Natural Health Trends Reports Fourth Quarter and Full Year 2025 Financial Results
– Net sales decreased 10% year over year, but increased 3% sequentially
– Restructuring initiatives to achieve $1.5 million annualized savings substantially complete
– Declared a quarterly cash dividend of $0.10 per share
LOS ANGELES, Feb. 04, 2026 (GLOBE NEWSWIRE) — Natural Health Trends Corp. (NASDAQ: NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, today announced its financial results for the fourth quarter and full year ended December 31, 2025.
Fourth Quarter 2025 Financial Highlights
| • | Revenue of $9.7 million increased 3% compared to $9.5 million in the third quarter of 2025 and declined 10% compared to $10.8 million in the fourth quarter of 2024. | |
| • | Operating loss was $635,000 compared to $495,000 and $421,000 in the third quarter of 2025 and fourth quarter of 2024, respectively. Excluding restructuring-related charges of $283,000 recognized during the fourth quarter, operating loss would have been $352,000 during the quarter. | |
| • | Net loss was $588,000, or $0.05 per diluted share, compared to net loss of $431,000, or $0.04 per diluted share, and net income of $176,000, or $0.02 per diluted share, in the third quarter of 2025 and fourth quarter of 2024, respectively. Despite the loss before income taxes, tax expense of $175,000 was recognized in the fourth quarter due to an increase in foreign tax expense. | |
| • | The number of Active Members1 were 26,650 at December 31, 2025 compared to 28,030 at September 30, 2025 and 30,870 at December 31, 2024. | |
| 1 | Natural Health Trends defines Active Members as those that have placed at least one product order with the Company during the preceding twelve-month period. | |
Full Year 2025 Financial Highlights
| • | Revenue of $39.8 million decreased 7% compared to $43.0 million in 2024. | |
| • | Operating loss was $1.8 million, compared to $1.3 million in 2024. | |
| • | Net loss was $882,000, or $0.08 per diluted share, compared to net income of $572,000, or $0.05 per diluted share, in 2024. | |
Management Commentary
“In the fourth quarter we managed to achieve a 3% sequential increase in revenue despite the difficult macroeconomic environment and continued pressure on consumer sentiment. We have substantially completed the major restructuring initiatives announced last quarter and expect to realize most of the associated $1.5 million annualized cost savings in the coming year. We also relocated about 40% of our total product sourcing base from America to East Asia, much closer to our main markets, to reduce tariff uncertainty and streamline logistics,” said Chris Sharng, President of Natural Health Trends Corp.
Mr. Sharng continued, “Looking ahead, 2026 marks our 25th Anniversary, a significant milestone for the Company. We have prepared an exciting program, including a big celebration in Hong Kong where we anticipate 1,500 attendees from around the world, signature products and incentives to leverage these moments effectively, and we are focused on making this anniversary a catalyst for renewed momentum.”
Balance Sheet and Cash Flow
| • | Net cash used in operating activities was $959,000 in the fourth quarter of 2025, compared net cash provided by operating activities of $88,000 in the fourth quarter of 2024. Net cash used in operating activities was $6.0 million in 2025, compared to $3.4 million in 2024. Before tax installment payments, the liability of which arises from the 2017 U.S. Tax Cuts and Jobs Act (the “Act Act”), cash used in operating activities was $943,000 in 2025, versus cash provided by operations of $602,000 a year ago. The Tax Act liability is now fully paid. | |
| • | Total cash, cash equivalents and marketable securities were $28.9 million as of December 31, 2025, down from $32.0 million as of September 30, 2025. | |
| • | On February 2, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.10 on each share of common stock outstanding. The dividend will be payable on February 27, 2026 to stockholders of record as of February 17, 2026. | |
The Company expects to issue its 2025 audited financial results in late February with its Annual Report on Form 10-K to be filed with the United States Securities and Exchange Commission. These financial results are preliminary and the accompanying financial statements have not been audited or have not yet been reviewed by the Company’s independent accountants. Significant updates and revisions may be required before the release of the Company’s 2025 audited financial results.
Fourth Quarter and Full Year 2025 Financial Results Conference Call
Management will host a conference call to discuss the fourth quarter and full year 2025 financial results today, Wednesday, February 4, 2026 at 11:30 a.m. Eastern Time. The conference call details are as follows:
| Date: | Wednesday, February 4, 2026 |
| Time: | 11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time |
| Dial-in: | 1-800-330-6730 |
| Participant ID: | 992974 |
For those unable to participate during the live broadcast, a replay of the call will be available on the Company’s Investor Relations website at https://ir.naturalhealthtrendscorp.com.
About Natural Health Trends Corp.
Natural Health Trends Corp. (NASDAQ: NHTC) is an international direct-selling and e-commerce company operating through its subsidiaries throughout Asia, the Americas, and Europe. The Company markets premium quality personal care products under the NHT Global brand. Additional information can be found on the Company’s website at www.naturalhealthtrendscorp.com.
Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 — Forward-looking statements in this press release do not constitute guarantees of future performance. Forward-looking statements in this press release include statements relating to the anticipated effect of restructuring activities, including expected operational efficiencies and cost savings resulting therefrom, statements regarding technology investments, future growth and profitability, and statements relating to future dividends, the declaration and payment of which will be at the sole discretion of the Company’s board of directors. Such forward-looking statements are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from those anticipated. Such risks and uncertainties include the risks and uncertainties detailed under the caption “Risk Factors” in Natural Health Trends Corp.’s Annual Report on Form 10-K filed on February 21, 2025 with the Securities and Exchange Commission (SEC), as well as in subsequent reports filed this year with the SEC. The Company assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
| NATURAL HEALTH TRENDS CORP. CONSOLIDATED BALANCE SHEETS (In thousands, except share data) | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 6,813 | $ | 13,533 | ||||
| Marketable securities | 22,060 | 30,407 | ||||||
| Inventories | 2,047 | 3,272 | ||||||
| Other current assets | 3,274 | 3,771 | ||||||
| Total current assets | 34,194 | 50,983 | ||||||
| Property and equipment, net | 153 | 190 | ||||||
| Operating lease right-of-use assets | 1,869 | 2,498 | ||||||
| Restricted cash | 7 | 34 | ||||||
| Deferred tax asset | 289 | 382 | ||||||
| Other assets | 1,916 | 1,272 | ||||||
| Total assets | $ | 38,428 | $ | 55,359 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 555 | $ | 895 | ||||
| Income taxes payable | 5 | 4,908 | ||||||
| Accrued commissions | 1,958 | 2,021 | ||||||
| Other accrued expenses | 1,438 | 1,425 | ||||||
| Deferred revenue | 5,574 | 6,428 | ||||||
| Amounts held in eWallets | 2,838 | 3,286 | ||||||
| Operating lease liabilities | 869 | 1,127 | ||||||
| Other current liabilities | 451 | 709 | ||||||
| Total current liabilities | 13,688 | 20,799 | ||||||
| Deferred tax liability | 180 | 174 | ||||||
| Operating lease liabilities | 1,131 | 1,514 | ||||||
| Total liabilities | 14,999 | 22,487 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock | — | — | ||||||
| Common stock | 13 | 13 | ||||||
| Additional paid-in capital | 85,033 | 84,901 | ||||||
| Accumulated deficit | (36,436 | ) | (26,344 | ) | ||||
| Accumulated other comprehensive loss | (784 | ) | (1,301 | ) | ||||
| Treasury stock, at cost | (24,397 | ) | (24,397 | ) | ||||
| Total stockholders’ equity | 23,429 | 32,872 | ||||||
| Total liabilities and stockholders’ equity | $ | 38,428 | $ | 55,359 | ||||
| NATURAL HEALTH TRENDS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Net sales | $ | 9,749 | $ | 10,846 | $ | 39,776 | $ | 42,963 | ||||||||
| Cost of sales | 2,643 | 2,802 | 10,523 | 11,178 | ||||||||||||
| Gross profit | 7,106 | 8,044 | 29,253 | 31,785 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Commissions expense | 3,926 | 4,549 | 16,302 | 17,571 | ||||||||||||
| Selling, general and administrative expenses | 3,815 | 3,916 | 14,759 | 15,513 | ||||||||||||
| Total operating expenses | 7,741 | 8,465 | 31,061 | 33,084 | ||||||||||||
| Loss from operations | (635 | ) | (421 | ) | (1,808 | ) | (1,299 | ) | ||||||||
| Other income, net | 222 | 396 | 1,241 | 1,919 | ||||||||||||
| Income (loss) before income taxes | (413 | ) | (25 | ) | (567 | ) | 620 | |||||||||
| Income tax provision (benefit) | 175 | (201 | ) | 315 | 48 | |||||||||||
| Net income (loss) | $ | (588 | ) | $ | 176 | $ | (882 | ) | $ | 572 | ||||||
| Net income (loss) per common share: | ||||||||||||||||
| Basic | $ | (0.05 | ) | $ | 0.02 | $ | (0.08 | ) | $ | 0.05 | ||||||
| Diluted | $ | (0.05 | ) | $ | 0.02 | $ | (0.08 | ) | $ | 0.05 | ||||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||
| Basic | 11,507 | 11,478 | 11,496 | 11,467 | ||||||||||||
| Diluted | 11,507 | 11,486 | 11,496 | 11,490 | ||||||||||||
| NATURAL HEALTH TRENDS CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) | ||||||||
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | (Unaudited) | |||||||
| Net income (loss) | $ | (882 | ) | $ | 572 | |||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 109 | 131 | ||||||
| Net accretion of marketable securities | (375 | ) | (441 | ) | ||||
| Share-based compensation | 132 | 145 | ||||||
| Noncash lease expense | 1,140 | 1,087 | ||||||
| Deferred income taxes | 102 | 17 | ||||||
| Changes in assets and liabilities: | ||||||||
| Inventories | 1,274 | 1,000 | ||||||
| Other current assets | 1,224 | (113 | ) | |||||
| Other assets | (640 | ) | (421 | ) | ||||
| Accounts payable | (341 | ) | (94 | ) | ||||
| Income taxes payable | (4,902 | ) | (3,862 | ) | ||||
| Accrued commissions | (111 | ) | (19 | ) | ||||
| Other accrued expenses | (7 | ) | 271 | |||||
| Deferred revenue | (854 | ) | 245 | |||||
| Amounts held in eWallets | (445 | ) | (672 | ) | ||||
| Operating lease liabilities | (1,142 | ) | (1,151 | ) | ||||
| Other current liabilities | (279 | ) | (62 | ) | ||||
| Net cash used in operating activities | (5,997 | ) | (3,367 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property and equipment | (68 | ) | (57 | ) | ||||
| Purchases of marketable securities | (50,742 | ) | (70,431 | ) | ||||
| Proceeds from maturities of marketable securities | 58,958 | 40,413 | ||||||
| Net cash provided by (used in) investing activities | 8,148 | (30,075 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Dividends paid | (9,210 | ) | (9,213 | ) | ||||
| Net cash used in financing activities | (9,210 | ) | (9,213 | ) | ||||
| Effect of exchange rates on cash, cash equivalents and restricted cash | 312 | 5 | ||||||
| Net decrease in cash, cash equivalents and restricted cash | (6,747 | ) | (42,650 | ) | ||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 13,567 | 56,217 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ | 6,820 | $ | 13,567 | ||||
| SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
| Right-of-use assets obtained in exchange for operating lease liabilities | $ | 487 | $ | 124 | ||||
CONTACT:
Scott Davidson
Senior Vice President and Chief Financial Officer
Natural Health Trends Corp.
Tel (U.S.): 310-541-0888
investor.relations@nhtglobal.com
