USANA Health Sciences, Inc. announced its preliminary financial results for the third quarter of 2025. Third quarter net sales are now expected to reach $214 million, compared to $200 million in the same period last year. Earnings from operations are expected to be $1.2 million, compared to $15.6 million in the third quarter of 2024.
The company attributed these results, which came in below expectations, to softer-than-expected sales and distributor activity as the company rolled out its enhanced compensation plan. Hiya, the company’s direct-to-consumer business, also delivered softer sales and reduced customer acquisition rates. Even so, Hiya is still expected to generate double-digit sales growth in 2025.
USANA has been actively training its commercial team and educating and supporting its distributors across global markets to help them leverage the new compensation plan, and expects this will drive sales and leader productivity to create sustainable growth for the company and long-term value for customers, distributors and shareholders.
“The third quarter presented several challenges to profitability including softer than anticipated sales, meaningful investments to support the roll out of our enhanced Brand Partner compensation plan and a change in the estimated annual effective income tax rate that disproportionately impacted the current year quarter,” said Doug Hekking, USANA Chief Financial Officer. “Specifically, lower than expected earnings coupled with the concentration of operating and administrative expenses in the United States resulted in a meaningful increase in the annualized effective income tax rate in the third quarter from 45% to 65%. Looking forward, we recognize that the fourth quarter is starting from a lower base of active customer counts due to the softer than anticipated sales and leader productivity during the third quarter. As a result, we expect sales for the full year to be at or near the lower end of our previously issued full-year outlook range and earnings per share to be below the range. Our outlook will be updated in our regularly scheduled earnings release. We will continue working to align costs with operating performance over the next several quarters while emphasizing a more agile, adaptable, and efficient company in an evolving and competitive environment. This effort is expected to result in a meaningfully lower tax rate in future years.”
Official financial results are expected to be released October 21, 2025.
