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Stonegate Capital Partners Initiates Coverage on NU Skin Enterprises Inc. (NYSE: NUS)

Key Takeaways
  • Q2 adj. EPS of $0.43 exceeded guidance; adj. net income grew 103.5% y/y.
  • Achieved net cash position ahead of schedule; Rhyz Manufacturing revenue up 17% y/y.
  • Latin America revenue up 107% y/y; India expansion and Prysm iO device launch on track.

DALLAS, TX -- August 8th, 2025 -- Skin Enterprises Inc. (NYSE: NUS): Stonegate Capital Partners initiates their coverage on Skin Enterprises Inc. (NYSE: NUS). NUS reported revenue, adj Net Income, and adj EPS of $386.1M, $21.1M, and $0.43, respectively. Revenue was at the high end of the guidance range, which was $355.0M to $390.0M. Of note was the Rhyz Manufacturing segment which saw 17% year over year revenue growth. EPS outpaced guidance by a significant amount, which was in the range of $0.20 to $0.30. Gross margin was 68.8% for the quarter, reflecting a quarter-over-quarter expansion of 106 bps from 1Q25. This quarter’s strong performance was driven by a focus on growing revenue along with operational optimization efforts leading to the strong year-over-year growth of Adj. Net Income of 103.5%. We are encouraged by the continued NI margin expansion as the Company positions itself for a solid 2Q25. 

Company Updates:

Strategic Initiatives: The Company currently has two strategic initiatives that are expected to be significant growth drivers in the near to medium term. Starting with the expansion into India, NUS is on track to begin pre-opening activities in 4Q25, with a full launch in mid-2026. We expect a steady ramp up in this new market as the Company goes through the steep learning curve that comes with entering a new market. With the success seen in Latin America our expectation is that NUS will apply similar strategies to this new market. NUS is also on the verge of launching its Prysm iO wellness device. This AI-powered wellness assessment device will be a game changer for the Company as its proprietary subscription service will leverage Nu Skin’s ability to provide personalized product recommendations on a scale that up until now has been technologically out of reach. We expect that both initiatives will add further energy into brand reps and sales leaders.

KPIs: Nu Skin ended the quarter with 29,593 sales leaders, 190,799 paid affiliates, and 771,407 customers. This was a year over year decline of 23%, 16%, and 14%, respectively. Year over year revenue growth was strong in Latin America at 107% and challenged in South Korea at 22.8%. Management has noted that the growth in Latin America is in large part due to the scalable digital first model that has been applied to the region. We expect this growth will continue.

Balance Sheet and Liquidity: The Company ended the quarter with a strong balance sheet, having $264.2M in cash on hand and a net cash level of $15.3M per our calculations. Most importantly the Company generated a positive net cash position ahead of its schedule, positioning NUS to have significant flexibility as it executes on the initiatives mentioned above.

Guidance: Following a strong quarter, NUS tightened its FY25 revenue guidance, to range of $1.48B to $1.55B, up from $1.48B to $1.62B. The Company also raised its FY25 Adj. EPS guidance to a range of $1.15 to $1.35, up from $0.90 to $1.30. Next quarter revenues are expected to be in a range of $360.0M to $390.0M with an EPS range of $0.25 to $035. We believe NUS is positioned to meet its guidance and have adjusted our model accordingly.

Valuation: We use a Price to Adj. EPS comparison when valuing NUS. Currently NUS is trading at a forward Price to Adj. EPS of 5.2x, compared to average comps at 16.9x. We are applying a range of 7.0x to 11.0x with a midpoint of 9.0x when valuing NUS, which returns a per share valuation range of $10.95 to $17.21, with a midpoint of $14.08.


About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

Key Takeaways
  • Q2 adj. EPS of $0.43 exceeded guidance; adj. net income grew 103.5% y/y.
  • Achieved net cash position ahead of schedule; Rhyz Manufacturing revenue up 17% y/y.
  • Latin America revenue up 107% y/y; India expansion and Prysm iO device launch on track.
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