- Company preparing for its 25th anniversary celebration in Hong Kong in the next quarter
- Board of Directors authorized resuming stock repurchases, with approximately $16 million available
- Restructuring program generated approximately $300,000 of operating and other margin-related cost savings during the quarter
- Year-to-date savings from the restructuring program have exceeded $600,000
LOS ANGELES – July 29, 2026 – Natural Health Trends Corp. (NASDAQ: NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, today announced its financial results for the quarter ended June 30, 2026.
Second Quarter 2026 Financial Results
Revenue of $7.6 million decreased 23% compared to $9.8 million in the second quarter of 2025.
Operating loss was $643,000 compared to $333,000 in the second quarter of 2025.
Net loss was $451,000, or $0.05 per diluted share, compared to net income of $15,000, or breakeven per diluted share, in the second quarter of 2025.
The number of Active Members1 was 26,000 at June 30, 2026 compared to 26,650 at December 31, 2025 and 29,260 at June 30, 2025.
Natural Health Trends defines Active Members as those that have placed at least one product order with the Company during the preceding twelve-month period.
Year-to-Date 2026 Financial Results
Revenue of $16.8 million decreased 18% compared to $20.6 million in the first six months of 2025.
Operating loss was $1.1 million compared to $678,000 in the first six months of 2025.
Net loss was $605,000, or $0.06 per diluted share, compared to net income of $137,000, or $0.01 per diluted share, in the first six months of 2025.
Management Commentary
“The operating environment remains challenging. In China, consumers continue to be cautious about spending and investing, while regulatory uncertainty caused some members to pause activities during the quarter. We also identified conduct by certain members that violated the Company's Hong Kong policies, procedures and professional code of conduct. These activities disrupted our business and adversely affected second quarter revenue and operating results. At the same time, the restructuring program implemented late last year has already reduced costs and streamlined our organization, and we expect to realize additional savings in the second half of the year. We are also developing programs and campaigns to more aggressively support our members while continuing to invest in products and technology,” commented Chris Sharng, President of Natural Health Trends Corp.
Mr. Sharng continued, “We're looking forward to celebrating our 25th anniversary in Hong Kong in the third quarter with a full lineup of prizes and rewards that customers can qualify for leading up to and during the event. We expect more than 1,000 attendees from around the world and plan to reconfirm our strategies and commitment at this event.”
Balance Sheet and Cash Flow
Net cash used in operating activities was $2.2 million in the first six months of 2026 compared to $5.2 million in the first six months of 2025.
Total cash, cash equivalents and marketable securities were $18.6 million at June 30, 2026, down from $28.9 million at December 31, 2025 primarily due to the repurchase of shares of common stock and dividends paid during the first six months of 2026.
- The Company's Board of Directors has authorized the resumption of share repurchases under its existing stock repurchase program, with $15.9 million remaining available, subject to market conditions and other relevant considerations.
Second Quarter 2026 Financial Results Conference Call
Management will host a conference call to discuss the second quarter 2026 financial results today, Wednesday, July 29, 2026 at 11:30 a.m. Eastern Time. The conference call details are as follows:
Date: |
Wednesday, July 29, 2026 |
Time: |
11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time |
Dial-in: |
1-800-330-6730 |
Participant ID: |
749478 |
For those unable to participate during the live broadcast, a replay of the call will be available on the Company's Investor Relations website at https://ir.naturalhealthtrendscorp.
About Natural Health Trends Corp.
Natural Health Trends Corp. (NASDAQ: NHTC) is an international direct-selling and e-commerce company operating through its subsidiaries throughout Asia, the Americas, and Europe. The Company markets premium quality personal care products under the NHT Global brand. Additional information can be found on the Company’s website at www.naturalhealthtrendscorp.com.
Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Forward-looking statements in this press release do not constitute guarantees of future performance. Forward-looking statements in this press release include statements relating to the anticipated effect of restructuring activities, including expected operational efficiencies and cost savings resulting therefrom, statements regarding technology investments, future growth and profitability, and statements relating to future dividends, the declaration and payment of which will be at the sole discretion of the Company's Board of Directors. Such forward-looking statements are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from those anticipated. Such risks and uncertainties include the risks and uncertainties detailed under the caption “Risk Factors” in Natural Health Trends Corp.’s Annual Report on Form 10-K filed on February 20, 2026 with the Securities and Exchange Commission (SEC), as well as in subsequent reports filed this year with the SEC. The Company assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
CONTACT:
Scott Davidson
Senior Vice President and Chief Financial Officer
Natural Health Trends Corp.
Tel (U.S.): 310-541-0888
investor.relations@nhtglobal.com
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
June 30, 2026 |
December 31, 2025 |
|||
(Unaudited) |
||||
ASSETS |
||||
Current assets: |
||||
Cash and cash equivalents |
$ | 9,501 | $ | 6,813 |
Marketable securities |
9,121 | 22,060 | ||
Inventories |
2,049 | 2,047 | ||
Other current assets |
3,033 | 3,274 | ||
Total current assets |
23,704 | 34,194 | ||
Property and equipment, net |
570 | 153 | ||
Operating lease right-of-use assets |
2,589 | 1,869 | ||
Deferred tax asset |
288 | 289 | ||
Other assets |
2,059 | 1,923 | ||
Total assets |
$ | 29,210 | $ | 38,428 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||
Current liabilities: |
||||
Accounts payable |
$ | 964 | $ | 555 |
Accrued commissions |
1,741 | 1,958 | ||
Other accrued expenses |
1,222 | 1,438 | ||
Deferred revenue |
4,205 | 5,574 | ||
Amounts held in eWallets |
2,606 | 2,838 | ||
Operating lease liabilities |
860 | 869 | ||
Other current liabilities |
341 | 456 | ||
Total current liabilities |
11,939 | 13,688 | ||
Deferred tax liability |
179 | 180 | ||
Operating lease liabilities |
1,890 | 1,131 | ||
Total liabilities |
14,008 | 14,999 | ||
Stockholders’ equity: |
||||
Preferred stock |
— | — | ||
Common stock |
13 | 13 | ||
Additional paid-in capital |
85,033 | 85,033 | ||
Accumulated deficit |
(38,757 | ) | (36,436 | ) |
Accumulated other comprehensive loss |
(728 | ) | (784 | ) |
Treasury stock, at cost |
(30,359 | ) | (24,397 | ) |
Total stockholders’ equity |
15,202 | 23,429 | ||
Total liabilities and stockholders’ equity |
$ | 29,210 | $ | 38,428 |
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
2026 |
2025 |
2026 |
2025 |
||||||||
Net sales |
$ | 7,603 | $ | 9,813 | $ | 16,809 | $ | 20,550 | |||
Cost of sales |
1,882 | 2,558 | 4,185 | 5,390 | |||||||
Gross profit |
5,721 | 7,255 | 12,624 | 15,160 | |||||||
Operating expenses: |
|||||||||||
Commissions expense |
3,111 | 4,012 | 6,964 | 8,500 | |||||||
Selling, general and administrative expenses |
3,253 | 3,576 | 6,777 | 7,338 | |||||||
Total operating expenses |
6,364 | 7,588 | 13,741 | 15,838 | |||||||
Loss from operations |
(643 | ) | (333 | ) | (1,117 | ) | (678 | ) | |||
Other income, net |
190 | 348 | 485 | 813 | |||||||
Income (loss) before income taxes |
(453 | ) | 15 | (632 | ) | 135 | |||||
Income tax benefit |
(2 | ) | — | (27 | ) | (2 | ) | ||||
Net income (loss) |
$ | (451 | ) | $ | 15 | $ | (605 | ) | $ | 137 | |
Net income (loss) per common share: |
|||||||||||
Basic |
$ | (0.05 | ) | $ | 0.00 | $ | (0.06 | ) | $ | 0.01 | |
Diluted |
$ | (0.05 | ) | $ | 0.00 | $ | (0.06 | ) | $ | 0.01 | |
Weighted average common shares outstanding: |
|||||||||||
Basic |
8,578 | 11,493 | 9,356 | 11,489 | |||||||
Diluted |
8,578 | 11,497 | 9,356 | 11,496 | |||||||
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
Six Months Ended June 30, |
|||||
2026 |
2025 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||
Net income (loss) |
$ | (605 | ) | $ | 137 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|||||
Depreciation and amortization |
34 | 59 | |||
Net accretion of marketable securities |
(36 | ) | (214 | ) | |
Share-based compensation |
— | 68 | |||
Noncash lease expense |
599 | 573 | |||
Deferred income taxes |
— | (3 | ) | ||
Changes in assets and liabilities: |
|||||
Inventories |
(27 | ) | 525 | ||
Other current assets |
358 | 402 | |||
Other assets |
(144 | ) | (334 | ) | |
Accounts payable |
376 | 65 | |||
Accrued commissions |
(202 | ) | (194 | ) | |
Other accrued expenses |
(276 | ) | (110 | ) | |
Deferred revenue |
(1,330 | ) | (311 | ) | |
Amounts held in eWallets |
(210 | ) | (170 | ) | |
Operating lease liabilities |
(585 | ) | (561 | ) | |
Other current liabilities |
(113 | ) | (5,083 | ) | |
Net cash used in operating activities |
(2,161 | ) | (5,151 | ) | |
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||
Purchases of property and equipment |
(440 | ) | (20 | ) | |
Purchases of marketable securities |
(8,709 | ) | (27,552 | ) | |
Proceeds from maturities of marketable securities |
21,566 | 34,215 | |||
Net cash provided by investing activities |
12,417 | 6,643 | |||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||
Repurchase of common stock |
(5,870 | ) | — | ||
Dividends paid |
(1,716 | ) | (4,606 | ) | |
Net cash used in financing activities |
(7,586 | ) | (4,606 | ) | |
Effect of exchange rates on cash, cash equivalents and restricted cash |
17 | 118 | |||
Net increase (decrease) in cash, cash equivalents and restricted cash |
2,687 | (2,996 | ) | ||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period |
6,820 | 13,567 | |||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period |
$ | 9,507 | $ | 10,571 | |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: |
|||||
Right-of-use assets obtained in exchange for operating lease liabilities |
$ | 1,356 | $ | 112 | |
Direct costs incurred to repurchase common stock |
$ | 92 | $ | — | |