Nu Skin's Q3 2025: Contradictions Emerge on India Strategy, Prysm iO, and Operational Efficiency

Date of Call: November 6, 2025

Financials Results

• Revenue: $364.2M, within guidance range; ~40 bps FX headwind
• EPS: $0.34 per diluted share, at the high end of guidance
• Gross Margin: 70.5%, compared to 70.1% prior year (Nu Skin core 77.7%, up 120 bps YOY)
• Operating Margin: 5.9%, up from 4.2% prior year

Guidance:

• Q4 revenue expected $365M–$400M; Q4 EPS $0.25–$0.35.
• FY2025 revenue narrowed to $1.48B–$1.51B; FY EPS maintained at high end $3.15–$3.25; adjusted EPS $1.25–$1.35.
• Limited Prysm iO release on track for Q4; targeting >10,000 units placed in Q4; full consumer launches in 2H2026.
• India premarket opening begins next week with a multicity tour; full-scale opening anticipated in back half of 2026.

Business Commentary:

* Revenue Growth and Market Performance: - Nu Skin reported third-quarter revenue of $364 million, within the guidance range for Q3. - The growth was supported by exceptional performance in Latin America, which saw a 53% year-over-year increase, offset by challenges in North America and sequential growth in other regions like Southeast Asia and Hong Kong.

• Intelligent Wellness Expansion:
• 
• Nu Skin is introducing Prysm iO, a truly intelligent wellness platform, and plans to place more than 10,000 units in Q4.

• This initiative aims to expand the company's presence in the growing intelligent wellness market, which reached $84 billion in 2024, driven by consumer interest in personal wellness and biomarker tracking.

• India Market Expansion:

• Nu Skin is entering India with a focused and scalable business model, and plans to begin revenue acquisition with a qualification opening starting in November 2025.

• The entry into India's 1.4-billion consumer market is part of the company's strategy to expand its presence in the rapidly growing middle class segment.

• Financial Improvement:

• Nu Skin's gross margin improved to 70.5%, with its core business margin increasing by 120 basis points to 77.7%.
• The improvement reflects strategic portfolio optimization, product mix enhancements, and ongoing cost efficiency initiatives.

Sentiment Analysis:

Overall Tone: Positive

• "Delivered third quarter revenue of $364 million" and "EPS of $0.34 at the higher end of our guidance"; "Latin America continued... up 53% year-over-year"; gross margin improved to 70.5% (70.1% prior year); operating margin 5.9% (4.2% prior year); "anticipate placing more than 10,000 Prysm iO units in Q4."

Q&A:

• Question from David Storms (Stonegate Capital Partners, Inc., Research Division): You brought down the top end of revenue but raised the low end of EPS; what are the puts and takes — what's working between price vs. volume mix and operational efficiencies?
  Response: Guidance was narrowed based on Q3/Q4 visibility; primary drivers are timing/adoption of Prysm iO and India rollout, while profitability gains stem from sustained gross margin improvement and cost/selling‑expense discipline.

• Question from David Storms (Stonegate Capital Partners, Inc., Research Division): Can you clarify final launch logistics for India and how you're segmenting that massive market?
  Response: India will open via a staged premarket multicity tour to acquire early revenue and learn local dynamics with a digital‑first, low‑capex model, localized products (Serenu skin care, nutrition) and limited Q4 contribution ahead of full 2H2026 launch.

• Question from David Storms (Stonegate Capital Partners, Inc., Research Division): Any correlation between your North America restructuring and the U.S. government shutdown; what inning are you in with the revamp and have you seen shutdown impacts?
  Response: No material impact from the government shutdown; focus is reshaping North America from a social‑beauty skew toward intelligent wellness, leveraging Prysm iO to rebalance the mix.

• Question from David Storms (Stonegate Capital Partners, Inc., Research Division): Southeast Asia had strong sequential growth — what drove that and is there more to the story?
  Response: Sequential growth was led by Pacific (Australia/NZ) plus stronger Singapore and Malaysia performance; Indonesia is mixed; TR90 body‑transformation products are strong and complement upcoming Prysm iO initiatives.

Contradiction Point 1

India Market Strategy

It involves differing approaches to entering the Indian market, which is a strategic move with significant potential implications for revenue growth and market expansion.

Can you clarify the final launch logistics in India? How are you approaching market segmentation strategies there? - David Storms (Stonegate Capital Partners, Inc., Research Division)

2025Q3: Our approach to India is unique, with an early market opening to acquire revenues and learn the market. Digital-first model, localized product portfolio, and a focused business design will be used. - Ryan Napierski(CEO)

Are there any initiatives or geographies with an outsized impact that could push results to the high or low end of your guidance? - David Joseph Storms (Stonegate Capital Partners, Inc., Research Division)

2025Q2: We're going to launch in India. And as we've said, we're going to do that on a full scale, and we expect to do it during the second half of the year. - Ryan S. Napierski(CEO)

Contradiction Point 2

Prysm iO Market Penetration

It pertains to the company's expectations regarding the market penetration and impact of its Prysm iO product, which is a key growth driver for the company.

What drove the strong sequential revenue growth in Southeast Asia, and is there more to the story? - David Storms (Stonegate Capital Partners, Inc., Research Division)

2025Q3: Prysm iO is expected to further strengthen growth. - Ryan Napierski(CEO)

Are there specific initiatives or geographic regions that could significantly impact whether the guidance falls at the higher or lower end of the range? - David Joseph Storms (Stonegate Capital Partners, Inc., Research Division)

2025Q2: Prysm iO is expected to launch in North America, Latin America and select markets in Europe before the end of the year. - Ryan S. Napierski(CEO)

Contradiction Point 3

Prysm iO Launch and Market Penetration

It involves differing expectations and timelines for the launch and market penetration of a key product, which has significant implications for the company's revenue and growth strategies.

What factors are driving the narrowed revenue guidance and adjusted EPS range? How are pricing, volume mix, and operational efficiencies impacting results? - David Storms(Stonegate Capital Partners, Inc., Research Division)

2025Q3: The narrowing of the guidance range is based on Q3 results and current Q4 expectations. Key considerations include the timing and market penetration of Prysm iO and the India launch. - Ryan Napierski(CEO)

Could you outline the company's strategic priorities for 2025? - Ryan Napierski(President & Chief Executive Officer)

2025Q1: Our second priority in 2025 is to accelerate innovation with the introduction of Prysm iO, our truly intelligent wellness platform... We expect Prysm iO to be in the market in the second half of this year. - Ryan Napierski(CEO)

Contradiction Point 4

Operational Performance and Efficiency

It highlights disagreements in the company's approach to operational performance, particularly in relation to expense optimization and profitability improvement, which are crucial for financial health and investor confidence.

Ryan, can you clarify the final launch logistics in India and how you're planning to segment the market opportunities there? - David Storms(Stonegate Capital Partners, Inc., Research Division)

2025Q3: We're succeeding in improving gross margin consistently across markets and by strategic product positioning. Improvements in selling expenses and G&A efficiencies have contributed to profitability. - James Thomas(CFO)

What are the strategic priorities for 2025? - Ryan Napierski(President & Chief Executive Officer)

2025Q1: Our third priority for 2025 is improving operational performance and efficiency... I'm pleased with the ongoing efforts to steadily improve profitability as we deploy our product portfolio and expense optimization efforts around the world. - Ryan Napierski(CEO)

Contradiction Point 5

Market Growth Expectations

It reveals differing expectations regarding market growth, which is crucial for investor expectations and strategic planning.

What factors are driving the adjusted full-year guidance, specifically the narrowed revenue range and expanded EPS range following 3Q results? Can you break down the impact of price, volume mix, and operational efficiencies on these revisions? - David Storms (Stonegate Capital Partners, Inc., Research Division)

2025Q3: We're succeeding in improving gross margin consistently across markets and by strategic product positioning. - James Thomas(CFO)

What are the key economic challenges and quarterly progress in South Korea and China? What is the 2025 outlook or any new details? - Sydney Wagner (Jefferies)

2024Q4: But we expect to see some stabilization from Q1 through Q4 with a reduction in the rate of decline overall. - James Thomas(CFO)