Nu Skin Reports Mixed Q1 Results, But Field Stabilization Signs Emerge

Nu Skin Enterprises Inc. (NYSE: NUS) reported first-quarter results that came in near the low end of guidance, but management commentary pointed to early signs of field stabilization as the company continues to invest in its Prysm iO platform and emerging markets. Revenue, adjusted net income, and adjusted EPS were $320.6 million, $6.8 million, and $0.14, respectively, compared to Stonegate Capital Partners' estimates of $329.7 million, $7.7 million, and $0.15.

The core Nu Skin gross margin improved 20 basis points year over year to 76.9%, while adjusted operating margin fell to 3.6% from 6.4% last year, reflecting continued investment in Prysm iO and emerging markets. Despite the margin pressure, management highlighted that brand affiliate confidence improved and new sales leaders grew year over year exiting the quarter, suggesting early field stabilization as Prysm iO training and leader engagement scale.

Prysm iO remains the core commercialization catalyst for Nu Skin. The company reported nearly 2 million scans across more than 30,000 devices, supporting early adoption. Subscription volume grew 5% year over year, indicating that the platform is beginning to improve customer engagement and recurring revenue quality. This is a key metric as the company seeks to transition from a traditional direct-selling model to a more subscription-based, digital-driven business.

Field trends, while still pressured, showed some encouraging signs. Sales leaders, paid affiliates, and customers declined 13%, 8%, and 14% year over year, respectively, but management cited improving brand affiliate confidence and year-over-year growth in new sales leaders exiting the quarter. This suggests that the worst of the disruption from the business model transition may be behind the company.

Looking ahead, Nu Skin maintained its full-year fiscal 2026 revenue and adjusted EPS guidance of $1.35 billion to $1.50 billion and $0.80 to $1.20, respectively. The guidance implies confidence in a second-half improvement cadence, supported by broader Prysm iO adoption, the planned year-end launch in India, and continued cost discipline. India represents a significant growth opportunity, as the company has been building its presence in the region.

The results and outlook underscore the importance of Prysm iO to Nu Skin's turnaround strategy. If the platform can continue to gain traction and drive subscription growth, it could help stabilize and eventually grow the affiliate base. However, the company still faces challenges, including macroeconomic headwinds and the need to execute on its India launch. Investors will be watching closely for continued improvement in field metrics and subscription revenue in the coming quarters.

For more details, see the full announcement here.