Stonegate Capital Partners Updates Coverage on NU Skin Enterprises Inc. (NUS) 2Q26

Rhea-AI Summary

Nu Skin Enterprises (NYSE:NUS) reported 2Q26 revenue of $320.1M, adjusted net income of $10.0M and adjusted EPS of $0.20, matching Stonegate Capital Partners’ EPS estimate but below its revenue estimate of $345.2M. GAAP EPS was ($5.14), mainly due to a $78.9M non-cash goodwill impairment and a $167.5M deferred-tax valuation allowance, both excluded from adjusted results.

Core Nu Skin gross margin rose 20 bps year over year to 77.7%, while consolidated gross margin fell 60 bps to 68.2% and adjusted operating margin declined 190 bps to 6.1%. Nu Skin and Rhyz revenue fell 15.5% and 25.0% year over year, respectively. Management reduced FY26 revenue guidance to $1.28B–$1.35B from $1.35B–$1.50B and adjusted EPS guidance to $0.70–$0.90 from $0.80–$1.20, and shifted the India market timing to 1H27. The Prysm iO platform remains the key growth initiative, with over 39,000 devices placed, 2.5M scans completed, and a year-end target of 50,000–60,000 devices, alongside early signs of sales-leader stabilization.

Positive

• Adj. EPS $0.20 met Stonegate estimate despite revenue shortfall
• Core Nu Skin gross margin improved 20 bps y/y to 77.7%
• Prysm iO rollout exceeds 39,000 devices and 2.5M scans with 50,000–60,000 targeted by year-end
• Mainland China sales leaders increased 2% y/y, showing localized strength
• Sales leaders down 9% y/y vs 13% in 1Q and essentially flat q/q, indicating stabilization

Negative

• Revenue $320.1M missed Stonegate’s $345.2M estimate
• Nu Skin and Rhyz revenue declined 15.5% and 25.0% y/y, respectively
• Consolidated gross margin fell 60 bps to 68.2%; adjusted operating margin down 190 bps to 6.1%
• GAAP EPS ($5.14) driven by $78.9M goodwill impairment and $167.5M deferred-tax valuation allowance
• FY26 revenue guidance cut to $1.28B–$1.35B and adjusted EPS to $0.70–$0.90
• India market entry shifted from year-end 2026 to 1H27; recruiting remains below sustainable-growth levels

Market Context

NUS's recent insider context was Net Selling, with 14,406 shares sold and none bought. That record a...

Analysis

NUS's recent insider context was Net Selling, with 14,406 shares sold and none bought. That record adds a governance signal to the earnings update; the key risk remained weaker operating performance and lowered guidance.

Key Figures

Revenue: $320.1M Adjusted net income: $10.0M Adjusted EPS: $0.20 +5 more

8 metrics

Revenue $320.1M 2Q26; versus $345.2M estimate

Adjusted net income $10.0M 2Q26; versus $10.3M estimate

Adjusted EPS $0.20 2Q26; matched estimate

GAAP EPS $(5.14) 2Q26; primarily reflected non-cash charges

Goodwill impairment $78.9M 2Q26 non-cash charge

Deferred-tax valuation allowance $167.5M 2Q26; excluded from adjusted results

Core Nu Skin gross margin 77.7% 2Q26; improved 20 bps year over year

FY26 guidance $1.28B-$1.35B revenue; $0.70-$0.90 adjusted EPS Reduced from $1.35B-$1.50B revenue and $0.80-$1.20 adjusted EPS

Historical Context

5 past events · Latest: Jul 21 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 21	2Q26 results scheduling	Neutral	-0.9%	Company scheduled second-quarter results release and investor conference call.
May 15	Charitable initiative update	Positive	-2.5%	Nourish the Children initiative reported 900 million meals provided since 2002.
May 07	1Q26 earnings report	Negative	+2.0%	Quarterly revenue declined 12% year over year amid customer and affiliate declines.
May 07	Quarterly dividend	Positive	+2.0%	Board declared a quarterly cash dividend of $0.06 per share.
Apr 13	1Q26 results scheduling	Neutral	+3.1%	Company scheduled first-quarter results release and investor conference call.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

NUS showed divergent reactions in four of five recent news events, including a positive reaction after the prior earnings release despite weak reported results.

Key Terms

goodwill impairment, deferred-tax valuation allowance, gross margin, adjusted operating margin

4 terms

goodwill impairment financial

"reflecting a $78.9M non-cash goodwill impairment"

Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.

deferred-tax valuation allowance financial

"and a $167.5M deferred-tax valuation allowance"

An allowance set by accountants against deferred tax assets when it is uncertain those future tax benefits will be realized. Deferred tax assets arise from timing differences or losses that could reduce future taxes, and the valuation allowance acts like a reserve that reduces the asset on the balance sheet if recovery is not likely. Investors watch it because changes signal management’s view of future profitability and can materially affect reported earnings and tax cash flows, like putting aside food that might spoil rather than counting it as usable groceries.

gross margin financial

"Core Nu Skin gross margin improved 20 bps y/y to 77.7%"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

View in glossary

adjusted operating margin financial

"adjusted operating margin fell 190 bps to 6.1%"

Adjusted operating margin shows how much profit a company makes from its core business activities, after removing unusual or one-time costs and income. It helps investors see the company's true profitability by providing a clearer picture, similar to removing unexpected expenses to understand the regular performance. This metric is useful for comparing companies or tracking performance over time, as it highlights consistent earning power.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Dallas, Texas--(Newsfile Corp. - August 11, 2026) - NU Skin Enterprises Inc. (NYSE: NUS): Stonegate Capital Partners updates their coverage on NU Skin Enterprises Inc. (NYSE: NUS). NUS reported revenue, adj NI, and adj EPS of $320.1M, $10.0M, and $0.20, respectively. This compares to our estimates of $345.2M, $10.3M, and $0.20, respectively. GAAP EPS was $(5.14), primarily reflecting a $78.9M non-cash goodwill impairment, which was largely a GAAP accounting item, and a $167.5M deferred-tax valuation allowance, both excluded from adjusted results. Core Nu Skin gross margin improved 20 bps y/y to 77.7%, while consolidated gross margin declined 60 bps to 68.2% and adjusted operating margin fell 190 bps to 6.1%. Nu Skin and Rhyz revenue declined 15.5% and 25.0% y/y, respectively. Management reduced FY26 revenue guidance to $1.28B-$1.35B from $1.35B $1.50B and adjusted EPS to $0.70-$0.90 from $0.80-$1.20. India also moved to 1H27 from year-end 2026 as NUS refines local sourcing, logistics, technology integration, and the affiliate model. We believe the revised outlook reflects a lower near-term setup, with Prysm iO adoption, sales-force productivity, and cost actions remaining the primary 2027 drivers.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• Revenue was $320.1M in 2Q26, while adj. EPS of $0.20 matched our estimate despite a weaker top line, with Core Nu Skin gross margin improving 20 bps y/y to 77.7%. Management lowered FY26 revenue guidance to $1.28B-$1.35B and adjusted EPS guidance to $0.70-$0.90, reinforcing a softer near-term setup but leaving margin improvement and cost optimization as important levers into 2027.
• Prysm iO remains the central longer-term growth initiative, with more than 39,000 devices placed and 2.5M scans completed as NUS targets 50,000-60,000 devices by year-end. We increasingly view the platform as a sales-force productivity tool, with AI-enabled assessments, recommendations, and 90-day wellness plans expected to help leaders deepen customer engagement, improve conversion, and broaden monetization across beauty and wellness.
• Sales-force trends showed early signs of stabilization, with sales leaders down 9% y/y versus a 13% decline in 1Q and essentially flat q/q, while Mainland China sales leaders increased 2% y/y. Although recruiting remains below levels required for sustainable growth and India has shifted to 1H27, Prysm iO training, compensation changes, leadership development initiatives, and the East-West operating model provide several potential drivers for improved productivity and profitability next year.

Click image above to view full announcement.

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About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

Contacts:
Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/309257

FAQ

How did Nu Skin (NUS) perform financially in 2Q26?

Nu Skin reported 2Q26 revenue of $320.1M, adjusted net income of $10.0M and adjusted EPS of $0.20. According to Stonegate Capital Partners, EPS met its estimate, but revenue was below its $345.2M forecast, and margins declined at the consolidated and operating levels.

Why was Nu Skin’s GAAP EPS ($5.14) in 2Q26 so different from adjusted EPS?

GAAP EPS was ($5.14) mainly due to a $78.9M non-cash goodwill impairment and a $167.5M deferred-tax valuation allowance. According to Stonegate Capital Partners, these items were excluded from adjusted results, which showed EPS of $0.20 for the quarter.

What guidance did Nu Skin (NUS) give for FY26 revenue and EPS?

Management lowered FY26 revenue guidance to $1.28B–$1.35B and adjusted EPS to $0.70–$0.90. According to Stonegate Capital Partners, this compares with prior guidance of $1.35B–$1.50B in revenue and $0.80–$1.20 in adjusted EPS, signaling a softer near-term outlook.

What is Nu Skin’s Prysm iO platform and how is it progressing in 2026?

Prysm iO is Nu Skin’s central growth initiative, focused on AI-enabled wellness assessments and recommendations. According to Stonegate Capital Partners, more than 39,000 devices are placed, over 2.5M scans completed, and the company targets 50,000–60,000 devices by year-end 2026.

How are Nu Skin’s sales-force and sales-leader trends evolving in 2026?

Sales leaders declined 9% year over year versus a 13% drop in 1Q and were essentially flat quarter over quarter. According to Stonegate Capital Partners, Mainland China sales leaders grew 2% y/y, showing stabilization, though recruiting remains below levels needed for sustainable growth.

When does Nu Skin now expect to launch operations in India?

India is now expected in 1H27, shifted from a prior target of year-end 2026. According to Stonegate Capital Partners, Nu Skin is refining local sourcing, logistics, technology integration, and its affiliate model before launch, which delays this market as a near-term growth contributor.

What margin trends did Nu Skin (NUS) report for 2Q26?

Core Nu Skin gross margin improved 20 bps y/y to 77.7%, but consolidated gross margin declined 60 bps to 68.2%. According to Stonegate Capital Partners, adjusted operating margin fell 190 bps to 6.1%, reflecting pressure from lower revenue and business mix.