USANA Health Sciences, Inc.

What they do

USANA develops and manufactures nutritional supplements, functional foods, and personal care products, distributing them through direct selling, direct-to-consumer subscriptions, third-party marketplaces like Amazon, and retail. The company operates in 25 geographic markets, with its largest market being Mainland China, which generated 41.3% of net sales and 49.9% of core nutritional active customers in 2025. It reports two segments: Core Nutritional and Hiya direct-to-consumer, with Hiya acquired in December 2024 and Rise acquired in 2022.

Revenue drivers

• Core Nutritional – Greater China — Largest sub-region, Q2 2026 net sales of $114 million, up 1% year-over-year, 216,000 active customers. Includes China operations via BabyCare, direct selling model.
• Core Nutritional – Asia Pacific (excluding Greater China) — North Asia and Southeast Asia Pacific combined Q2 2026 net sales of $43 million, down 13% year-over-year, with 91,000 active customers.
• Core Nutritional – Americas and Europe — Q2 2026 net sales of $34 million, down 5% year-over-year, 77,000 active customers. Includes US, Canada, Mexico, India affiliate program.
• Hiya direct-to-consumer — Subscription-based children's health products, Q2 2026 active monthly subscribers of 166,000, down from 200,400 a year ago. Expanding into Canada, UK, and retail in 2026.

Recent performance

In Q2 2026, net sales were $223 million, down 5% from $236 million a year earlier, with a net loss of $(21.4) million including a $29.1 million non-cash impairment charge. Adjusted diluted EPS was $(0.07) versus $0.74 in Q2 2025. Full-year 2025 net sales were $925.3 million with net income of $10.8 million, down from $854.5 million revenue and $42.0 million net income in 2024. Cash and equivalents totaled $168.6 million at July 4, 2026, with total assets of $703.2 million. Core Nutritional active customers declined 8% year-over-year to 384,000, while Hiya subscribers fell 17%.

Strategy

Management is transforming USANA from a single-channel direct seller into a diversified omni-channel health and wellness company, leveraging acquisitions in direct-to-consumer and retail. They are evolving the Brand Partner incentive plan, accelerating product innovation, and modernizing technology infrastructure. Hiya is expanding into Canada, UK, and retail channels, while Rise is growing its Protein Pop beverage brand. The company emphasizes consumer acquisition and loyalty, using subscription models and data to drive retention.

Risks

• Direct selling regulatory scrutiny — The core nutritional business is subject to intense government regulation and potential changes in enforcement of anti-pyramiding laws, which could harm operations.
• China business concentration — Greater China accounts for over 41% of net sales and nearly half of active customers, so any decline in that region would materially hurt results.
• Hiya and Rise underperformance — Hiya faces a challenging digital marketing environment and Rise had packaging disruptions, leading to lower-than-expected sales and margins.
• Core business decline — Core nutritional net sales, net income, and active customers have declined over the last few years, and active customers fell 8% in Q2 2026.

Outlook

Management updated fiscal 2026 guidance downward, expecting Hiya and Rise net sales to be below prior expectations. They view the challenges as temporary and remain confident in long-term growth from product innovation, technology modernization, and channel expansion. They noted progress in Hiya's retail presence, international expansion, and Rise's retail growth, but cautioned that progress will not be linear.