USANA’s fourth quarter results met Wall Street’s expectations on revenue and surpassed estimates for non-GAAP profit, yet the market responded negatively. Management attributed this to ongoing margin pressures and a continued shift in business mix, particularly the growing role of lower-margin brands like Rise Wellness and Hiya. CEO Kevin Guest, who resumed his leadership role, highlighted operational changes and a strategic pivot toward omnichannel distribution and scientific product innovation. He acknowledged headwinds, saying, “Our core business has faced year-over-year sales declines, but we are seeing encouraging signs of stabilization.”
Is now the time to buy USNA? Find out in our full research report (it’s free for active Edge members).
USANA (USNA) Q4 CY2025 Highlights:
- Revenue: $226.2 million vs analyst estimates of $226 million (5.9% year-on-year growth, in line)
- Adjusted EPS: $0.60 vs analyst estimates of $0.41 (46.3% beat)
- Adjusted EBITDA: $28.47 million vs analyst estimates of $25.31 million (12.6% margin, 12.5% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $2.12 at the midpoint, beating analyst estimates by 15.2%
- EBITDA guidance for the upcoming financial year 2026 is $105.3 million at the midpoint, in line with analyst expectations
- Operating Margin: 7.6%, up from 3.8% in the same quarter last year
- Market Capitalization: $398.9 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From USANA’s Q4 Earnings Call
- Anthony Lebiedzinski (Sidoti & Company) asked about the wide revenue and EPS guidance range. CFO Doug Hekking explained that uncertainty in retail order timing for Rise Wellness and Hiya’s early-stage expansion made forecasting difficult.
- Lebiedzinski (Sidoti & Company) questioned seasonality and revenue ramp expectations. Chief Commercial Officer Brent Neidig described stronger first-half momentum from Chinese New Year promotions and retail launches, with a typical summer lull in Q3.
- Lebiedzinski (Sidoti & Company) inquired about cost realignment and gross margin prospects. Hekking cited a 10% workforce reduction and $10 million in annual savings, but noted mix shift toward lower-margin brands would limit gross margin gains.
- Lebiedzinski (Sidoti & Company) sought details on technology investments. CEO Kevin Guest emphasized leveraging AI and external platforms to accelerate customer engagement and brand relevance, with further details to come as plans mature.
- Ivan Feinseth (Tigress Financial) asked about integrating health technology into products. Chief Science Officer Kathryn Armstrong stressed the need to balance personalized health tools with scientific rigor and real physiological benefits.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will watch (1) the pace of retail distribution and international expansion for Hiya and Rise Wellness, (2) whether technology upgrades and AI initiatives translate into improved customer engagement and operational efficiency, and (3) the company’s ability to stabilize gross margins despite a shifting business mix. Sustained momentum in omnichannel partnerships will also be a key metric of success.
USANA currently trades at $21.80, up from $20.66 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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