DALLAS, TX -- February 13, 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 $370.3M, $14.5M, and $0.29, respectively. This compares to our estimates of $380.2M, $15.1M, and $0.30, respectively. These results were at the low end of revenue guidance and the high end of EPS guidance. Rhyz delivered $48.52M of revenue, including $42.45M from Manufacturing and $6.07M from Rhyz Other, while the Nu Skin business posted 77.6% gross margin and continued to benefit from disciplined spending as selling expense declined to 40.8% of the core business. Management highlighted strategic and active penetration into India and other emerging countries, along with overall margin expansion and a one-time tax benefit, as key contributors to EPS results in FY25. Despite weaker-than-expected top-line results, management remains focused on executing its strategic initiatives.
Strategic Initiatives: The Company is advancing the rollout of its Prism iO intelligent wellness platform, with management’s early sales projections pointing to selling approximately 100,000 units in FY26. At $300 per unit, this implies an initial revenue opportunity of roughly $30 million. While the hardware sales provide a solid foundation, we believe the more compelling financial upside stems from the platform’s recurring subscription model and ecosystem leverage. In our view, the real operating leverage emerges from the high-margin, data-driven recurring revenue stream and the Company’s growing data trove, which enhances its ability to refine recommendations and optimize sales productivity over time. Broader leader availability is expected in 1H26, followed by a full consumer launch in 2H26. In addition to the roll out of Prism iO the Company continues to move toward opening the market in India. With pre-market activities underway, NUS is setting the foundation and infrastructure for a 2H26 full market opening.
KPIs: Nu Skin ended the quarter with 30,045 sales leaders, 129,311 paid affiliates, and 748,796 customers, declines of 19%, 11%, and 10% year over year, respectively; sequentially, management cited positive trends in several regions, including penetration into India, Latin America, and other emerging economies. We anticipate that the upcoming India entry and the Prysm iO commercialization plan will further drive sponsor activity and improving conversion from customers to paid affiliates.
Balance Sheet and Liquidity: The Company ended the quarter with a strong balance sheet, having $238.6M in cash on hand and a net cash level of $14.4M per our calculations. Most importantly, the Company reiterated its focus on further net-cash expansion to support the Prysm iO preview, India pre-opening, and ongoing product and digital investments.
Guidance: For 1Q26, Nu Skin guides revenue of $320M to $340M and EPS of $0.10 to $0.20; full-year 2026 revenue is projected at $1.35B to $1.5B with adjusted EPS of $.80 to $1.20 (excluding the Mavely gain and other charges). 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 7.8x compared to comps at an average of 13.7x. We are using our FY26 Adj. EPS, and a P/E range of 10.0x to 12.0x which moves NUS closer to comp companies. This arrives at a valuation range of $13.07 to $15.69 with a mid-point of $14.38.
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