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

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.

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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.

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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
[email protected]

Source: Stonegate, Inc.

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