Mannatech 2025 Q1 Earnings Misses Targets as Net Income Falls 229.7%

Mannatech (MTEX) reported its fiscal 2025 Q1 earnings on May 13th, 2025. The company missed expectations with a substantial decline in net income, recording a loss of $1.53 million compared to a profit of $1.18 million in the prior year. Despite the revenue drop, Mannatech anticipates ongoing challenges due to potential changes in trade policies and economic conditions in Asia. The firm remains committed to adapting its strategies to navigate market uncertainties, yet the effectiveness of these measures may be limited in the short term.

Revenue

Mannatech's total revenue for the first quarter of 2025 fell by 9.6% to $26.56 million, compared to $29.39 million in the same quarter of 2024. Product sales accounted for $25.50 million, while pack sales and associate fees brought in $700,000. Additionally, other sources contributed $400,000, culminating in total sales of $26.60 million.

Earnings/Net Income

Mannatech swung to a loss of $0.80 per share in 2025 Q1, contrasting sharply with a profit of $0.63 per share in 2024 Q1, reflecting a 227.0% negative change. Meanwhile, the company reported a net loss of $1.53 million in 2025 Q1, marking a 229.7% deterioration from the net income of $1.18 million achieved in 2024 Q1. The significant decline in EPS indicates unfavorable performance compared to the previous year.

Price Action

The stock price of Mannatech edged down 0.09% during the latest trading day, surged 16.62% during the most recent full trading week, and surged 40.86% month-to-date.

Post-Earnings Price Action Review

Over the past five years, the strategy of buying Mannatech (MTEX) shares following a revenue drop on the financial report release date and holding for 30 days has underperformed the market. This approach yielded an annualized return of -1.31%, significantly trailing the market average of 4.68%. The strategy failed to harness the market's upward momentum, indicating a potential need to reevaluate investment tactics. Investors should consider alternative strategies that align more closely with market trends to improve returns.

CEO Commentary

Mannatech's CEO emphasized the challenges faced during the first quarter of 2025, noting a 9.6% decline in net sales primarily driven by weakened demand in Asia due to economic conditions. Despite this, the CEO remains focused on mitigating increased costs associated with operational and supply chain constraints. The company has implemented measures to address these challenges, although the CEO acknowledged that the effectiveness of these strategies may be limited in the short term.

Guidance

The company anticipates ongoing volatility in its financial performance due to potential changes in trade policies affecting cost structures and profitability. Mannatech expects that its efforts to manage these challenges will be crucial, and it remains committed to adapting its strategies to navigate uncertainties in the market moving forward.

Additional News

Mannatech, Incorporated recently announced the appointment of Robert A. Toth as Vice Chairman of the Board of Directors, effective December 1, 2024. This leadership change signals Mannatech's commitment to strengthening its governance structure. Additionally, Mannatech declared a cash dividend on its common stock, payable on June 29, 2023, reflecting its ongoing commitment to returning value to shareholders. Furthermore, the company has initiated a share repurchase program to acquire up to $1.5 million worth of its shares, aiming to enhance shareholder value and optimize capital allocation.