Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
 
We have four reportable business segments (Asia, Europe, North America and Latin America and Other) based primarily upon the geographic region where each segment operates, as well as the internal organization of our officers and their responsibilities. Each of the geographic segments operate under the Nature’s Sunshine Products and Synergy WorldWide® brands and sell similar products grouped into six principal categories: general health, immune, cardiovascular, digestive, personal care and weight management. The Latin America and Other segment includes our wholesale business in which we sell products to various locally-managed entities, independent of the Company, that we have granted distribution rights for the relevant market.

The Company's chief operating decision maker ("CODM") is our chief executive officer. The CODM assesses the performance of each segment using operating income. The CODM reviews the performance of each segment using monthly internal reports which provide variance analysis of actual results by segment compared to budget, forecast and prior year. The CODM uses this information when making decisions about the allocation of operating resources to each segment. The CODM does not evaluate reportable segments using asset or liability information.
Reportable business segment information for the three months ended March 31, 2026 and 2025, is as follows (dollar amounts in thousands):
Three Months Ended March 31, 2026 Asia Europe North America Latin America and Other Total
Net sales $ 52,183  $ 26,395  $ 38,323  $ 5,991  $ 122,892 
Cost of sales 10,993  7,363  12,430  2,129 
Volume incentives 16,683  10,628  7,801  1,781 
Selling, general and administrative (1) 14,022  5,634  8,974  1,358 
Segment operating income $ 10,485  $ 2,770  $ 9,118  $ 723  $ 23,096 
Unallocated corporate selling, general and administrative expense (13,551)
Operating income 9,545 
Interest and other income, net 74 
Interest expense (35)
Foreign exchange losses, net (1,429)
Income from operations before provision for income taxes $ 8,155 

Three Months Ended March 31, 2025 Asia Europe North America Latin America and Other Total
Net sales $ 48,653  $ 24,114  $ 35,018  $ 5,463  $ 113,248 
Cost of sales 10,895  7,148  11,565  2,043 
Volume incentives 16,369  9,652  7,239  1,584 
Selling, general and administrative (1) 13,044  5,149  8,474  1,449 
Segment operating income $ 8,345  $ 2,165  $ 7,740  $ 387  $ 18,637 
Unallocated corporate selling, general and administrative expense (12,465)
Operating income 6,172 
Interest and other income, net 205 
Interest expense (21)
Foreign exchange gains, net 753 
Income from operations before provision for income taxes $ 7,109 
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(1)    Service fees in China totaled $4.2 million and $2.9 million for the three-month periods ended March 31, 2026 and 2025, respectively. These service fees are included in selling, general and administrative expenses.

The table below reflects sales based upon the sales location where they occurred. From an individual country/region perspective, the United States, Taiwan, Japan and South Korea comprise 10 percent or more of consolidated net sales for the three-month periods ended March 31, 2026 and 2025, as follows (dollar amounts in thousands):  
Three Months Ended March 31, 2026 2025
Net sales:
United States $ 35,638  $ 32,474 
Taiwan 14,987  17,864 
Japan 12,445  11,025 
South Korea 12,230  10,781 
Other 47,592  41,104 
Total net sales $ 122,892  $ 113,248 
Net sales generated by each product line for the three months ended March 31, 2026 and 2025, are as follows (dollar amounts in thousands):
Three Months Ended March 31, 2026 Asia Europe North America Latin America and Other Total
General health $ 18,409 $ 11,645 $ 17,186 $ 1,830 $ 49,070
Immune 3,195 2,480 3,954 516 10,145
Cardiovascular 12,763 3,223 3,900 455 20,341
Digestive 12,088 6,871 10,743 2,797 32,499
Personal care 3,439 1,427 1,882 229 6,977
Weight management 2,289 749 658 164 3,860
Total net sales by segment $ 52,183 $ 26,395 $ 38,323 $ 5,991 $ 122,892

Three Months Ended March 31, 2025 Asia Europe North America Latin America and Other Total
General health $ 18,251 $ 10,496 $ 15,599 $ 1,578 $ 45,924
Immune 2,872 2,441 4,444 518 10,275
Cardiovascular 13,819 2,565 3,696 433 20,513
Digestive 9,642 6,372 8,934 2,582 27,530
Personal care 1,198 1,631 1,475 244 4,548
Weight management 2,871 609 870 108 4,458
Total net sales by segment $ 48,653 $ 24,114 $ 35,018 $ 5,463 $ 113,248

Depreciation and amortization by reportable business segment for the three months ended March 31, 2026 and 2025, are as follows (dollar amounts in thousands):
Three Months Ended March 31, 2026 2025
Depreciation and amortization:
Asia $ 406  $ 498 
Europe 12  28 
North America 2,795  2,962 
Latin America and Other 11  11 
Total depreciation and amortization $ 3,224  $ 3,499 

From an individual country perspective, only the United States has material balances of consolidated property, plant and equipment as follows (dollar amounts in thousands):
March 31,
2026		 December 31,
2025
Property, plant and equipment
United States $ 28,050  $ 29,061 
Other 3,363  3,854 
Total property, plant and equipment $ 31,413  $ 32,915