.”
Commissions expense as a percentage of total revenue was 41.8%, which Davidson said was consistent with the prior year.
Losses widen and operating cash flow turns negative
Natural Health Trends posted an operating loss of $474,000 for the quarter, compared with an operating loss of $345,000 in the year-ago period. Net loss for the first quarter was $154,000, or $0.02 per diluted share, compared with net income of $122,000, or $0.01 per diluted share, in the first quarter of 2025.
Cash flow from operations also weakened. Davidson said net cash used in operating activities was $797,000 in the first three months of 2026, compared with net cash provided by operating activities of $484,000 in the first quarter a year earlier.
Cash balance declines following major share repurchase and dividend
Davidson reported total cash, cash equivalents, and marketable securities of $21.2 million as of March 31, down from $28.9 million at December 31, 2025. He attributed the decline primarily to the repurchase of about 25.5% of the company’s common stock in February, as well as the quarterly dividend payment and cash used in operations.
“Returning capital to our stockholders remains a top priority,” Davidson said. He also announced that on April 27 the board declared another quarterly cash dividend of $0.10 per share, payable May 22 to stockholders of record as of May 12.
Product and technology initiatives, anniversary event planned
Sharng highlighted several initiatives underway aimed at strengthening the business. He said the company recently launched an enhanced nhtglobal.com website, featuring refreshed branding, more robust product information, and “a modern, intuitive customer journey.” He also said development continues on a new back-office platform, an AI-powered member app, and AI agents for logistics and member services. According to Sharng, these tools are intended to support future growth by improving member productivity and knowledge, enhancing the selling process and customer experience, and sharpening business insights.
On the product side, Sharng said the company introduced a new product, Super Nutri One, described as “a tropical flavor greens powder for digestion, detox, and immunity.”
Management also discussed plans to mark the company’s 25th anniversary in Hong Kong later this year. Sharng said a full calendar of events and brand initiatives is being developed, and Davidson said the activities surrounding the milestone are designed to “drive engagement and strengthen the NHT Global brand” as the company seeks to build momentum into its next phase.
- Q1 2026 revenue: $9.2 million (down 14% year over year)
- Gross margin: 75% (up from 73.6% a year ago)
- Net result: net loss of $154,000, or $0.02 per diluted share
- Cash, equivalents, and marketable securities: $21.2 million at March 31
- Quarterly dividend declared: $0.10 per share, payable May 22
About Natural Health Trends (NASDAQ:NHTC)
Natural Health Trends Corp. is a U.S.-based holding company that develops, markets and distributes a range of plant-based health supplements, nutritional products and personal care items. The company’s product portfolio spans weight management, skin care, men’s health, nutritional supplements and wellness solutions designed to support overall health and beauty. Natural Health Trends focuses on delivering scientifically formulated products through modern e-commerce channels and direct selling platforms.
Through its principal subsidiaries in the People’s Republic of China—including Shanghai NHTC Health Products Co, Ltd.
