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Nu Skin Enterprises (NUS)
NYSE:NUS
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Nu Skin
(NYSE:NUS)
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Rating:58Neutral
Price Target:
$10.50
▲(0.86% Upside)
Action:ReiteratedDate:02/14/26
The score is driven by mixed fundamentals: a healthier balance sheet and 2025 profitability recovery are offset by a multi-year revenue decline and middling cash-flow quality. Very low valuation and a moderate dividend provide meaningful support, while technical signals remain weak and 2026 guidance points to near-term earnings and execution uncertainty.
Positive Factors
High core gross margins
Sustained, high gross margins (77%+ in 2025) indicate durable product-level economics from formulations, supplements and device mix. This strong gross margin base supports long-term profitability even if top-line growth is uneven, enabling investment in R&D and device rollouts.
Strengthened balance sheet / net cash
Material reduction in leverage and a net cash position improve financial flexibility, lower refinancing risk and enable sustained capital returns or strategic investment (e.g., Prism IO rollout, India expansion) without stressing liquidity over the medium term.
Large data asset & Prism IO strategy
Prism IO and the large consumer dataset create a structural platform opportunity: device placements plus subscription economics can lift customer LTV and recurring revenue over years if conversion scales, diversifying revenue beyond single-product sales.
Negative Factors
Multi-year revenue decline
A multi-year top-line contraction signals persistent demand or distribution challenges that can erode scale advantages, limit marketing leverage and make margin gains harder to sustain. Reversing this trend is necessary for long-term earnings growth resilience.
Weak cash conversion
Lower FCF-to-earnings and declining free cash flow imply earnings quality and working-capital friction. This constrains self-funded growth and increases reliance on balance sheet or slower payback horizons for device/subscription investments over the medium term.
Prism IO monetization uncertainty
While Prism IO is structurally attractive, the lack of disclosed conversion and monetization metrics creates execution risk. If subscription uptake or pricing falls short, expected back-half revenue and long-term LTV gains may underperform, pressuring forecasts and returns.
Nu Skin (NUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$409.08M
Dividend Yield2.39%
Average Volume (3M)533.14K
Price to Earnings (P/E)2.7
Beta (1Y)1.06
Revenue Growth-12.10%
EPS GrowthN/A
CountryUS
Employees3,100
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.29
Shares Outstanding48,126,823
10 Day Avg. Volume658,850
30 Day Avg. Volume533,137
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.59
Price to Sales (P/S)0.32
P/FCF Ratio10.31
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit0.53
Enterprise Value/Ebitda2.07
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nu Skin Business Overview & Revenue Model
Company DescriptionNu Skin Enterprises, Inc. develops and distributes beauty and wellness products worldwide. It provides skin care systems, including ageLOC Spa systems, ageLOC Transformation anti-aging skin care systems, and ageLOC LumiSpa skin treatment and cleansing devices; and ageLOC Boost, as well as a range of other cosmetic and personal care products. The company also offers ageLOC Youth nutritional supplements, ageLOC TR90 weight management and body shaping systems, LifePak nutritional supplements, ageLOC Meta nutritional supplements, and Beauty Focus Collagen+ skin care supplements, as well as other weight management products. In addition, it is involved in the research and product development of skin care products and nutritional supplements. Further, the company operates retail stores and service centers in Mainland China. It sells its products under the Nu Skin, Pharmanex, and ageLOC brands. The company promotes and sells its products directly, as well as through distributors and Website. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.
How the Company Makes MoneyNu Skin generates revenue primarily through the sale of its personal care and nutritional products. The company employs a direct selling model, where independent distributors earn commissions on their sales and the sales made by their recruited team members. This multi-level marketing structure allows Nu Skin to expand its market reach while incentivizing distributors to promote and sell products. Key revenue streams include skincare products, dietary supplements, and wellness devices. Additionally, Nu Skin invests in technological advancements and maintains partnerships with research institutions, enhancing its product offerings and brand credibility, which further contribute to its earnings.
Nu Skin Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlights meaningful operational and financial improvements in 2025—notably strong adjusted EPS growth (~51%), gross margin expansion in the core business, improved operating margin, a healthier balance sheet, and sizeable strategic initiatives (Prism IO data assets and India entry). However, near-term headwinds include conservative 2026 revenue/EPS guidance, Q4 consolidated gross margin softness, FX impacts, a higher expected tax rate, and uncertainty around monetization timing for Prism IO and India ramp. Taken together, management demonstrated improved profitability and strategic positioning while acknowledging execution and timing risks that temper near-term top-line visibility.Q4-2025 Updates
Positive Updates
Adjusted Earnings Per Share Growth
Adjusted EPS for full-year 2025 was $1.27 versus $0.84 in 2024, representing approximately 51% growth driven by gross margin expansion, selling expense optimization, and disciplined G&A management.
Revenue Delivered Within Guidance
Full-year 2025 revenue was $1,490,000,000 and Q4 revenue was $370,000,000, both landing inside management's guidance ranges.
Core Gross Margin Expansion
Core Nu Skin gross margin finished 2025 at 77.4%, an improvement of ~80 basis points year over year; core Nu Skin Q4 gross margin was 77.6%, up 100 basis points versus the prior year.
Operating Margin and Expense Discipline
Adjusted operating margin improved to 6.7% for the year, up 140 basis points year over year. Q4 operating margin was 6.3%. Selling expense for the quarter improved to 35.5% from 37.1% a year ago (down ~160 basis points).
Strengthened Balance Sheet and Cash Flow
Ended Q4 with approximately $240,000,000 in cash and reduced outstanding debt to $224,000,000 (net cash position). Cash flow from operations for the year was $80,300,000.
Capital Return to Shareholders
Returned capital during the year including ~$11,000,000 in dividends and $20,000,000 in share repurchases; $142,300,000 of repurchase authorization remains.
Prism IO and Large Data Asset
Built a substantial intelligent-wellness data asset (nearly 400,000,000 carotenoid data points from 21,000,000 scans of >10,000,000 people and over 1,000,000,000 IoT-derived data points overall). Prism IO introduced late 2025 with a target to place >100,000 devices in 2026 and an aspiration to reach 10,000,000 households by 2030.
Emerging Market Momentum and Strategic Growth Initiatives
Continued momentum in Latin America and initiation of premarket operations in India (started mid-November) as part of a broader strategy to expand into high-potential emerging markets and scale RISE manufacturing capabilities.
Negative Updates
Top-Line Pressure and Conservative 2026 Guidance
2026 revenue guidance is $1,350,000,000 to $1,500,000,000 (includes estimated FX headwind of ~$13–15M), with EPS projected at $0.80 to $1.20 versus $1.27 in 2025—reflecting conservative expectations and uneven near-term growth visibility.
Q4 Consolidated Gross Margin Decline
Consolidated gross margin for Q4 was 70.7%, down from 71.4% a year ago (a decline of ~70 basis points), driven by revenue mix between RISE entities and Nu Skin segments and seasonal promotional activity.
Higher Expected Tax Rate Reduces EPS
2025 benefited from an R&D tax credit (reported effective tax rate of 18.8%). Management expects a ~35% tax rate in 2026, which is a below-the-line headwind that lowers projected EPS despite operating improvements.
Foreign Currency Headwinds
Foreign exchange was a headwind of approximately $1,000,000 in Q4 and ~$13,400,000 for full-year 2025; 2026 guidance assumes an FX headwind of ~$13–15,000,000 (~1%).
Uncertainty Around Prism IO Monetization
Prism IO is early-stage (one month into placements at time of call). Management provided device placement targets (>100,000 in 2026) but did not provide specific subscription conversion metrics or revenue contribution estimates, leaving monetization uncertainty.
India Market Execution Risks and Longer Sales Cycles
India premarket activity faces structural hurdles (high import duties, need for local manufacturing, logistics and digital infrastructure), and management noted Indian consumers are 'financially conservative' leading to longer sales and activation cycles; revenue contribution for 2026 was conservatively forecasted.
Persistently High Core Selling Expense
Core Nu Skin selling expense remains elevated (~40.3% for the year; Q4 core selling expense 40.8%), and management expects selling expense to remain around 40% as they drive compensation plan adoption—limiting near-term operating leverage.
Seasonality and Near-Term Earnings Volatility
Q1 2026 is expected to be the lowest quarter seasonally with projected EPS of $0.10–$0.20, reflecting quarter-to-quarter volatility and the timing of product launches (Prism IO placement and consumer availability expected to drive back-half strength).
Company Guidance
Nu Skin guided 2026 revenue of $1.35B–$1.50B (including an estimated $13M–$15M FX headwind, ~1%), with adjusted EPS of $0.80–$1.20 assuming a ~35% tax rate; they forecast Q1 revenue of $320M–$340M and Q1 EPS of $0.10–$0.20 (Q1 seasonally lowest), expect stronger back-half (Q3–Q4) contribution tied to the full consumer Prism IO launch, and target placing >100,000 Prism IO devices by year-end 2026 (management noted ~ $300/device ≈ $30M of device revenue potential) with subscription revenue driving >6x customer lifetime value and an aspiration to reach 10M households by 2030; 2025 anchors the outlook — revenue $1.49B, adjusted EPS $1.27 (≈51% YoY improvement), core gross margin 77.4% (up 80 bps), Q4 core gross margin 77.6% (up 100 bps), adjusted operating margin 6.7% (up 140 bps), Q4 revenue $370M and EPS $0.29, cash ≈ $240M, debt $224M (net cash position), operating cash flow $80.3M, $11M dividends, $20M buybacks (with $142.3M remaining authorization), and a 2025 R&D tax credit that lowered tax expense by ~$8.1M (2025 effective tax rate 18.8%).Nu Skin Financial Statement Overview
Summary
2025 showed a profitability rebound and improved leverage (debt-to-equity down to ~0.35; net cash position), but multi-year revenue decline and historically volatile operating results remain key risks. Cash flow is positive, yet conversion is weaker (FCF only ~57% of net income) and FCF declined in 2025.Income Statement
Revenue has been in a multi-year decline (down from ~$2.58B in 2020 to ~$1.49B in 2025), indicating weakening demand/scale. Profitability is volatile: 2024 posted a sizable loss, while 2025 rebounded to a solid net profit margin (~10.8%) with strong gross margin (~69%), but operating profitability has been inconsistent (including negative EBIT in 2024). Overall, margins are supported at the gross level, yet earnings stability and top-line trajectory remain key concerns.44
Neutral
Balance Sheet
Leverage looks manageable and has improved meaningfully: debt-to-equity decreased from ~0.73–0.74 (2023–2024) to ~0.35 in 2025, and equity increased versus 2024. Returns also swung sharply positive in 2025 (return on equity ~19.9%) after a negative 2024, suggesting recovery. The main weakness is the recent history of profitability pressure (which can quickly erode equity), but the current balance sheet positioning is comparatively healthier.63
Positive
Cash Flow
Cash generation is positive, with operating cash flow consistently above zero across the period and free cash flow also positive; however, free cash flow declined in 2025 (growth ~-13.8%). Cash conversion is mixed: free cash flow is only about ~57% of net income in 2025, and operating cash flow relative to net income remains low (roughly ~0.30–0.38 in recent years), implying earnings quality/working-capital drag. The company is not cash-strapped, but cash flow strength does not fully match the earnings rebound.52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.49B | 1.73B | 1.97B | 2.23B | 2.70B |
| Gross Profit | 1.03B | 1.18B | 1.36B | 1.59B | 2.02B |
| EBITDA | 143.14M | -78.83M | 202.98M | 174.97M | 368.48M |
| Net Income | 160.20M | -146.59M | 8.60M | 104.78M | 147.27M |
Balance Sheet | |||||
| Total Assets | 1.41B | 1.47B | 1.81B | 1.82B | 1.91B |
| Cash, Cash Equivalents and Short-Term Investments | 239.84M | 197.99M | 267.82M | 278.51M | 354.81M |
| Total Debt | 364.25M | 478.23M | 607.33M | 520.52M | 503.79M |
| Total Liabilities | 600.07M | 817.46M | 984.50M | 923.67M | 993.71M |
| Stockholders Equity | 805.24M | 651.46M | 821.97M | 897.30M | 912.77M |
Cash Flow | |||||
| Free Cash Flow | 46.01M | 70.16M | 60.15M | 49.01M | 72.97M |
| Operating Cash Flow | 80.29M | 111.74M | 118.64M | 108.06M | 141.58M |
| Investing Cash Flow | 170.66M | -37.96M | -134.50M | -67.08M | -88.73M |
| Financing Cash Flow | -202.40M | -133.18M | 10.73M | -99.50M | -104.70M |
Nu Skin Technical Analysis
Negative
10.41
Price Trends
10.21
Negative
10.32
Negative
9.80
Negative
Market Momentum
-0.48
Positive
34.60
Neutral
16.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NUS, the sentiment is Negative. The current price of 10.41 is above the 20-day moving average (MA) of 9.98, above the 50-day MA of 10.21, and above the 200-day MA of 9.80, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 34.60 is Neutral, neither overbought nor oversold. The STOCH value of 16.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NUS.
Nu Skin Risk Analysis
Nu Skin disclosed 12 risk factors in its most recent earnings report. Nu Skin reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nu Skin Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $5.20B | 51.51 | 10.77% | ― | 13.80% | -25.02% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $409.08M | 2.67 | 22.00% | 2.39% | -12.10% | ― | |
55 Neutral | $40.37B | -223.35 | -4.34% | 1.30% | -6.36% | -554.84% | |
52 Neutral | $1.03B | -26.17 | 1.62% | 3.51% | -1.34% | -73.59% | |
51 Neutral | $2.30B | ― | -14.50% | ― | -5.68% | -358.36% | |
51 Neutral | $126.23M | -4.44 | -18.73% | ― | -13.14% | 57.98% |
* Consumer Defensive Sector Average
NUS
Nu Skin
8.71
1.20
15.98%
EL
The Estée Lauder Companies
114.23
40.43
54.78%
COTY
Coty
2.69
-3.30
-55.09%
EPC
Edgewell Personal Care
22.72
-7.38
-24.53%
ELF
e.l.f. Beauty
94.02
18.67
24.78%
SKIN
Beauty Health
0.94
-0.62
-39.74%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.