Stonegate Capital Partners has updated its coverage on NU Skin Enterprises Inc. following the company's fourth quarter 2025 financial results. NU Skin reported revenue of $370.3 million, adjusted net income of $14.5 million, and adjusted earnings per share of $0.29 for the period. These figures compared to Stonegate's estimates of $380.2 million in revenue, $15.1 million in adjusted net income, and $0.30 in adjusted EPS.
The results positioned the company at the low end of its revenue guidance but at the high end of its earnings per share guidance. Management attributed the EPS performance to several factors including strategic penetration into emerging markets, overall margin expansion, and a one-time tax benefit during fiscal year 2025. Despite revenue coming in below expectations, the company maintained focus on executing its strategic initiatives.
Within the results, the Rhyz segment delivered $48.52 million in revenue, comprising $42.45 million from manufacturing and $6.07 million from other Rhyz operations. The core Nu Skin business demonstrated strong profitability with a gross margin of 77.6% and continued benefit from disciplined spending, as selling expenses declined to 40.8% of the core business.
Management highlighted active penetration into India and other emerging countries as a strategic priority. The company's India pre-launch is currently underway with a full market opening expected in the second half of 2026. Additionally, the rollout of Prism iO is advancing and scheduled for completion in the first half of 2026.
Looking forward, NU Skin has provided fiscal year 2026 earnings guidance with a midpoint of $1.00 per share. This guidance reflects management's confidence in the company's strategic direction despite recent revenue challenges. The continued expansion into emerging markets represents a significant growth opportunity for the company, particularly as it establishes operations in India, one of the world's largest consumer markets.
The financial results and strategic updates are available through Stonegate Capital Partners' full announcement. Stonegate Capital Partners serves as a capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Their affiliate, Stonegate Capital Markets, offers investment banking services for both public and private companies.
The implications of NU Skin's strategic focus on emerging markets, particularly India, suggest a deliberate shift toward high-growth regions that could offset slower performance in more mature markets. The company's maintained profitability metrics despite revenue challenges indicate effective cost management and operational discipline. For investors and industry observers, the successful execution of the India market entry and Prism iO rollout in 2026 will be critical indicators of the company's ability to reignite growth while maintaining its profitability profile.
