Natural Health Trends Reports Second Quarter 2025 Financial Results
MWN-AI** Summary
Natural Health Trends Corp. (NASDAQ: NHTC) recently reported its financial results for the second quarter of 2025, revealing a revenue decline of 6% to $9.8 million, down from $10.5 million during the same period in 2024. This decrease is attributed to increased economic uncertainty stemming from retaliatory tariff threats. The company's operating loss widened to $333,000 compared to $238,000 in the previous year, with a net income of only $15,000, coming in at breakeven per diluted share as opposed to $173,000 or $0.02 per diluted share in Q2 2024. Additionally, the number of Active Members dropped to 29,260 from 31,110 a year earlier.
For the first six months of 2025, Natural Health Trends reported revenue of $20.6 million, a 4% decrease from $21.4 million in the same timeframe of 2024. The year-to-date operating loss stood at $678,000 compared to $603,000 last year, while net income slipped to $137,000 from $361,000 a year prior.
Addressing these challenges, President Chris Sharng noted the need to realign the supply chain to mitigate tariff risks by collaborating with trusted manufacturing partners in Asia. On a positive note, the company fully settled its liability from the 2017 U.S. Tax Cuts and Jobs Act during Q2, and on July 28, 2025, it declared a quarterly cash dividend of $0.20 per share, to be distributed on August 22, 2025.
As of June 30, 2025, Natural Health Trends' total cash, cash equivalents, and marketable securities amounted to $34.2 million, marking a decrease from $43.9 million at the end of the previous year. The company remains committed to navigating market fluctuations and enhancing long-term operational resilience.
MWN-AI** Analysis
Natural Health Trends Corp. (NASDAQ: NHTC) has recently reported a 6% decrease in second-quarter revenue, impacting market sentiment among investors and stakeholders. With sales falling to $9.8 million from $10.5 million compared to the same period last year, the company’s growth trajectory appears vulnerable due to the ongoing trade tensions and retaliatory tariff threats. This is further amplified by the operating loss of $333,000, indicating that cost management and revenue generation strategies may need immediate attention.
A significant positive is the resolution of the U.S. Tax Cuts and Jobs Act liability, which had been a burden on cash flows. This may alleviate some financial strain, allowing management to redirect focus toward growth initiatives and operational realignment. The anticipated transition to trusted manufacturing partners in Asia is a strategic move that aims to enhance supply chain resilience, which should be closely monitored by investors.
Despite these challenges, NHTC is taking steps to reward its shareholders by declaring a quarterly cash dividend of $0.20 per share. This demonstrates the company’s commitment to returning value even amidst declining sales. However, with net income dropping to breakeven and active members decreasing, investors should watch closely how effectively management can stabilize and grow the active user base.
As the company grapples with external economic pressures, it’s advisable for investors to exercise caution. Monitoring developments on trade relations, management's execution of its strategic initiatives, and consumer sentiment toward wellness products will be crucial. For potential investors, a wait-and-see approach may be prudent until there are clear signs of recovery in sales and improved operational efficiency in the upcoming quarters.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
| – | Sales decreased 6% due to retaliatory tariff threats | |
| – | U.S. Tax Cuts and Jobs Act liability fully settled during the second quarter of 2025 | |
| – | Declared a quarterly cash dividend of $0.20 per share |
LOS ANGELES, July 30, 2025 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (NASDAQ: NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, today announced its financial results for the quarter ended June 30, 2025.
Second Quarter 2025 Financial Highlights
- Revenue of $9.8 million decreased 6% compared to $10.5 million in the second quarter of 2024.
- Operating loss was $333,000 compared to $238,000 in the second quarter of 2024.
- Net income was $15,000, or breakeven per diluted share, compared to $173,000, or $0.02 per diluted share, in the second quarter of 2024.
- The number of Active Members 1 was 29,260 at June 30, 2025 compared to 30,870 at December 31, 2024 and 31,110 at June 30, 2024.
| 1 | Natural Health Trends defines Active Members as those that have placed at least one product order with the Company during the preceding twelve-month period. |
Year-to-Date 2025 Financial Highlights
- Revenue of $20.6 million decreased 4% compared to $21.4 million in the first six months of 2024.
- Operating loss was $678,000 compared to $603,000 in the first six months of 2024.
- Net income was $137,000, or $0.01 per diluted share, compared to $361,000, or $0.03 per diluted share, in the first six months of 2024.
Management Commentary
“Our second quarter sales reflected the heightened economic uncertainty caused by evolving trade tensions, which we expect will continue to heavily weigh on consumer sentiment in our biggest market,” commented Chris Sharng, President of Natural Health Trends Corp.
Mr. Sharng continued, “To mitigate tariff-related risks, we are realigning our supply chain by transitioning production to trusted manufacturing partners in Asia, bringing operations closer to our core markets and enhancing long-term resilience.”
Balance Sheet and Cash Flow
- Net cash used in operating activities was $5.2 million in the first six months of 2025 compared to $3.0 million in the first six months of 2024. Before tax installment payments, the liability of which arose from the 2017 U.S. Tax Cuts and Jobs Act (the "Tax Act"), cash used in operating activities was $97,000 in the first six months of 2025 compared to cash provided by operating activities of $950,000 in the first six months of 2024. The Tax Act liability is now fully paid.
- Total cash, cash equivalents and marketable securities were $34.2 million at June 30, 2025, down from $43.9 million at December 31, 2024.
- On July 28, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 on each share of common stock outstanding. The dividend will be payable on August 22, 2025 to stockholders of record as of August 12, 2025.
Second Quarter 2025 Financial Results Conference Call
Management will host a conference call to discuss the second quarter 2025 financial results today, Wednesday, July 30, 2025 at 11:30 a.m. Eastern Time. The conference call details are as follows:
| Date: | Wednesday, July 30, 2025 |
| Time: | 11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time |
| Dial-in: | 1-877-407-0789 (Domestic) 1-201-689-8562 (International) |
| Conference ID: | 13754794 |
| Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1726889&tp_key=778e0e5b56 |
For those unable to participate during the live broadcast, a replay of the call will also be available from 2:30 p.m. Eastern Time on July 30, 2025 through 11:59 p.m. Eastern Time on August 13, 2025 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13754794.
About Natural Health Trends Corp.
Natural Health Trends Corp. (NASDAQ: NHTC) is an international direct-selling and e-commerce company operating through its subsidiaries throughout Asia, the Americas, and Europe. The Company markets premium quality personal care products under the NHT Global brand. Additional information can be found on the Company’s website at www.naturalhealthtrendscorp.com.
Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Forward-looking statements in this press release do not constitute guarantees of future performance. Such forward-looking statements are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from those anticipated. Such risks and uncertainties include the risks and uncertainties detailed under the caption “Risk Factors” in Natural Health Trends Corp.’s Annual Report on Form 10-K filed on February 21, 2025 with the Securities and Exchange Commission (SEC), as well as in subsequent reports filed this year with the SEC. The Company assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
| NATURAL HEALTH TRENDS CORP. CONSOLIDATED BALANCE SHEETS (In thousands, except share data) | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 10,534 | $ | 13,533 | ||||
| Marketable securities | 23,711 | 30,407 | ||||||
| Inventories | 2,769 | 3,272 | ||||||
| Other current assets | 3,845 | 3,771 | ||||||
| Total current assets | 40,859 | 50,983 | ||||||
| Property and equipment, net | 154 | 190 | ||||||
| Operating lease right-of-use assets | 2,108 | 2,498 | ||||||
| Restricted cash | 37 | 34 | ||||||
| Deferred tax asset | 387 | 382 | ||||||
| Other assets | 1,617 | 1,272 | ||||||
| Total assets | $ | 45,162 | $ | 55,359 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 962 | $ | 895 | ||||
| Income taxes payable | 7 | 4,908 | ||||||
| Accrued commissions | 1,866 | 2,021 | ||||||
| Other accrued expenses | 1,337 | 1,425 | ||||||
| Deferred revenue | 6,078 | 6,428 | ||||||
| Amounts held in eWallets | 3,089 | 3,286 | ||||||
| Operating lease liabilities | 1,060 | 1,127 | ||||||
| Other current liabilities | 549 | 709 | ||||||
| Total current liabilities | 14,948 | 20,799 | ||||||
| Deferred tax liability | 172 | 174 | ||||||
| Operating lease liabilities | 1,186 | 1,514 | ||||||
| Total liabilities | 16,306 | 22,487 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock | — | — | ||||||
| Common stock | 13 | 13 | ||||||
| Additional paid-in capital | 84,969 | 84,901 | ||||||
| Accumulated deficit | (30,813 | ) | (26,344 | ) | ||||
| Accumulated other comprehensive loss | (916 | ) | (1,301 | ) | ||||
| Treasury stock, at cost | (24,397 | ) | (24,397 | ) | ||||
| Total stockholders’ equity | 28,856 | 32,872 | ||||||
| Total liabilities and stockholders’ equity | $ | 45,162 | $ | 55,359 |
| NATURAL HEALTH TRENDS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands, except per share data) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net sales | $ | 9,813 | $ | 10,475 | $ | 20,550 | $ | 21,426 | ||||||||
| Cost of sales | 2,558 | 2,699 | 5,390 | 5,611 | ||||||||||||
| Gross profit | 7,255 | 7,776 | 15,160 | 15,815 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Commissions expense | 4,012 | 4,203 | 8,500 | 8,689 | ||||||||||||
| Selling, general and administrative expenses | 3,576 | 3,811 | 7,338 | 7,729 | ||||||||||||
| Total operating expenses | 7,588 | 8,014 | 15,838 | 16,418 | ||||||||||||
| Loss from operations | (333 | ) | (238 | ) | (678 | ) | (603 | ) | ||||||||
| Other income, net | 348 | 519 | 813 | 1,082 | ||||||||||||
| Income before income taxes | 15 | 281 | 135 | 479 | ||||||||||||
| Income tax provision (benefit) | — | 108 | (2 | ) | 118 | |||||||||||
| Net income | $ | 15 | $ | 173 | $ | 137 | $ | 361 | ||||||||
| Net income per common share: | ||||||||||||||||
| Basic | $ | 0.00 | $ | 0.02 | $ | 0.01 | $ | 0.03 | ||||||||
| Diluted | $ | 0.00 | $ | 0.02 | $ | 0.01 | $ | 0.03 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 11,493 | 11,464 | 11,489 | 11,460 | ||||||||||||
| Diluted | 11,497 | 11,483 | 11,496 | 11,481 |
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
| Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 137 | $ | 361 | ||||
| Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 59 | 69 | ||||||
| Net accretion of marketable securities | (214 | ) | (215 | ) | ||||
| Share-based compensation | 68 | 75 | ||||||
| Noncash lease expense | 573 | 545 | ||||||
| Deferred income taxes | (3 | ) | 16 | |||||
| Changes in assets and liabilities: | ||||||||
| Inventories | 525 | 6 | ||||||
| Other current assets | 402 | (294 | ) | |||||
| Other assets | (334 | ) | (101 | ) | ||||
| Accounts payable | 65 | (335 | ) | |||||
| Income taxes payable | (4,901 | ) | (3,817 | ) | ||||
| Accrued commissions | (194 | ) | 106 | |||||
| Other accrued expenses | (110 | ) | 136 | |||||
| Deferred revenue | (311 | ) | 1,432 | |||||
| Amounts held in eWallets | (170 | ) | (339 | ) | ||||
| Operating lease liabilities | (561 | ) | (560 | ) | ||||
| Other current liabilities | (182 | ) | (104 | ) | ||||
| Net cash used in operating activities | (5,151 | ) | (3,019 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property and equipment | (20 | ) | (30 | ) | ||||
| Purchases of marketable securities | (27,552 | ) | (36,164 | ) | ||||
| Proceeds from maturities of marketable securities | 34,215 | 3,307 | ||||||
| Net cash provided by (used in) investing activities | 6,643 | (32,887 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Dividends paid | (4,606 | ) | (4,606 | ) | ||||
| Net cash used in financing activities | (4,606 | ) | (4,606 | ) | ||||
| Effect of exchange rates on cash, cash equivalents and restricted cash | 118 | (92 | ) | |||||
| Net decrease in cash, cash equivalents and restricted cash | (2,996 | ) | (40,604 | ) | ||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 13,567 | 56,217 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ | 10,571 | $ | 15,613 | ||||
| SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
| Right-of-use assets obtained in exchange for operating lease liabilities | $ | 112 | $ | 196 |
CONTACT:
Scott Davidson
Senior Vice President and Chief Financial Officer
Natural Health Trends Corp.
Tel (U.S.): 310-541-0888
investor.relations@nhtglobal.com
FAQ**
How does Natural Health Trends Corp. NHTC plan to address the 6% decrease in sales attributed to retaliatory tariff threats moving forward?
What impact did the full settlement of the U.S. Tax Cuts and Jobs Act liability have on Natural Health Trends Corp. NHTC's financial position in the second quarter of 2025?
Can you elaborate on the strategy behind the recent decision to declare a quarterly cash dividend of $0.20 per share by Natural Health Trends Corp. NHTC despite the operating loss?
What measures is Natural Health Trends Corp. NHTC implementing to realign its supply chain and mitigate risks associated with ongoing trade tensions?
**MWN-AI FAQ is based on asking OpenAI questions about Natural Health Trends Corp. (NASDAQ: NHTC).
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