Cost-Savings Restructuring Plan
Company executing a targeted restructuring expected to deliver approximately $1.5 million in annualized savings by mid-2026, including ~10% workforce optimization, lease reductions/exits, and transition of U.S. manufacturing closer to Asia to reduce tariffs and logistics costs; anticipates a one-time charge of ~$250,000 in Q4 2025.
New Product Launches and Member Engagement
Prelaunch of Soo:vea Korean-formulated 4-step moisturizing skin care line in Hong Kong (presale late Sept 2025) and a limited-edition anti-aging cream in Sweden to mark 10 years; hosted member recognition and training events (4-day cruise to Kagoshima, Japan) to strengthen engagement and leadership development.
Maintained High Gross Margin
Gross profit margin remained strong at 73.7% in Q3 2025, only down 0.4 percentage points from 74.1% a year ago despite inventory write-offs related to discontinued components.
Reduction in SG&A Expense
Selling, general and administrative expenses declined by $262,000 (approx. 6.7%) to $3.6 million in Q3 2025 from $3.9 million in Q3 2024, reflecting initial cost control efforts.
Planned Investment in Technology and Marketing
Restructuring will free resources to invest in an AI-enabled marketing app, member interface business suite and new marketing initiatives aimed at driving growth and engagement.
Solid Liquidity Position Despite Decline
Total cash, cash equivalents and marketable securities were $32.0 million at September 30, 2025, providing runway for near-term initiatives and the announced dividend (Board declared $0.20 per share payable Nov 28, 2025).