Usana Health Sciences 2025 Q2 Earnings Sustained Profitability Amid EPS Decline

Usana Health Sciences reported mixed results for its second quarter of fiscal 2025 on August 5, 2025. While the company posted 10.8% year-over-year revenue growth to $235.85 million, its EPS declined 5.5% to $0.52. The company maintained its historical profitability, with net income up slightly to $10.44 million. Management reaffirmed its full-year guidance, indicating in-line expectations despite near-term cost pressures.

Revenue
Usana Health Sciences posted a 10.8% increase in total revenue for Q2 2025, reaching $235.85 million compared to $212.87 million in the same period last year. This growth reflects the company's ongoing expansion in its direct sales business and strong performance from its Hiya division, which continues to benefit from brand partnerships like Disney. The rise in consolidated net sales underscores the effectiveness of the company's commercial strategy and reinforces its position in the health and wellness sector.

Earnings/Net Income
Despite a 5.5% decline in earnings per share to $0.52 in Q2 2025 from $0.55 a year ago, Usana Health Sciences maintained profitability, with net income rising slightly to $10.44 million from $10.43 million in the prior year. The company has recorded positive net income in more than 20 consecutive years for the same quarter, showcasing robust operational resilience.

Price Action

The stock price of Usana Health Sciences has edged down 2.00% during the latest trading day, has dropped 4.63% during the most recent full trading week, and has tumbled 11.93% month-to-date.

Post Earnings Price Action Review
Despite the company beating revenue expectations, the strategy of buying USNA and holding for 30 days resulted in a significant underperformance of -49.58%, far below the benchmark return of 85.39%. The approach showed a maximum drawdown of 0.00% and a Sharpe ratio of -0.41, suggesting a risk-averse but ultimately unprofitable investment strategy.

CEO Commentary
Jim Brown, CEO of Usana Health Sciences, expressed confidence in the company’s second-quarter performance, highlighting a 11% year-over-year increase in consolidated net sales. He attributed the growth to the successful execution of the company’s commercial strategy, including enhanced incentives and terminology changes for direct sellers, who are now referred to as “Brand Partners.” Looking ahead, Mr. Brown emphasized planned actions such as simplifying the direct sales model and launching new products to drive long-term growth and active customer engagement.

Guidance
Usana Health Sciences reiterated its full-year 2025 guidance, targeting consolidated net sales of $920 million to $1.0 billion and net earnings between $29 million and $41 million. The company expects diluted EPS to range from $1.50 to $2.20, with adjusted diluted EPS between $2.35 and $3.00, and adjusted EBITDA between $107 million and $123 million. Hiya is expected to deliver strong growth of 29% to 42% year-over-year, though the company anticipates higher promotional and customer acquisition costs in Q3.

Additional News
On February 28, 2025, USANA Health Sciences saw its stock price fall by 15% due to weaker-than-expected fiscal 2025 guidance. The decline came amid investor concerns over the company’s long-term growth potential and execution risks. While the earnings report highlighted strong revenue growth, the muted EPS performance and cautious outlook contributed to the sharp selloff. No major executive changes, M&A activity, or dividend announcements were reported during the period, with the focus remaining squarely on the company’s operational challenges and strategic direction.