Stonegate Capital Partners Updates Coverage on NU Skin Enterprises Inc. (NYSE: NUS) 2025 Q3

DALLAS, TX -- November 7th, 2025 -- NU Skin Enterprises Inc. (NYSE: NUS): Stonegate Capital Partners updates their coverage on NU Skin Enterprises Inc. (NYSE: NUS). NUS reported revenue, adj NI, and adj EPS of $364.2M, $17.1M, and $0.34, respectively. This compares to our estimates of $374.2M, $14.7M, and $0.30, respectively. These results were at the low end of revenue guidance and the high end of EPS guidance. Rhyz delivered $51.6M of revenue, including $47.6M from Manufacturing and $4.0M from Rhyz Other, while the Nu Skin business posted 70.5% gross margin and continued to benefit from disciplined spending as selling expense declined to 35.8% company-wide and 41.7% within the core business. Management highlighted double-digit growth in Latin America and sequential improvement across several reporting segments, noting that execution and efficiency drove EPS to the high end of the range despite a challenging macro environment. Despite a weaker than expected top line results, management remains focused on delivering on its strategic initiatives. 

Company Updates:

Strategic Initiatives: The Company is preparing a limited late-4Q preview of its Prysm iO intelligent wellness platform for qualified leaders, with broader leader availability in 1H26 and a full consumer launch in 2H26; the AI-enabled device leverages a database of ~20M scans to deliver personalized insights and subscription recommendations designed to lift lifetime value in the nutrition portfolio. We expect that this new product will have a strong reception as end users prioritize intelligent and personalized wellness for themselves and their families. In parallel, Nu Skin begins pre-market opening activities in India in 4Q25 ahead of a formal market launch in the second half of 2026, positioning the business to apply its digital-first playbook used successfully in faster-growing regions. We are encouraged by the deliberate steps management has taken to tailor this launch to such a large market.

KPIs: Nu Skin ended the quarter with 31,150 sales leaders, 130,096 paid affiliates, and 746,256 customers, declines of 19%, 13%, and 10% year over year, respectively; sequentially, management cited positive trends in several regions, including continued double-digit growth in Latin America and sequential growth in Southeast Asia/Pacific. We anticipate that the upcoming India entry and the Prysm iO commercialization plan will further drive sponsor activity and improving conversion from customers to paid affiliates.

Balance Sheet and Liquidity: The Company ended the quarter with a strong balance sheet, having $251.7M in cash on hand and a net cash level of $22.7M per our calculations. Most importantly, the Company reiterated its focus on further net-cash expansion to support the Prysm iO preview, India pre-opening, and ongoing product and digital investments.

Guidance: For 4Q25, Nu Skin guides revenue of $365M to $400M and EPS of $0.25 to $0.35; full-year 2025 revenue is projected at $1.48B to $1.51B with GAAP EPS of $3.15 to $3.25 and adjusted EPS of $1.25 to $1.35 (excluding the Mavely gain and other charges). We believe NUS is positioned to meet its guidance and have adjusted our model accordingly.

Valuation: We use a Price to Adj. EPS comparison when valuing NUS. Currently NUS is trading at a forward Price to Adj. EPS of 7.8x compared to comps at an average of 17.0x. We are using our FY26 Adj. EPS, and an P/E range of 8.0x to 12.0x with a midpoint of 10.0x which moves NUS closer to comp companies. This arrives at a valuation range of $11.37 to $17.05 with a mid-point of $14.21.

About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

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