Earnings call transcript: Nature’s Sunshine beats Q2 2025 EPS forecast

Nature’s Sunshine Products Inc. (NATR) delivered a robust performance in Q2 2025, significantly exceeding earnings expectations with an EPS of $0.35, compared to the forecasted $0.17. This 105.88% surprise underscores the company’s operational strength. According to InvestingPro analysis, the company maintains a "GOOD" financial health score, with particularly strong cash flow metrics. Despite this positive outcome, the stock declined 3.4% to $14.41, suggesting investor caution or broader market influences. The current stock price indicates potential undervaluation based on InvestingPro’s Fair Value analysis.

Key Takeaways

• Nature’s Sunshine reported a 105.88% EPS surprise, significantly beating forecasts.
• The company raised its full-year revenue guidance to $460M-$475M.
• Stock price fell 3.4% post-earnings, indicating mixed investor sentiment.
• Digital business growth and new product launches were highlighted as key drivers.
• Macroeconomic challenges in Asia may impact future performance.

Company Performance

Nature’s Sunshine demonstrated strong performance in Q2 2025, with net sales increasing by 4% year-over-year to $114.8 million. The company’s focus on digital transformation and product innovation has bolstered its market position, particularly in North America, where sales grew by 4%.

Financial Highlights

• Revenue: $114.8 million, up 4% year-over-year
• Earnings per share: $0.35, significantly above the forecasted $0.17
• Gross Margin: 71.7%, a 36 basis point increase
• Adjusted EBITDA: $11.3 million, an 8% increase year-over-year

Earnings vs. Forecast

Nature’s Sunshine’s Q2 2025 EPS of $0.35 exceeded the forecast of $0.17, resulting in a 105.88% surprise. Revenue also surpassed expectations, coming in at $114.8 million compared to the forecasted $113.1 million, a 1.5% surprise.

Market Reaction

Despite the earnings beat, Nature’s Sunshine’s stock fell by 3.4% to $14.41. This decline may reflect broader market conditions or investor profit-taking, as the stock remains within its 52-week range of $10.81 to $18.06. Notably, analysts maintain a strong buy consensus with price targets ranging from $20 to $21, suggesting significant upside potential. InvestingPro research reports provide comprehensive analysis of the company’s valuation metrics and growth prospects.

Outlook & Guidance

The company raised its full-year revenue guidance to $460 million-$475 million, indicating 1-5% growth. Adjusted EBITDA is projected to be between $41 million and $45 million, reflecting a 1-11% increase. The company remains optimistic about its digital business and product innovation strategies.

Executive Commentary

"We’re seeing good momentum in the business, especially in North America," stated Shane Jones, CFO. CEO Terrence Moorhead emphasized, "Innovation that we’re putting out in the market is new, it’s fresh," highlighting the company’s commitment to product development.

Risks and Challenges

• Macroeconomic challenges in Taiwan and South Korea could impact sales growth.
• Inventory increase to $69.3 million may indicate potential demand forecasting issues.
• Competitive pressures in the collagen market, which is growing at 15-20%, could affect market share.

Q&A

During the earnings call, analysts inquired about the potential for utilizing excess manufacturing capacity and the company’s strategy for new product innovation. The leadership team also addressed regional growth expectations and the momentum of the digital business.

Nature’s Sunshine continues to focus on leveraging its strong digital strategy and expanding in high-growth market segments, positioning itself favorably for future growth despite external challenges.

Full transcript - Natures Sunshine Products Inc (NATR) Q2 2025:

Conference Call Operator: Good afternoon, everyone, and thank you for participating in today’s conference call to discuss Nature’s Sunshine’s Financial Results for the Second Quarter Ended 06/30/2025. Joining us today are Nature’s Sunshine’s CEO, Terrence Moorhead CFO, Shane Jones and General Counsel, Nate Brower. Following their remarks, we’ll open the call for analyst questions. Before we go further, I would like to turn the call over to Mr. Brower as he reads the company’s Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward looking statements.

Nate, please go ahead.

Nate Brower, General Counsel, Nature’s Sunshine: Thank you, and good afternoon. I’d like to remind everyone that this call is available for replay by telephonic dial ins through August 14 and via a live webcast that will be posted on the Investor Relations portion of our website at ir.naturessunshine.com. The information on this call contains forward looking statements. These statements are often characterized by terminologies such as believe, hope, may, anticipate, expect, will and other similar expressions. Forward looking statements are not guarantees of future performance and the actual results may be materially different from the results implied by forward looking statements.

Factors that could cause results to differ materially from those implied therein include, but are not limited to, those factors disclosed in the company’s annual report on Form 10 ks under the caption Risk Factors and other reports filed with the Securities and Exchange Commission. The information on this call speaks only as of today’s date, and the company disclaims any duty to update the information provided herein. Now I would like to turn the call over to the CEO of Nature’s Sunshine, Terence Moorhead. Terence?

Terrence Moorhead, CEO, Nature’s Sunshine: Thank you, Nate, and good afternoon, everyone. I want to thank you for joining today’s call to discuss our second quarter results. Today, I’ll provide some context for our second quarter performance and offer some insights into how the business is building momentum. From there, Shane will take you through our financials in more detail. In the second quarter, Nature’s Sunshine continued to build on the momentum we saw in Q1 with another quarter of strong performance.

Our team is focused, the strategies are holding steady and we continue to position the company for long term sustainable growth. For the quarter, revenue came in at $115,000,000 up 4% versus the prior year or 2% in constant currency. Q2 adjusted EBITDA was also strong coming in at $11,000,000 an 8% increase versus the prior year’s adjusted EBITDA of $10,000,000 These results reflect strong execution across the business with standout performance in Japan, continued strength in Central Europe and improved traction in North America, where we saw a notable acceleration in our digital business. As we move into the back half of the year, we remain focused on unlocking long term value through strong consumer engagement and continued execution of our sales and marketing strategies. We delivered these results despite ongoing uncertainty from the current macroeconomic environment and the evolving trade and tariff situation.

Fortunately, we’ve taken strong proactive measures to minimize our exposure and safeguard our business. We’re also closely monitoring consumer spending patterns and whether household budgets come under increased pressure. Having said that, our focus remains unchanged as we continue to implement strategies to drive customer growth and strengthen our value proposition with targeted investment, new innovation and more reliable service. As a result, we believe our growth strategy continues to demonstrate significant long term potential. Looking at our business by geography, Asia Pacific saw sales in the second quarter increase 5% or 2% on a local currency basis.

Growth in the region was driven by another exceptional quarter in Japan, where sales increased 27%. Our focus on attracting younger consumers while leveraging our Subscribe and Thrive Autoship program continues to pay dividends as we saw strong growth in both customers and orders in the second quarter. Taiwan and South Korea experienced strong growth for the past three quarters, but we saw softer results this quarter as consumer spending slowed. In the second quarter, both Taiwan and South Korea faced a more challenging macroeconomic environment driven by slowing exports, fragile domestic demand and increased uncertainty surrounding trade policy. Taiwan slashed its GDP forecast as tariff fears escalated, while South Korea narrowly avoided recession and and grappled with weak consumption and the threat of new import duties.

In both markets, inflationary pressure, political instability and a shifting global trade environment have raised new challenges. As we move into the back half of the year, we expect tough comparisons to pressure our year over year growth trends in these markets, but we’re confident in the strength of our underlying fundamentals and expect to see improved performance as the macroeconomic environment stabilizes. Asia Pacific will continue to be a key growth driver of our business. In North America, we continued to make significant progress as sales increased 4% versus prior year, driven by strong performance in our digital business, which grew 34% and continued to build momentum. This further validates the strength and potential of our digital strategy and puts us on track to deliver our long term objectives.

We also continued to build momentum in our Subscribe and Thrive Autoship program, which remains the most attractive way for consumers to buy our products. The program continued to expand in the second quarter and now represents over 50% of DTC sales, and we expect this to help drive further sales growth as we optimize and improve the experience. As we continue to strengthen our digital capabilities, we believe our digital footprint will continue to expand and grow. Another important factor driving North America’s second quarter performance was the significant improvement in field fundamentals, discipline and sales support. Our specialty retailers, nutritional health practitioners and affiliates responded well to increased touch management and targeted field activation as sales with this very important group improved in the quarter.

Moving to Europe, sales were up 1%, but down 2% in constant currency, reflecting the timing of price changes between Q1 and Q2. Notably, we experienced robust growth in Central Europe, which was supported by strong management and disciplined execution across region. The success of our power line products continued to drive customer growth and help expand customer activation, including expansion in the Baltic States. We also saw average order increase, which in this case is a strong sign of consumer loyalty and engagement as our positive sales trends continued. Overall, we remain confident in the underlying direction of the business.

In summary, the strategy we’ve outlined, sharpening digital execution, stabilizing the core business in North America and driving focused growth in key international markets is working. Importantly, we’re seeing progress on these fronts at an accelerated pace and we believe the momentum is sustainable. Shane is going to talk about this in a little bit later, but as a result of our strong first half performance and increased visibility into the back half of the year, we’re increasing our full year guidance to remove some of the risks associated with market uncertainty and to reflect the positive direction of the business. Based on the momentum we’re seeing, we have a more positive outlook for our full year sales and adjusted EBITDA. Shane will provide more details and insights in a moment.

But with that, I want to turn the call over to our Chief Financial Officer, Shane Jones. Shane?

Shane Jones, CFO, Nature’s Sunshine: Thank you, Terence. Let’s dive into our results. Net sales in the second quarter were $114,800,000 compared to $110,600,000 in the year ago quarter, a 4% increase versus the prior year or a 2% increase excluding the impact of foreign exchange rates. As Terrence discussed, this was driven by a resurgence of growth in North America as we saw acceleration in both digital and the core. Looking at sales by market in Q2, I’ll start with North America.

North America sales grew 4% on both a reported and local currency basis. This represents the best quarter for North America in over a year and reflects an acceleration in both the digital and the core businesses. Digital grew 34 in the quarter, driven by increases in number of ordering accounts, a 180 basis point improvement in retention and a step up in conversion. We also saw a meaningful increase in our Subscribe and Thrive Autoship program that now constitutes 53% of DTC revenue. Likewise, the core business continues to show steady sequential improvement driven by strong distributor engagement and better field activation.

We’re excited about the momentum that we see in both parts of the North America business and expect continued growth in the quarters ahead. In Asia Pacific, we reported growth of 5% to $52,700,000 or up 2% when excluding the impact of foreign exchange. This was driven by very strong growth in Japan where sales on a local currency basis grew 27% fueled by continued growth in customers and orders as well as strong participation in our auto ship program that makes up nearly 50% of sales in Japan. Japan has now seen 20% plus growth for four consecutive quarters, validating the strategic adjustments made last year. In addition, we have seen some sequential improvement in China sales trends where Q2 sales were essentially flat, reversing the decline seen for over a year now.

While we are certainly seeing some stabilization and expect that to continue, China continues to be impacted by a difficult macroeconomic environment. Results in Taiwan were challenged this quarter with reported sales up only three percent after exceptional growth over the past three quarters. While some of this is driven by timing, we do expect tough comparisons in Q3 and Q4 to impact year over year growth trends this year. Therefore, we expect low to mid single digit growth from Asia Pacific for the balance of this year. Sales in Europe during Q2 increased 1% on a reported basis, but were down 2% on a local currency basis.

Central Europe continued to perform well with reported sales up 15% driven by strong execution and disciplined cost management across the region. Our power line product focus and growing customer engagement across the Baltics region continued to drive robust growth in both customers and orders. The strength in Central Europe was offset by a 5% decline in Eastern Europe, driven by the year over year timing of price increases between Q1 and Q2. Looking at Q1 and Q2 combined provides a more accurate depiction of the Eastern European business where sales increased 2% over that period. The strength in Central Europe combined with continued low single digit growth in Eastern Europe gives us confidence in our strategy as well as in our ability to continue to deliver mid single digit growth in that region.

Gross margin in the second quarter increased 36 basis points to 71.7% compared to a year ago, driven by our gross margin savings initiatives. Despite the year over year expansion, Q2 gross margin results were muted by headwinds from market mix and foreign exchange. Looking forward, as we continue to execute against our pricing and sourcing initiatives and as the impact of foreign exchange rates diminishes, we expect continued modest improvement in gross margin. This improvement will be despite the impact from tariffs and continued trade volatility. We have a diverse supply chain and have already taken measures to prepare for and mitigate changes in trade policy.

Therefore, we believe we are well positioned to be able to adapt and adjust as necessary and expect no impact to gross margin in 2025. Volume incentives as a percentage of net sales were 29.9% compared to 31.4% in the year ago quarter. The decrease was primarily due to the strong growth in our digital business along with changes in market mix. Selling, general and administrative expenses during the second quarter were $43,700,000 compared to $38,600,000 in the year ago quarter. The increase was primarily related to timing of compensation, digital ad spend and non recurring expenses.

As a percentage of net sales, SG and A expenses increased to 38.1% in the second quarter compared to 34.9% a year ago. Operating income decreased to $40,300,000 or 3.7% of net sales compared to $5,600,000 or 5.1 percent of net sales in the year ago quarter. GAAP net income attributable to common shareholders for the second quarter was $5,300,000 or $0.28 per diluted common share compared to net income of $1,300,000 or $07 per diluted share in the year ago quarter. Adjusted EBITDA as defined in our earnings release increased 8% to $11,300,000 compared to $10,400,000 in the year ago quarter. Our balance sheet remains clean with cash and cash equivalents of $81,300,000 and zero debt.

Inventory increased to $69,300,000 at the end of the second quarter, a $4,400,000 increase versus Q1 as we purchased additional raw materials to prepare for and mitigate the impact of tariffs or potential supply chain disruptions. Net cash provided by operating activities was $7,000,000 compared to $3,500,000 in the prior year period. We repurchased 1,100,000.0 shares for approximately $12,300,000 during the six months ended 06/30/2025, with 21,400,000 remaining on our share repurchase program. This repurchase activity includes our participation in the secondary offering and demonstrates our confidence in the business and commitment to driving long term shareholder value. Looking beyond share repurchases, our healthy capital allocation structure positions us well to continue our digital transformation and other strategic initiatives.

Now turning to our 2025 outlook. Based on the improved momentum in the business, especially in North America, we are raising our guidance for 2025. We now expect full year revenue of $460,000,000 to $475,000,000 compared to previous guidance of $445,000,000 to $470,000,000 This new range equates to year over year growth of 1% to 5%. For adjusted EBITDA, we are now guiding to $41,000,000 to $45,000,000 versus the prior range of 38,000,000 to $44,000,000 This new range equates to year over year growth between 111%. This assumes that gross margin will be modestly higher in Q3 and Q4 and that quarterly SG and A will be 41,000,000 to $42,000,000 Overall, we continue to believe the business is well positioned to capitalize on current market opportunities and remain very optimistic regarding future growth prospects.

The strategic initiatives we’ve been implementing are working and we are confident in our ability to accelerate growth in sales, profitability and cash flow. Now I will turn the time back to the operator.

Conference Call Operator: Should you wish to decline from the polling process, please press 2. If you’re using a speakerphone, please lift the handset before pressing any keys. Your first question comes from Brian Holland of D. A.

Davidson. Your line is already open.

Brian Holland, Analyst, D.A. Davidson: Yes. Thanks. Good afternoon and congratulations on the strong results this quarter. Thanks. Just picking up where Shane left off on the guide.

Plus one to plus 11 on year over year EBITDA still seems to imply a pretty wide range. Just curious what you’re thinking about on both ends of that range. What’s being contemplated that you would end up at plus one? And what would have to happen for you to get to plus 11?

Terrence Moorhead, CEO, Nature’s Sunshine: Shane, you want to grab that?

Shane Jones, CFO, Nature’s Sunshine: Sure. Happy to do that. So we’re seeing good momentum in the business as we’ve talked about, especially in North America and have a lot of confidence in that. We’ve got several initiatives that we’re beginning or continue to accelerate into the latter half of this year and expecting very good results from that. I think that the big thing that will be the difference there will be really on our digital business.

We’ve seen an acceleration. If that acceleration continues, we’ll be near the top end of that. If we can if we don’t, that’s where we’ll likely be a little bit lower. Not lower than the guidance range, but lower in the range.

Brian Holland, Analyst, D.A. Davidson: Understood. But we’re writing on the

Terrence Moorhead, CEO, Nature’s Sunshine: top end of that range.

Shane Jones, CFO, Nature’s Sunshine: And then just And think the other following up on thing is Asia. Sorry. The other one would be Asia. Just Taiwan, we’ve seen a little bit of a deceleration in the growth rate there. We expect that to be very strong in Q3 and in Q4, but we are having very tough comps.

And so depending on how that ends out, that could be slightly different as well.

Brian Holland, Analyst, D.A. Davidson: Okay. And then appreciate the color on the SG and A line for the second half of the year. But if I just kind of wind this back, again, is just my number, maybe apples and oranges to some extent, but I think you beat EBITDA in my model in the first half by about $3,500,000 You took the guide up $2,000,000 I’m just curious if there’s anything changing in the second half versus original expectations. Maybe the thing that I wanted to double click on was your obviously the SG and A number in Q2 included some digital investment. I’m just wondering if that’s something that you’re doubling down on given the momentum that you talked about, specifically in this quarter and the inflection in the North America business in particular.

Terrence Moorhead, CEO, Nature’s Sunshine: Good insight, Shane.

Shane Jones, CFO, Nature’s Sunshine: Yes, that’s a good catch there. We did have we saw some great results in our digital and we did apply some additional funding there to our digital media, about $1,000,000 extra, which paid out in additional sales as well. As we go through the rest of the year, we’ll be very thoughtful about how we do that. And if we continue to see the strong returns that we’re seeing, we’ll spend a little bit more, but that will be have a very strong return on that investment.

Terrence Moorhead, CEO, Nature’s Sunshine: But we do want to keep that digital growth moving going forward. So we like to see it in that plus or minus 30% range, and we’re investing to make that happen.

Brian Holland, Analyst, D.A. Davidson: Terence, think you mentioned in your prepared remarks you talked about innovation. I’m just curious, certainly in my sort of core consumer packaged goods space, we’re really seeing the impact of kind of this Make America Healthy Again movement, and we see it in a number of forms. Just curious to what extent you’re seeing that focus hit your business and the extent to which you are or can be nimble from an innovation standpoint to sort of meet the moment?

Terrence Moorhead, CEO, Nature’s Sunshine: Yeah, definitely think there’s momentum behind that especially with the consumers that we would want to talk to. They’re already in that space. They’re very motivated by that. The innovation that we’re putting out in the market is it’s new, it’s fresh. We’ve got some first mover opportunities for us that are doing quite well.

New products like our MarineGlo, marine based collagen is kind of very exciting. So again, there’s freshness there that comes from new products, but also having that first mover position in the right areas is critical for us and we’re going to keep pushing that lever.

Brian Holland, Analyst, D.A. Davidson: Okay, thanks. And last one for me and I’ll get out of the way. You’ve talked previously about the CapEx investments and the cost savings coming from increased automation, etcetera. Obviously, this opens up a fair amount of incremental capacity within your manufacturing network, advantage within the industry to the extent that you do self manufacture. Just curious if you kind of talk about the pipeline, either from an M and A or co manufacturing standpoint, whereby you would be able to leverage that capacity with either another brand or brands or some other partnerships.

It seems to me to be a huge leverage opportunity, but just kind of curious if that pipeline exists as we look out over the next six to eighteen months through the 2026?

Terrence Moorhead, CEO, Nature’s Sunshine: Brian, you’re exactly right. We have done a lot of work to improve our throughput and efficiency in the plant, which has freed up capacity and we’re actively looking at ways to fill that capacity both by driving growth both organic growth within the business, but also through kind of possible third party opportunities. Shane, I don’t know if you want to add any color to that or not.

Shane Jones, CFO, Nature’s Sunshine: Yes. We have a couple of opportunities that we’re working through right now. We’re in very early stages, though, probably not a lot that we can talk publicly about at this point.

Terrence Moorhead, CEO, Nature’s Sunshine: Yes. But the opportunity is there. Yes. And we’re actively pursuing kind of those opportunities, which as you mentioned, that just helps the economics of our business and the efficiency of our operations.

Brian Holland, Analyst, D.A. Davidson: Fair enough. Appreciate all the color. Keep up the great work.

Terrence Moorhead, CEO, Nature’s Sunshine: Thanks, Brian. Great hearing from you. Take care.

Conference Call Operator: Your next question comes from Susan Anderson of Canaccord Genuity. Your line is already open.

Susan Anderson, Analyst, Canaccord Genuity: Hi, Susan. Hi, good evening. Hi, nice job on the quarter, you guys. Guess maybe just going back to North America, obviously great result in the digital business. It sounded like the core business with the practitioners and the retail partners also improved.

I guess I’m curious, did you see a return to growth there? And then I think you mentioned just kind of some better engagement, better field activation. Maybe if you could expand a little bit on kind of what’s driving that improvement and then your expectation there for the rest of the year. Thanks.

Terrence Moorhead, CEO, Nature’s Sunshine: Yes. On the core, we didn’t quite see kind of growth across all those segments combined, but we did see a vast improvement in activation and sales overall. So, I think we’re really pleased with what’s going on there. In terms of kind of the things that we’re doing to drive that activation, I spoke a little bit about just improved touch management in the field, making sure that we’re spending time with those folks, providing appropriate just putting discipline. It’s basic field fundamentals blocking and tackling.

I can’t tell you how and I think you and I have spoken about the importance of this in the past of just getting that blocking and tackling kind of right, which is important in any sales organization, no matter where you are, making sure that we’re giving people the right sales tools. We’ve changed some staffing, so in the field organization. So we’ve got some new people out there, some new talent that is really driving change, driving results, built out our sales support team as well, just to make sure that we’re giving people the right level of support across the business. So those are just a series of things that we’re doing, and I think we’re seeing some momentum as a result of that.

Susan Anderson, Analyst, Canaccord Genuity: Okay, great. That sounds good. And then I guess just looking out to the back half by region, you mentioned some tough compares in Asia coming. I guess how should we think about the puts and takes in terms of growth and the drivers there as we look out in the back half? Should we expect maybe North America to kind of start to be more of the driver of growth there versus the international markets we’ve seen over the last few quarters?

Thanks.

Terrence Moorhead, CEO, Nature’s Sunshine: Yes, I think we would expect to see continued acceleration in North America. That’s going to again, with the momentum we’ve got on the core side of business is going to continue, but digital as well. So, we’ve got a really solid, I proposition building in North America, and we’ll get that to where we want to by the end of the year. As we mentioned, we’ve got some very tough comps in Asia Pacific, but it’s a strong business. And Shane, you want to provide some additional commentary Yes.

On

Shane Jones, CFO, Nature’s Sunshine: So we’re looking for the back half of the year to be low single digit to mid single digit, low to mid single digit for APAC. And if you look at what we’ll likely see in there, we’ll see some growth in Taiwan, but it will be more muted than what we’ve seen in the past. We’re likely to see stabilization in China and some growth there. Korea continues to struggle. So it may be flattish there.

But then Japan will continue to do very, very well and that will be what will really drives that region. So we do expect continued growth. It will just not be at the double digit levels that we’ve seen over the last few quarters.

Terrence Moorhead, CEO, Nature’s Sunshine: And remember Susan, last year Q3 and Q4 were largest quarters in the history of region. So to Shane’s point, you’re talking about huge numbers that they’re going up against. So still very strong performance in Asia Pacific going forward, just kind of not the at the growth multiple that we’ve seen in the past. Right.

Shane Jones, CFO, Nature’s Sunshine: And then as we move to Europe, we do expect growth in Europe as well. Most of that will be coming from Central Europe as we expect double digit growth to continue in Central Europe, and then likely low single digit growth in Eastern Europe. So but good results in Europe as well. And then as Terence talked about North America, that’s where we see the most acceleration. We’re most excited about that largely because digital will continue to grow at that 25% plus level.

And as that happens and then the base business also is close to flat, that’s going to result in better numbers from North America likely in the mid single digit range.

Susan Anderson, Analyst, Canaccord Genuity: Okay, great. That was really helpful. And then I guess maybe just touching on the gross margin really quick as well. I think well to get to your annual, I guess the back half has to be a little bit higher. Maybe just talk about kind of the drivers there versus

Conference Call Operator: the It’s first really we’ve

Shane Jones, CFO, Nature’s Sunshine: been working on our gross margin initiatives for some time. And those gross margin initiatives have been muted by headwinds from, a, from FX. And those FX headwinds are going to abate or at least they appear to be going to abate here, as rates come down in those regions, especially in the APAC regions. And additional to that, we’ve had a headwind from mix. That headwind from mix, just because North America tends to have a little bit lower gross margin than APAC and as more as North America does better and APAC does not quite as well as it has in the past, there’s a little bit of a headwind there.

Some of that will continue. But really, as our gross margin initiatives take hold, we would expect, as we’ve said, modest improvement in the back half of the year.

Susan Anderson, Analyst, Canaccord Genuity: Okay, great. And then one last one, maybe just looking out at the new product pipeline. Guess for the rest of the year we’ve noticed some new stuff on the website, like you mentioned, the Marine Glow Collagen. I guess how should we think about these new products? Do they kind of make an immediate impact?

Or does it take time to build them to really kind of help to drive that growth? I know the power line was obviously a really huge success. So I guess just in context, how should we think about these other new products? And then do you have anything else coming out throughout the year? Thanks.

Terrence Moorhead, CEO, Nature’s Sunshine: I think that obviously, it depends on the new product. Certainly, they do provide consumer energy. They provide consumer acquisition activation, excuse me, as well as new customer acquisition. So I think they’re important. We have such a large portfolio and a large business.

I don’t know if a single product is necessarily going to move the year, but they certainly will build momentum over time. And our goal with products like with things like the power line is to move the business over time. The goal with something like Marine Glow and getting into collagen, which is such an important area, vibrant growing area. Collagen is growing 15% to 20%. It’s going to continue to grow at that pace over the next several years.

So kind of being in that space and having a relevant position in a high intensity growth segment like that is very important. And so again, we’re going to continue to make sure that we’re placing products in the right areas to help us get momentum over time, to help us attract new customers, to help us reactivate consumers. And so I think that’s kind of how we think about it, Susan. It really all is about customer acquisition and then getting repeat purchase. And these are the types of products that are very well suited to do that because people want to use them and they do use them every single day.

So, on an ongoing basis. So I think we should expect to see the cumulative effect of our innovation and new product development to really make a difference to the business going forward.

Shane Jones, CFO, Nature’s Sunshine: And on that, Meringlo, we actually launched just over a month ago. It’s fairly new product, doing really well, beating our expectations at this point in time. So excited about the potential that it has. But as Terence noted, it’s not going to drive a huge increase in our numbers right off the Right. Yes.

Susan Anderson, Analyst, Canaccord Genuity: Okay, great. Yes. Thanks so much for all the details guys. Good luck the rest of the year.

Terrence Moorhead, CEO, Nature’s Sunshine: Thanks, Susan. Great talk to you.

Conference Call Operator: There are no further questions at this time. I would hand over the call to Mr. Moorhead for closing remarks. Please go ahead.

Terrence Moorhead, CEO, Nature’s Sunshine: Okay. Thank you, Alan. Hey, I’d like to thank everybody for listening to today’s call and we look forward to speaking with you when we report our third quarter twenty twenty five results in November. So thanks again for joining us and have a great day. Take care everybody.

Conference Call Operator: Ladies and gentlemen, this concludes today’s teleconference. You may now disconnect and thank you for your participation.

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