USANA Health Sciences faced a challenging second quarter, with results missing Wall Street’s expectations and the market responding with a sharp decline. Management attributed underperformance to a non-cash goodwill impairment in its Hiya business and a packaging issue at Rise Wellness, both of which pressured operating margins. CEO Kevin Guest addressed these setbacks directly, acknowledging, “Hiya’s direct-to-consumer business has experienced a tougher and more expensive digital marketing environment, and that’s had a clear impact on subscriber growth this year.” The company’s core nutritional segment, however, showed signs of stability, with strength in Mainland China offsetting declines elsewhere.
Is now the time to buy USNA? Find out in our full research report (it’s free for active Edge members).
USANA (USNA) Q2 CY2026 Highlights:
- Revenue: $223.3 million vs analyst estimates of $235 million (5.3% year-on-year decline, 5% miss)
- Adjusted EPS: -$0.07 vs analyst estimates of $0.43 (significant miss)
- Adjusted EBITDA: $27.85 million vs analyst estimates of $23.61 million (12.5% margin, 18% beat)
- The company reconfirmed its revenue guidance for the full year of $962.5 million at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $2.12 at the midpoint
- EBITDA guidance for the full year is $105 million at the midpoint, in line with analyst expectations
- Operating Margin: 4.1%, down from 7.1% in the same quarter last year
- Market Capitalization: $264.8 million
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is 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 Q2 Earnings Call
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Anthony Lebiedzinski (Sidoti & Company) asked about the sustainability of China’s recent sales uptick. Chief Commercial Officer Brent Neidig attributed ongoing progress to “resiliency of our brand partners” and new product launches, expressing confidence that recent gains are likely to continue.
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Lebiedzinski (Sidoti & Company) questioned the causes of North Asia’s revenue decline. Neidig cited leadership transition in Korea and soft demand but said new management and upcoming product launches could reverse the trend.
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Lebiedzinski (Sidoti & Company) probed Hiya’s direct subscription performance. COO Walter Noot acknowledged digital marketing headwinds but sees promise in emerging channels like TikTok and retail, calling the business “somewhat flattened out” but poised for future growth.
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Lebiedzinski (Sidoti & Company) inquired about the financial impact of Rise Wellness’s packaging issue. CFO Doug Hekking explained that the disruption led to lower-than-expected sales and margin pressure but maintained that long-term prospects remain positive.
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Ivan Feinseth (Tigress Financial Partners) asked about USANA’s evolution toward omni-channel distribution and leveraging its product development platform for future acquisitions. CEO Kevin Guest and Chief Scientific Officer Dr. Catherine Armstrong emphasized the company’s focus on relevant communications, product innovation, and utilizing R&D strengths across acquired brands.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will monitor (1) Hiya’s ability to rebound through channel diversification and retail expansion, (2) the pace of recovery in North Asia as new leadership and products are introduced, and (3) continued momentum in Mainland China following recent gains. Execution on product innovation and omni-channel technology investments will also be critical for assessing USANA’s progress toward its long-term strategic objectives.
USANA currently trades at $14.90, down from $22.78 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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