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Natural Health Trends Reports Second Quarter 2025 Financial Results

 Sales decreased 6% due to retaliatory tariff threats
 U.S. Tax Cuts and Jobs Act liability fully settled during the second quarter of 2025
 Declared a quarterly cash dividend of $0.20 per share

LOS ANGELES, July 30, 2025 (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 quarter ended June 30, 2025.

Second Quarter 2025 Financial Highlights

  • Revenue of $9.8 million decreased 6% compared to $10.5 million in the second quarter of 2024. 
  • Operating loss was $333,000 compared to $238,000 in the second quarter of 2024.
  • Net income was $15,000, or breakeven per diluted share, compared to $173,000, or $0.02 per diluted share, in the second quarter of 2024.
  • The number of Active Members1 was 29,260 at June 30, 2025 compared to 30,870 at December 31, 2024 and 31,110 at June 30, 2024.
 1Natural Health Trends defines Active Members as those that have placed at least one product order with the Company during the preceding twelve-month period.


Year-to-Date 2025 Financial Highlights

  • Revenue of $20.6 million decreased 4% compared to $21.4 million in the first six months of 2024. 
  • Operating loss was $678,000 compared to $603,000 in the first six months of 2024. 
  • Net income was $137,000, or $0.01 per diluted share, compared to $361,000, or $0.03 per diluted share, in the first six months of 2024. 

Management Commentary

“Our second quarter sales reflected the heightened economic uncertainty caused by evolving trade tensions, which we expect will continue to heavily weigh on consumer sentiment in our biggest market,” commented Chris Sharng, President of Natural Health Trends Corp.

Mr. Sharng continued, “To mitigate tariff-related risks, we are realigning our supply chain by transitioning production to trusted manufacturing partners in Asia, bringing operations closer to our core markets and enhancing long-term resilience.”

Balance Sheet and Cash Flow

  • Net cash used in operating activities was $5.2 million in the first six months of 2025 compared to $3.0 million in the first six months of 2024. Before tax installment payments, the liability of which arose from the 2017 U.S. Tax Cuts and Jobs Act (the “Tax Act”), cash used in operating activities was $97,000 in the first six months of 2025 compared to cash provided by operating activities of $950,000 in the first six months of 2024. The Tax Act liability is now fully paid.
  • Total cash, cash equivalents and marketable securities were $34.2 million at June 30, 2025, down from $43.9 million at December 31, 2024.
  • On July 28, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 on each share of common stock outstanding. The dividend will be payable on August 22, 2025 to stockholders of record as of August 12, 2025.

Second Quarter 2025 Financial Results Conference Call

Management will host a conference call to discuss the second quarter 2025 financial results today, Wednesday, July 30, 2025 at 11:30 a.m. Eastern Time. The conference call details are as follows:

Date:Wednesday, July 30, 2025
Time:11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time
Dial-in:1-877-407-0789 (Domestic)
1-201-689-8562 (International)
Conference ID:13754794
Webcast:https://viavid.webcasts.com/starthere.jsp?ei=1726889&tp_key=778e0e5b56

For those unable to participate during the live broadcast, a replay of the call will also be available from 2:30 p.m. Eastern Time on July 30, 2025 through 11:59 p.m. Eastern Time on August 13, 2025 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13754794.

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. 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)
 
  June 30, 2025  December 31, 2024 
  (Unaudited)     
ASSETS        
Current assets:        
Cash and cash equivalents $10,534  $13,533 
Marketable securities  23,711   30,407 
Inventories  2,769   3,272 
Other current assets  3,845   3,771 
Total current assets  40,859   50,983 
Property and equipment, net  154   190 
Operating lease right-of-use assets  2,108   2,498 
Restricted cash  37   34 
Deferred tax asset  387   382 
Other assets  1,617   1,272 
Total assets $45,162  $55,359 
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities:        
Accounts payable $962  $895 
Income taxes payable  7   4,908 
Accrued commissions  1,866   2,021 
Other accrued expenses  1,337   1,425 
Deferred revenue  6,078   6,428 
Amounts held in eWallets  3,089   3,286 
Operating lease liabilities  1,060   1,127 
Other current liabilities  549   709 
Total current liabilities  14,948   20,799 
Deferred tax liability  172   174 
Operating lease liabilities  1,186   1,514 
Total liabilities  16,306   22,487 
Stockholders’ equity:        
Preferred stock      
Common stock  13   13 
Additional paid-in capital  84,969   84,901 
Accumulated deficit  (30,813)  (26,344)
Accumulated other comprehensive loss  (916)  (1,301)
Treasury stock, at cost  (24,397)  (24,397)
Total stockholders’ equity  28,856   32,872 
Total liabilities and stockholders’ equity $45,162  $55,359 

NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
 
  Three Months Ended June 30,  Six Months Ended June 30, 
  2025  2024  2025  2024 
Net sales $9,813  $10,475  $20,550  $21,426 
Cost of sales  2,558   2,699   5,390   5,611 
Gross profit  7,255   7,776   15,160   15,815 
Operating expenses:                
Commissions expense  4,012   4,203   8,500   8,689 
Selling, general and administrative expenses  3,576   3,811   7,338   7,729 
Total operating expenses  7,588   8,014   15,838   16,418 
Loss from operations  (333)  (238)  (678)  (603)
Other income, net  348   519   813   1,082 
Income before income taxes  15   281   135   479 
Income tax provision (benefit)     108   (2)  118 
Net income $15  $173  $137  $361 
Net income per common share:                
Basic $0.00  $0.02  $0.01  $0.03 
Diluted $0.00  $0.02  $0.01  $0.03 
Weighted average common shares outstanding:                
Basic  11,493   11,464   11,489   11,460 
Diluted  11,497   11,483   11,496   11,481 

NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)

  Six Months Ended June 30, 
  2025  2024 
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net income $137  $361 
Adjustments to reconcile net income to net cash used in operating activities:        
Depreciation and amortization  59   69 
Net accretion of marketable securities  (214)  (215)
Share-based compensation  68   75 
Noncash lease expense  573   545 
Deferred income taxes  (3)  16 
Changes in assets and liabilities:        
Inventories  525   6 
Other current assets  402   (294)
Other assets  (334)  (101)
Accounts payable  65   (335)
Income taxes payable  (4,901)  (3,817)
Accrued commissions  (194)  106 
Other accrued expenses  (110)  136 
Deferred revenue  (311)  1,432 
Amounts held in eWallets  (170)  (339)
Operating lease liabilities  (561)  (560)
Other current liabilities  (182)  (104)
Net cash used in operating activities  (5,151)  (3,019)
CASH FLOWS FROM INVESTING ACTIVITIES:        
Purchases of property and equipment  (20)  (30)
Purchases of marketable securities  (27,552)  (36,164)
Proceeds from maturities of marketable securities  34,215   3,307 
Net cash provided by (used in) investing activities  6,643   (32,887)
CASH FLOWS FROM FINANCING ACTIVITIES:        
Dividends paid  (4,606)  (4,606)
Net cash used in financing activities  (4,606)  (4,606)
Effect of exchange rates on cash, cash equivalents and restricted cash  118   (92)
Net decrease in cash, cash equivalents and restricted cash  (2,996)  (40,604)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period  13,567   56,217 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $10,571  $15,613 
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:        
Right-of-use assets obtained in exchange for operating lease liabilities $112  $196 


CONTACT:

Scott Davidson
Senior Vice President and Chief Financial Officer
Natural Health Trends Corp.
Tel (U.S.): 310-541-0888
investor.relations@nhtglobal.com

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