Natural Health Trends Reports Second Quarter 2025 Financial Results
Natural Health Trends Corp. (NASDAQ: NHTC) reported its Q2 2025 financial results, showing declining performance primarily due to trade tensions. Revenue decreased 6% to $9.8 million compared to $10.5 million in Q2 2024. The company posted an operating loss of $333,000 and minimal net income of $15,000.
Active Members declined to 29,260 as of June 30, 2025, down from 31,110 year-over-year. The company's cash position decreased to $34.2 million from $43.9 million at 2024 year-end. Notably, NHTC declared a quarterly dividend of $0.20 per share and fully settled its U.S. Tax Cuts and Jobs Act liability. Management is addressing tariff challenges by relocating production to Asian manufacturing partners.
Natural Health Trends Corp. (NASDAQ: NHTC) ha comunicato i risultati finanziari del secondo trimestre 2025, evidenziando un calo delle performance principalmente a causa delle tensioni commerciali. I ricavi sono diminuiti del 6% a 9,8 milioni di dollari rispetto ai 10,5 milioni di dollari del secondo trimestre 2024. L'azienda ha registrato una perdita operativa di 333.000 dollari e un utile netto minimo di 15.000 dollari.
Gli iscritti attivi sono scesi a 29.260 al 30 giugno 2025, rispetto ai 31.110 dell'anno precedente. La posizione di cassa è diminuita a 34,2 milioni di dollari rispetto ai 43,9 milioni di fine 2024. Da segnalare che NHTC ha dichiarato un dividendo trimestrale di 0,20 dollari per azione e ha completamente saldato la sua passività relativa alla U.S. Tax Cuts and Jobs Act. La direzione sta affrontando le sfide tariffarie spostando la produzione verso partner manifatturieri asiatici.
Natural Health Trends Corp. (NASDAQ: NHTC) presentó sus resultados financieros del segundo trimestre de 2025, mostrando un desempeño en declive principalmente debido a las tensiones comerciales. Los ingresos disminuyeron un 6% a 9,8 millones de dólares en comparación con 10,5 millones en el segundo trimestre de 2024. La compañía registró una pérdida operativa de 333.000 dólares y un ingreso neto mínimo de 15.000 dólares.
Los miembros activos disminuyeron a 29.260 al 30 de junio de 2025, desde 31.110 en el mismo periodo del año anterior. La posición de efectivo de la empresa bajó a 34,2 millones de dólares desde 43,9 millones al cierre de 2024. Cabe destacar que NHTC declaró un dividendo trimestral de 0,20 dólares por acción y liquidó completamente su obligación bajo la U.S. Tax Cuts and Jobs Act. La gerencia está enfrentando los desafíos arancelarios trasladando la producción a socios manufactureros en Asia.
Natural Health Trends Corp. (NASDAQ: NHTC)는 2025년 2분기 재무 실적을 발표하며 무역 긴장으로 인한 실적 하락을 보였습니다. 매출은 2024년 2분기 1,050만 달러에서 6% 감소한 980만 달러를 기록했습니다. 회사는 33만 3,000달러의 영업 손실과 1만 5,000달러의 미미한 순이익을 보고했습니다.
2025년 6월 30일 기준 활성 회원 수는 전년 동기 31,110명에서 29,260명으로 감소했습니다. 현금 보유액은 2024년 말 4,390만 달러에서 3,420만 달러로 줄었습니다. 특히 NHTC는 주당 0.20달러의 분기 배당금을 선언하고 미국 세제개혁법(US Tax Cuts and Jobs Act) 관련 부채를 전액 상환했습니다. 경영진은 관세 문제에 대응하기 위해 생산을 아시아 제조 파트너로 이전하고 있습니다.
Natural Health Trends Corp. (NASDAQ : NHTC) a publié ses résultats financiers du deuxième trimestre 2025, montrant une baisse des performances principalement due aux tensions commerciales. Le chiffre d'affaires a diminué de 6 % pour atteindre 9,8 millions de dollars contre 10,5 millions au deuxième trimestre 2024. La société a enregistré une perte opérationnelle de 333 000 dollars et un bénéfice net minimal de 15 000 dollars.
Le nombre de membres actifs a diminué à 29 260 au 30 juin 2025, contre 31 110 un an plus tôt. La trésorerie de l'entreprise est passée de 43,9 millions de dollars fin 2024 à 34,2 millions de dollars. Il est à noter que NHTC a déclaré un dividende trimestriel de 0,20 dollar par action et a entièrement réglé sa dette liée à la loi américaine Tax Cuts and Jobs Act. La direction fait face aux défis tarifaires en déplaçant la production vers des partenaires manufacturiers asiatiques.
Natural Health Trends Corp. (NASDAQ: NHTC) veröffentlichte seine Finanzergebnisse für das zweite Quartal 2025 und zeigte eine rückläufige Entwicklung, hauptsächlich aufgrund von Handelskonflikten. Der Umsatz sank um 6 % auf 9,8 Millionen US-Dollar im Vergleich zu 10,5 Millionen US-Dollar im zweiten Quartal 2024. Das Unternehmen verzeichnete einen operativen Verlust von 333.000 US-Dollar und einen minimalen Nettogewinn von 15.000 US-Dollar.
Die aktiven Mitglieder gingen zum 30. Juni 2025 auf 29.260 zurück, verglichen mit 31.110 im Vorjahreszeitraum. Die Barposition des Unternehmens sank von 43,9 Millionen US-Dollar zum Jahresende 2024 auf 34,2 Millionen US-Dollar. Bemerkenswert ist, dass NHTC eine vierteljährliche Dividende von 0,20 US-Dollar je Aktie erklärte und seine Verbindlichkeiten aus dem U.S. Tax Cuts and Jobs Act vollständig beglichen hat. Das Management begegnet den Zollproblemen, indem es die Produktion zu asiatischen Fertigungspartnern verlagert.
- Quarterly dividend of $0.20 per share maintained despite challenges
- U.S. Tax Cuts and Jobs Act liability fully settled
- Substantial cash position of $34.2 million maintained
- Strategic supply chain realignment to mitigate tariff impacts
- Revenue declined 6% year-over-year to $9.8 million
- Operating loss increased to $333,000 from $238,000 in Q2 2024
- Active Members decreased to 29,260 from 31,110 year-over-year
- Net cash used in operations increased to $5.2 million from $3.0 million
- Cash position declined by $9.7 million since December 2024
Insights
NHTC reports declining revenues and margins amid trade tensions, but maintains dividend despite weakening performance.
Natural Health Trends Corp (NHTC) posted concerning Q2 results with revenue declining
The weakening performance extends beyond the quarter, with year-to-date revenue down
The company's active member count has steadily declined to 29,260, down from 30,870 at year-end 2024 and 31,110 in mid-2024, signaling challenges in member retention and recruitment. Management attributes performance issues to trade tensions and tariff threats affecting their largest market, and is repositioning manufacturing to Asian partners to mitigate risks.
Despite these headwinds, the board maintained its
| – | Sales decreased | |
| – | U.S. Tax Cuts and Jobs Act liability fully settled during the second quarter of 2025 | |
| – | Declared a quarterly cash dividend of |
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 decreased6% 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.
| 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. |
Year-to-Date 2025 Financial Highlights
- Revenue of
$20.6 million decreased4% 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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