DALLAS, TX -- May 8, 2026 -- NU Skin Enterprises Inc. (NYSE: NUS): Stonegate Capital Partners updates their coverage on NU Skin Enterprises Inc. (NYSE: NUS). NUS reported revenue, adj NI, and adj EPS of $320.6M, $6.8M, and $0.14, respectively. This compares to our estimates of $329.7M, $7.7M, and $0.15, respectively. Revenue came in near the low end of guidance, while adjusted EPS remained within range as management continued investing behind Prysm iO and emerging markets while maintaining cost discipline. Core Nu Skin gross margin improved 20 bps y/y to 76.9%, while adjusted operating margin was 3.6% versus 6.4% last year. The more important takeaway was management’s commentary that brand affiliate confidence improved and new sales leaders grew y/y exiting the quarter, suggesting early field stabilization as Prysm iO training and leader engagement scale.
Strategic Initiatives: NUS continues advancing Prysm iO from early sales leader rollout toward a full consumer launch in 2H26. Since introduction, NUS has generated nearly 2M scans from 30,000+ Prysm iO devices globally, adding to its 20M+ historical BioPhotonic Scanner scans. Adoption has been strongest where leaders position Prysm iO as a consultative wellness assessment platform, improving engagement quality and subscription conversion. Training remains focused on product knowledge, customer follow-up, subscription conversion, and train-the-trainer certifications. We continue to believe the larger opportunity is the recurring subscription ecosystem tied to personalized wellness insights and higher customer lifetime value, rather than the device sale alone. Subscription volume increased 5% y/y, while subscribers as a percentage of total customers increased 14%. India remains on track for a year-end 2026 launch, supporting emerging-market expansion.
KPIs: Nu Skin ended the quarter with 26,915 sales leaders, 120,850 paid affiliates, and 669,535 customers, declines of 13%, 8%, and 14% y/y, respectively. While total active-base metrics remain pressured, management cited improving trends in several regions, including sustained growth in Latin America, continued improvement in Mainland China with growing leader engagement around the Tru Face anti-aging product rollout, and y/y growth in new sales leaders exiting the quarter. We view improving new leader formation as an important leading indicator for future sponsor activity, customer acquisition, and broader field productivity as the sales force becomes more comfortable using Prysm iO within a consultative wellness framework.
Balance Sheet and Liquidity: The Company ended the quarter with $198.7M of cash and refinanced its credit facilities, extending maturities through 2031 and supporting liquidity. NUS returned approximately $8M to shareholders during the quarter, including roughly $3M of dividends and $5M of share repurchases, with $137.3M remaining under its current authorization. Management’s capital allocation priorities remain centered on funding Prysm iO commercialization and India expansion while preserving balance sheet flexibility.
Guidance: For 2Q26, NUS guides revenue of $330M - $360M and EPS of $0.15 - $0.25. Full-year 2026 guidance was maintained at revenue of $1.35B - $1.50B and adjusted EPS of $0.80 - $1.20, reflecting management’s expectation for improving sales leader activity, broader Prysm iO adoption, and continued cost discipline.
Valuation: We use a Price to Adj. EPS comparison when valuing NUS. Currently NUS is trading at a forward Price to Adj. EPS of 5.3x compared to comps at an average of 12.8x. We are using our FY27 Adj. EPS, and an P/E range of 10.0x to 12.0x with a midpoint of 11.0x which moves NUS closer to comp companies. This arrives at a valuation range of $13.25 to $15.90 with a mid-point of $14.57.
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SOURCE: Stonegate, Inc.
