USANA forecasts $16M loss for FY2026 as sales fall
The updated fiscal 2026 outlook calls for consolidated net sales approaching $900 million and Adjusted EBITDA of $77 million.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
USANA Health Sciences (USNA) reported third-quarter 2026 net sales of $206 million, down 4% year over year, and a net loss attributable to USANA of $5.6 million, compared with $6.5 million a year earlier. Adjusted EBITDA attributable to USANA was $12.1 million, down 13%; diluted loss per share was $0.30 versus $0.36.
Hiya sales rose 2% year over year to $32 million, while active monthly subscribers increased 18% sequentially to 195,500. Core Nutritional sales fell 3% to $171 million, though its operating margin was 4.1% versus 1.2% a year earlier; Rise sales were $4 million, down 45%. USANA generated $8 million of quarterly free cash flow and $36 million year to date, and ended October 3 with $179 million in cash and no debt.
Fiscal 2026 guidance now calls for consolidated net sales approaching $900 million, a net loss of $16 million and Adjusted EBITDA of $77 million. USANA also corrected second-quarter 2026 Adjusted EBITDA attributable to USANA from $27.8 million to $21.7 million after subtracting the $6.2 million share attributable to Hiya’s noncontrolling interest; reported GAAP results were unaffected.
1 point · 0 major1 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointUSANA-attributable net loss narrowed to $5.6 million from $6.5 million year over year.
Negative
- Major point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 outlook: net loss $(16) million versus $(11) million.
- Moderate pointAdjusted EBITDA fell 13% to $12.1 million year over year.
Filing Explained
USANA lowered its fiscal 2026 sales and Adjusted EBITDA outlook; meeting it also depends partly on certain Rise orders shipping in the fourth quarter.
USANA furnished its completed third-quarter results and revised its fiscal
The forecast assumes certain Rise Wellness retail orders ship in the fiscal fourth quarter; if they shift to the first quarter of
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net sales: $206 million
Net loss attributable to USANA: $(5.6) million
Adjusted EBITDA attributable to USANA: $12.1 million
+5 more
8 metrics
Net sales
$206 million
Third quarter 2026; down 4% year over year
Net loss attributable to USANA
$(5.6) million
Third quarter 2026; compared with $(6.5) million a year earlier
Adjusted EBITDA attributable to USANA
$12.1 million
Third quarter 2026; down 13% year over year
Diluted loss per share
$(0.30)
Third quarter 2026; compared with $(0.36) a year earlier
Hiya active monthly subscribers
195,500 subscribers
Third quarter 2026; up 18% sequentially
Cash and cash equivalents
$179 million
As of October 3, 2026; USANA also reported zero debt
Fiscal 2026 consolidated net sales outlook
Approaching $900 million
Updated estimate
Fiscal 2026 Adjusted EBITDA outlook
$77 million
Updated estimate
Key Terms
Adjusted EBITDA, Free cash flow, noncontrolling interest, constant-currency basis, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA (non-GAAP) is net (loss) earnings"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free cash flow financial
"Free cash flow (non-GAAP) is net cash provided by operating activities"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
noncontrolling interest financial
"exclude the noncontrolling interest of 21.2% in Hiya"
The portion of a business owned by investors other than the controlling owner when one company has control of another; it represents outside shareholders’ share of the subsidiary’s assets and profits. For investors, it matters because those outside claims reduce the amount of profit and net assets attributable to the parent owner — similar to saying part of a pizza belongs to someone else — and thus affects earnings, book value and valuation.
constant-currency basis financial
"down 6% on a constant-currency basis"
A constant-currency basis is a way of reporting financial results that removes the effect of changes in exchange rates by converting past and current foreign-currency figures using the same exchange rates. It lets readers compare sales, revenue growth, or other metrics as if currency values had not moved, revealing underlying business performance much like comparing prices after fixing the same exchange rate on a price tag. Investors use it to separate operational changes from swings in currency values.
goodwill impairment financial
"The $29.1 million Hiya goodwill impairment was added back in full"
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.
Earnings Snapshot
Net sales: $206 million · Guidance included
Third quarter of fiscal 2026 ended October 3, 2026
Net sales
$206 million
-4% year over year
Net loss attributable to USANA
$(5.6) million
Compared with $(6.5) million in the prior-year quarter
Diluted loss per share
$(0.30)
Compared with $(0.36) in the prior-year quarter
Adjusted EBITDA attributable to USANA
$12.1 million
-13% year over year
Hiya active monthly subscribers
195,500
+18% sequentially
Guidance
Fiscal 2026 consolidated net sales approaching $900 million and Adjusted EBITDA of $77 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were USNA's third-quarter 2026 results?
USANA reported $206 million in net sales, a $5.6 million net loss attributable to USANA, diluted loss per share of $0.30, and Adjusted EBITDA attributable to USANA of $12.1 million for the quarter ended October 3, 2026. Net sales declined 4% and Adjusted EBITDA declined 13% year over year.
What is USNA's updated fiscal 2026 outlook?
USANA now expects fiscal 2026 consolidated net sales approaching $900 million, a net loss of $16 million, diluted loss per share of $0.90, adjusted diluted EPS of $0.55, and Adjusted EBITDA of $77 million. The update reflects lower expectations for Rise Wellness and investment at Hiya, partially offset by stronger Core Nutritional profitability.
Why did USNA lower its fiscal 2026 outlook?
USANA attributed the update to lower expectations for Rise Wellness and its decision to invest resources at Hiya to drive subscriber growth, partially offset by stronger profitability in Core Nutritional. The outlook assumes certain Rise Wellness retail orders ship in the fourth quarter; if some shift to the first quarter of 2027, 2026 results could fall short.
What did USNA correct in its second-quarter 2026 results?
USANA corrected Adjusted EBITDA attributable to USANA from $27.8 million to $21.7 million for the second quarter after deducting the $6.2 million share of Hiya goodwill impairment attributable to the noncontrolling interest. The correction did not affect reported GAAP results.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________
FORM 8-K
_____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation)
| (Commission File No.) | (IRS Employer Identification No.) | ||||
(Address of principal executive offices, Zip Code)
Registrant's telephone number, including area code: (801 ) 954-7100
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On November 3, 2026, USANA Health Sciences, Inc. (the “Company” or “USANA”) issued a press release announcing its financial results for the third quarter ended October 3, 2026. The release also announced that the Company will post a document titled “Management Commentary” on the Company’s website and that executives of the Company will hold a conference call with investors, to be broadcast over the World Wide Web and by telephone and provided access information, date and time for the conference call. The Company noted that the call will consist of brief remarks by the Company’s management team, before moving directly into questions and answers. A copy of the press release, and the Management Commentary, are furnished herewith as Exhibits 99.1 and 99.2 to this Current Report on Form 8-K and are incorporated herein by reference. These documents will be posted on the Company’s corporate website, www.usana.com.
The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report, including the exhibits, shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended. The furnishing of the information in this Current Report is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information this Current Report contains is material investor information that is not otherwise publicly available.
Item 7.01 Regulation FD Disclosure
The information disclosed above under Item 2.02, as well as the exhibits attached under Item 9.01 below are incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | Press release issued by USANA Health Sciences, Inc. dated November 3, 2026 (furnished herewith). | |||||||
| 99.2 | Management Commentary provided by USANA Health Sciences, Inc. dated November 3, 2026 (furnished herewith). | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| USANA HEALTH SCIENCES, INC. | ||||||||
| By: | /s/ G. Douglas Hekking | |||||||
| G. Douglas Hekking, Chief Financial Officer | ||||||||
| Date: November 3, 2026 | ||||||||
USANA Health Sciences Reports Third Quarter 2026 Results
Hiya Active Monthly Subscribers Increase 18% Sequentially; Core Nutritional Operating Margin Expands; Company Generates $36 Million in Year-to-Date Free Cash Flow
SALT LAKE CITY, November 3, 2026 (BUSINESS WIRE)—USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal third quarter ended October 3, 2026.
Key Financial Results
Third Quarter 2026 vs. Third Quarter 2025
•Net sales of $206 million versus $214 million.
•Net loss of $(5.6) million versus $(6.5) million.
•Diluted EPS of $(0.30) as compared with $(0.36).
•Adjusted diluted EPS(1) of $(0.11) as compared with $(0.15).
•Adjusted EBITDA(2) of $12.1 million versus $13.8 million.
•Core Nutritional Active Customers of 356,000 versus 388,000.
•Hiya Active Monthly Subscribers of 195,500 versus 193,400.
•Company updates fiscal 2026 guidance to net sales approaching $900 million and Adjusted EBITDA(2) of $77 million.
Q3 2026 Consolidated Performance
Q3 2026 | Year-Over-Year | Sequentially | |||||||||
| Net Sales | $206 million | -4% (+$4 million or +2% FX impact) | -8% | ||||||||
| Net Loss* | $(5.6) million | N/A | N/A | ||||||||
| Diluted EPS | $(0.30) | N/A | N/A | ||||||||
Adjusted Diluted EPS(1) | $(0.11) | N/A | N/A | ||||||||
Adjusted EBITDA(2) | $12.1 million | -13% | -44% | ||||||||
*Income tax expense of $6 million added to a pretax loss of $(1) million for Q3 2026.
Net Loss, EPS and EBITDA figures represent amounts attributable to USANA and exclude the noncontrolling interest of 21.2% in Hiya.
“As we continue our transformation to an omnichannel health and wellness company, our third quarter results were mixed, with meaningful improvement in some areas and results that fell short of our expectations in others,” said Kevin Guest, Chairman and Chief Executive Officer. “We are investing across each of our businesses to strengthen their long-term competitive position and made clear progress in key areas. At Hiya, as customer acquisition began responding positively during the quarter, we increased marketing spend to build on that traction, which pressured margins but generated an 18% sequential increase in active subscribers and returned the segment to year-over-year net sales growth. Additionally, our Core Nutritional business expanded its operating margin from a year ago on a leaner cost structure despite lower net sales. While we have more work to do in growing Core Nutritional active customers and net sales at Rise Wellness, we believe we have the right strategies in place.
“In Core Nutritional, rebuilding our active customer base is our top priority and our single largest growth lever. For example, active customers in the Southeast Asia Pacific region grew 3% sequentially in the third quarter, demonstrating what works when our initiatives and execution align. We are evolving our Brand Partner incentive plan to more directly reward growth in active customers, investing in digital marketing to build awareness of the USANA brand, and advancing product innovation that we plan to begin introducing in 2027.
“At Hiya, our investment in customer acquisition is producing encouraging early returns. Notably, Hiya added approximately 29,500 net active monthly subscribers sequentially, customer acquisition costs declined noticeably from the first half of the year and net sales through Target and Amazon more than doubled from the second quarter. Because Hiya is predominantly a subscription business today, the subscribers we add support results in future quarters. Additionally, Hiya continues to make progress in broadening its reach beyond direct-to-consumer, and we look forward to providing updates in early 2027.
“At Rise Wellness, we are building on a strengthening retail foundation and working towards improved margins. As planned, we launched Protein Pop Balance nationally at Target and online in September, and Target sales grew strongly from the second quarter. Our focus is converting this progress into consistent, profitable growth.”
Q3 2026 Segment Results
Core Nutritional
| Core Nutritional | ||||||||||||||
Q3 2026 | Year-Over-Year | Year-Over-Year (Constant Currency) | Sequentially | |||||||||||
| Net Sales | $171 million | -3% | -6% | -11% | ||||||||||
| Active Customers | 356,000 | -8% | N/A | -7% | ||||||||||
| Asia Pacific Region | ||||||||||||||
Q3 2026 | Year-Over-Year | Year-Over-Year (Constant Currency) | Sequentially | |||||||||||
| Net Sales | $138 million | -1% | -4% | -12% | ||||||||||
| Active Customers | 283,000 | -8% | N/A | -8% | ||||||||||
| Asia Pacific Sub-Regions | |||||||||||||||||
Q3 2026 | Year-Over-Year | Year-Over-Year (Constant Currency) | Sequentially | ||||||||||||||
| Greater China | Net Sales | $94 million | +1% | -3% | -18% | ||||||||||||
| Active | 192,000 | -9% | N/A | -11% | |||||||||||||
| Customers | |||||||||||||||||
| North Asia | Net Sales | $14 million | -20% | -18% | +3% | ||||||||||||
| Active | 30,000 | -19% | N/A | -6% | |||||||||||||
| Customers | |||||||||||||||||
| Southeast Asia Pacific | Net Sales | $30 million | +2% | +2% | +4% | ||||||||||||
| Active | 61,000 | Flat | N/A | +3% | |||||||||||||
| Customers | |||||||||||||||||
| Americas and Europe Region | ||||||||||||||
Q3 2026 | Year-Over-Year | Year-Over-Year (Constant Currency) | Sequentially | |||||||||||
Net Sales | $33 million | -11% | -12% | -5% | ||||||||||
| Active Customers | 73,000 | -9% | N/A | -5% | ||||||||||
Hiya Health
Q3 2026 | Year-Over-Year | Sequentially | |||||||||
| Net Sales | $32 million | +2% | +12% | ||||||||
| Active Monthly Subscribers | 195,500 | +1% | +18% | ||||||||
Rise Wellness
Q3 2026 | Year-Over-Year | Sequentially | |||||||||
| Net Sales | $4 million | -45% | +7% | ||||||||
Balance Sheet
The Company ended the quarter with $179 million in cash and cash equivalents and zero debt. As of October 3, 2026, inventory totaled $93 million, a decrease of approximately $14 million, or 13%, compared to balances at year-end 2025.
The Company did not repurchase any shares during the quarter and has approximately $34 million remaining under the current share repurchase authorization as of the end of the third quarter.
Fiscal Year 2026 Outlook
The Company is updating its outlook for fiscal year 2026, as follows:
| Fiscal Year 2026 Outlook | ||||||||
| Updated Estimate | Previous Estimate | |||||||
Core Nutritional business net sales | $740 million* | $750 million | ||||||
| Hiya net sales | $130 million | $125 million | ||||||
| Rise Wellness net sales | $30 million | $35 million | ||||||
| Consolidated net sales | Approaching $900 million | $910 million | ||||||
| Net (loss) earnings | $(16) million | $(11) million | ||||||
| Diluted EPS | $(0.90) | $(0.61) | ||||||
| Adjusted diluted EPS(1) | $0.55 | $0.76 | ||||||
| Adjusted EBITDA(2) | $77 million | $80.5 million† | ||||||
*Reflects an expected favorable currency exchange rate impact of approximately $20 million, or 2% of net sales and one less week of operations compared to fiscal year 2025, which was a 53-week year.
†As corrected; previously published as $87 million on August 4, 2026. See “Correction of Previously Reported Adjusted EBITDA Attributable to USANA” below.
“Consolidated net sales declined 4% in the third quarter, as growth at Hiya was more than offset by lower sales in Core Nutritional and Rise,” said Doug Hekking, Chief Financial Officer. “We made progress on improving profitability in our Core Nutritional segment during the quarter, while we chose to increase investment at Hiya to accelerate subscriber growth, which weighed on margins in the quarter but produced strong growth in active monthly subscribers.
“We generated $8 million of free cash flow(3) in the quarter and $36 million year-to-date, reduced inventory 13% from year-end, and ended the period with $179 million in cash and no debt. That financial strength gives us the flexibility to continue investing in the initiatives we expect to drive future growth across our businesses, including our omnichannel strategy, while maintaining financial discipline.
“We are updating our fiscal 2026 outlook to consolidated net sales approaching $900 million and Adjusted EBITDA of $77 million. Compared with our prior outlook, as corrected, the change reflects lower expectations for Rise Wellness and our deliberate decision to invest resources at Hiya to drive increased active monthly subscribers, partially offset by stronger profitability in Core Nutritional. We expect continued
sequential progress from Hiya during the fourth quarter on both net sales and Adjusted EBITDA. While these investments constrain near-term results, we believe they set the stage for renewed growth across our businesses, and we plan to enter 2027 with a strong balance sheet and clear priorities to deliver it.”
Correction of Previously Reported Adjusted EBITDA Attributable to USANA
In preparing its third quarter results, the Company identified an omission in its second quarter 2026 reconciliation of net (loss) earnings to Adjusted EBITDA attributable to USANA. The $29.1 million Hiya goodwill impairment was added back in full, rather than net of the $6.2 million share attributable to the noncontrolling interest. This correction affects Adjusted EBITDA attributable to USANA, a non-GAAP measure, and had no effect on the Company’s reported GAAP results. Corrected amounts are as follows:
| Adjusted EBITDA attributable to USANA | As previously reported | Correction | As corrected | |||||||||||||||||
Second quarter 2026 | $ | 27.8 | $ | (6.2) | $ | 21.7 | ||||||||||||||
Fiscal 2026 outlook (August 4, 2026) | 86.7 | (6.2) | 80.5 | |||||||||||||||||
$ in millions
Sequential comparisons and the previous outlook presented in this release reflect the corrected amounts. Amounts may not sum due to rounding.
_________________________
(1) Adjusted Diluted (Loss) Earnings Per Share is a non-GAAP financial measure. The Company excludes cost realignment expenses, impairment expense, gain on sale of assets, and acquisition-related costs, such as business transaction costs, integration expense and amortization expense from acquisition-related intangible assets in calculating Adjusted Diluted (Loss) Earnings Per Share. Please refer to “Non-GAAP Financial Measures” and “Reconciliation of Diluted Loss Per Share (GAAP) to Adjusted Diluted Loss Per Share (Non-GAAP)” in this press release for an explanation and reconciliation of this non-GAAP financial measure.
(2) Adjusted EBITDA is a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” and “Reconciliation of Net Loss (GAAP) to Adjusted EBITDA (Non-GAAP)” in this press release for an explanation and reconciliation of this non-GAAP financial measure.
(3) Free cash flow is a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” and “Reconciliation of Net Cash Provided by (Used in) Operating Activities (GAAP) to Free Cash Flow (Non-GAAP)” in this press release for an explanation and reconciliation of this non-GAAP financial measure.
Non-GAAP Financial Measures
This press release contains the non-GAAP financial measures Adjusted EBITDA, Adjusted Diluted EPS and free cash flow. Adjusted EBITDA is a non-GAAP financial measure of (loss) earnings before interest, taxes, depreciation, and amortization that also excludes certain adjustments as indicated below in the reconciliation from net (loss) earnings. Adjusted Diluted EPS is a non-GAAP financial measure of diluted (loss) earnings per share that excludes certain adjustments as indicated below in the reconciliation from diluted EPS.
Adjusted EBITDA (non-GAAP) is net (loss) earnings (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (benefit from) provision for income taxes, depreciation and amortization (including right-of-use asset reduction), non-cash share-based compensation, transaction-related expenses and integration costs for the Hiya acquisition, cost realignment expenses, impairment expense, and gain on sale of assets. Adjusted EBITDA attributable to USANA (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to noncontrolling interest related to Hiya.
Adjusted diluted (loss) earnings per share (non-GAAP) is diluted (loss) earnings per share (its most directly comparable GAAP financial measure) adjusted for amortization of intangible assets, transaction-related expenses and integration costs related to the Hiya acquisition, cost realignment expenses, impairment expense, and gain on sale of assets.
Free cash flow (non-GAAP) is net cash provided by (used in) operating activities (its most directly comparable GAAP financial measure) less purchases of property and
equipment. Management believes free cash flow is a useful measure of the cash the business generates, after investing in property and equipment, that is available for strategic investments, share repurchases and other uses.
Management believes that Adjusted EBITDA (non-GAAP), Adjusted EBITDA attributable to USANA (non-GAAP), Adjusted diluted (loss) earnings per share (non-GAAP), and free cash flow (non-GAAP), along with GAAP measures used by management, most appropriately reflect how the Company measures the business internally.
The Company prepares its financial statements using U.S. generally accepted accounting principles (“GAAP”) and investors should not directly compare with or infer a relationship from any of the Company’s operating results presented in accordance with GAAP to Adjusted EBITDA, Adjusted diluted (loss) earnings per share and free cash flow. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of non-GAAP financial information as a tool for comparison. As a result, the non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation from, or as a substitute for, financial information presented in accordance with GAAP.
Reconciliation of Net Loss (GAAP) to Adjusted EBITDA (non-GAAP)
(in thousands)
| Quarter ended | ||||||||||||||
| October 3, 2026 | September 27, 2025 | |||||||||||||
| Net loss attributable to USANA (GAAP) | $ | (5,556) | $ | (6,522) | ||||||||||
| Net loss attributable to noncontrolling interest | (1,334) | (140) | ||||||||||||
| Net loss | $ | (6,890) | $ | (6,662) | ||||||||||
| Adjustments: | ||||||||||||||
| Income taxes | $ | 6,086 | $ | 8,456 | ||||||||||
| Interest (income) expense, net | (607) | (529) | ||||||||||||
| Depreciation and amortization | 5,212 | 5,112 | ||||||||||||
| Amortization of intangible assets - Hiya | 4,455 | 4,455 | ||||||||||||
| Earnings before interest, taxes, depreciation, and amortization (EBITDA) | $ | 8,256 | $ | 10,832 | ||||||||||
| Add EBITDA adjustments: | ||||||||||||||
| Non-cash share-based compensation | 3,404 | 3,576 | ||||||||||||
| Transaction, integration and transition costs - Hiya | — | 179 | ||||||||||||
| Adjusted EBITDA | 11,660 | 14,587 | ||||||||||||
| Adjusted EBITDA attributable to noncontrolling interest | 392 | (803) | ||||||||||||
| Adjusted EBITDA attributable to USANA | $ | 12,052 | $ | 13,784 | ||||||||||
Reconciliation of Diluted Loss Per Share (GAAP) to Adjusted Diluted Loss Per Share (non-GAAP)
(in thousands, except per share data)
| Quarter ended | ||||||||||||||
| October 3, 2026 | September 27, 2025 | |||||||||||||
| Net loss attributable to USANA (GAAP) | $ | (5,556) | $ | (6,522) | ||||||||||
| Loss per common share - Diluted | $ | (0.30) | $ | (0.36) | ||||||||||
| Weighted Average common shares outstanding - Diluted | 18,498 | 18,293 | ||||||||||||
| Adjustment to net loss: | ||||||||||||||
| Transaction, integration and transition costs - Hiya | $ | — | $ | 179 | ||||||||||
| Amortization of intangible assets - Hiya | 4,455 | 4,455 | ||||||||||||
| Adjustments to net loss attributable to noncontrolling interest | (942) | (942) | ||||||||||||
| Adjusted net loss attributable to USANA | $ | (2,043) | $ | (2,830) | ||||||||||
| Adjusted loss per common share - Diluted | $ | (0.11) | $ | (0.15) | ||||||||||
| Weighted average common shares outstanding - Diluted | 18,498 | 18,293 | ||||||||||||
Reconciliation of Net Cash Provided by (Used in) Operating Activities (GAAP) to Free Cash Flow (non-GAAP)
(in thousands)
| Quarter ended | Nine months ended | |||||||||||||||||||||||||
| October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | |||||||||||||||||||||||
| Net cash provided by (used in) operating activities (GAAP) | $ | 11,965 | $ | (1,961) | $ | 45,043 | $ | 25,739 | ||||||||||||||||||
| Less: Purchases of property and equipment | (3,522) | (3,198) | (9,322) | (11,028) | ||||||||||||||||||||||
| Free cash flow (non-GAAP) | $ | 8,443 | $ | (5,159) | $ | 35,721 | $ | 14,711 | ||||||||||||||||||
Management Commentary Document and Conference Call
For further information on USANA’s operating results, please see the Management Commentary document, which has been posted on the Company’s website (http://ir.usana.com) under the Investor Relations section. USANA’s management team will hold a conference call and webcast to discuss today’s announcement with investors on Wednesday, November 4, 2026, at 11:00 AM Eastern Time. Investors may listen to the call by accessing USANA’s website at http://ir.usana.com. The call will consist of brief opening remarks by the Company’s management team, followed by a question-and-answer session.
Safe Harbor
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These forward-looking statements are based on current plans, expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “expect,” “enhance,” “drive,” “anticipate,” “intend,” “improve,” “promote,” “should,” “believe,” “continue,” “plan,” “goal,” “opportunity,” “estimate,” “predict,” “may,” “will,” “could,” and “would,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding commercial performance and growth for Hiya and Rise Wellness in 2026 and continued growth in the future; statements about the Company’s long-term growth; and the statements under the sub-heading “Fiscal Year 2026 Outlook.” Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control, including: risks relating to global economic conditions generally, including continued inflationary pressure around the world and negative impact on our operating costs, consumer demand and consumer behavior in general; reliance upon our network of independent Brand Partners; risk that our Brand Partner compensation plan, or changes that we make to the compensation plan, will not produce desired results, benefit our business or, in some cases, could harm our business; risk
associated with our launch of new products or reformulated existing products; risks related to Hiya’s ability to adapt to changes in the digital marketing environment to continue to generate customer acquisition, including changes in social media advertising algorithms; risks related to Hiya’s ability to perform in an expanding distribution channel and new international markets; risks related to Rise Wellness’ ability to execute its commercial plan and its dependence on product orders from certain key retailers – specifically, if future orders from those retailers do not meet our forecasts or such retailers discontinue purchasing and selling Rise Wellness products; risks related to governmental regulation of our products, manufacturing and direct selling business model in the United States, China and other key markets; potential negative effects of deteriorating foreign and/or trade relations between or among the United States, China and other key markets, including potential adverse impact from tariffs, trade policies or other international disputes by and among the United States, China, or other markets that are important to the Company; potential negative effects from geopolitical relations and conflicts around the world, including the Russia-Ukraine conflict and the conflict between the United States and Iran; compliance with data privacy and security laws and regulations in our markets around the world; potential negative effects of material breaches of our information technology systems to the extent we experience a material breach; material failures of our information technology systems; adverse publicity risks globally; risks associated with our operations in India and future international expansion and operations; uncertainty relating to the fluctuation in U.S. and other international currencies; the potential for a resurgence of COVID-19, or another pandemic, in any of our markets in the future and any related impact on consumer health, domestic and world economies, including any negative impact on discretionary spending, consumer demand, and consumer behavior in general; risk that Hiya and Rise Wellness disrupt the Company’s overall strategic plans and operations; the diversion of the attention of the management teams of USANA, Hiya, and Rise Wellness from ongoing business operations; the ability to retain key personnel of USANA, Hiya and Rise Wellness; the ability to realize the benefits of the Hiya acquisition, including efficiencies and cost synergies; the ability to successfully integrate Hiya’s business with USANA’s business, at all or in a timely manner; and the amount of the costs, fees, expenses and charges
related to the acquisition. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in our most recent filings with the Securities and Exchange Commission. The forward-looking statements in this press release set forth our beliefs as of the date hereof. We do not undertake any obligation to update any forward-looking statement after the date hereof or to conform such statements to actual results or changes in the Company’s expectations, except as required by law.
About USANA
USANA develops and manufactures high-quality nutritional supplements, functional foods and personal care products that are sold directly to Brand Partners and Preferred Customers across 25 global markets. More information on USANA can be found at www.usana.com. USANA also owns a 78.8% controlling ownership stake in Hiya Health Products, a children's health and wellness company, and a 100% interest in Rise Wellness. Hiya and Rise Wellness offer a variety of clean-label health products. More information on Hiya can be found at www.hiyahealth.com. More information on Rise Wellness can be found at www.risebar.com and www.proteinpop.com.
Investor contact: Andrew Masuda
Investor Relations
(801) 954-7210
investor.relations@usanainc.com
Media contact: Sarah Searle
(801) 954-7626
media@usanainc.com
USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| Three months ended | |||||||||||
| October 3, 2026 | September 27, 2025 | ||||||||||
| Net sales | $ | 205,885 | $ | 213,670 | |||||||
| Cost of sales | 48,717 | 48,815 | |||||||||
| Gross profit | 157,168 | 164,855 | |||||||||
| Operating expenses: | |||||||||||
| Brand Partner incentives | 71,890 | 77,684 | |||||||||
| Selling, general and administrative | 86,726 | 85,947 | |||||||||
| Total operating expenses | 158,616 | 163,631 | |||||||||
| (Loss) earnings from operations | (1,448) | 1,224 | |||||||||
| Other income (expense): | |||||||||||
| Interest income | 645 | 578 | |||||||||
| Interest expense | (38) | (49) | |||||||||
| Other, net | 37 | 41 | |||||||||
| Other income (expense), net | 644 | 570 | |||||||||
| (Loss) earnings before income taxes | (804) | 1,794 | |||||||||
| Income taxes | 6,086 | 8,456 | |||||||||
| Net (loss) earnings | (6,890) | (6,662) | |||||||||
| Net (loss) earnings attributable to redeemable noncontrolling interest | (1,334) | (140) | |||||||||
| Net (loss) earnings attributable to USANA | $ | (5,556) | $ | (6,522) | |||||||
| (Loss) earnings per common share attributable to USANA | |||||||||||
| Basic | $ | (0.30) | $ | (0.36) | |||||||
| Diluted | $ | (0.30) | $ | (0.36) | |||||||
| Weighted average common shares outstanding | |||||||||||
| Basic | 18,498 | 18,293 | |||||||||
| Diluted | 18,498 | 18,293 | |||||||||
USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
| As of October 3, 2026 | As of January 3, 2026 | ||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 178,915 | $ | 158,380 | |||||||
Trade accounts receivable (net of allowance of $96 and $137, respectively) | 5,026 | 4,285 | |||||||||
| Inventories | 84,082 | 102,608 | |||||||||
| Prepaid expenses and other current assets | 22,219 | 23,132 | |||||||||
| Total current assets | 290,242 | 288,405 | |||||||||
| Property and equipment, net | 94,598 | 94,383 | |||||||||
| Goodwill | 109,262 | 137,962 | |||||||||
| Intangible assets, net | 120,411 | 133,151 | |||||||||
| Deferred tax assets | 29,786 | 27,209 | |||||||||
Other assets* | 64,171 | 61,805 | |||||||||
| Total assets | $ | 708,470 | $ | 742,915 | |||||||
| LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 17,662 | $ | 17,263 | |||||||
| Line of credit | — | 14,000 | |||||||||
| Other current liabilities | 94,592 | 97,302 | |||||||||
| Total current liabilities | 112,254 | 128,565 | |||||||||
| Deferred tax liabilities | 4,858 | 4,892 | |||||||||
| Other long-term liabilities | 21,263 | 23,186 | |||||||||
| Redeemable noncontrolling interest | 43,333 | 53,168 | |||||||||
| Total stockholders' equity attributable to USANA | 526,762 | 533,104 | |||||||||
| Total liabilities, redeemable noncontrolling interest, and stockholders' equity | $ | 708,470 | $ | 742,915 | |||||||
*Includes noncurrent inventories of $9,229 and $4,799 as of October 3, 2026 and January 3, 2026, respectively. Total inventories were $93,311 and $107,407 as of October 3, 2026 and January 3, 2026, respectively.
USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
SALES BY REGION
(in thousands)
(unaudited)
| Quarter ended | |||||||||||||||||||||||||||||||||||||||||||||||
| October 3, 2026 | September 27, 2025 | Change from prior year | Percent change | Currency impact on sales | Percent change excluding currency impact | ||||||||||||||||||||||||||||||||||||||||||
| Core Nutritional: | |||||||||||||||||||||||||||||||||||||||||||||||
| Asia Pacific | |||||||||||||||||||||||||||||||||||||||||||||||
| Greater China | $ | 93,882 | 45.6 | % | $ | 92,571 | 43.3 | % | $ | 1,311 | 1.4 | % | $ | 4,109 | (3.0 | %) | |||||||||||||||||||||||||||||||
| Southeast Asia Pacific | 29,885 | 14.5 | % | 29,178 | 13.7 | % | 707 | 2.4 | % | 138 | 2.0 | % | |||||||||||||||||||||||||||||||||||
| North Asia | 14,221 | 6.9 | % | 17,690 | 8.3 | % | (3,469) | (19.6 | %) | (246) | (18.2 | %) | |||||||||||||||||||||||||||||||||||
| Asia Pacific total | 137,988 | 67.0 | % | 139,439 | 65.3 | % | (1,451) | (1.0 | %) | 4,001 | (3.9 | %) | |||||||||||||||||||||||||||||||||||
| Americas and Europe | 32,709 | 15.9 | % | 36,780 | 17.2 | % | (4,071) | (11.1 | %) | 203 | (11.6 | %) | |||||||||||||||||||||||||||||||||||
| Core Nutritional total | 170,697 | 82.9 | % | 176,219 | 82.5 | % | (5,522) | (3.1 | %) | 4,204 | (5.5 | %) | |||||||||||||||||||||||||||||||||||
| Hiya | 31,545 | 15.3 | % | 30,846 | 14.4 | % | 699 | 2.3 | % | — | 2.3 | % | |||||||||||||||||||||||||||||||||||
| Rise | 3,643 | 1.8 | % | 6,605 | 3.1 | % | (2,962) | (44.8 | %) | — | (44.8 | %) | |||||||||||||||||||||||||||||||||||
| Consolidated total | $ | 205,885 | 100.0 | % | $ | 213,670 | 100.0 | % | $ | (7,785) | (3.6 | %) | $ | 4,204 | (5.6 | %) | |||||||||||||||||||||||||||||||
USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
CORE NUTRITIONAL ACTIVE BRAND PARTNERS AND ACTIVE PREFERRED CUSTOMERS BY REGION
(unaudited)
Core Nutritional Active Brand Partners by Region(1) | ||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||
| As of October 3, 2026 | As of September 27, 2025 | |||||||||||||||||||||||||
| Asia Pacific | ||||||||||||||||||||||||||
| Greater China | 57,000 | 35.2 | % | 61,000 | 36.3 | % | ||||||||||||||||||||
| Southeast Asia Pacific | 46,000 | 28.4 | % | 43,000 | 25.6 | % | ||||||||||||||||||||
| North Asia | 23,000 | 14.2 | % | 27,000 | 16.1 | % | ||||||||||||||||||||
| Asia Pacific Total | 126,000 | 77.8 | % | 131,000 | 78.0 | % | ||||||||||||||||||||
| Americas and Europe | 36,000 | 22.2 | % | 37,000 | 22.0 | % | ||||||||||||||||||||
| 162,000 | 100.0 | % | 168,000 | 100.0 | % | |||||||||||||||||||||
Core Nutritional Active Preferred Customers by Region(2) | ||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||
| As of October 3, 2026 | As of September 27, 2025 | |||||||||||||||||||||||||
| Asia Pacific | ||||||||||||||||||||||||||
| Greater China | 135,000 | 69.6 | % | 149,000 | 67.7 | % | ||||||||||||||||||||
| Southeast Asia Pacific | 15,000 | 7.7 | % | 18,000 | 8.2 | % | ||||||||||||||||||||
| North Asia | 7,000 | 3.6 | % | 10,000 | 4.6 | % | ||||||||||||||||||||
| Asia Pacific Total | 157,000 | 80.9 | % | 177,000 | 80.5 | % | ||||||||||||||||||||
| Americas and Europe | 37,000 | 19.1 | % | 43,000 | 19.5 | % | ||||||||||||||||||||
| 194,000 | 100.0 | % | 220,000 | 100.0 | % | |||||||||||||||||||||
______________________________
(1)Brand Partners are independent distributors of our products who also purchase our products for their personal use. We only count as active those Brand Partners who have purchased from us any time during the most recent three-month period, either for personal use or resale.
(2)Preferred Customers purchase our products strictly for their personal use and are not permitted to resell or to distribute the products. We only count as active those Preferred Customers who have purchased from us any time during the most recent three-month period. China utilizes a Preferred Customer program that has been implemented specifically for that market.
USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
OPERATING RESULTS AS A PERCENTAGE OF NET SALES
(unaudited)
| Quarter ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
| October 3, 2026 | September 27, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Core Nutritional | Hiya | Rise | Consolidated | Core Nutritional | Hiya | Rise | Consolidated | |||||||||||||||||||||||||||||||||||||||||||
| Net sales | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 19.9% | 33.9% | 110.4% | 23.7% | 18.8% | 35.6% | 70.2% | 22.8% | ||||||||||||||||||||||||||||||||||||||||||
| Gross profit | 80.1% | 66.1% | (10.4)% | 76.3% | 81.2% | 64.4% | 29.8% | 77.2% | ||||||||||||||||||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Brand Partner incentives | 42.1% | —% | — | 34.9% | 44.1% | —% | —% | 36.4% | ||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative | 33.9% | 86.2% | 46.0% | 42.1% | 35.9% | 66.5% | 32.5% | 40.2% | ||||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 76.0% | 86.2% | 46.0% | 77.0% | 80.0% | 66.5% | 32.5% | 76.6% | ||||||||||||||||||||||||||||||||||||||||||
| (Loss) earnings from operations | 4.1% | (20.1)% | (56.4)% | (0.7)% | 1.2% | (2.1)% | (2.7)% | 0.6% | ||||||||||||||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | —% | 14.1% | 1.6% | 2.2% | 0.1% | 14.5% | 3.2% | 2.2% | ||||||||||||||||||||||||||||||||||||||||||
USANA Health Sciences, Inc. November 3, 2026
Q3 2026 Management Commentary
Key Financial Results
Quarter ended | ||||||||||||||
October 3, 2026 | September 27, 2025 | Year-Over-Year | Sequentially | |||||||||||
Net Sales | $206 | $214 | -4% | -8% | ||||||||||
Net Loss | $(5.6) | $(6.5) | N/A | N/A | ||||||||||
Diluted EPS | $(0.30) | $(0.36) | N/A | N/A | ||||||||||
Adjusted Diluted EPS(1) | $(0.11) | $(0.15) | N/A | N/A | ||||||||||
Adjusted EBITDA(2) | $12.1 | $13.8 | -13% | -44% | ||||||||||
Core Nutritional Active Customers | 356,000 | 388,000 | -8% | -7% | ||||||||||
Hiya Active Monthly Subscribers | 195,500 | 193,400 | +1% | +18% | ||||||||||
Net Sales, Net Loss and Adjusted EBITDA in millions
Net Loss, EPS and EBITDA figures represent amounts attributable to USANA and exclude the noncontrolling interest of 21.2% in Hiya.
Overview
Our third quarter results were mixed, with meaningful improvement in some areas and results that fell short of our expectations in others. Consolidated net sales were $206 million, down 4% year-over-year, or 6% on a constant-currency basis, as growth at Hiya was more than offset by lower net sales in Core Nutritional and Rise Wellness. We generated $8 million of free cash flow⁽³⁾ during the quarter, bringing year-to-date free cash flow to $36 million, and ended the quarter with $179 million in cash and no debt. This financial position gives us the flexibility to keep investing in our strategic initiatives while maintaining financial discipline. We are also updating our fiscal 2026 outlook to reflect lower expectations for Rise Wellness and our decision to invest at Hiya to accelerate subscriber growth, partially offset by improved profitability in Core Nutritional,
and correcting previously reported second quarter Adjusted EBITDA attributable to USANA; both are described below.
In the third quarter, our Core Nutritional business continued to execute on its strategic priorities, delivering meaningful margin expansion and growth in our Southeast Asia Pacific region as we advance USANA’s transformation to an omnichannel health and wellness company. Net sales were $171 million, down 3% year-over-year, or 6% in constant currency, and down 11% sequentially, primarily reflecting lower incentive and promotional activity in mainland China compared with the second quarter. Southeast Asia Pacific grew net sales 2% year-over-year and 4% sequentially, and we are encouraged by the increased engagement among our field leaders in this region, as active customers grew 3% sequentially. Net sales in Greater China rose 1% as reported but declined 3% in constant currency, while net sales declined in North Asia and the Americas and Europe regions. Segment operating margin improved to 4.1%, up from 1.2% in the prior-year quarter despite lower net sales, reflecting disciplined cost management as the business continues to generate healthy free cash flow.
Rebuilding our active customer base is our top priority and single largest growth lever, and we have several strategies underway to promote the behaviors that build a durable customer base. We are evolving our Brand Partner incentive plan to more directly reward growth in active customers. We are also investing in digital marketing to build awareness of the USANA brand, which supports customer acquisition. In addition, we are advancing product innovation to meet the evolving nutritional needs of our consumers, with new products we plan to begin introducing in 2027. In August, we hosted our Live 2026 Americas Convention in San Diego, and following the event we launched Clear Protein + Creatine Mix, building on the launch of Glow earlier this year. We also continue to modernize the technology that supports how Brand Partners and
2
customers engage with USANA. We expect the benefits of these initiatives to build gradually over time.
Hiya delivered net sales of $32 million in the third quarter, up 2% year-over-year and 12% sequentially, marking a return to year-over-year growth. Active Monthly Subscribers grew 18% sequentially to 195,500, an addition of approximately 29,500 net subscribers. Customer acquisition costs were also noticeably lower compared to the first half of the year. After a challenging digital advertising environment over the past year, our marketing is regaining traction, and back-to-school seasonality provided an additional lift to net sales and subscriber growth. As customer acquisition responded, we increased marketing spend to build on that traction, which pressured near-term margins. Because Hiya is predominantly a subscription business today, the subscribers we add should contribute recurring revenue in future quarters, so our focus now is on retaining and engaging them as we build on this momentum.
Hiya continued to make meaningful progress diversifying beyond its direct-to-consumer roots during the third quarter, with its retail, Amazon and international channels each growing sequentially and contributing to Hiya’s net sales. Net sales through Target and Amazon more than doubled from the second quarter. At Target, strong consumer sell-through has driven increased order velocity and expanded in-store placement, including additional seasonal and front-of-store displays. Hiya’s presence on Amazon continues to scale, extending the brand’s reach to consumers who prefer to shop through e-commerce marketplaces. In Canada, Hiya continues to build its customer base and brand awareness in its first year of operation. Together, these channels are broadening Hiya’s consumer reach and creating more diversified avenues for growth as the brand heads into the fourth quarter and 2027.
Rise Wellness continues to scale, with year-to-date net sales of approximately $21 million, up 94% versus the comparable prior-year period. Net sales were $4 million in the third quarter, up 7% sequentially and down 45% year-over-year against a quarter that included a large club order for Rise Bar that did not repeat. Club channel sales are
3
inherently lumpy, and orders in the quarter came in below our expectations; this, along with a more measured view of the fourth quarter, is reflected in our updated outlook. Strategically, we are broadening Rise’s distribution beyond the club channel to build a stronger retail foundation, along with a more balanced and durable sales base. Protein Pop, still a young brand, continues to expand its retail footprint, including the recent launch of its new Protein Pop Balance product at Target and online. Our focus is converting these opportunities and this progress into consistent, profitable growth over time.
Q3 2026 Consolidated Performance
Q3 2026 | Year-Over-Year | Sequentially | |||||||||
Net Sales | $206 million | -4% (+$4 million or +2% FX impact) | -8% | ||||||||
Net Loss* | $(5.6) million | N/A | N/A | ||||||||
Diluted EPS | $(0.30) | N/A | N/A | ||||||||
Adjusted Diluted EPS(1) | $(0.11) | N/A | N/A | ||||||||
Adjusted EBITDA(2) | $12.1 million | -13% | -44% | ||||||||
*Income tax expense of $6 million added to a pretax loss of $(1) million for Q3 2026.
Net Loss, EPS and EBITDA figures represent amounts attributable to USANA and exclude the noncontrolling interest of 21.2% in Hiya.
Consolidated Balance Sheet
We ended the third quarter with $179 million in cash and cash equivalents and zero debt. We did not repurchase any shares during the quarter and had approximately $34 million remaining under the current share repurchase authorization as of October 3, 2026. Inventories decreased 13% to $93 million as of October 3, 2026, compared to balances at year-end 2025.
We believe that our in-house manufacturing capabilities provide us with the opportunity to realize improved margins, better control of inventory levels, and help to mitigate
4
supply chain risks while providing a meaningful contribution to delivering the highest quality nutritional products. Approximately two-thirds of Core Nutritional products are manufactured in-house and we anticipate shifting more production of Hiya and Rise Wellness products in-house.
Quarterly Income Statement Discussion
Gross margin decreased 90 basis points from the prior year to 76.3% of net sales. Gross margin in the Core Nutritional business declined 110 basis points from the prior year to 80.1% of segment net sales, reflecting lower production volumes and an increase in scrap reserves, partially offset by favorable market mix. Hiya's gross margin increased 170 basis points from the prior year to 66.1%, largely reflecting higher levels of scrap reserves in the prior-year quarter and lower freight costs. Rise gross margin of (10.4%) reflected suboptimal production yields in the current quarter and an increase in inventory reserves.
Brand Partner Incentives decreased 150 basis points from the prior year to 34.9% of net sales on a consolidated basis. The decrease in relative Brand Partner incentives can be attributed to the sales mix between our Core Nutritional business and Hiya and Rise Wellness, which do not pay out Brand Partner Incentives. For the Core Nutritional business, Brand Partner Incentives decreased 200 basis points year-over-year to 42.1% of segment net sales, largely driven by compensation plan expenses in last year's quarter that did not recur in the current-year quarter.
Selling, General and Administrative expenses increased 190 basis points from the prior year to 42.1% of net sales. SG&A expenses for the Core Nutritional business decreased 200 basis points from the prior year to 33.9% of segment net sales. The decrease is primarily attributable to lower event expenses and lower employee compensation expenses. The combined SG&A increase also reflects an approximate 355 basis point unfavorable impact on consolidated results from the inclusion of Hiya, which operates with higher relative SG&A compared to the Core Nutritional business. A notable component of our higher consolidated SG&A is the amortization of intangible assets
5
attributable to our acquisition of Hiya. Additionally, Hiya's third quarter SG&A expense reflects higher marketing spend related to back-to-school seasonality and the deliberate decision to increase investment in customer acquisition.
Income taxes totaled $6.1 million during the current-year quarter on a pre-tax loss of $1 million. Income tax expense primarily reflects taxes in the Core Nutritional business as segment losses at Hiya and Rise Wellness carry no tax benefit. The Core Nutritional business’ year-to-date effective tax rate is approximately 73% and reflects the mix of U.S. and foreign earnings. Concentrated U.S. operating and administrative expenses create U.S. losses, while taxes are paid abroad.
Q3 2026 Segment Results
Core Nutritional
Core Nutritional | ||||||||||||||
Q3 2026 | Year-Over-Year | Year-Over-Year (Constant Currency) | Sequentially | |||||||||||
Net Sales | $171 million | -3% | -6% | -11% | ||||||||||
Active Customers | 356,000 | -8% | N/A | -7% | ||||||||||
Asia Pacific Region | ||||||||||||||
Q3 2026 | Year-Over-Year | Year-Over-Year (Constant Currency) | Sequentially | |||||||||||
Net Sales | $138 million | -1% | -4% | -12% | ||||||||||
Active Customers | 283,000 | -8% | N/A | -8% | ||||||||||
6
Asia Pacific Sub-Regions | |||||||||||||||||
Q3 2026 | Year-Over-Year | Year-Over-Year (Constant Currency) | Sequentially | ||||||||||||||
Greater China | Net Sales | $94 million | +1% | -3% | -18% | ||||||||||||
Active | 192,000 | -9% | N/A | -11% | |||||||||||||
Customers | |||||||||||||||||
North Asia | Net Sales | $14 million | -20% | -18% | +3% | ||||||||||||
Active | 30,000 | -19% | N/A | -6% | |||||||||||||
Customers | |||||||||||||||||
Southeast Asia Pacific | Net Sales | $30 million | +2% | +2% | +4% | ||||||||||||
Active | 61,000 | Flat | N/A | +3% | |||||||||||||
Customers | |||||||||||||||||
Americas and Europe Region | ||||||||||||||
Q3 2026 | Year-Over-Year | Year-Over-Year (Constant Currency) | Sequentially | |||||||||||
Net Sales | $33 million | -11% | -12% | -5% | ||||||||||
Active Customers | 73,000 | -9% | N/A | -5% | ||||||||||
Hiya Health
Q3 2026 | Year-Over-Year | Sequentially | |||||||||
Net Sales | $32 million | +2% | +12% | ||||||||
Active Monthly Subscribers | 195,500 | +1% | +18% | ||||||||
Rise Wellness
Q3 2026 | Year-Over-Year | Sequentially | |||||||||
Net Sales | $4 million | -45% | +7% | ||||||||
Fiscal Year 2026 Outlook
The Company is updating its outlook for fiscal year 2026, as follows:
7
Fiscal Year 2026 Outlook | ||||||||
Updated Estimate | Previous Estimate | |||||||
Core Nutritional business net sales | $740 million* | $750 million | ||||||
Hiya net sales | $130 million | $125 million | ||||||
Rise Wellness net sales | $30 million | $35 million | ||||||
Consolidated net sales | Approaching $900 million | $910 million | ||||||
Net (loss) earnings | $(16) million | $(11) million | ||||||
Diluted EPS | $(0.90) | $(0.61) | ||||||
Adjusted diluted EPS(1) | $0.55 | $0.76 | ||||||
Adjusted EBITDA(2) | $77 million | $80.5 million† | ||||||
Consolidated income taxes | $33 million | $30 to $35 million | ||||||
Diluted share count | 18.4 million | Approximately 18.3 million | ||||||
*Reflects an expected favorable currency exchange rate impact of approximately $20 million, or 2% of net sales and one less week of operations compared to fiscal year 2025, which was a 53-week year.
†As corrected; previously published as $87 million on August 4, 2026. See “Correction of Previously Reported Adjusted EBITDA Attributable to USANA” below.
Compared with our prior outlook, as corrected, the change reflects lower expectations for Rise Wellness and our deliberate decision to invest resources at Hiya to drive increased Active Monthly Subscribers, partially offset by stronger profitability in Core Nutritional. We expect continued sequential progress from Hiya during the fourth quarter on both net sales and Adjusted EBITDA.
Our fiscal 2026 outlook assumes certain Rise Wellness retail orders ship in the fourth quarter. If some of these orders shift to the first quarter of 2027, 2026 results could fall short of the outlook, with the related net sales and earnings recognized in 2027 instead.
Looking ahead, we are focused on building a more diversified and resilient USANA. In Core Nutritional, we are aligning our Brand Partner incentives, digital marketing and product innovation around a single priority: acquiring and retaining a loyal customer base, while the margin discipline we have established positions the business to benefit as those efforts take hold. At Hiya, the subscribers we have added provide a foundation for recurring revenue, and continued expansion across retail, Amazon and international
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markets broadens the brand’s reach. At Rise Wellness, a growing retail footprint for Protein Pop and Rise Bar creates a path to more balanced and consistent results. Supported by a strong balance sheet with $179 million in cash, no debt and positive free cash flow, we have the flexibility to invest in these priorities with discipline. We are confident in the direction we are taking and in our ability to create long-term, sustainable value for our shareholders.
Kevin Guest
Chairman and CEO
Douglas Hekking
CFO
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Correction of Previously Reported Adjusted EBITDA Attributable to USANA
In preparing its third quarter results, the Company identified an omission in its second quarter 2026 reconciliation of net (loss) earnings to Adjusted EBITDA attributable to USANA. The $29.1 million Hiya goodwill impairment was added back in full, rather than net of the $6.2 million share attributable to the noncontrolling interest. This correction affects Adjusted EBITDA attributable to USANA, a non-GAAP measure, and had no effect on the Company’s reported GAAP results. Corrected amounts are as follows:
Adjusted EBITDA attributable to USANA | As previously reported | Correction | As corrected | |||||||||||||||||
Second quarter 2026 | $ | 27.8 | $ | (6.2) | $ | 21.7 | ||||||||||||||
Fiscal 2026 outlook (August 4, 2026) | 86.7 | (6.2) | 80.5 | |||||||||||||||||
$ in millions
Sequential comparisons and the previous outlook presented in this document reflect the corrected amounts. Amounts may not sum due to rounding.
_________________________
(1) Adjusted Diluted (Loss) Earnings Per Share is a non-GAAP financial measure. The Company excludes cost realignment expenses, impairment expense, gain on sale of assets, and acquisition-related costs, such as business transaction costs, integration expense and amortization expense from acquisition-related intangible assets in calculating Adjusted Diluted (Loss) Earnings Per Share. Please refer to “Non-GAAP Financial Measures” and “Reconciliation of Diluted Loss Per Share (GAAP) to Adjusted Diluted Loss Per Share (Non-GAAP)” in this Management Commentary for an explanation and reconciliation of this non-GAAP financial measure.
(2) Adjusted EBITDA is a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” and “Reconciliation of Net Loss (GAAP) to Adjusted EBITDA (Non-GAAP)” in this Management Commentary for an explanation and reconciliation of this non-GAAP financial measure.
(3) Free cash flow is a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” and “Reconciliation of Net Cash Provided by (Used in) Operating Activities (GAAP) to Free Cash Flow (Non-GAAP)” in this Management Commentary for an explanation and reconciliation of this non-GAAP financial measure.
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Non-GAAP Financial Measures
This Management Commentary contains the non-GAAP financial measures Adjusted EBITDA, Adjusted Diluted EPS and free cash flow. Adjusted EBITDA is a non-GAAP financial measure of (loss) earnings before interest, taxes, depreciation, and amortization that also excludes certain adjustments as indicated below in the reconciliation from net (loss) earnings. Adjusted Diluted EPS is a non-GAAP financial measure of diluted (loss) earnings per share that excludes certain adjustments as indicated below in the reconciliation from diluted EPS.
Adjusted EBITDA (non-GAAP) is net (loss) earnings (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (benefit from) provision for income taxes, depreciation and amortization (including right-of-use asset reduction), non-cash share-based compensation, transaction-related expenses and integration costs for the Hiya acquisition, cost realignment expenses, impairment expense, and gain on sale of assets. Adjusted EBITDA attributable to USANA (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to noncontrolling interest related to Hiya.
Adjusted diluted (loss) earnings per share (non-GAAP) is diluted (loss) earnings per share (its most directly comparable GAAP financial measure) adjusted for amortization of intangible assets, transaction-related expenses and integration costs related to the Hiya acquisition, cost realignment expenses, impairment expense, and gain on sale of assets.
Free cash flow (non-GAAP) is net cash provided by (used in) operating activities (its most directly comparable GAAP financial measure) less purchases of property and equipment. Management believes free cash flow is a useful measure of the cash the business generates, after investing in property and equipment, that is available for strategic investments, share repurchases and other uses.
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Management believes that Adjusted EBITDA (non-GAAP), Adjusted EBITDA attributable to USANA (non-GAAP), Adjusted diluted (loss) earnings per share (non-GAAP), and free cash flow (non-GAAP), along with GAAP measures used by management, most appropriately reflect how the Company measures the business internally.
The Company prepares its financial statements using U.S. generally accepted accounting principles (“GAAP”) and investors should not directly compare with or infer a relationship from any of the Company’s operating results presented in accordance with GAAP to Adjusted EBITDA, Adjusted diluted (loss) earnings per share and free cash flow. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of non-GAAP financial information as a tool for comparison. As a result, the non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation from, or as a substitute for, financial information presented in accordance with GAAP.
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Reconciliation of Net Loss (GAAP) to Adjusted EBITDA (non-GAAP)
(in thousands)
Quarter ended | ||||||||||||||
October 3, 2026 | September 27, 2025 | |||||||||||||
Net loss attributable to USANA (GAAP) | $ | (5,556) | $ | (6,522) | ||||||||||
Net loss attributable to noncontrolling interest | (1,334) | (140) | ||||||||||||
Net loss | $ | (6,890) | $ | (6,662) | ||||||||||
Adjustments: | ||||||||||||||
Income taxes | $ | 6,086 | $ | 8,456 | ||||||||||
Interest (income) expense, net | (607) | (529) | ||||||||||||
Depreciation and amortization | 5,212 | 5,112 | ||||||||||||
Amortization of intangible assets - Hiya | 4,455 | 4,455 | ||||||||||||
Earnings before interest, taxes, depreciation, and amortization (EBITDA) | $ | 8,256 | $ | 10,832 | ||||||||||
Add EBITDA adjustments: | ||||||||||||||
Non-cash share-based compensation | 3,404 | 3,576 | ||||||||||||
Transaction, integration and transition costs - Hiya | — | 179 | ||||||||||||
Adjusted EBITDA | 11,660 | 14,587 | ||||||||||||
Adjusted EBITDA attributable to noncontrolling interest | 392 | (803) | ||||||||||||
Adjusted EBITDA attributable to USANA | $ | 12,052 | $ | 13,784 | ||||||||||
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Reconciliation of Diluted Loss Per Share (GAAP) to Adjusted Diluted Loss Per Share (non-GAAP)
(in thousands, except per share data)
Quarter ended | ||||||||||||||
October 3, 2026 | September 27, 2025 | |||||||||||||
Net loss attributable to USANA (GAAP) | $ | (5,556) | $ | (6,522) | ||||||||||
Loss per common share - Diluted | $ | (0.30) | $ | (0.36) | ||||||||||
Weighted Average common shares outstanding - Diluted | 18,498 | 18,293 | ||||||||||||
Adjustment to net loss: | ||||||||||||||
Transaction, integration and transition costs - Hiya | $ | — | $ | 179 | ||||||||||
Amortization of intangible assets - Hiya | 4,455 | 4,455 | ||||||||||||
Adjustments to net loss attributable to noncontrolling interest | (942) | (942) | ||||||||||||
Adjusted net loss attributable to USANA | $ | (2,043) | $ | (2,830) | ||||||||||
Adjusted loss per common share - Diluted | $ | (0.11) | $ | (0.15) | ||||||||||
Weighted average common shares outstanding - Diluted | 18,498 | 18,293 | ||||||||||||
Reconciliation of Net Cash Provided by (Used in) Operating Activities (GAAP) to Free Cash Flow (non-GAAP)
(in thousands)
Quarter ended | Nine months ended | |||||||||||||||||||||||||
October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | |||||||||||||||||||||||
Net cash provided by (used in) operating activities (GAAP) | $ | 11,965 | $ | (1,961) | $ | 45,043 | $ | 25,739 | ||||||||||||||||||
Less: Purchases of property and equipment | (3,522) | (3,198) | (9,322) | (11,028) | ||||||||||||||||||||||
Free cash flow (non-GAAP) | $ | 8,443 | $ | (5,159) | $ | 35,721 | $ | 14,711 | ||||||||||||||||||
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Operating Results as a Percentage of Net Sales
(unaudited)
Quarter ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
October 3, 2026 | September 27, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
Core Nutritional | Hiya | Rise | Consolidated | Core Nutritional | Hiya | Rise | Consolidated | |||||||||||||||||||||||||||||||||||||||||||
Net sales | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 19.9% | 33.9% | 110.4% | 23.7% | 18.8% | 35.6% | 70.2% | 22.8% | ||||||||||||||||||||||||||||||||||||||||||
Gross profit | 80.1% | 66.1% | (10.4)% | 76.3% | 81.2% | 64.4% | 29.8% | 77.2% | ||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Brand Partner incentives | 42.1% | —% | —% | 34.9% | 44.1% | —% | —% | 36.4% | ||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 33.9% | 86.2% | 46.0% | 42.1% | 35.9% | 66.5% | 32.5% | 40.2% | ||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 76.0% | 86.2% | 46.0% | 77.0% | 80.0% | 66.5% | 32.5% | 76.6% | ||||||||||||||||||||||||||||||||||||||||||
(Loss) earnings from operations | 4.1% | (20.1)% | (56.4)% | (0.7)% | 1.2% | (2.1)% | (2.7)% | 0.6% | ||||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | —% | 14.1% | 1.6% | 2.2% | 0.1% | 14.5% | 3.2% | 2.2% | ||||||||||||||||||||||||||||||||||||||||||
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Conference Call
USANA’s management team will hold a conference call and webcast to discuss today’s announcement with investors on Wednesday, November 4, 2026, at 11:00 AM Eastern Time. Investors may listen to the call by accessing USANA’s website at http://ir.usana.com. The call will consist of brief opening remarks by the Company’s management team, followed by a question-and-answer session.
Safe Harbor
This Management Commentary contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These forward-looking statements are based on current plans, expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “expect,” “enhance,” “drive,” “anticipate,” “intend,” “improve,” “promote,” “should,” “believe,” “continue,” “plan,” “goal,” “opportunity,” “estimate,” “predict,” “may,” “will,” “could,” and “would,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding commercial performance and growth for Hiya and Rise Wellness in 2026 and continued growth in the future; statements about the Company’s long-term growth; and the statements under the sub-heading “Fiscal Year 2026 Outlook.” Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control, including: risks relating to global economic conditions generally, including continued inflationary pressure around the world and negative impact on our operating costs, consumer demand and consumer behavior in general; reliance upon our network of independent Brand Partners; risk that our Brand Partner compensation plan, or changes that we make to the compensation plan, will not produce desired results, benefit our business or, in some cases, could harm our business; risk associated with our launch of new products or reformulated existing products; risks related to Hiya’s ability to adapt to changes in the digital marketing environment to continue to generate customer acquisition, including changes in social media advertising algorithms; risks related to Hiya’s ability to perform in an expanding
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distribution channel and new international markets; risks related to Rise Wellness’ ability to execute its commercial plan and its dependence on product orders from certain key retailers – specifically, if future orders from those retailers do not meet our forecasts or such retailers discontinue purchasing and selling Rise Wellness products; risks related to governmental regulation of our products, manufacturing and direct selling business model in the United States, China and other key markets; potential negative effects of deteriorating foreign and/or trade relations between or among the United States, China and other key markets, including potential adverse impact from tariffs, trade policies or other international disputes by and among the United States, China, or other markets that are important to the Company; potential negative effects from geopolitical relations and conflicts around the world, including the Russia-Ukraine conflict and the conflict between the United States and Iran; compliance with data privacy and security laws and regulations in our markets around the world; potential negative effects of material breaches of our information technology systems to the extent we experience a material breach; material failures of our information technology systems; adverse publicity risks globally; risks associated with our operations in India and future international expansion and operations; uncertainty relating to the fluctuation in U.S. and other international currencies; the potential for a resurgence of COVID-19, or another pandemic, in any of our markets in the future and any related impact on consumer health, domestic and world economies, including any negative impact on discretionary spending, consumer demand, and consumer behavior in general; risk that Hiya and Rise Wellness disrupt the Company’s overall strategic plans and operations; the diversion of the attention of the management teams of USANA, Hiya, and Rise Wellness from ongoing business operations; the ability to retain key personnel of USANA, Hiya and Rise Wellness; the ability to realize the benefits of the Hiya acquisition, including efficiencies and cost synergies; the ability to successfully integrate Hiya’s business with USANA’s business, at all or in a timely manner; and the amount of the costs, fees, expenses and charges related to the acquisition. The contents of this document should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in our most recent filings with the Securities and Exchange Commission. The forward-looking statements in this Management Commentary set forth our beliefs as of the date
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hereof. We do not undertake any obligation to update any forward-looking statement after the date hereof or to conform such statements to actual results or changes in the Company’s expectations, except as required by law.
About USANA
USANA develops and manufactures high-quality nutritional supplements, functional foods and personal care products that are sold directly to Brand Partners and Preferred Customers across 25 global markets. More information on USANA can be found at www.usana.com. USANA also owns a 78.8% controlling ownership stake in Hiya Health Products, a children's health and wellness company, and a 100% interest in Rise Wellness. Hiya and Rise Wellness offer a variety of clean-label health products. More information on Hiya can be found at www.hiyahealth.com. More information on Rise Wellness can be found at www.risebar.com and www.proteinpop.com.
Investor contact: Andrew Masuda
Investor Relations
(801) 954-7210
investor.relations@usanainc.com
Media contact: Sarah Searle
(801) 954-7626
media@usanainc.com
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