Natural Health Trends Corp.

What they do

NHTC sells through subsidiaries in the Americas, Greater China, Southeast Asia, South Korea, Japan, India and Europe, and operates in Russia and Kazakhstan via a local service provider. Products span wellness supplements, herbal supplements, beauty/skin care, lifestyle items and an at-home testing kit under the NHT Global brand. Revenue comes from member orders, largely for personal consumption through referrals, and the company also offers a business opportunity to members in most markets.

Revenue drivers

• Hong Kong e-commerce direct selling — The Hong Kong e-commerce direct selling platform generated approximately 83% of revenue in the first six months of 2026, substantially all from products delivered to members in China; in 2025 and 2024 about 82% of revenue was generated in Hong Kong.
• Mainland China e-commerce retail platform — A separate Chinese entity operates an e-commerce retail platform in China; the company believes neither the Hong Kong nor China platform requires a direct selling license, which it does not hold.
• Wellness products — The wellness category includes dietary and nutritional supplements such as Premium Noni Juice, Triotein, Cluster X2 and ReStor Silver, formulated for joint, antioxidant, digestive, heart, vision, immune and cellular health.
• Beauty, herbal, lifestyle and at-home tests — Additional NHT Global lines include beauty skin care (Skindulgence, Soo:vea), herbal supplements (LivaPro, Cordyceps Mycelia CS-4), lifestyle products (Alura Lux, LaVie+) and the BioEssence Wellness Panel at-home test kit.

Recent performance

Second quarter 2026 revenue was $7.6 million, down 23% from $9.8 million in the second quarter of 2025. Operating loss was $643,000 versus $333,000 a year earlier, and net loss was $451,000, or $0.05 per diluted share, compared to net income of $15,000 in the prior-year quarter. Year-to-date 2026 revenue was $16.8 million, down 18% from $20.6 million, with an operating loss of $1.1 million and a net loss of $605,000, or $0.06 per diluted share. Active members totaled 26,000 at June 30, 2026, down from 26,650 at December 31, 2025 and 29,260 at June 30, 2025. Net cash used in operating activities was $2.2 million in the first six months of 2026, and cash, cash equivalents and marketable securities were $18.6 million at June 30, 2026, down from $28.9 million at December 31, 2025.

Strategy

Management is focused on Greater China and on markets where existing members can recruit prospects and sell products, such as Southeast Asia, India, South America and Europe. The restructuring program implemented late last year generated approximately $300,000 of operating and other margin-related savings in the second quarter of 2026, with year-to-date savings exceeding $600,000, and the company expects additional savings in the second half. The company is preparing for a 25th anniversary celebration in Hong Kong in the third quarter of 2026, expecting more than 1,000 attendees, and is developing programs and campaigns to support members while continuing to invest in products and technology. The board authorized resuming share repurchases under its existing program, with $15.9 million remaining available. NHTC withdrew its preliminary China direct selling license application in 2019 and expects to reapply when circumstances are again ripe, though it does not expect any initial sales benefit to be material.

Risks

• Hong Kong and China concentration — The Hong Kong subsidiary generated about 82% of 2025 and 2024 revenue, and substantially all of that revenue comes from products delivered to members in China, so any adverse change in either market would likely materially hurt overall results.
• Member conduct and regulatory uncertainty — Second quarter 2026 revenue and operating results were adversely affected by member conduct that violated the company's Hong Kong policies and professional code of conduct, and management cited regulatory uncertainty that caused some members to pause activities.
• No China direct selling license — NHTC does not hold a direct selling license in China, withdrew its preliminary application in 2019 and cannot predict whether or when it will reapply successfully or whether licensed operations would be profitable.
• Foreign operations and currency exposure — Approximately 93% of net sales are generated outside the Americas, exposing results to foreign currency fluctuations, trade policy, inflation and economic, political and business conditions.

Outlook

Management said the operating environment remains challenging, with Chinese consumers cautious about spending and investing, but expects additional cost savings in the second half of 2026 from the restructuring program. It plans to more aggressively support members through programs, campaigns, product and technology investment, and highlighted the 25th anniversary celebration in Hong Kong in the third quarter with prizes and rewards for qualifying customers. The company also stated its intention to reapply for a China direct selling license when circumstances are ripe, while warning it cannot predict timing or profitability.