Nature's Sunshine Reports Strong First Quarter 2025 Results

LEHI, Utah – May 6, 2025 – Nature’s Sunshine Products, Inc. (Nasdaq: NATR) ("Nature’s Sunshine"), a leading manufacturer of high-quality herbal and nutritional supplements, reported financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Financial Summary vs. Same Year-Ago Quarter

•Net sales were up 2% to $113.2 million compared to $111.0 million (up 5% in constant currency).

•GAAP net income attributable to common shareholders was up 104% to $4.7 million, or $0.25 per diluted common share, compared to $2.3 million, or $0.12 per diluted common share.

•Adjusted EBITDA was up 20% to $11.0 million compared to $9.2 million.

Capital Allocation

Nature’s Sunshine announced today that its board of directors authorized the repurchase of up to $25 million of the Company’s common shares. As of March 31, 2025, the Company had $8.3M remaining on its previous authorization. Repurchases may be made from time to time as market conditions warrant and are subject to regulatory considerations.

Management Commentary

“2025 got off to a strong start, as first quarter revenue came in at $113 million, up 5% on a constant currency basis, and adjusted EBITDA came in at $11 million, up 20% versus prior year,” said Terrence Moorehead, CEO of Nature’s Sunshine.

“We’re particularly pleased with the exceptional growth we’re seeing in Asia and Europe where markets like Taiwan, Japan and Central Europe continue to deliver strong double-digit growth. We’re also pleased to see early signs of stabilization in North America and continued improvements to gross margin. Despite the tremendous amount of uncertainty in the market, we remain confident in the underlying health of our business, and our performance reflects the power of our global growth strategies. In addition, our Board has authorized the repurchase of up to $25 million in common stock, supplementing the $8.3 million remaining under the current authorization, as we continue to make disciplined investments with the highest potential return for our shareholders.”

First Quarter 2025 Financial Results

						Net Sales by Operating Segment (Amounts in Thousands)
Three Months Ended March 31,						2025						2024						Percent Change						Impact of Currency Exchange						Percent Change Excluding Impact of Currency
Asia						$	48,653					$	46,220					5.3		%				$	(2,214)					10.1		%
Europe						24,114						22,296						8.2						(90)						8.6
North America						35,018						36,525						(4.1)						(166)						(3.7)
Latin America and Other						5,463						5,952						(8.2)						(271)						(3.7)
						$	113,248					$	110,993					2.0		%				$	(2,741)					4.5		%

Net sales in the first quarter increased 2% to $113.2 million compared to $111.0 million in the same year-ago quarter. Excluding the impact from foreign exchange rates, net sales in the first quarter of 2025 increased 5% compared to the year-ago quarter.

1

---

Gross profit margin in the first quarter increased to 72.1% compared to 71.2% in the year-ago quarter. The increase was driven by price increases and effective savings initiatives.

Volume incentives as a percentage of net sales were 30.8% compared to 30.2% in the year-ago quarter. The increase was primarily due to the timing of promotional incentives and changes in market mix.

Selling, general and administrative expenses ("SG&A") in the first quarter were $40.6 million compared to $40.8 million in the year‐ago quarter. The decrease was primarily related to the streamlining of our global expenses and reduced service fees due to China's lower net sales. As a percentage of net sales, SG&A expenses were 35.8% for the first quarter of 2025 compared to 36.7% in the year-ago quarter.

Operating income in the first quarter increased to $6.2 million, or 5.4% of net sales, compared to $4.6 million, or 4.2% of net sales, in the year-ago quarter.

Other income, net, in the first quarter of 2025 was $0.9 million compared to $31,000 in the first quarter of 2024. Other income, net, primarily consisted of foreign exchange gains that resulted from net changes in foreign currencies. The provision for income taxes was $2.2 million in the first quarter of 2025 compared to $2.2 million for the year-ago quarter.

GAAP net income attributable to common shareholders increased to $4.7 million, or $0.25 per diluted common share, compared to $2.3 million, or $0.12 per diluted common share, in the first quarter of 2024. Net income attributable to NSP China decreased to $0.7 million, or $0.04 per diluted common share, for the first quarter of 2025, compared to $0.8 million, or $0.04 per diluted common share, for the first quarter of 2024.

Adjusted EBITDA in the first quarter increased 20% to $11.0 million compared to $9.2 million in the year-ago quarter. The increase was driven primarily by the aforementioned increase in net sales. Adjusted EBITDA, which is a non-GAAP financial measure, is defined here as net income from continuing operations before taxes, depreciation, amortization, and other income (loss) adjusted to exclude share-based compensation expense and certain noted adjustments. A reconciliation of net income to adjusted EBITDA is provided in the attached financial tables.

Balance Sheet and Cash Flow

Net cash provided by operating activities was $2.6 million for the three months ended March 31, 2025, compared to $2.2 million in the prior year period. Capital expenditures during the three months ended March 31, 2025, totaled $1.1 million compared to $3.7 million in the comparable period of 2024. During the three months ended March 31, 2025, the Company repurchased 38,000 shares at a total cost of $0.5 million or $12.47 per share. As of March 31, 2025, the Company had cash and cash equivalents of $86.5 million and zero debt.

Outlook

Nature's Sunshine continues to expect full year 2025 net sales to range between $445 - $470 million and adjusted EBITDA to range between $38 - $44 million.

Conference Call

The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its first quarter of 2025 results.

Date: Tuesday, May 6, 2025

2

---

Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)

Toll-free dial-in number: 1-800-717-1738

International dial-in number: 1-646-307-1865

Conference ID: 16234

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860.

The conference call will be broadcast live and available for replay here and via the Events section of the Nature’s Sunshine website here.

A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through May 20, 2025.

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 1116234

About Nature’s Sunshine Products

Nature’s Sunshine Products (Nasdaq: NATR), a leading natural health and wellness company, markets and distributes nutritional and personal care products in more than 40 countries. Nature’s Sunshine manufactures most of its products through its own state-of-the-art facilities to ensure its products continue to set the standard for the highest quality, safety, and efficacy on the market today. Additional information about the company can be obtained at its website, www.naturessunshine.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This press release contains forward-looking statements regarding the Company’s future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our objectives, plans, strategies and financial results, including expected improvements in gross profit and gross margin. All statements (other than statements of historical fact) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. These statements are often characterized by terminology such as “believe,” “hope,” “may,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy” and similar expressions, and are based on assumptions and assessments made in light of our experience and perception of historical trends, current conditions, expected future developments and other factors we believe to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, including the following:

•failure to comply with laws and regulations relating to trade restrictions and export controls;

•laws and regulations regarding direct selling that may prohibit or restrict our ability to sell our products in some markets or require us to make changes to our business model in some markets;

•current and potential future extensive government regulations to which the Company’s products, business practices and manufacturing activities are subject;

•registration of products for sale in foreign markets, or difficulty or increased cost of importing products into foreign markets;

•legal challenges to the Company’s direct selling program or to the classification of its independent consultants;

•failure of the Company’s independent consultants to comply with advertising laws;

3

---

•product liability claims;

•impact of anti-bribery laws, including the U.S. Foreign Corrupt Practices Act;

•the Company’s ability to attract and retain independent consultants;

•the loss of one or more key independent consultants who have a significant sales network;

•potential for increased liability and compliance costs relating to the Company’s joint venture for operations in China with Fosun Industrial Co., Ltd.;

•the effect of fluctuating foreign exchange rates;

•liabilities and obligations arising from improper activity by the Company’s independent consultants;

•changes to the Company’s independent consultant compensation plans;

•geopolitical issues, conflicts or other global events;

•negative consequences resulting from difficult economic conditions, including the availability of liquidity or the willingness of the Company’s customers to purchase products;

•risks associated with the manufacturing of the Company’s products;

•supply chain disruptions, manufacturing interruptions or delays or the failure to accurately forecast customer demand;

•failure to timely and effectively obtain shipments of products from our suppliers and deliver products to our independent consultants and customers;

•the impact of shifting tariff regimes and trade policies between U.S. and the other countries where we operate;

•uncertainties relating to the application of transfer pricing, duties, value-added taxes and other tax regulations, and changes thereto;

•failure to maintain an effective system of internal controls over financial reporting;

•cybersecurity threats and exposure to data loss;

•the storage, processing and use of data, some of which contain personal information, are subject to complex and evolving privacy and data protection laws and regulations;

•reliance on information technology infrastructure; and

•the sufficiency of trademarks and other intellectual property rights.

These and other risks and uncertainties that could cause actual results to differ from predicted results are more fully detailed under the caption “Risk Factors” in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports filed on Form 10-Q.

All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in or incorporated by reference into this press release. Except as is required by law, the Company expressly disclaims any obligation to publicly release any revisions to forward-looking statements to reflect events after the date of this press release.

Non-GAAP Financial Measures

We have included information which has not been prepared in accordance with generally accepted accounting principles (GAAP), adjusted EBITDA and net sales excluding the impact of foreign currency exchange fluctuations.

We utilize the non-GAAP measure of adjusted EBITDA in the evaluation of our operations and believe that this measure is a useful indicators of our ability to fund our business. This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, U.S. GAAP net income as an indicator of our operating performance.

Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of Nature’s Sunshine Products’ performance in relation to other companies. We have included a reconciliation of net income, the most comparable GAAP measure, to adjusted EBITDA, in the attached financial table.

4

---

Net sales in local currency removes, from net sales in U.S. dollars, the impact of changes in exchange rates between the U.S. dollar and the functional currencies of our foreign subsidiaries. This is accomplished by translating the current period's net sales into U.S. dollars using the same foreign currency exchange rates that were used to translate the net sales for the previous comparable period.

We believe presenting the impact of foreign currency fluctuations is useful to investors because it allows a more meaningful comparison of net sales of our foreign operations from period to period. Net sales excluding the impact of foreign currency fluctuations should not be considered in isolation or as an alternative to net sales in U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

With respect to our adjusted EBITDA outlook for the full year 2025, a quantitative reconciliation to the corresponding GAAP information cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to warrant liabilities and stock based compensation. For the same reasons, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.

Investor Relations:

Gateway Group, Inc.

Cody Slach

1-949-574-3860

NATR@gateway-grp.com

5

---

NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share information)

(Unaudited)

Three Months Ended March 31,						2025						2024
Net sales						$	113,248					$	110,993
Cost of sales						31,651						32,015
Gross profit						81,597						78,978
Operating expenses:
Volume incentives						34,844						33,570
Selling, general and administrative						40,581						40,784
Operating income						6,172						4,624
Other income:
Interest and other income, net						205						63
Interest expense						(21)						(12)
Foreign exchange gains (losses), net						753						(20)
						937						31
Income before provision for income taxes						7,109						4,655
Provision for income taxes						2,225						2,165
Net income						4,884						2,490
Net income attributable to noncontrolling interests						137						169
Net income attributable to common shareholders						$	4,747					$	2,321
Basic and diluted net income per common share:
Basic earnings per share attributable to common shareholders						$	0.26					$	0.12
Diluted earnings per share attributable to common shareholders						$	0.25					$	0.12
Weighted average basic common shares outstanding						18,486						18,828
Weighted average diluted common shares outstanding						18,846						19,224

6

---

NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

(Unaudited)

						March 31, 2025						December 31, 2024
Assets
Current assets:
Cash and cash equivalents						$	86,486					$	84,700
Accounts receivable, net of allowance for doubtful accounts of $91 and $97, respectively						11,413						9,477
Inventories						64,928						59,443
Prepaid expenses and other						7,955						6,959
Total current assets						170,782						160,579
Property, plant and equipment, net						37,701						39,585
Operating lease right-of-use assets						13,461						12,799
Restricted investment securities - trading						937						915
Deferred income tax assets						20,019						17,644
Other assets						9,802						9,333
Total assets						$	252,702					$	240,855
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable						$	9,865					$	8,912
Accrued volume incentives and service fees						22,697						20,563
Accrued liabilities						24,859						25,399
Deferred revenue						2,487						2,774
Income taxes payable						6,542						4,117
Current portion of operating lease liabilities						4,291						3,927
Total current liabilities						70,741						65,692
Liability related to unrecognized tax benefits						627						628
Long-term portion of operating lease liabilities						10,557						10,277
Deferred compensation payable						937						915
Deferred income tax liabilities						1,160						1,007
Other liabilities						1,580						1,345
Total liabilities						85,602						79,864
Shareholders’ equity:
Common stock, no par value, 50,000 shares authorized, 18,474 and 18,483 shares issued and outstanding, respectively						115,146						114,577
Retained earnings						62,154						57,407
Noncontrolling interest						5,815						5,678
Accumulated other comprehensive loss						(16,015)						(16,671)
Total shareholders’ equity						167,100						160,991
Total liabilities and shareholders’ equity						$	252,702					$	240,855

7

---

NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

Three Months Ended March 31,						2025						2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income						$	4,884					$	2,490
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization						3,499						3,160
Non-cash lease expense						1,479						1,197
Share-based compensation expense						1,300						1,369
Deferred income taxes						(1,982)						(157)
Purchase of trading investment securities						(61)						(14)
Proceeds from sale of trading investment securities						1						21
Realized and unrealized losses (gains) on investments						37						(62)
Foreign exchange losses (gains)						(753)						20
Changes in assets and liabilities:
Accounts receivable						(1,786)						(1,136)
Inventories						(5,053)						3,389
Prepaid expenses and other current assets						(1,242)						(2,415)
Other assets						(157)						(409)
Accounts payable						644						1,099
Accrued volume incentives and service fees						1,986						(101)
Accrued liabilities						(1,116)						(6,802)
Deferred revenue						(293)						108
Lease liabilities						(1,502)						(1,002)
Income taxes payable						2,283						965
Liability related to unrecognized tax benefits						418						415
Deferred compensation payable						23						55
Net cash provided by operating activities						2,609						2,190
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment						(1,110)						(3,689)
Net cash used in investing activities						(1,110)						(3,689)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facility						735						4,808
Principal payments of revolving credit facility						(735)						(2,701)
Payments related to tax withholding for net-share settled equity awards						(255)						(152)
Repurchase of common stock						(476)						(1,848)
Net cash provided by (used in) financing activities						(731)						107
Effect of exchange rates on cash and cash equivalents						1,018						(3,208)
Net increase (decrease) in cash and cash equivalents						1,786						(4,600)
Cash and cash equivalents at the beginning of the period						84,700						82,373
Cash and cash equivalents at the end of the period						$	86,486					$	77,773
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes, net of refunds						$	1,875					$	1,383
Cash paid for interest						15						12

8

---

NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

(Amounts in thousands)

(Unaudited)

Three Months Ended March 31,						2025						2024
Net income						$	4,884					$	2,490
Adjustments:
Depreciation and amortization						3,499						3,160
Share-based compensation expense						1,300						1,369
Other income, net*						(937)						(31)
Provision for income taxes						2,225						2,165
Adjusted EBITDA						$	10,971					$	9,153

* Other income, net is primarily comprised of foreign exchange gains, interest income, and interest expense.

9