Top-Line Growth
Net sales of $122.9 million, up 9% year-over-year (7% ex-FX); described as the company's strongest first quarter in history and its third largest quarter ever.
Regional Performance — North America
North America sales of $38.3 million, up 9% year-over-year; digital business grew 42% YoY, new digital customers increased 60% YoY, and Autoship subscriptions accounted for 48% of digital sales.
Regional Performance — Asia Pacific
APAC sales of $52.2 million, up 7% YoY (6% constant currency). China showed a strong turnaround with Autoship adoption >25% of revenue and reported very strong growth in Q1 (management noted 40% growth in China in Q1, but that rate is likely not sustainable). Japan and Korea delivered double-digit growth (reported ~16% and ~14% excluding FX).
Regional Performance — Europe
Europe sales increased 9% year-over-year to $26.4 million (6% growth on a constant currency basis); Eastern Europe grew ~11% in local currency due to improved inventory availability and consultant execution.
Profitability Improvements
Gross margin improved by 116 basis points to 73.2% from 72.1% a year ago; management expects average gross margins around 73% in 2026.
Strong EBITDA and Operating Income Growth
Adjusted EBITDA rose 33% to $14.6 million (from $11.0 million prior-year); operating income increased 53% to $9.5 million (7.8% of net sales) versus $6.2 million (5.4%) a year ago.
Net Income and EPS Growth
GAAP net income attributable to common shareholders of $5.1 million, or $0.28 per diluted share, versus $4.7 million or $0.25 per diluted share in the year-ago quarter.
Clean Balance Sheet and Capital Allocation
Cash and cash equivalents of $87.6 million, zero debt; repurchased 20,000 shares for ~$500,000 with $16.9 million remaining on the repurchase program; inventory at $67.1 million (down $1.2 million vs Q4).
Strategic Progress and Growth Initiatives
Continued digital expansion, strong adoption of Autoship subscription model (higher customer LTV), hire of a new CTO to accelerate technology and AI initiatives, planned entry into Germany, and a Vision for Growth targeting $1 billion sales and a 15% EBITDA margin over time.
2026 Guidance Reiterated
Full-year 2026 net sales guidance of $500M–$515M (4%–7% YoY growth) and adjusted EBITDA guidance of $50M–$54M (up to ~19% YoY), with planned measured investments to support longer-term growth.