Direct Selling Index mirrors the DJIA for the month of December 2025

The Direct Selling Capital Advisors Direct Selling Index (DSCI) increased by 0.7% in December 2025 compared to November, modestly underperforming the Dow Jones Industrial Average (DJIA), which gained 1.01% over the same period. Despite the slight monthly underperformance, direct selling equities generally moved in line with broader US equity markets during the month.

For the full year 2025, the DSCI delivered a total return of 13.0%, reflecting improved earnings visibility, selective balance sheet repair and recovering investor sentiment across several large-cap constituents. Since its inception on February 1, 2020, the index has generated a cumulative return of 89.2%, underscoring the long-term resilience and adaptability of the global direct selling channel across multiple economic and market cycles.

Market and Economic Environment — December 2025

Global equity markets concluded 2025 amid mixed macroeconomic signals as growth momentum moderated toward year-end. US equity indices posted modest gains in December, supported by optimism surrounding potential Federal Reserve rate cuts in early 2026 and evidence of earnings resilience across select sectors. At the same time, markets continued to weigh persistent inflation risks and renewed tariff-related uncertainty that re-emerged during the second half of the year.

Consumer sentiment remained cautious. Labor market indicators pointed to softening conditions, with job openings and hiring activity plateauing in late 2025, while the unemployment rate remained above long-term averages. Although the Federal Reserve held policy rates steady throughout December, futures markets increasingly priced in rate cuts beginning in early 2026 in response to slowing payroll growth and moderating inflation pressures.

Fixed income markets reflected this cautious optimism, as longer-term Treasury yields declined from mid-year highs and corporate credit spreads remained relatively tight, signaling sustained investor confidence in corporate balance sheets.

Within equities, direct selling exposed stocks demonstrated relative stability compared with broader indices, though trading volumes were uneven due to year-end portfolio rebalancing. Notably, analyst sentiment toward several large-cap direct selling companies improved during the month, with Buy recommendations increasingly outweighing Hold ratings for select names, driven by improved earnings visibility, balance sheet repair and operational execution.

Direct Selling Industry Developments

Industry data continued to underscore the structural resilience of the direct selling model. According to the World Federation of Direct Selling Associations (WFDSA), global direct selling sales reached approximately $164 billion in 2024, reflecting modest growth across major regions and continued expansion of independent seller networks, particularly in emerging markets. Wellness, cosmetics and personal care remained the largest product categories, highlighting sustained consumer demand even amid tightening discretionary spending.

Among publicly traded companies, Herbalife Ltd. attracted renewed investor attention as its shares reached a 52-week high during December, supported by improving financial metrics and favorable analyst revisions. Betterware de Mexico also demonstrated strong operational momentum, reporting substantial EBITDA and adjusted net income growth earlier in the year, driven by cost discipline and geographic expansion initiatives.

Technology-driven partnerships continued to shape industry evolution. Digital enablement platforms, mobile engagement tools and data-driven field support solutions gained broader adoption, reinforcing the ongoing shift toward omnichannel and digitally integrated direct selling models.

Looking Forward — Strategic Outlook

Entering 2026, the direct selling sector faces a combination of structural resilience and elevated competitive and macroeconomic pressures. Key themes expected to shape near-term performance include:

• Digital and omnichannel integration: Companies that effectively integrate mobile ordering, social commerce, loyalty programs and data-driven distributor tools are likely to enhance retention, productivity and customer lifetime value.
• Macroeconomic sensitivity: Ongoing uncertainty around consumer confidence, labor market conditions, currency volatility and logistics costs may pressure discretionary categories, particularly for globally diversified operators.
• Earnings execution and investor sentiment: Improved analyst sentiment toward select direct selling equities reflects rising confidence in earnings catalysts, cost discipline and balance sheet improvements. Sustained execution will be critical to maintaining momentum.
• Regulatory vigilance: While no material regulatory changes emerged in December, evolving consumer protection frameworks and compliance requirements across key markets remain an ongoing consideration.

Large Cap

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Founded in 1995, Betterware de Mexico (NASDAQ: BWMX) is the leading direct-to-consumer company in Mexico focused on innovative products related to household organization, practicality, space-saving and hygiene. Through the acquisition of JAFRA on April 7, 2022, the company expanded into the beauty market in Mexico and the US, offering fragrances, color cosmetics, skincare and toiletries. The combined business operates an asset-light model with low capital expenditure, consistent profitability, double-digit revenue growth and strong free cash flow generation. Today, Betterware distributes its products in both Mexico and the United States.

In December 2025, Betterware’s share price declined approximately 1.3% month-over-month, reflecting modest year-end volatility. For the full year, shares gained 27.1%, outperforming several broader market benchmarks. Since the inception of the DSCI in February 2020, BWMX has generated a total return of 50.9%, underscoring sustained long-term shareholder value creation.

Operational performance remained resilient during late 2025. Third-quarter results showed a 22% year-over-year increase in EBITDA and a 71% increase in adjusted net income, supported by effective cost management, pricing discipline and product mix optimization. Free cash flow improved by 32.6%, enabling the company to introduce a quarterly dividend and reinforce its shareholder return framework.

Despite softer consumer demand in Mexico, revenue trends remained stable, supported by contributions from both the Betterware and JAFRA segments. Expansion initiatives across Latin America, including progress toward a planned market entry into Colombia in early 2026, reflect management’s focus on geographic diversification and long-term growth.

Nu Skin Enterprises, Inc. (NYSE: NUS), together with its subsidiaries, engages in the development and distribution of various beauty and wellness products worldwide. It offers skin care devices, cosmetics and other personal care products, including ageLOC LumiSpa and ageLOC LumiSpa iO; and nutrition skincare products. The company also provides wellness products such as LifePak nutritional supplements, ageLOC TR90 weight management system and Beauty Focus Collagen+. In addition, it is involved in the research and product development of skincare products and nutritional supplements. The company sells its products under the Nu Skin, Pharmanex and ageLOC brands through retail stores, website, digital platforms and independent direct sellers and marketers as well as a service center. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.

In December 2025, Nu Skin’s stock declined 2.7% month-over-month. For the full year, however, shares posted a strong rebound, gaining 39.6%. Despite this recovery, the stock remains approximately 59.2% below its level at the inception of the Direct Selling Capital Advisors Direct Selling Index (DSCI) in February 2020, highlighting the depth of the company’s multiyear operational and market challenges.

Momentum during 2025 was driven by a series of strategic and financial actions, including the divestiture of Mavely and continued debt reduction, which lowered total debt to approximately $209 million—the company’s lowest level in more than a decade. Nu Skin exited the year with a net cash positive position for the first time in four years, reflecting disciplined capital allocation and improving operating efficiency.

Operational execution also improved. Management undertook significant portfolio rationalization, reducing global SKU counts by more than 50% to simplify operations, improve inventory efficiency and support margin stability. Gross margin remained solid at 70.5%. Regionally, Latin America delivered strong growth, while North America and Mainland China remained challenged by macroeconomic pressures and shifting consumer behavior. In response, the company continued to emphasize social commerce initiatives and digital engagement tools to stabilize distributor activity and customer retention.

Governance remains an area of investor focus. Proxy advisory firms have identified opportunities to further enhance board structure and shareholder alignment. Management has acknowledged these considerations and continues to position governance improvements as part of its broader turnaround strategy. While risks remain elevated, Nu Skin’s balance sheet repair and operational simplification have improved the company’s strategic flexibility entering 2026.

Herbalife Ltd. (NYSE: HLF) (formerly Herbalife Nutrition, Inc.) provides health and wellness products across North America, Latin America, EMEA, China and the Asia Pacific. The company offers products in the areas of weight management; targeted nutrition; energy, sports and fitness; outer nutrition; and literature, promotional and other items. It also provides weight management products, including meal replacement products, protein shakes, drink mixes, weight loss supplements, healthy snacks and metabolism boosting teas; targeted nutrition products, which comprise functional beverages and dietary and nutritional supplements that contain herbs, vitamins, minerals and other natural ingredients; outer nutrition products, such as facial skin, body and hair care products; and energy, sports and fitness products, including N-R-G tea and energy drink products. In addition, it offers literature, promotional and other materials that comprise start-up kits, sales tools and educational materials. The company sells its products through sales representatives, independent service providers and company-operated retail stores and platforms. The company was formerly known as Herbalife Nutrition Ltd. and changed its name to Herbalife Ltd. in April 2023. Herbalife Ltd. was founded in 1980 and is headquartered in Los Angeles, California.

In December 2025, Herbalife’s stock increased 1.3% compared to November, capping a strong year with a 92.7% gain for 2025. Despite this significant recovery, shares remain approximately 60.2% below levels recorded at the inception of the Direct Selling Capital Advisors Direct Selling Index (DSCI) in February 2020, reflecting the magnitude of the company’s prior multiyear decline.

Investor sentiment during December continued to improve following third-quarter results that demonstrated early signs of stabilization. Net sales totaled $1.3 billion, representing a 2.7% year-over-year increase, driven in part by a modest return to growth in North America—the region’s first growth since 2021. Adjusted EBITDA of $163 million exceeded guidance expectations, and management emphasized ongoing balance sheet repair, including full repayment of the 2025 Notes and a reduction in total leverage to approximately 2.8x.

Strategic focus during the month centered on the company’s “Herbalife 2.0” transformation initiatives. These included continued integration of the Link BioSciences acquisition to support personalized nutrition offerings and expansion of the Pro2col AI-powered coaching application, which remains in beta testing. Management highlighted these initiatives at the BofA Securities Leveraged Finance Conference in early December, underscoring a shift toward technology-enabled engagement and data-driven distributor support.

Analyst activity increased during the period, with several firms initiating or updating coverage following improved earnings visibility and reduced financial leverage. Valuation remains compressed relative to historical averages, trading at approximately 4.5x earnings based on consensus estimates, reflecting continued investor caution despite improving fundamentals. While recent operational progress and balance sheet repair have attracted renewed interest, sustained revenue growth and consistent execution across regions will be necessary to support multiple expansion over the medium term.

Medifast, Inc. (NYSE: MED), through its subsidiaries, operates as a health and wellness company offering habit-based, coach-guided lifestyle solutions focused on weight management and obesity support in the United States. The company’s flagship brand, OPTAVIA, delivers clinically-supported weight loss programs, GLP-1 support plans, and a wide variety of food products, such as bars, shakes, soups, cereals, and snacks, complemented by one-on-one coaching, digital tools, and community support. Medifast was founded in 1980 and is headquartered in Baltimore, Maryland. Its products are sold via point-of-sale transactions and e-commerce.

In December 2025, Medifast shares declined 2.6% month-over-month. Year-to-date, the stock was down 39.4%, and cumulative losses since the inception of the DSCI reached 86.6%. This performance reflects sustained investor concern surrounding revenue contraction, declining coach engagement, and structural challenges within the weight management industry.

Throughout 2025, financial results remained under pressure. Quarterly revenues declined sharply year-over-year, driven by lower coach counts and reduced productivity per coach. While Medifast maintained a strong liquidity position and a debt-free balance sheet—providing operational runway—profitability remained constrained, with intermittent net losses reported. The company has suspended dividends in favor of reinvestment and strategic repositioning.

Operational initiatives have focused on cost optimization, digital platform enhancements, and program innovation. However, structural headwinds persist, including intense competition from pharmaceutical GLP-1 therapies, which continue to reshape consumer behavior and expectations within the weight loss category.

Market sentiment remains mixed. Institutional investors acknowledge the value of Medifast’s balance sheet strength and brand recognition, but analyst commentary remains cautious, emphasizing the need for revenue stabilization and renewed momentum within the coach network. Looking ahead, Medifast’s outlook depends on its ability to adapt its business model to evolving market dynamics, reinvigorate engagement, and differentiate its offering within an increasingly competitive landscape. As such, the stock continues to represent a higher-risk profile with potential long-term upside contingent on effective execution.

USANA Health Sciences, Inc. (NYSE: USNA) develops, manufactures and sells science-based nutritional, personal care and skincare products across Asia Pacific, the Americas and Europe. The company operates in two segments: Direct Selling and Direct-to-Consumer. Its product lineup includes USANA Nutritional Optimizers, including supplements for cardiovascular, skeletal/structural and digestive health; Essentials/CellSentials, including vitamin and mineral supplements for all ages starting from 13 months; and food products, such as meal replacement shakes, snack bars and other related products for healthy weight management, digestive health, =[energy and hydration. USANA also offers Celavive, a skincare regimen tailored for various skin types and ethnicities, and other products, including materials and online tools that support associates in building their business and marketing the company’s products. The company sells its products through retail, subscription-based models, direct selling, and online platforms. It maintains research collaboration agreements with the Beijing University of Chinese Medicine and the National Sports Training Bureau. USANA Health Sciences, Inc. was founded in 1992 and is headquartered in Salt Lake City, Utah.

For the month of December 2025, USANA’s stock performance remained weak amid continued investor caution toward the direct selling sector. The company’s shares declined 1.1% during the month, bringing the year-to-date loss to 45.3%. Since the establishment of the Direct Selling Capital Advisors Direct Selling Index (DSCI) in February 2020, USANA shares have fallen 70.3%, underscoring prolonged underperformance relative to both broader equity markets and direct selling peers.

Operationally, USANA ended the year facing persistent headwinds in its core direct selling business, particularly across key Asia-Pacific markets where distributor engagement and consumer demand remained pressured by cautious discretionary spending. While certain markets showed signs of stabilization, overall revenue momentum remained constrained, and profitability continued to fall short of expectations. Gross margins held relatively steady, supported by disciplined cost management and a debt-free balance sheet, but earnings growth remained elusive.

Offsetting some of this weakness, the Hiya direct-to-consumer segment continued to deliver double-digit growth, reinforcing management’s diversification strategy beyond the traditional MLM model. However, the segment has not yet reached sufficient scale to fully counterbalance softness in the direct selling channel. During December, product quality recognitions and third-party certifications strengthened USANA’s premium brand positioning and provided incremental support for associate-led marketing efforts.

Investor sentiment toward year-end remained cautious, with analysts highlighting revenue visibility challenges, distributor productivity declines and structural pressures within the global direct selling model. Leadership changes announced shortly after the close of the year were viewed as a potential step toward strategic recalibration, though they had no material impact on December trading.

Overall, December 2025 capped a difficult year for USANA Health Sciences, characterized by sharp share price declines, ongoing operational challenges in direct selling and incremental progress in its direct-to-consumer business. As the company enters 2026, restoring distributor momentum while scaling Hiya and converting operational discipline into consistent earnings growth will be critical to reversing the negative stock performance and rebuilding investor confidence.

eXp World Holdings, Inc. (NASDAQ: EXPI), together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. The company operates through three segments: North American Realty, International Realty and Other Affiliated Services. It acts as a licensed broker for processing residential and commercial real estate transactions and provides other real estate support services. In addition, the company offers FrameVR.io, a web-accessible proprietary technology providing immersive 3D platforms; SUCCESS magazine and its related media properties, which offer training, classes, resources and tools under the SUCCESS brand; and SUCCESS Space, a coworking solution that provides rental workspaces, professional development coaching, media production services, virtual-world communications technology and full-service cafes.

The company operates primarily in North America, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, Poland, Dubai and recently expanded into Japan with additional international markets across Europe and Asia. eXp World Holdings, Inc. was formerly known as eXp Realty International Corporation and changed its name in May 2016. The company was incorporated in 2008 and is headquartered in Bellingham, Washington.

In December 2025, eXp World Holdings’ stock declined 20.3% compared to November, bringing the year-to-date decrease to 21.4%. The monthly decline reflected heightened market volatility, investor sensitivity to interest rate expectations, and continued pressure on housing-related equities. Despite recent weakness, long-term performance remains notable, with shares up approximately 89.3% since the launch of the DSCI in February 2020.

Operationally, the company maintained its focus on cost discipline, agent productivity and international expansion. Investments continued in virtual collaboration, training tools and technology infrastructure, while the SUCCESS brand was further developed to support diversified and recurring revenue streams. Management emphasized operational efficiency as a key priority amid ongoing uncertainty in global real estate transaction volumes.

Market sentiment softened during the month due to concerns surrounding housing affordability, interest rate sensitivity and near-term transaction activity. Analyst commentary continues to highlight the scalability of eXp’s cloud-based brokerage model and the long-term value of its agent incentive structure, while acknowledging elevated near-term macroeconomic risk.

Primerica, Inc. (NYSE: PRI), together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates through three segments: Term Life Insurance; Investment and Savings Products; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment offers mutual funds, various retirement plans, managed investments, variable and fixed annuities, fixed indexed annuities and segregated funds. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services assisting subscribers with matters such as drafting wills, living wills and powers of attorney; trial defense and motor vehicle-related matters; ID theft defense services; auto and homeowners’ insurance; home automation solutions; and supplemental, accidental death and disability insurance. The company distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.

From a market performance perspective, Primerica’s stock showed modest stability in December, increasing 0.4% compared with November 2025. For the full year 2025, shares declined 4.8% year-to-date, reflecting broader market pressures on financial services and insurance stocks. Despite this short-term softness, the company’s long-term performance remains notably strong. Since the launch of the Direct Selling Capital Advisors Direct Selling Index (DSCI) on February 1, 2020, Primerica shares have appreciated 135.8%, making PRI the strongest long-term performer among index constituents and reinforcing its reputation as a resilient, fundamentally driven company within the direct selling sector.

Operationally, Primerica continues to benefit from the stability of its core Term Life Insurance business, which remains a primary earnings driver supported by disciplined underwriting and solid policy persistence. The Investment and Savings Products segment has experienced some moderation in asset-based revenues due to market volatility, but demand for long-term retirement and savings solutions continues to support client engagement. The company’s capital-light distribution model, combined with a stable and well-trained sales force, allows Primerica to maintain broad reach among middle-income consumers while carefully managing costs. Consistent cash flow generation has historically enabled the company to return value to shareholders through dividends and share repurchases, underscoring its shareholder-friendly capital allocation approach.

Market sentiment toward Primerica, as reflected in analyst commentary summarized by Yahoo Finance, remains generally constructive. The stock is often viewed as a defensive holding within the financial services space, supported by predictable insurance cash flows, a strong balance sheet and a proven operating model. While near-term upside expectations are moderated by interest rate uncertainty and equity market fluctuations, analyst confidence is largely anchored in Primerica’s long-term fundamentals, disciplined expense management and consistent value creation.

Within the broader industry context, Direct Selling News highlights a renewed focus on financial education, consumer protection, and stability across the direct selling sector. Companies with mature governance structures, diversified product offerings and recurring revenue models are increasingly favored over higher-risk growth profiles. Primerica is well positioned within this environment, though it continues to face risks related to market volatility, regulatory oversight and competition for qualified sales representatives. Looking ahead, opportunities center on deeper penetration of underserved middle-income households, expanded cross-selling across its product portfolio and continued investment in sales force development, all of which support a stable and sustainable long-term outlook.

Oliveda International, Inc. (OTC: OLVI) was founded in 2003 and has more than 20 years of experience in: 1) the management and organic certification of mountain olive trees; 2) the extraction of international award-winning extra virgin olive oils; 3) the extraction of hydroxytyrosol, a compound with antioxidant, anti-inflammatory and skin- and eye-protective effects; and 4) the production and distribution of cosmetic and holistic waterless products derived from the olive tree.

Oliveda International, Inc. and its subsidiaries, including Olive Tree People Inc., Olive Tree People Europe AG, Oliveda Deutschland GmbH, and Olive Tree Farmers SL, were founded by German real estate investor Thomas Lommel. The group has established a unique market position through innovations such as Olive Tree Therapy “10 years in 14 days,” olive matcha (made from ground olive leaves) and a coffee alternative based on olive leaves and hydroxytyrosol. Lommel is also active in the mindfulness sector with his olive tree sound bath meditations and the broadcast of olive tree frequencies globally.

In December 2025, Oliveda’s stock declined 14.4% month-over-month, contributing to a cumulative year-to-date decline of 91.8%. The sharp deterioration in share price reflects elevated volatility, limited liquidity, and heightened investor concerns related to execution risk, financial transparency and long-term scalability.

As an OTC-listed issuer, Oliveda operates with significantly reduced disclosure requirements compared to exchange-listed peers. The absence of consistent, detailed financial reporting limits visibility into revenue sustainability, profitability, and cash flow generation, materially constraining institutional participation and investor confidence. These factors have positioned the stock as highly speculative within the direct selling universe.

While the company continues to emphasize product innovation and distributor engagement within the broader wellness and sustainable personal care categories, market participants remain cautious. Without demonstrable improvements in financial transparency, operational consistency and distributor network stability, the company is likely to remain subject to elevated share price volatility and restricted access to capital markets.

Looking ahead, Oliveda’s long-term prospects hinge on its ability to improve disclosure practices, establish predictable operating performance and demonstrate sustained consumer demand for its differentiated offerings. Until such visibility improves, the stock is expected to remain suitable only for investors with a high tolerance for risk.

The Beachbody Company, Inc. (NYSE: BODI) operates as a fitness and nutrition company in the United States and internationally. The company offers Beachbody on Demand, a subscription streaming service providing fitness programs such as P90X, Insanity and 21 Day Fix; nutrition programs including Portion Fix and 2B Mindset; and nutritional products like Shakeology shakes and Beachbody Performance supplements. The company also faces legal challenges in California, where efforts are underway to reclassify independent consultants as employees, which may impact its direct selling model.

In December 2025, Beachbody’s stock price increased by approximately 17.3% compared to November, continuing a strong upward trend that resulted in a year-to-date gain of about 68.5% for the full twelve months of 2025. This performance reflects renewed investor confidence following improved operating results and visible progress toward profitability. Trading activity remained volatile, consistent with smaller-cap growth stocks, but technical indicators and recent price momentum supported a constructive near-term outlook.

Operationally, 2025 marked a turning point for the company. In the third quarter, Beachbody reported its first quarterly net profit as a public company, with positive net income and solid adjusted EBITDA, despite a year-over-year decline in revenue driven by its business model transition. Management has focused on cost discipline, organizational restructuring and channel diversification, while also introducing initiatives such as allowing customers to purchase individual digital programs outside of subscriptions. These moves are designed to increase flexibility, attract new users and stabilize long-term revenue performance.

Market sentiment toward Beachbody improved over the course of the year, supported by profitability milestones and increased engagement with the investment community. Analyst coverage remains limited but generally constructive, with cautious optimism reflecting both the company’s operational progress and ongoing risks. From an industry perspective, Beachbody continues to operate in a direct selling environment facing heightened regulatory and legal scrutiny, particularly in California, where efforts to reclassify independent consultants as employees could impact legacy compensation structures. Looking ahead, Beachbody’s key opportunities lie in leveraging its strong brand equity, expanding digital product offerings and sustaining profitability, while principal risks include revenue volatility, legal uncertainty related to worker classification, and broader market fluctuations.

Below are two summary diagrams on the direct selling large cap companies.

The Real Brokerage Inc. (NASDAQ: REAX) is a technology-driven, asset-light real estate brokerage that empowers agents through a cloud-based platform, AI-enabled tools and integrated fintech solutions. Founded in 2014, the company operates across the United States and Canada, utilizing an independent contractor model and performance-based compensation structure that aligns with direct selling adjacent distribution frameworks.

Entering December 2025, the stock continued to be viewed as a high-growth, technology-enabled brokerage model, albeit with increased sensitivity to broader equity market volatility and real estate transaction trends. Institutional ownership remained elevated at approximately 53%, reflecting continued confidence in the company’s balance sheet strength, capital allocation discipline and long-term growth strategy.

During the month, the company reported continued progress in agent recruitment and geographic expansion, onboarding several high-production teams across North America. The Real Brokerage surpassed 30,000 agents in December, reinforcing its position as one of the fastest-growing brokerages in the industry. Management continued to execute its “quality-at-scale” growth strategy, prioritizing agent productivity, retention and unit economics over headline expansion.

Technology investment remained a core strategic priority, with ongoing enhancements to the Leo CoPilot AI platform and consumer-facing digital tools designed to improve agent efficiency, transaction execution and client engagement. Financially, the company closed the year with strong revenue growth, a debt-free balance sheet and continued share repurchase activity, positioning it favorably relative to peers amid a challenging housing market environment.

Small Cap

Below is the December information for the two largest small cap companies, Nature’s Sunshine and LifeVantage.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR), a natural health and wellness company, manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America and internationally. The company provides general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy and vision; immune products; cardiovascular products; and digestive products. It also offers personal care products, including oils and lotions, aloe vera gel, herbal shampoo, herbal skin treatment, toothpaste and skin cleanser products as well as weight management products. The company provides its products under the Nature’s Sunshine Products and Synergy WorldWide brands directly to customers and to a sales force of independent consultants. Nature’s Sunshine Products, Inc. was founded in 1972 and is headquartered in Lehi, Utah.

In December 2025, NATR’s share price increased by approximately 4.9% compared to November, extending a strong performance trend throughout the year. Over the first twelve months of 2025, the stock delivered a total return of 47.2%, significantly outperforming many peers in the health and wellness and direct selling sectors. Since the launch of the DSCI index, Nature’s Sunshine shares have gained 177.9%, highlighting sustained long-term value creation for investors. The company does not currently pay a dividend, instead prioritizing reinvestment in growth initiatives, operational improvements and balance sheet strength.

Operationally, Nature’s Sunshine entered the final months of 2025 with solid momentum. In its most recently reported quarter, the company delivered double-digit year-over-year revenue growth, supported by strong international demand and continued expansion of digital sales channels. Gross margins improved meaningfully, reflecting pricing discipline, product mix optimization and supply chain efficiencies, while adjusted EBITDA grew at a faster pace than revenue. Management raised full-year revenue and EBITDA guidance for 2025, signaling confidence in sustained demand, improving profitability, and the scalability of its business model. Ongoing investments in digital tools, customer engagement platforms and consultant support continued to drive higher retention and productivity across markets.

Market sentiment toward NATR remained generally positive at year-end. According to Yahoo Finance data, analyst coverage reflects a moderate buy consensus with expectations centered on continued margin expansion and steady top-line growth rather than short-term speculative upside. Valuation discussions among analysts point to the company trading at reasonable multiples relative to cash flow generation, particularly when viewed against its growth profile and balance sheet strength. Institutional ownership levels and relatively modest short interest further suggest stable investor confidence.

From an industry perspective, Direct Selling News continues to highlight key sector trends that align well with Nature’s Sunshine’s strategy. These include the shift toward omnichannel and digital-first selling models, increased consumer focus on preventive health and wellness and the importance of brand trust, product quality, and compliance in a highly competitive global environment. Companies that successfully integrate technology with relationship-based selling are gaining share, and Nature’s Sunshine’s ongoing digital transformation positions it favorably within this evolving landscape.

Looking ahead, Nature’s Sunshine is positioned for continued growth, supported by its diversified geographic footprint, broad product portfolio and expanding digital capabilities. Opportunities include further penetration in international markets, deeper utilization of subscription and auto-ship programs and continued margin improvement through operational discipline. Key risks remain tied to macroeconomic uncertainty, foreign exchange exposure, regulatory dynamics in direct selling and competitive pressures within the wellness category. Overall, the company enters the upcoming period with a solid strategic foundation, improving financial performance and a favorable standing within the global direct selling industry.

LifeVantage Corporation (NASDAQ: LFVN) engages in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and probiotics, weight management and skin and hair care products. It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, support cognitive functions and normal sleep patterns; LifeVantage Daily Wellness, a dietary supplement designed to strengthen immune health; LifeVantage Rise AM & Reset PM System that provides the body with the right nutrients; LifeVantage D3+, a dietary supplement that provides vitamin D3, vitamin K2, magnesium, calcium and other trace minerals to support a balanced immune system, strong bones and cardiovascular health; PhysIQ Fat Burn to support weight management; PhysIQ Prebiotic is a dietary supplement designed to support the good bacteria in the gut and a healthy microbiome; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix. The company also provides anti-aging skincare products, including liquid collagen, facial cleansers, eye cream, moisturizing cream, sunscreen, perfecting lotions, hand creams as well as hair care products, such as invigorating shampoos, nourishing conditioners and scalp serums under the TrueScience brand name. It sells its products through its website and network of independent consultants in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore and the Philippines. The company also launched Evolve Compensation Plan and other LV360 initiatives into the Philippines, Taiwan, Hong Kong and Singapore. The company is based in Lehi, Utah.

In December, LifeVantage’s stock declined 9.7% compared to November 2025, contributing to a cumulative year-to-date loss of approximately 64.9%, highlighting continued volatility and investor caution toward the shares. Since the establishment of the Direct Selling Capital Advisors Direct Selling Index (DSCI) on February 1, 2020, LFVN stock has declined roughly 48.3%, reflecting broader pressure on small-cap direct selling and wellness companies amid shifting consumer demand and capital market conditions. Despite these declines, the company continues to trade at valuation multiples below broader market averages and maintains a dividend, which provides some support for income-oriented investors.

Operationally and financially, LifeVantage has shown mixed performance. Recent fiscal results indicate relatively stable revenue levels with modest year-over-year growth, while profitability metrics such as EBITDA have faced pressure due to higher operating costs, investments in international expansion and integration efforts related to strategic initiatives. The company has emphasized product innovation, science-backed wellness positioning and expansion into microbiome health as key growth drivers. Its acquisition activity and product development efforts are aligned with consumer trends favoring immune health, gut health, cognitive support, and personalized wellness solutions.

Market sentiment toward LifeVantage remains cautious but not uniformly negative. Analyst coverage is limited, though available assessments generally characterize the stock as undervalued relative to its earnings and cash flow potential, offset by concerns about revenue consistency, distributor engagement trends and execution risk. Investor confidence has been influenced by recent share price weakness, leadership transitions and the need for sustained growth in active consultants, particularly in mature markets.

From an industry perspective, Direct Selling News highlights continued transformation within the direct selling sector, with companies increasingly focused on digital tools, enhanced compensation structures and science-driven product differentiation to attract and retain distributors.

LifeVantage’s emphasis on nutrigenomics, microbiome health and global compensation plan enhancements positions it to benefit from these trends, although competition remains intense. Looking ahead, opportunities include leveraging international markets, expanding high-margin wellness categories and improving consultant productivity, while key risks include ongoing stock volatility, competitive pressures, execution challenges and broader macroeconomic uncertainty affecting discretionary consumer spending.

Below are two summary diagrams on the direct selling small cap companies.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 7.0 days as of December 14, 2025. Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index mirrors the DJIA for the month of November 2025

The Direct Selling Capital Advisors Direct Selling Index (DSCI) rose by 0.3% in November compared to October 2025. The DJIA rose by about 0.04% over the same period. During the first eleven months of 2025, the DSCI has gained 12.2%. Since its inception, the index has delivered a total return of 87.8%, underscoring the sustained strength and resilience of the direct selling channel over time.

Positive Developments

• While full November disclosures are still limited, companies with global footprint and digital‑enabled distributor networks continue to show stability, suggesting that the favorable structural trends noted in October remain relevant.
• Many firms persist in refining compensation plans and distributor‑engagement strategies—leveraging online tools, social channels and digital order systems—which likely contributes to maintaining sales and distributor motivation even amid market headwinds.
• Industry‑wide emphasis on branding, distributor loyalty and innovative distributor programs remains a differentiator; companies investing in brand recognition and distributor support are better positioned for long-term sustainability.

Challenges & Caution Areas

• Regional performance remains uneven: despite growth in certain high‑potential geographies, other regions continue to show flat or minimal gains. Given the limited number of public reports for November, it remains difficult to generalize performance across the sector.
• Persistent macroeconomic and structural pressures—such as economic uncertainty, currency fluctuations, inflation, logistics and distribution costs—continue to pose headwinds, especially for firms balancing traditional distributor networks with emerging digital‑to‑consumer models.
• The scarcity of transparent, timely monthly disclosures constrains ability to conduct a comprehensive, sector‑wide analysis. This opacity may conceal underperforming segments or emerging risks.
  

Strategic Implications / Outlook

• Firms integrating an omnichannel approach—combining traditional distributor networks, digital direct‑to‑consumer sales and online ordering systems—appear better equipped to weather volatility and outperform peers.
• Prioritizing operational efficiency, supply‑chain optimization and cost management remains critical, especially in regions exhibiting strong growth potential.
• Ongoing investment in distributor engagement, training, incentives and support infrastructure will likely be key to retaining active networks and sustaining sales momentum.
• Although no major regulatory shifts were announced in November, companies should maintain vigilance on legal and regulatory environments across all markets, particularly in regions with evolving policies affecting direct selling operations.

Summary

In November 2025, the direct‑selling sector demonstrated modest but positive performance: the DSCI rose modestly and continued to outpace (or at least match) broader market dynamics captured by DJIA. Companies with robust global presence and digitally‑enabled distributor strategies remain in a favorable position. Nevertheless, uneven regional results, limited public disclosures and macroeconomic uncertainties highlight the need for cautious optimism. Going forward, firms that successfully execute on omnichannel integration, operational efficiency and distributor engagement are best positioned to sustain long-term growth and stability in the direct‑selling channel.

Large Cap

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Betterware de Mexico (NASDAQ: BWMX), founded in 1995, is the leading direct-to-consumer company in Mexico focused on innovative products related to household organization, practicality, space-saving and hygiene. Through the acquisition of JAFRA on April 7, 2022, the company expanded into the beauty market in Mexico and the US, offering fragrances, color cosmetics, skincare and toiletries. The combined business operates an asset-light model with low capital expenditure, consistent profitability, double-digit revenue growth and strong free cash flow generation. Today, Betterware distributes its products in both Mexico and the United States.

In November 2025, Betterware’s stock price declined by 0.6% compared to October. Year-to-date, the stock recorded a positive performance of 28.7%. Since the establishment of the DSCI on February 1, 2020, BWMX has grown by 52.8%.

For Q3 2025, the company’s consolidated results remained consistent with prior trends, reflecting the ongoing integration of JAFRA. Betterware Mexico continued to experience moderate revenue softness due to cautious consumer spending, while JAFRA Mexico maintained strong growth momentum, with year-over-year revenue gains of approximately 31%, supported by ongoing brand revitalization, optimized salesforce productivity and targeted pricing strategies.

During November, Betterware declared a quarterly dividend of US $0.29 per share, payable on November 20, 2025. The dividend reflects the company’s commitment to returning value to shareholders and maintaining financial discipline, even amid short-term stock price fluctuations.

The company’s transformation strategy continues to advance post-JAFRA acquisition, with disciplined cost management and robust free-cash-flow conversion helping support investor confidence. International expansion efforts gained further traction in emerging markets such as Ecuador and Guatemala. Management reaffirmed its long-term strategic priorities, focusing on international growth, product portfolio optimization and sustained profitability to drive long-term shareholder value.

Nu Skin Enterprises, Inc. (NYSE: NUS), together with its subsidiaries, engages in the development and distribution of various beauty and wellness products worldwide. It offers skin care devices, cosmetics and other personal care products, including ageLOC LumiSpa and ageLOC LumiSpa iO; and nutrition skincare products. The company also provides wellness products, such as LifePak nutritional supplements, ageLOC TR90 weight management system and Beauty Focus Collagen+. In addition, it is involved in the research and product development of skincare products and nutritional supplements. The company sells its products under the Nu Skin, Pharmanex, and ageLOC brands through retail stores, website, digital platforms and independent direct sellers and marketers, as well as a service center. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.

In November 2025, Nu Skin’s stock declined by 7.7% compared to October, bringing year-to-date performance to 43.5%. Since the launch of the DSCI in February 2020, the shares have declined 58.1%. The stock traded in a 52-week range of $5.32–$14.62, reflecting continued volatility.

Operationally, Q3 2025 results shaped the November market sentiment. The company reported revenue of $364.2 million, down 15.3% year-over-year, or 11.5% excluding divested businesses. Earnings per share were $0.34, up from $0.17 in the prior year, demonstrating improved profitability despite top-line pressure. Gross margins remained strong at 70.5%, and the company reduced long-term debt to $209 million while increasing cash and cash equivalents to $251.8 million. The board declared a quarterly dividend of $0.06 per share, payable in December 2025.

Nu Skin continues to face headwinds in its direct-selling network, with declines in customers (~10%), paid affiliates (~13%), and sales leaders (~19%) compared to the prior-year quarter. Nevertheless, the Latin America region maintained strong growth, and certain operational segments showed sequential improvement. Management is preparing for the rollout of its intelligent wellness device, Prysm iO, along with a pre-market entry into India in Q4 2025, as part of its strategic focus on device-plus-consumable and subscription-based recurring revenue.

Despite the revenue challenges, improved profitability, margin stability, debt reduction and ongoing strategic initiatives were positive signs for the company’s medium-term outlook. Investor sentiment, however, was cautious, resulting in the stock decline in November.

In summary, November was a mixed month: Nu Skin faced continued pressure on revenue and network metrics, yet achieved higher profitability, strengthened its balance sheet and maintained dividend payouts. Strategic initiatives such as the Prysm iO device rollout, expansion into high-growth markets and a focus on subscription and recurring revenue position the company for potential stabilization and gradual recovery, although near-term volatility is likely to persist.

Herbalife Ltd. (NYSE: HLF), (formerly Herbalife Nutrition, Inc.) provides health and wellness products across North America, Latin America, EMEA, China and the Asia Pacific. The company offers products in the areas of weight management; targeted nutrition; energy, sports and fitness; outer nutrition; and literature, promotional and other items. It also provides weight management products, including meal replacement products, protein shakes, drink mixes, weight loss supplements, healthy snacks and metabolism boosting teas; targeted nutrition products, which comprise functional beverages and dietary and nutritional supplements that contain herbs, vitamins, minerals and other natural ingredients; outer nutrition products, such as facial skin, body and hair care products; and energy, sports and fitness products, including N-R-G tea and energy drink products. In addition, it offers literature, promotional and other materials that comprise start-up kits, sales tools and educational materials. The company sells its products through sales representatives, independent service providers and company-operated retail stores and platforms. The company was formerly known as Herbalife Nutrition Ltd. and changed its name to Herbalife Ltd. in April 2023. Herbalife Ltd. was founded in 1980 and is headquartered in Los Angeles, California.

In November 2025, Herbalife’s stock rose 59.1% compared to October, extending year-to-date gains to 90.3%. Since the creation of the DSCI in February 2020, shares remain down approximately 60.7%.

On November 5, 2025, Herbalife reported its Q3 2025 financial results, showing net sales of $1.30 billion, a 2.7% increase year-over-year and up 3.2% on a constant-currency basis. North America returned to growth with net sales up 1.0% YoY, marking its first quarterly gain in the region since Q2 2021. Adjusted EBITDA was $163.0 million, exceeding guidance, while adjusted diluted EPS came in at $0.50, above consensus estimates. Operating cash flow for the quarter was $138.8 million, with capital expenditures of $20.8 million, and the company repaid the remaining principal on its 2025 Senior Notes, reducing its leverage ratio to approximately 2.8×.

Strategically, Herbalife expanded access to the beta version of its digital platform Pro2col™, aimed at enhancing distributor operations and customer engagement, with a full US rollout planned by the end of 2025 and global expansion in 2026. Management noted that the third-quarter performance reflects continued progress in the company’s transformation strategy, disciplined financial execution and ongoing operational improvements. For Q4 2025, the company issued guidance for net sales growth of 1.5% to 5.5% YoY, while full-year 2025 net sales are expected to increase 0.3% to 0.7% YoY, reflecting cautious optimism as Herbalife continues to stabilize and improve regional performance, profitability and digital capabilities.

Medifast, Inc. (NYSE: MED), through its subsidiaries, operates as a health and wellness company offering habit-based, coach-guided lifestyle solutions focused on weight management and obesity support in the United States. The company’s flagship brand, OPTAVIA, delivers clinically supported weight loss programs, GLP-1 support plans and a wide variety of food products, such as bars, shakes, soups, cereals and snacks, complemented by one-on-one coaching, digital tools and community support. Medifast was founded in 1980 and is headquartered in Baltimore, Maryland. Its products are sold via point-of-sale transactions and ecommerce.

In November 2025, Medifast shares declined by 8.7% compared to October. Year-to-date, the stock remains down 37.7%, and since the DSCI’s inception it has lost 86.2%.

In Q3 2025, revenue was $89.4 million, down 36.2% from Q3 2024. The company recorded a net loss of $2.3 million, or $0.21 per diluted share. Gross profit fell to $62.2 million with a 69.5% gross margin. Active earning OPTAVIA coaches decreased 35% to 19,500. SG&A expenses fell due to lower coach compensation, marketing and convention costs. The company ended the quarter with $173.5 million in cash and investments and no debt.

In late October and November, Medifast announced a strategic pivot toward metabolic health, introducing the Metabolic Synchronization program and presenting new clinical research at the ObesityWeek Conference. The company plans to launch a next-generation product line in 2026 to support metabolic health.

Despite continued revenue decline and loss of coaches, the strong balance sheet and strategic shift toward metabolic health provide a potential path for repositioning in a broader wellness market. For Q4 2025, revenue is projected at $65–80 million with EPS between –$0.70 and –$1.25.

USANA Health Sciences, Inc. (NYSE: USNA) develops, manufactures and sells science-based nutritional, personal care and skincare products across the Asia Pacific, the Americas and Europe. The company operates in two segments: Direct Selling and Direct-to-Consumer. Its product lineup includes USANA Nutritional Optimizers, including supplements for cardiovascular, skeletal/structural and digestive health; Essentials/CellSentials, including vitamin and mineral supplements for all ages starting from 13 months; and food products, such as meal replacement shakes, snack bars and other related products for healthy weight management, digestive health and energy and hydration. USANA also offers Celavive, a skincare regimen tailored for various skin types and ethnicities and other products, including materials and online tools that support associates in building their business and marketing the company’s products. The company sells its products through retail, subscription-based models, direct selling and online platforms. It maintains research collaboration agreements with the Beijing University of Chinese Medicine and the National Sports Training Bureau. USANA Health Sciences, Inc. was founded in 1992 and is headquartered in Salt Lake City, Utah.

In November 2025, USANA’s stock declined by 6.1% from October, partly recovering from earlier weakness. Year-to-date, shares are down 44.7%, and since the DSCI’s inception, they have fallen 70.0%.

For the month of November 2025, USANA’s stock declined by 6.1% compared to October, marking a smaller downturn than in the prior month and showing partial stabilization after significant earlier volatility. Year-to-date, the shares have fallen 44.7%, reflecting one of the most challenging years for the company in recent history. Since the inception of the Direct Selling Capital Advisors Index (DSCI), USANA’s share price remains down 70.0%, highlighting the long-term pressure the stock has faced.

November trading continued to reflect the market’s reaction to the company’s third-quarter results, released in late October. USANA reported Q3 2025 net sales of $214 million, representing 7% year-over-year growth, supported in part by the Hiya subscription channel. However, the company posted a net loss of $6.5 million, with adjusted EBITDA falling sharply due to increased operating costs, restructuring expenses and margin pressure. Active direct-selling customer counts declined meaningfully, while Hiya maintained steady subscriber engagement. The rollout of the new global Brand Partner compensation plan continued to create short-term disruption, as partners adjusted to new incentives and updated operational structures.

During November, USANA also received positive product related news: its MagneCal D supplement earned a recognized third-party quality certification, reinforcing the company’s longstanding focus on product safety, purity and scientific validation. Leadership communications throughout the month emphasized renewed engagement with Brand Partners and the importance of rebuilding trust, training and sales productivity within the field organization.

Overall, November reflected a period of modest decline and relative stabilization. While the company maintains a strong balance sheet with substantial cash and no debt, operational headwinds persist. USANA’s near-term performance will depend on how quickly Brand Partner productivity recovers under the new compensation plan and how effectively the company balances cost structure, margin improvement and growth in its direct-to-consumer business.

eXp World Holdings, Inc. (NASDAQ: EXPI), together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. The company operates through three segments: North American Realty, International Realty and Other Affiliated Services. It acts as a licensed broker for processing residential and commercial real estate transactions and provides other real estate support services. In addition, the company offers FrameVR.io, a web-accessible proprietary technology providing immersive 3D platforms; SUCCESS magazine and its related media properties, which offer training, classes, resources and tools under the SUCCESS brand; and SUCCESS Space, a coworking solution that provides rental workspaces, professional development coaching, media production services, virtual-world communications technology and full-service cafes.

The company operates primarily in North America, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, Poland, Dubai and recently expanded into Japan, with additional international markets across Europe and Asia. eXp World Holdings, Inc. was formerly known as eXp Realty International Corporation and changed its name in May 2016. The company was incorporated in 2008 and is headquartered in Bellingham, Washington.

In November 2025, EXPI’s stock price increased by 10.8% compared to October, marking a solid rebound after earlier weakness. This improvement reduced the year-to-date decline to just 1.4%, positioning eXp as one of the more resilient performers in the real estate sector during 2025. Since the launch of the DSCI on February 1, 2020, the company’s shares have appreciated by 137.4%, reinforcing its strong long-term performance and continued investor confidence in its cloud-based model.

November’s trading performance was influenced by the company’s Q3 2025 financial results, which were released in early November. Revenue grew 7% year-over-year to $1.317 billion, driven by higher real estate sales volume of $54.1 billion, also up 7%. eXp reported net income of $3.5 million (EPS $0.02) and adjusted EBITDA of $17.7 million, with $28.9 million in net cash provided by operating activities. Although the global agent and broker count declined by 2% to approximately 83,446, productivity remained strong: real estate transactions increased 3% to 121,516, demonstrating efficiency gains despite a smaller agent base.

Throughout November, the company’s strategic focus remained centered on platform enhancements, agent training and continued investment in AI-driven technology. Management emphasized strengthening the value proposition for active agents, improving retention of top performers and accelerating global expansion efforts. Industry commentary highlighted that eXp’s cloud-based infrastructure continues to offer scalability advantages and operational flexibility, supporting the company’s ability to navigate shifting real estate market conditions.

Overall, November represented a constructive month for eXp. The strong stock recovery, combined with steady operational performance and growing sales activity, signaled renewed market confidence. While the company still faces near-term pressure from agent turnover and real estate market volatility, its technology-driven model, international reach and consistent execution position it favorably for potential growth as market conditions stabilize heading into late 2025.

Primerica, Inc. (NYSE: PRI), together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates through three segments: Term Life Insurance; Investment and Savings Products; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment offers mutual funds, various retirement plans, managed investments, variable and fixed annuities, fixed indexed annuities and segregated funds. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services assisting subscribers with matters such as drafting wills, living wills and powers of attorney; trial defense and motor vehicle-related matters; ID theft defense services; auto and homeowners’ insurance; home automation solutions; and supplemental, accidental death and disability insurance. The company distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.

In November, the stock price declined by 1.0% vs. October 2025. For the first eleven months of 2025, the stock has declined 5.2% year-to-date. Since the inception of the DSCI on February 1, 2020, PRI has appreciated 134.9%, remaining the strongest long-term performer among index constituents.

Primerica shares moved modestly lower in November as investors evaluated the company’s third-quarter 2025 earnings results and subsequent capital allocation announcements. The third-quarter report highlighted record Investment & Savings Products (ISP) sales, strong client asset growth, and continued focus on expanding and supporting the life-licensed representative force. Management emphasized solid cash generation and robust capital positioning.

In mid-November, the company announced two notable capital-return actions:

1. A quarterly dividend declaration payable in mid-December.
2. A $475 million share repurchase authorization extending through the end of 2026.

These actions signal management’s confidence in long-term business fundamentals and its commitment to delivering shareholder returns.

During the month, Primerica also released updated consumer insights based on its Financial Security Monitor and Household Budget Index™, noting that middle-income households continue to experience financial strain from elevated living costs. Families reported relying more heavily on savings, credit and reduced retirement contributions, underscoring ongoing economic pressures. Although this environment challenges consumers, it also reinforces demand for Primerica’s financial guidance and protection-oriented products.

Analyst and industry commentary in November focused on several themes:

• Strong ISP performance, with record quarterly sales and growing client asset balances.
• Shareholder returns, driven by the new buyback authorization and ongoing dividends.
• Field force dynamics, as industry outlets noted Primerica’s steady position within the direct-selling financial services sector.

Insider and ownership activity, with some outlets noting recent insider selling but maintaining positive long-term assessments of company execution.

Management reiterated its priorities of expanding and improving the productivity of its licensed representative network, increasing ISP sales and maintaining disciplined underwriting and capital management. The company continues to benefit from a diversified revenue base across term life insurance and investment and savings products, supported by a stable middle-income client base.

The modest 1.0% decline in November occurred against a backdrop of otherwise strong operational results and significant capital-return initiatives. While macroeconomic pressures remain a factor for Primerica’s core customers, the company’s long-term performance, disciplined financial management and resilient distribution model continue to position it as one of the strongest performers within the DSCI.

Oliveda International, Inc. (OTC: OLVI) was founded in 2003 and has more than 20 years of experience in: 1) the management and organic certification of mountain olive trees; 2) the extraction of international award-winning extra virgin olive oils; 3) the extraction of hydroxytyrosol, a compound with antioxidant, anti-inflammatory, and skin- and eye-protective effects; and 4) the production and distribution of cosmetic and holistic waterless products derived from the olive tree.

Oliveda International, Inc. and its subsidiaries, including Olive Tree People Inc., Olive Tree People Europe AG, Oliveda Deutschland GmbH and Olive Tree Farmers SL, were founded by German real estate investor Thomas Lommel. The group has established a unique market position through innovations such as Olive Tree Therapy “10 years in 14 days,” olive matcha (made from ground olive leaves) and a coffee alternative based on olive leaves and hydroxytyrosol. Lommel is also active in the mindfulness sector with his olive tree sound bath meditations and the broadcast of olive tree frequencies globally.

Comparing November 2025 to October 2025, the stock price increased by 7.1%. For the first eleven months of 2025, the stock declined by 90.4%.

In November, Oliveda International launched its first hydroxytyrosol-based pet brand, Is that Matty, marking a strategic expansion beyond human cosmetics and wellness. This launch follows a strong 2025 growth cycle with Olive Tree People reporting over US $104.5 million in net revenues during its second year in the US.

The company continued its expansion in Europe through the direct-to-consumer (D2C) model via Olive Tree People Europe AG, following its US and Canada operations. Additional waterless and hydroxytyrosol-based products remain in development, diversifying the portfolio beyond skincare and makeup. Operationally, Oliveda advanced its vertical integration strategy, including construction of a new olive mill in partnership with the municipality of Arroyomolinos de León, to ensure supply stability for global operations.

While these initiatives position Oliveda for global growth, execution risks remain in new markets. The 90% decline in stock value over 11 months reflects market skepticism about the scalability and sustainability of the direct-selling model amid volatility and low trading volume.

CEO Thomas Lommel emphasized that despite market volatility, Oliveda remains committed to innovation, sustainability, and its mission to redefine beauty and wellness through the power of the olive tree.

The Beachbody Company, Inc. (NYSE: BODI) operates as a fitness and nutrition company in the United States and internationally. The company offers Beachbody on Demand, a subscription streaming service providing fitness programs such as P90X, Insanity, and 21 Day Fix; nutrition programs including Portion Fix and 2B Mindset; and nutritional products like Shakeology shakes and Beachbody Performance supplements. The company also faces legal challenges in California, where efforts are underway to reclassify independent consultants as employees, which may impact its direct selling model.

In November, the stock price increased by 82.1% compared to October 2025. For the first eleven months of 2025, the stock price increased by 43.6%.

Recent updates reported through financial and industry coverage highlight that the company’s November performance was strongly influenced by its third-quarter 2025 results released earlier in the month. Revenue for Q3 reached approximately $59.9 million, with digital subscriptions continuing to represent the most resilient segment of the business. Management reported a return to profitability for the quarter, including positive adjusted EBITDA, reflecting the impact of cost-reduction efforts and a more efficient operating structure. These results were favorably received by investors, contributing to the substantial stock price increase during November. Industry reporting from direct-selling and affiliate-marketing sources also emphasized progress in the company’s transition toward an affiliate-driven model, noting growing stability in digital subscriber metrics and ongoing simplification of the compensation and distribution structure.

The strong stock recovery in November reflects improved investor confidence as the company shows signs of operational stabilization, strengthened margin performance and early success in its strategic pivot. Nonetheless, continued revenue pressures and regulatory uncertainties remain important considerations as the company works to sustain momentum through the remainder of the year.

Below are two summary diagrams on the direct selling large cap companies.

The Real Brokerage Inc. (NASDAQ: REAX), founded in 2014, is a technology-driven, asset-light real estate brokerage that empowers agents through a cloud-based platform, AI tools and fintech solutions. Operating across the US and Canada, the company combines commission-based revenue, innovative agent incentives and strategic acquisitions to disrupt traditional brokerage models and drive scalable growth.

The Real Brokerage entered November 2025 trading below its 52-week high, with the stock fluctuating in the $3.60–$4.10 range throughout the month and closing November at a notable discount of roughly 30–35% from its annual peak. Despite the softer share price, market sentiment remained stable as investors evaluated the company’s continued operational momentum and expanding agent network.

Operationally, November was a strong month. Real was recognized as one of the fastest-growing technology companies in North America, ranking No. 100 on the 2025 Deloitte Technology Fast 500™ due to 939% revenue growth from 2021 to 2024. This acknowledgment reinforced the company’s positioning as a tech-driven brokerage with scalable, asset-light economics.

During the month, Real resolved its litigation with former CFO Michelle Ressler, achieving a settlement with no payment required from the company. This removed a lingering source of uncertainty and was viewed positively from a governance standpoint. Additionally, leadership activity remained high-profile: CEO Tamir Poleg presented the company’s long-term vision at the RBC Global Technology, Internet, Media & Telecommunications Conference, highlighting Real’s focus on organic growth, agent empowerment and deepening the technological foundation of its platform. Later in the month, Poleg filed a notice to sell a small number of restricted shares—a standard administrative step but one noted by the market.

The company also prepared for its annual agent conference, RISE 2025, where it planned to unveil new AI tools, peer-learning programs and community initiatives, underscoring its ongoing commitment to innovation and the agent experience.

Financially, the most recent Q3 2025 results (released at the end of October) continued to define expectations for the November period. Revenue grew 53% year-over-year, adjusted EBITDA reached $20.4 million, and the agent network expanded to more than 30,000 agents across the US and Canada. Operational efficiency improved as adjusted expense per transaction declined 13%, and the company generated strong operating cash flow while continuing its share repurchase program, signaling management’s confidence in long-term value creation.

Analyst sentiment in November remained constructive, with at least one major firm reaffirming a Buy rating based on Real’s scalable model and consistent revenue growth trajectory.

Overall, November 2025 reflected steady operational strength for The Real Brokerage. Despite share price volatility, the company delivered meaningful advancements in technology, recognition, legal clarity and strategic communication—all contributing to a reinforced long-term growth outlook.

Small Cap

Below is the November information for the two largest small cap companies, Nature’s Sunshine and LifeVantage.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR), a natural health and wellness company, manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America and internationally. The company provides general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy and vision; immune products; cardiovascular products; and digestive products. It also offers personal care products, including oils and lotions, aloe vera gel, herbal shampoo, herbal skin treatment, toothpaste and skin cleanser products, as well as weight management products. The company provides its products under the Nature’s Sunshine Products and Synergy WorldWide brands directly to customers and to a sales force of independent consultants. Nature’s Sunshine Products, Inc. was founded in 1972 and is headquartered in Lehi, Utah.

In November, NATR’s stock price increased by 52.7% compared to October 2025, marking the strongest monthly gain among small-cap direct-selling companies. For the first eleven months of 2025, the stock rose 40.4%, and since the launch of the DSCI index, NATR has gained 165.0%.

During November, the company reported its Q3 2025 results, delivering net sales of $128.3 million, up 12% year-over-year, achieving its highest quarterly revenue to date. Adjusted EBITDA increased 42% to $15.2 million, while gross margin improved to 73.3%, supported by operational efficiencies and favorable product mix. GAAP net income was $5.3 million or $0.30 per diluted share, up from the prior year. Digital momentum remained strong, with North America digital sales growing 52% year-over-year, driven by expanding ecommerce and auto ship programs. International regions, particularly Asia-Pacific and Europe, also posted strong growth. The company ended the quarter with approximately $95.6 million in cash and no debt.

Given this strong performance, management raised full-year 2025 guidance to $476–480 million in net sales and $47–49 million in adjusted EBITDA. Positive responses from analysts and direct selling industry coverage, including favorable commentary on digital expansion and operational strength, contributed to heightened investor confidence and the substantial share-price surge in November.

Nature’s Sunshine enters the final quarter of the year with solid momentum, driven by digital channel growth, international expansion and reinforced profitability, positioning the company for continued strength heading into 2026.

LifeVantage Corporation (NASDAQ: LFVN) engages in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and probiotics, weight management, and skin and hair care products. It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids, and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, support cognitive functions and support normal sleep patterns; LifeVantage Daily Wellness, a dietary supplement designed to strengthen immune health; LifeVantage Rise AM & Reset PM System that provides the body with the right nutrients; LifeVantage D3+, a dietary supplement that provides vitamin D3, vitamin K2, magnesium, calcium and other trace minerals to support a balanced immune system, strong bones and cardiovascular health; PhysIQ Fat Burn to support weight management; PhysIQ Prebiotic is a dietary supplement designed to support the good bacteria in the gut and a healthy microbiome; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix. The company also provides anti-aging skincare products, including liquid collagen, facial cleansers, eye cream, moisturizing cream, sunscreen, perfecting lotions, hand creams as well as hair care products, such as invigorating shampoos, nourishing conditioners and scalp serums under the TrueScience brand name. It sells its products through its website and network of independent consultants in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore and the Philippines. The company also launched Evolve Compensation Plan and other LV360 initiatives into the Philippines, Taiwan, Hong Kong and Singapore. The company is based in Lehi, Utah.

In November, LifeVantage’s stock price declined by 16.7% compared to October 2025, narrowing the company’s year-to-date losses to 61.1%. Since the February 1, 2020 establishment of the DSCI, LFVN has fallen 42.7%.

The November decline followed the company’s release of first-quarter fiscal 2026 results on November 4, which reported revenue of $47.6 million—below market expectations. Margin pressures tied to shipping and warehouse expenses, along with integration costs related to the LoveBiome acquisition, contributed to cautious investor sentiment and increased volatility.

Despite short-term challenges, LifeVantage continued to advance key strategic initiatives in November. The company provided updates on the integration of LoveBiome, reinforcing its growing focus on gut health and microbiome-oriented innovation. Management also highlighted ongoing consultant engagement programs tied to the Activate 2025 framework, including Momentum initiatives designed to support field productivity and long-term sales growth. In addition, LifeVantage announced its scheduled quarterly dividend, underscoring its intent to maintain shareholder returns while navigating near-term operational pressures.

Operationally, the company reported gross-profit and margin compression due to elevated logistics and seasonal costs. Although revenue showed slight year-over-year growth on a reported basis, it fell short of consensus expectations, making revenue execution and margin recovery central themes for investors in November. Still, the company emphasized continued progress in strengthening its product portfolio, particularly in science-backed nutrigenomics and GLP-1-related wellness solutions.

Overall, while LifeVantage’s shares faced downward pressure in November, the company’s ongoing focus on product innovation, microbiome expansion, consultant engagement and disciplined capital allocation continues to underpin its long-term growth strategy.

Below are two summary diagrams on the direct selling small cap companies.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 3.9 days as of November 14, 2025. Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index mirrors the DJIA for the month of October 2025

The Direct Selling Capital Advisors Direct Selling Index (DSCI) increased by 2.7% in October compared to September 2025. The DJIA rose by 2.6% over the same period. During the first ten months of 2025, the DSCI has gained 11.8%. Since its inception, the DSCI has delivered a total return of 87.2%, underscoring the sustained strength and stability of the direct selling channel over time.

Positive Developments

• Strong organic growth in select firms: Zinzino reported approximately 65% year-on-year revenue growth in October 2025, with year-to-date revenue up ~55%. Growth was especially strong in Central Europe (+88%) and Asia-Pacific (+384%), while some regions, such as Eastern Europe, remained flat.
• Continued focus on digital and distributor engagement strategies: Many direct-selling firms are refining business and compensation models to improve distributor motivation and sales performance.
• Recognition and brand/industry initiatives: Herbalife Nutrition received industry recognition for innovative distributor programs, highlighting the importance of branding and engagement initiatives
  

Challenges & Caution Areas

• Uneven regional performance: Despite strong growth in some regions, other markets show flat or limited performance, emphasizing the need for targeted market strategies.
• Ongoing macroeconomic and structural pressures: Companies are still adjusting business models rather than relying on organic growth alone, reflecting persistent economic uncertainty.
• Limited public data: Many direct-selling firms have limited October disclosures, making comprehensive industry-level analysis challenging.
  

Strategic Implications / Outlook

• Omnichannel Integration: Firms blending traditional distributor networks with digital direct-to-consumer channels maintain a competitive advantage.
• Operational Efficiency: Strong growth in high-potential geographies underscores the importance of scaling efficiently while managing logistics and costs.
• Strategic Growth / M&A: Focus remains on selective international expansion and organic growth with M&A activity less pronounced in October.
• Distributor Engagement: Improving support, incentives, and training remains a top priority to sustain performance and retention.
• Regulatory & Legal Oversight: No major new regulatory developments in October; the environment remains stable but requires ongoing vigilance.
  

Summary

In October 2025, the direct-selling channel demonstrated strong performance among companies with global reach and digitally enabled distributor engagement strategies. While growth opportunities remain, particularly in emerging markets, uneven regional performance and economic pressures highlight the need for disciplined execution. Companies combining international expansion with enhanced digital and distributor strategies are positioned to outperform their peers.

Large Cap

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Founded in 1995, Betterware de Mexico (NASDAQ: BWMX) is the leading direct-to-consumer company in Mexico focused on offering innovative products that solve specific household needs related to organization, space-saving, practicality and hygiene. Through the acquisition of JAFRA on April 7, 2022, the company expanded into the beauty category across Mexico and the United States, offering fragrances, color and cosmetics, skincare and toiletries. The combined business operates an asset-light model with historically strong profitability, double-digit revenue growth rates and solid free-cash-flow generation.

In October 2025, Betterware’s stock price increased by 11.0% compared to September. Year-to-date, the stock recorded a positive performance of 29.5%. Since the establishment of the DSCI on February 1, 2020, BWMX has grown by 53.7%.

For Q3 2025, the company reported consolidated revenue growth of 1.4% year-over-year and a strong 22% increase in EBITDA, with EBITDA margin expanding to 21.4%, reflecting significant improvements in profitability. Betterware Mexico faced a moderate revenue decline due to softer consumer spending, while JAFRA Mexico delivered robust growth of approximately 31% year-over-year, supported by brand revitalization, enhanced salesforce productivity and strategic pricing initiatives.

The quarter demonstrated continued progress in the company’s transformation strategy following the JAFRA acquisition. Strong performance from the beauty segment, combined with disciplined cost management and improved free-cash-flow conversion, helped reinforce investor confidence—contributing to the positive stock movement in October.

Betterware also continued advancing its international expansion efforts, with growing momentum in recently launched markets such as Ecuador and Guatemala. Management reaffirmed its long-term strategic priorities centered on international growth, product portfolio optimization and sustained profitability to support its long-term revenue ambitions and value creation for shareholders.

Nu Skin Enterprises, Inc. (NYSE: NUS), together with its subsidiaries, develops and distributes a broad portfolio of beauty and wellness products worldwide. The company’s offerings include skincare devices (ageLOC LumiSpa, ageLOC LumiSpa iO), cosmetics and personal care products, and nutritional/wellness products such as LifePak, ageLOC TR90 and Beauty Focus Collagen+. Nu Skin conducts research and product development across skin care and nutrition and sells through retail channels, digital platforms and a global network of independent direct sellers under the Nu Skin, Pharmanex and ageLOC brands. The company was founded in 1984 and is headquartered in Provo, Utah.

In October 2025, Nu Skin’s stock price declined by 11.3% compared to September. Year-to-date the stock is up 55.6%, while since the establishment of the DSCI on February 1, 2020, Nu Skin’s stock has declined 54.6%. The stock’s 52-week range remains wide, with a high near $11.62 and a low of $5.32, reflecting continued volatility as the market weighs near-term pressures against strategic progress.

Nu Skin continued to face top-line pressure driven by contraction in parts of its direct-selling network even as pockets of growth and operational improvement emerged. The company’s device and manufacturing businesses showed positive momentum during October. Nu Skin was recognized in industry rankings as a leading beauty and wellness device company, underscoring the strength of its device platform and the strategic importance of device-enabled product ecosystems to future recurring revenue.

Customer and affiliate metrics have been under pressure for multiple quarters, and October commentary reinforced this trend, with management continuing to prioritize salesforce alignment, targeted incentives and product-led engagement initiatives to rebuild field productivity. The company reiterated that shifts toward affiliate-powered social commerce and subscription offerings are central to stabilizing and reaccelerating active user and affiliate growth.

Nu Skin reiterated its focus on the device-plus-consumable strategy and signaled ongoing product portfolio expansion later in the year. The company continues to progress on the Prysm iO intelligent wellness device and related personalization/subscription capabilities, which management expects to stimulate the supplements and recurring-commerce businesses once broadly deployed.

Management remains focused on three core levers: (1) accelerate adoption of device ecosystems and subscription models to improve customer lifetime value; (2) deepen momentum in high-growth markets (notably Latin America) while preparing for targeted new market entries; and (3) continue operational optimization to protect margins amid revenue headwinds. While near-term revenue pressures persist, Nu Skin pointed to margin discipline and targeted investments in innovation and market expansion as the path to restoring more consistent growth.

October was a mixed month: the stock pulled back materially, reflecting investor sensitivity to near-term network and revenue challenges, yet underlying strategic progress—device recognition and ongoing product roadmaps—provides a plausible recovery path if the company can translate innovation and market expansion into improved salesforce productivity and recurring revenue growth.

Herbalife Nutrition, Inc. (NYSE: HLF), together with its subsidiaries, provides health and wellness products in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China and Asia Pacific. The company offers products in the areas of weight management; targeted nutrition; energy, sports and fitness; outer nutrition; and literature, promotional and other items. It also provides weight management products, including meal replacement products, protein shakes, drink mixes, weight loss supplements, healthy snacks and metabolism boosting teas; targeted nutrition products, which include functional beverages and dietary and nutritional supplements that contain herbs, vitamins, minerals and other natural ingredients; outer nutrition products, such as facial skin, body and hair care products; and energy, sports and fitness products, including N-R-G tea and energy drink products. In addition, it offers literature, promotional and other materials that comprise start-up kits, sales tools and educational materials. The company sells its products through sales representatives, independent service providers and company-operated retail stores and platforms. The company was formerly known as Herbalife Nutrition Ltd. and changed its name to Herbalife Ltd. in April 2023. Herbalife Ltd. was founded in 1980 and is headquartered in Los Angeles, California.

For the month of October 2025, Herbalife’s stock declined by approximately 6.0% compared to September, marking a pause in the recent positive momentum. Year-to-date, the stock has increased by 19.6%, maintaining a positive return. However, HLF remains down 75.3% since the establishment of the DSCI on February 1, 2020.

In October, the stock’s Relative Strength Rating remained strong, reflecting continued technical resilience. Analysts note that investors may watch for entry setups such as pullbacks to the 50-day or 10-week moving average or formation of a three-week-tight pattern. Earnings in the last quarter rose modestly, while net sales increased by 2.7% year-over-year, with North America posting its first quarterly gain since Q2 2021.

On November 6, 2025, Herbalife reported its Q3 2025 financial results, showing net sales near $1.30 billion, adjusted EBITDA above expectations and continued improvement in its leverage ratio. In October, the company opened a new “Center of Excellence” R&D and quality-control lab to support innovation and was recognized with the Direct Selling Association’s “Vision for Tomorrow” award for its Casa Herbalife initiative.

Herbalife continues to trade at a discount to fair value estimates, suggesting potential upside if current operational and market trends persist. While earnings forecasts indicate a modest decline over the next three years, improvements in regional performance, product innovation and technical strength could support recovery.

With stable stock performance, regional growth and ongoing strategic initiatives, Herbalife enters the final months of 2025 positioned for potential growth, making upcoming quarters critical for confirming this trajectory.

Medifast, Inc. (NYSE: MED), through its subsidiaries, operates as a health and wellness company offering habit-based, coach-guided lifestyle solutions focused on weight management and obesity support in the United States. The company’s flagship brand, OPTAVIA, delivers clinically supported weight loss programs, GLP-1 support plans and a wide variety of food products, such as bars, shakes, soups, cereals and snacks, complemented by one-on-one coaching, digital tools and community support. Medifast was founded in 1980 and is headquartered in Baltimore, Maryland. Its products are sold via point-of-sale transactions and ecommerce.

For the month of October 2025, shares of Medifast declined by 13.2% compared to September. Year-to-date, the stock is down 31.8%, and since the establishment of the DSCI on February 1, 2020, the stock has declined by 84.9%.

In Q3 2025, the company reported revenue of $89.4 million, a 36.2% decrease compared to the same period in 2024. Medifast recorded a net loss of $2.3 million, or $0.21 per diluted share, compared with net income of $1.1 million, or $0.10 per diluted share, a year earlier. Gross profit fell 41.2% to $62.2 million, with a gross margin of 69.5%. The number of active OPTAVIA coaches declined by 35.0% to 19,500, while SG&A expenses decreased by 36.0% to $66.2 million, primarily due to lower coach compensation, reduced marketing spending and fewer convention-related costs. The company ended the quarter with $173.5 million in cash, cash equivalents and investment securities and reported no debt.

During the quarter, Medifast continued its strategic pivot toward metabolic health solutions, including enhanced support for clients using GLP-1 medications and introduced initiatives aimed at improving coach engagement and retention. For Q4 2025, Medifast expects revenue between $65 million and $80 million, with earnings per share projected in the range of –$0.70 to –$1.25.

Following the Q3 earnings release, Medifast’s shares experienced a moderate decline as investors focused on the ongoing revenue contraction, continued decline in coach numbers and cautious forward guidance, despite the company’s solid balance sheet and cost-control efforts.

USANA Health Sciences, Inc. (NYSE: USNA) develops, manufactures and sells science-based nutritional, personal care and skincare products in the Asia Pacific, the Americas and Europe. It operates in two segments, direct selling and Hiya direct-to-consumer. The company offers USANA nutritional optimizers, including supplements for cardiovascular health, skeletal/structural health and digestive health; Essentials/CellSentials, such as vitamin and mineral supplements for age groups beginning with children 13 months of age; and food products that include meal replacement shakes, snack bars and other related products for healthy weight management, digestive health and energy and hydration. It also provides Celavive, a skincare regimen for various skin care types and ethnicities and all other products comprising materials and online tools for associates to build business and marketing of products. The company sells its products through retail customers, a subscription model and direct selling, as well as online. The company has a research collaboration agreement with Beijing University of Chinese Medicine; and National Sports Training Bureau. USANA Health Sciences, Inc. was founded in 1992 and is headquartered in Salt Lake City, Utah.

For the month of October 2025, USANA’s stock declined by 23.5% compared to September, marking one of its steepest monthly drops of the year. Year-to-date, the stock is down 41.1%, significantly underperforming broader markets and peers. Since the establishment of the DSCI on February 1, 2020, USANA shares have lost 68.0%.

October was largely shaped by the company’s third-quarter earnings report, which triggered substantial volatility and investor concern. On October 22, USANA reported Q3 2025 net sales of $214 million, representing approximately 7% year-over-year growth, but posted a net loss of $6.5 million, reflecting continued margin pressure. Despite revenue growth driven by the Hiya direct-to-consumer segment, profitability came under strain due to higher operating expenses and transition costs associated with the rollout of a new global compensation plan.

The earnings release and subsequent guidance revision weighed heavily on investor sentiment. Management trimmed its full-year 2025 outlook, citing near-term disruption from the compensation plan implementation and productivity adjustments among Brand Partners. Analysts viewed the update as a sign of short-term turbulence, with several rating agencies and research outlets lowering their near-term forecasts. Zacks, for instance, shifted its stance to a more cautious outlook, reflecting diminished earnings visibility.

Operationally, the company continues to emphasize digital expansion and product innovation while maintaining a strong balance sheet. Growth in the Hiya subscription business provided a partial offset to softness in the core direct-selling channel, but active customer counts and sales productivity remained below last year’s levels. Management reiterated that 2025 is a 53-week fiscal year and expects that the transition to the new compensation model will enhance long-term field engagement and sales efficiency once fully implemented.

However, October’s steep share-price decline underscores the market’s growing impatience with near-term execution risks. Analysts highlighted that while USANA’s revenue trajectory is stabilizing, profitability headwinds, increased costs and declining field activity continue to pressure the stock.

Overall, October reflected a challenging month for USANA, marked by solid top-line growth but weak earnings performance and a negative investor reaction. As the company enters the final quarter of 2025, management’s ability to restore Brand Partner productivity, stabilize margins and translate strategic initiatives into consistent growth will be key to rebuilding investor confidence.

eXp World Holdings, Inc. (NASDAQ: EXPI), together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. It operates through three segments: North American Realty, International Realty and Other Affiliated Services. The company acts as a licensed broker for processing residential and commercial real estate transactions and provides other real estate support services. It also offers FrameVR.io, a web-accessible proprietary technology offering immersive 3D platforms; a magazine and related media properties which provide training, classes, resources and tools under the SUCCESS brand; SUCCESS Space, a coworking solution offering rental workspaces for individual and group use, access to professional development coaching, media production services, virtual-world communications technology and full-service cafes. It operates in North America, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, Poland, Dubai and recently expanded into Japan. The company was formerly known as eXp Realty International Corporation and changed its name to eXp World Holdings, Inc. in May 2016. eXp World Holdings, Inc. was incorporated in 2008 and is headquartered in Bellingham, Washington.

The stock price declined 7.9% in October vs. September 2025. For the first ten months of 2025, their stock price has declined by 11.0%. More constructively, EXPI shares have appreciated an aggregate 114.2% over the five years the DSCI has been computed, reflecting strong long-term performance despite recent headwinds.

On November 6, the company reported its Q3 2025 financial results. Revenue grew 7% year-over-year to $1.317 billion, driven by higher real estate sales volume, which reached $54.1 billion (+7% YoY). Net income for the quarter was $3.5 million, with EPS of $0.02, while adjusted EBITDA totaled $17.7 million. Net cash provided by operating activities came in at $28.9 million. While revenues and sales volume improved, agent and broker count declined 2% to 83,446, reflecting ongoing retention and recruiting pressures.

Operationally, eXp continued investing in its cloud-based platform, agent tools and global expansion initiatives. Productivity per agent remained healthy, with transactions rising 3% to 121,516 in Q3, highlighting efficiency gains even as total agent count slipped. Platform enhancements, agent training, and AI-driven initiatives were key focus areas during the quarter, positioning the company for longer-term growth despite short-term operational pressures.

October’s stock weakness likely reflected investor caution over near-term profitability, modest agent-count declines and elevated operating expenses from strategic investments. Nevertheless, eXp’s strong five-year performance, scalable cloud-based model, and disciplined financial management continue to support the company’s long-term growth narrative. The combination of platform strength, international reach and training/technology initiatives provides a foundation for potential recovery if real estate market conditions stabilize in late 2025.

With a blend of long-term performance, short-term operational challenges and solid platform fundamentals, October highlighted the market’s cautious stance on near-term metrics while maintaining confidence in eXp’s long-term growth story.

Selected financial & operational snapshot:

• Stock price: -7.9% in October vs. September 2025; -11.0% YTD; +114.2% five-year aggregate appreciation
• Q3 2025 revenue: $1.317 billion (+7% YoY)
• Q3 2025 adjusted EBITDA: $17.7 million
• Q3 2025 net income: $3.5 million (EPS $0.02)
• Agents and brokers (Sept 30, 2025): 83,446 (-2% YoY)
• Q3 transactions: 121,516 (+3% YoY); sales volume: $54.1 billion (+7% YoY)
• Net cash provided by operating activities: $28.9 million

Primerica, Inc. (NYSE: PRI), together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities and fixed indexed annuities and offers segregated funds. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense and motor vehicle-related matters; ID theft defense services; auto and homeowners’ insurance; home automation solutions and insurance products, including supplemental and accidental death and disability insurance. It distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.

In October, the stock price declined by 5.9% vs. September 2025. For the first ten months of 2025, the stock has declined 4.3%. PRI has appreciated 137.2% since February 1, 2020, the best long-term performance for any DSCI member.

Primerica shares slipped in October after modest gains earlier in the year, as investors monitored the company’s third quarter earnings report and broader consumer spending trends. Despite the pullback, Primerica remains among the strongest long-term performers within DSCI, underpinned by a resilient client base and disciplined financial management.

The Primerica Household Budget Index™ (HBI) for September 2025, released in October, came in at 99.9%, down 0.1 percentage points from August’s 100.0%, according to Primerica’s consulting economist, Amy Crews Cutts. She noted, “The continued stability of the HBI suggests that wage growth remains sufficient to offset rising costs of essentials, though many families are still exposed to volatility in food and energy prices.” This signals that the company’s core middle-income customer base continues to face inflationary pressures but is managing to maintain relative financial stability.

Management continues to prioritize the expansion of its licensed representative force and the development of additional financial wellness offerings tailored to its core demographic. Analysts emphasize the company’s conservative underwriting standards and strong capital reserves as important factors supporting ongoing profitability and stability, even as economic conditions remain uncertain.

Oliveda International, Inc. (OTC: OLVI) was founded in 2003 and has more than 20 years of experience in: 1) the management and organic certification of mountain olive trees; 2) the extraction of international award-winning extra virgin olive oils; 3) the extraction of hydroxytyrosol, a compound with antioxidant, anti-inflammatory, anticancer and skin- and eye-protective effects; and 4) the production and distribution of cosmetic and holistic waterless products derived from the olive tree.

Oliveda International, Inc. and its subsidiaries, including Olive Tree People Inc., Olive Tree People Europe AG, Oliveda Deutschland GmbH and Olive Tree Farmers SL, were founded by German real estate investor Thomas Lommel. The group has established a unique market position through innovations such as Olive Tree Therapy “10 years in 14 days,” olive matcha (made from ground olive leaves) and a coffee alternative based on olive leaves and hydroxytyrosol. Lommel is also active in the mindfulness sector with his olive tree sound bath meditations and the broadcast of olive tree frequencies globally.

Comparing October 2025 to September 2025, the stock price declined by 63.6%. For the first ten months of 2025, the stock declined by 91.1%.

Olive Tree People, OLVI’s waterless beauty subsidiary, continued its global expansion in October 2025 with the official launch of operations in Europe through Olive Tree People Europe AG. Following extraordinary growth in 2024 and a strong first half of 2025, the company expanded its retail and direct selling presence across key European markets. In early October, Olive Tree People hosted a major event at its Los Angeles flagship store, celebrating over 69,000 active brand partners and unveiling a new product concept connected to its “NO MAKEUP” line, first introduced at New York Fashion Week in September.

In October, the company reaffirmed its upcoming launch of the hydroxytyrosol-based pet care brand “Is that Matty,” scheduled for November, and confirmed progress on the construction of a new olive mill in partnership with the municipality of Arroyomolinos de León. These initiatives aim to strengthen OLVI’s vertical integration and ensure supply stability for its growing global operations.

CEO Thomas Lommel emphasized that despite volatility in the capital markets, Oliveda International remains focused on innovation, sustainability and its mission to redefine beauty and wellness through the power of the olive tree.

The Beachbody Company, Inc. (NYSE: BODI) operates as a fitness and nutrition company in the United States and internationally. The company offers BODi (formerly Beachbody On Demand), a subscription streaming service providing fitness programs such as P90X, Insanity and 21 Day Fix; nutrition programs including Portion Fix and 2B Mindset; and nutritional products like Shakeology shakes and BODi Performance supplements. The company continues its transition from a traditional direct selling model toward an affiliate and omnichannel approach, aiming to improve customer acquisition efficiency and streamline operations. Legal challenges in California regarding the classification of independent consultants as employees remain a potential risk to its business model.

In October, the stock price declined by 17.8% compared to September 2025. For the first ten months of 2025, the stock price declined by 21.1%.

Recent updates include continued implementation of cost reduction measures and a focus on expanding the company’s digital subscription base. According to recent reports, total revenue in Q2 2025 reached approximately $63.9 million, reflecting a significant year-over-year decrease, while net losses narrowed compared to the prior year period. Management emphasized progress in shifting the business model and strengthening recurring subscription revenue through its affiliate program relaunch.

The decline in stock price during October reflects investor caution amid ongoing revenue pressures and legal uncertainties. However, operational improvements, a streamlined cost structure and growing digital engagement suggest cautious optimism for long-term stabilization.

Below are two summary diagrams on the direct selling large cap companies.

Founded in 2014, The Real Brokerage Inc. (NASDAQ: REAX) is a technology-driven, asset-light real estate brokerage that empowers agents through a cloud-based platform, AI tools and fintech solutions. Operating across the US and Canada, the company combines commission-based revenue, innovative agent incentives and strategic acquisitions to disrupt traditional brokerage models and drive scalable growth.

In Q3 2025, Real reported revenue of $568.5 million (+53% YoY) and gross profit of $49.2 million (+45% YoY). Adjusted EBITDA increased to $20.4 million, up from $13.8 million a year earlier, while net income reflected a modest net loss of $0.4 million, a significant improvement from a $2.2 million loss in Q3 2024. The company closed 53,512 transactions (+59% YoY) with a total transaction value of $21.4 billion (+55% YoY). Agent count grew 43% to 30,120 at quarter-end, supported by continued recruitment momentum and platform expansion. Operating cash flow remained strong, and the company ended the quarter with solid liquidity and no debt.

Strategic highlights included the ongoing rollout of the Real Wallet fintech platform and the expansion of the integrated One Real ecosystem—including mortgage, title and insurance services—designed to enhance agent productivity and capture additional transaction value. The integration of Flyhomes’ AI-powered home search portal, announced earlier in 2025, has further strengthened Real’s data and AI capabilities, improving the agent and client experience across its cloud platform.

Throughout October, Real emphasized its focus on sustainable profitability and continued market share gains through a blend of technology innovation, agent growth and fintech monetization. With a debt-free balance sheet, robust operating cash generation and expanding revenue base, Real remains well-positioned to navigate housing market headwinds while scaling its unified real estate and fintech platform.

Small Cap

Below is the October information for the two largest small cap companies.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR), a natural health and wellness company, manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America and other markets internationally. The company provides general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy and vision; immune products; cardiovascular products; and digestive products. It also offers personal care products, including oils and lotions, aloe vera gel, herbal shampoo, herbal skin treatment, toothpaste and skin cleanser products as well as weight management products. The company provides its products under the Nature’s Sunshine Products and Synergy WorldWide brands directly to customers and to a sales force of independent consultants. Nature’s Sunshine Products, Inc. was founded in 1972 and is headquartered in Lehi, Utah.

In October, their stock price declined by 11.4% compared to September 2025. For the first ten months of 2025, the stock declined by 8.0%. Since the inception of the DSCI, NATR has gained 73.6%.

Recent developments include the relaunch of the company’s Power Line, a key metabolic health product range, as part of its ongoing innovation and wellness strategy. Additionally, Nature’s Sunshine announced a leadership transition with Kenneth Romanzi appointed as Chief Executive Officer effective October 29, 2025. The company also held its Q3 2025 earnings conference call for November 6, 2025. These updates drew investor attention and likely contributed to share price volatility during the month.

Operationally, the company continues to demonstrate resilience with strong international sales momentum, particularly in Japan and Central Europe and ongoing strength in digital and autoship channels. Its previously reported Q2 2025 results showed net sales of $114.8 million, up 4% year-over-year, adjusted EBITDA of $11.3 million, up 8% year-over-year, and gross margin improvement to 71.7%. The company ended the quarter with $81.3 million in cash and no debt and raised its full-year 2025 guidance to net sales between $460 million and $475 million, and adjusted EBITDA between $41 million and $45 million.

The sharp stock price decline in October, despite the company’s solid operational performance and raised full-year guidance, appears to be influenced by investor reaction to the CEO transition and broader small-cap market sentiment. However, Nature’s Sunshine’s strong balance sheet, consistent profitability, international growth and focus on digital expansion support a cautiously optimistic outlook for the remainder of the year.

LifeVantage Corporation (NASDAQ: LFVN) engages in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and probiotics, weight management and skin and hair care products. Its offerings include Protandim, LifeVantage Omega+, LifeVantage ProBio, LifeVantage IC Bright, LifeVantage Daily Wellness, LifeVantage Rise AM & Reset PM System, LifeVantage D3+, PhysIQ Fat Burn, PhysIQ Prebiotic, Petandim for Dogs and Axio, a nootropic energy drink mix. The company also provides anti-aging skincare and hair care products under the TrueScience brand. LifeVantage sells its products through its website and network of independent consultants in markets including the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore and the Philippines. The company is based in Lehi, Utah.

In October, LifeVantage’s stock price declined by 16.1% compared to September 2025, extending its year-to-date losses to 53.3%. Since the February 1, 2020 establishment of the DSCI, LFVN has decreased by 31.2%. The company’s shares continued to experience downward pressure amid broader market volatility and investor caution across the direct selling sector.

Despite the challenging stock performance, LifeVantage maintained strategic momentum during the month. The company completed the acquisition of LoveBiome, strengthening its position in the gut health and microbiome wellness category—a move that complements its existing ProBio and PhysIQ product lines. LifeVantage also continued its global distributor engagement initiatives, including Momentum and Momentum Academy events, designed to empower consultants and drive long-term sales growth.

The company’s summer Activate 2025 framework continues to guide its innovation and international expansion strategy, following its recent market entry into Iceland and clinical findings demonstrating a 200% increase in natural GLP-1 production, a hormone associated with appetite regulation and metabolic health.

While short-term stock performance remains under pressure, LifeVantage’s strategic initiatives—including product innovation, scientific validation and geographic expansion—continue to underscore the company’s commitment to long-term value creation and global brand growth.

Below are two summary diagrams on the direct selling small cap companies.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 6.3 days as of October 15, 2025. Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index mirrors the DJIA for the month of September 2025

The Direct Selling Capital Advisors Direct Selling Index (DSCI) rose 1.7% in September 2025 compared to August, while the Dow Jones Industrial Average (DJIA) advanced 2.5% over the same period. Year to date, the DSCI has gained 8.9%, reflecting steady growth across the sector. Since its inception, the DSCI has delivered an aggregate return of 82.3%, underscoring the long-term resilience and stability of the direct selling channel.

Industry Overview

The latter part of 2025 continued to test the resilience of the direct selling channel. While macroeconomic uncertainty remains a factor, companies within the sector are increasingly demonstrating adaptability, strategic growth and selective opportunity.

Key Industry Developments

• M&A Activity: Several companies expanded through strategic acquisitions, including distributor networks and intellectual property assets. These moves are aimed at strengthening market positioning, increasing product portfolios and enhancing operational efficiency.
• Regulatory Update: The Federal Trade Commission signaled a shift in enforcement of non-compete rules, moving from a blanket approach to case-by-case evaluations. This provides companies with clearer guidance on contractor and distributor agreements.
• Digital Transformation: Firms continue to leverage technology to optimize distributor engagement. Key initiatives include gamification, personalized incentives, real-time training and integrated digital platforms to improve motivation, retention and overall sales performance.
• Distributor Engagement: Strengthening distributor networks through targeted training programs, incentive systems and support mechanisms remains a key priority. Companies focusing on high-quality engagement are better positioned to retain top performers and maintain sales momentum.
• International Opportunities: Beyond the US, global markets continue to offer growth potential. Developed regions such as Germany are projected to see continued expansion, supported by favorable consumer trends, innovation and a stable legal framework.

Outlook

The direct selling channel faces both opportunities and challenges:

• Omnichannel Integration: Companies blending traditional distributor networks with digital direct-to-consumer channels are likely to gain a competitive advantage.
• Operational Efficiency: Rising costs in logistics, technology and marketing favor firms capable of scaling efficiently.
• Strategic Growth: M&A activity and international expansion provide pathways for market share growth.
• Enhanced Engagement: Investment in distributor support and digital tools remains essential for sustained performance and brand loyalty.

DSCI Methodology

The Direct Selling Capital Advisors Index (DSCI) is a market capitalization-weighted index of all US. publicly traded direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value; excess weight is redistributed among remaining constituents.

For more insights, read these articles: Pivots, Pressures and the Path Ahead, AI: The Other Opportunity, FTC Dismisses Federal Non-Compete Ban, DSEF Research Shows Rise in Consumer Trust

Large Cap

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Betterware de Mexico (NASDAQ: BWMX), founded in 1995, is the leading direct-to-consumer company in Mexico specializing in household organization, practicality, space-saving and hygiene products. Through the acquisition of JAFRA in April 2022, the company expanded into the beauty market in Mexico and the United States, offering fragrances, color cosmetics, skincare and toiletries. Betterware operates an asset-light business model with low capital expenditure requirements and has a track record of strong profitability, double-digit revenue growth and free cash flow generation. The company distributes its products in Mexico and the US.

In September 2025, Betterware’s stock price declined by 2.4% compared to August. Year-to-date, the shares are up 16.7%, and since the establishment of the DSCI on February 1, 2020, the stock has gained 38.6%.

The modest pullback in September follows a strong summer performance and comes amid broader market volatility in Mexico and the US. Analysts continue to view Betterware’s fundamentals positively, citing steady revenue growth and disciplined cost management.

However, some continue to highlight challenges around profit margins and interest coverage, factors that investors should monitor closely when evaluating BWMX, especially given the company’s exposure to consumer spending trends and currency fluctuations.

Despite short-term price weakness, Betterware de México declared a special dividend of MXN 200 million (approximately USD 11 million) in August 2025, payable on August 28, 2025, with a record date of August 11, 2025, according to the company’s official press release. This, along with its strong free cash flow and asset-light model, underscores its robust financial position and commitment to shareholder returns, following consistent profitability and stable cash flow generation throughout 2025.

Nu Skin Enterprises, Inc. (NYSE: NUS), together with its subsidiaries, engages in the development and distribution of various beauty and wellness products worldwide. It offers skincare devices, cosmetics and other personal care products, including ageLOC LumiSpa and ageLOC LumiSpa iO; and nutricentials skincare products. The company also provides wellness products, such as LifePak nutritional supplements, ageLOC TR90 weight management system and Beauty Focus Collagen+. In addition, it is involved in the research and product development of skincare products and nutritional supplements. The company sells its products under the Nu Skin, Pharmanex and ageLOC brands through retail stores, website, digital platforms and independent direct sellers and marketers, as well as a service center. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.

In September 2025, Nu Skin’s stock declined by 0.7% compared to August. Year-to-date, the shares are up 75.3%, and since the establishment of the Direct Selling Capital Advisors Index (DSCI) on February 1, 2020, the stock has declined 48.8%. The stock traded in a 52-week range of $5.32 to $14.62 as of the end of September. Analysts maintain a 23.25% growth estimate for 2025.

The modest decline in September follows an exceptional August rally driven by strong Q2 results and heightened investor optimism. Analysts view the slight pullback as a natural market correction after significant summer gains. Despite the dip, Nu Skin continues to benefit from improving profitability metrics and growing institutional interest.

The company maintained its quarterly dividend of $0.06 per share, consistent with its ongoing shareholder return strategy. Governance remains a focus area, as ISS continues to assign a QualityScore of 3/10, reflecting ongoing scrutiny around board structure and shareholder rights.

Looking ahead, analysts remain cautiously optimistic, emphasizing Nu Skin’s progress in product innovation—including the Prysm iO launch—and its efforts to strengthen distributor engagement and incentives. These initiatives, coupled with robust demand in core markets, are expected to support sustained growth momentum through the second half of 2025.

Herbalife Nutrition, Inc. (NYSE: HLF), together with its subsidiaries, provides health and wellness products across North America, Mexico, South and Central America, Europe, the Middle East, Africa, China and Asia Pacific. The company offers products in the areas of weight management; targeted nutrition; energy, sports and fitness; outer nutrition; and literature, promotional and other materials. Herbalife’s offerings include protein shakes, meal replacements, healthy snacks, metabolism-boosting teas, dietary supplements with natural ingredients, skincare and body care products and energy drinks. These are sold through sales representatives, independent service providers and company-operated retail stores and platforms. Founded in 1980 and headquartered in Los Angeles, California, the company changed its name from Herbalife Nutrition Ltd. to Herbalife Ltd. in April 2023.

In September 2025, Herbalife’s stock declined by 13% compared to August, moderating its earlier summer momentum. Year-to-date, the shares are up 27.2%, while since the launch of the Direct Selling Capital Advisors Index (DSCI) on February 1, 2020, the stock remains down 73.7%.

The decline reflects a period of market consolidation following a strong August (+6.3%), when sentiment improved on earnings outperformance and debt-reduction progress. According to Yahoo Finance and other analyst coverage, investors remain focused on Herbalife’s ability to sustain profitability amid slowing global demand and higher financing costs. Analysts maintain that the company’s valuation remains attractive, trading at roughly 3.5× forward earnings, though near-term volatility may persist.

During September, Direct Selling News highlighted Herbalife’s ongoing progress in sustainability and ESG initiatives. On September 3, 2025, DSN reported that Herbalife India was honored with the Sustainable Supply Chain Award at the BIGBOX India 2025 Summit, recognizing its commitment to responsible sourcing and operational efficiency. This recognition underscores the company’s efforts to enhance its global reputation and align its strategy with long-term sustainability goals.

Analysts continue to monitor the transition under CEO Stephan Gratziani, the first distributor to lead the company since its founder, while Executive Chairman Michael O. Johnson provides continuity at the board level. Management’s focus remains on digital engagement initiatives (e.g., Pro2col App and MultiBurn Subscription), aimed at strengthening distributor productivity and recurring revenue streams.

While September marked a setback in share performance, Herbalife’s improving fundamentals, disciplined balance-sheet management and growing ESG profile provide a constructive long-term outlook.

For more insights, read the article: Herbalife India Honored with Sustainable Supply Chain Award

Medifast, Inc. (NYSE: MED), through its subsidiaries, operates as a health and wellness company offering habit-based, coach-guided lifestyle solutions focused on weight management and obesity support in the United States. The company’s flagship brand, OPTAVIA, delivers clinically-supported weight loss programs, GLP-1 support plans, and a wide variety of food products—such as bars, shakes, soups, cereals and snacks—complemented by one-on-one coaching, digital tools and community support. Medifast was founded in 1980 and is headquartered in Baltimore, Maryland. Its products are sold via point-of-sale transactions and ecommerce.

In September 2025, Medifast shares declined by 1.4% compared to August, extending the company’s recent volatility following a modest rebound in the prior month. Year-to-date, the stock is down 21.5%, and since the DSCI’s inception, it has fallen 82.6%.

During the month, Direct Selling News highlighted new clinical data showing that participants in Medifast’s OPTAVIA 5 & 1 Plan maintained 98% lean body mass after 16 weeks, reinforcing the brand’s emphasis on metabolic health beyond traditional weight loss. The company also promoted its annual “Healthy Habits for All Week” initiative, engaging the OPTAVIA community and more than 30,000 independent coaches to promote healthy lifestyle habits in local communities.

Operationally, Medifast continues to advance initiatives such as the Premier Plus autoship program and Edge incentive program to enhance coach engagement and productivity. Financially, the company maintains its Q3 2025 guidance of $70–90 million in revenue and EPS between $0.00 and –$0.60, reflecting ongoing volume challenges compared to prior years.

Focus remains on stabilizing the coach network, improving operational efficiency, and expanding digital tools to support client retention and program scalability. Investors continue to monitor management’s progress in executing its metabolic health strategy, particularly in the evolving landscape shaped by GLP-1 medications.

For more insights, read the article: New Data Shows Medifast 5 & 1 Plan Improves Metabolic Health Outcomes

USANA Health Sciences, Inc. (NYSE: USNA) develops, manufactures and sells science-based nutritional, personal care and skincare products across the Asia Pacific, the Americas and Europe. The company operates through two segments: Direct Selling and Hiya Direct-To-Consumer. Its product lineup includes USANA Nutritional Optimizers for cardiovascular, skeletal and digestive health; Essentials/CellSentials—vitamin and mineral supplements for all ages beginning at 13 months; and food products such as meal replacement shakes and snack bars for healthy weight management, digestive health and hydration. USANA also offers the Celavive skincare line tailored for various skin types and ethnicities, as well as online tools and business materials for associates. Products are sold through retail, subscription-based models and direct selling. The company holds research collaboration agreements with the Beijing University of Chinese Medicine and the National Sports Training Bureau. USANA was founded in 1992 and is headquartered in Salt Lake City, Utah.

In September 2025, USANA’s stock declined by 13.3% compared to August, reversing part of the previous month’s rebound. Year-to-date, shares are down 22.9%, and since the DSCI’s inception, the stock has fallen 58.2%.

The decline followed mixed investor sentiment as the company continued to navigate challenging market conditions across several key regions. Following its August Global Convention, where USANA introduced new products such as Circulate+, Core Aminos and Marine Collagen Peptides, as well as additions to its Celavive skincare line, September trading reflected consolidation after strong short-term gains.

Operationally, the company remains focused on strengthening its global field engagement and implementing enhancements to its compensation plan, aiming to increase associate activity and customer retention. Meanwhile, efforts to modernize brand messaging and expand direct-to-consumer initiatives continue to support long-term positioning.

While Q2 2025 results showed revenue of $235.9 million (+10.8% YoY) and net income of $10.4 million (EPS $0.52), market expectations for Q3 remain cautious due to ongoing macroeconomic headwinds and competitive pressures within the nutrition and wellness category. USANA’s debt-free balance sheet and $151 million in cash provide financial stability as the company executes its growth strategy and adapts to evolving consumer trends.

eXp World Holdings, Inc. (NASDAQ: EXPI), together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. The company operates through three segments: North American Realty, International Realty, and Other Affiliated Services. It acts as a licensed broker for processing residential and commercial real estate transactions and provides other real estate support services. In addition, the company offers FrameVR.io, a web-accessible proprietary technology providing immersive 3D platforms; SUCCESS Magazine and its related media properties, which offer training, classes, resources and tools under the SUCCESS brand; and SUCCESS Space, a co-working solution that provides rental workspaces, professional development coaching, media production services, virtual-world communications technology, and full-service cafes.

The company operates primarily in North America, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, Poland, Dubai and recently expanded into Japan, with additional international markets across Europe and Asia. eXp World Holdings, Inc. was formerly known as eXp Realty International Corporation and changed its name in May 2016. The company was incorporated in 2008 and is headquartered in Bellingham, Washington.

In September 2025, eXp’s stock increased by 2.7% compared to August, marking its second consecutive monthly gain. For the first nine months of 2025, the stock is down 3.4%, while since the DSCI’s inception, shares have appreciated 132.6%, maintaining one of the strongest long-term performances among index constituents.

Following a steady August, September trading reflected cautious optimism as investors continued to digest mixed Q2 2025 results. The company previously reported revenue of $1.3 billion, up 1% year-over-year, supported by stable transaction volume and moderate growth in real estate sales volume to $52.5 billion. Profitability, however, remained under pressure, with a net loss of $2.3 million (–$0.01 EPS) and adjusted EBITDA of $11.2 million, though operating cash flow of $36.1 million underscored solid liquidity and consistent cash generation.

Operationally, the company continued to face agent count headwinds, with a 5% decline to 82,704 agents, while closed transactions fell 2% to 118,612. Liquidity remained strong at $94.6 million in cash and equivalents, and capital returns continued, totaling $32.6 million in Q2, including $24.9 million in share repurchases and $7.7 million in dividends. A Q3 cash dividend of $0.05 per share was declared and paid in late August.

Strategically, eXp advanced its long-term growth initiatives, investing in global expansion, platform enhancements and new agent engagement programs such as the co-sponsor initiative, aimed at improving collaboration and recruitment efficiency. The company continues to leverage its scalable, cloud-based model and revenue-sharing structure to support global growth while addressing challenges from agent attrition and competitive market dynamics.

Investor sentiment in September remained constructive, supported by strong long-term fundamentals, recurring cash generation, and disciplined shareholder distributions. Key watchpoints moving forward include agent retention trends, international expansion performance, and monetization of affiliated ventures such as SUCCESS and FrameVR.io as eXp positions for growth into late 2025.

Primerica, Inc. (NYSE: PRI), together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities and fixed indexed annuities; and offers segregated funds. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense and motor vehicle-related matters; ID theft defense services; auto and homeowners’ insurance; home automation solutions; and insurance products, including supplemental and accidental death and disability insurance. It distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.

In September 2025, Primerica’s stock price increased by 2.5% compared to August, extending its upward trend and outperforming the broader DSCI. For the first nine months of 2025, the stock rose 1.8%. Since the inception of the DSCI on February 1, 2020, PRI has appreciated 152.1%, marking the strongest long-term performance among all index constituents.

September’s performance reflected continued investor confidence in Primerica’s stable business model, strong underwriting discipline and the resilience of its middle-income client base. The company continued to benefit from its diversified financial services platform, particularly the Term Life Insurance and Investment & Savings Products segments, which remained the primary growth drivers.

Operationally, the company built upon the positive momentum of its Q2 2025 results released earlier in the year, which exceeded analyst expectations for both revenue and earnings. Revenue reached approximately $793 million, while adjusted earnings per share came in over 5% above consensus. Year-over-year, life-licensed sales representatives grew by 5%, term life adjusted direct premiums increased by 5%, and net premiums rose 4%, underscoring the continued strength of Primerica’s core insurance business.

Primerica’s Investment & Savings Products (ISP) segment maintained double-digit growth in client asset values, supported by improved market conditions and steady inflows from long-term savings plans. The firm’s conservative underwriting standards and robust capital reserves continue to serve as a buffer against macroeconomic headwinds, positioning Primerica favorably within the financial services sector.

The company also released its latest Household Budget Index™ (HBI™) update in late September, reflecting a stable purchasing power among middle-income families despite persistent cost-of-living pressures. The August HBI reading showed households maintaining spending capacity as wage growth offset inflationary pressures, particularly in categories such as food, energy and healthcare.

Analysts remain constructive on the stock. Zacks continues to rate Primerica Rank #2 (Buy), citing its disciplined financial management, consistent earnings delivery and durable demand across product lines. While inflation and interest rate uncertainty remain potential constraints on short-term growth, Primerica’s consistent profitability and expanding client base support a favorable long-term outlook.

Overall, September reinforced Primerica’s reputation as a stable, well-managed and long-term outperforming company within the DSCI, reflecting the enduring strength of its brand, its focus on middle-income families, and its commitment to conservative growth.

Oliveda International, Inc. (OTC: OLVI) was founded in 2003 and leverages over 20 years of experience in: (1) the management and organic certification of mountain olive trees; (2) extracting award-winning extra virgin olive oils; (3) extracting hydroxytyrosol, a bioactive compound with antioxidant, anti-inflammatory, anticancer and skin/eye protective properties; and (4) producing and distributing cosmetic and holistic waterless products derived from the olive tree.

Oliveda and its subsidiaries—Olive Tree People Inc., Olive Tree People Europe AG, Oliveda Deutschland GmbH, and Olive Tree Farmers SL—were established by German real estate investor Thomas Lommel. The group has created a distinctive market position through innovations such as its Olive Tree Therapy “10 Years in 14 Days,” olive matcha (from ground olive leaves), and a hydroxytyrosol-based coffee alternative. Beyond product lines, Lommel is active in mindfulness via olive tree sound bath meditations and broadcasting olive tree frequencies globally.

Oliveda’s distribution includes strong online sales and a broad European retail network. In Germany, Oliveda Deutschland GmbH operates flagship stores in Berlin and Düsseldorf. Its brand portfolio includes Oliveda, LA Dope, Re:connected to Nature, The Intuition of Nature, and Olive Mush. Via the Thomas Lommel Foundation, unused water from its waterless beauty production is donated to communities in Africa through onsite well construction.

In September 2025, Oliveda’s stock price declined by 29.4% compared to August. Over the first nine months of 2025, the cumulative decline reached 75.5%.

While no public figures for full-month September operations were announced, the company continued its prior strategic trajectory. During the first half of 2025, Olive Tree People (OLVI’s waterless beauty subsidiary) reported 70% growth, building on its extraordinary 3,000% growth in 2024 and surpassing $100 million in US sales.

In early September, Oliveda announced that its Olive Rose NO MAKEUP line would debut at New York Fashion Week (Sept 12–15), with its hydroxytyrosol-based products applied by 75 makeup artists on more than 150 models. Following this appearance, the full Olive Rose collection—including Skin Tint Serum, Blush, Contour, Concealer, Mascara, Eye Shadow, Lip Butter, Primer and Setting Spray—was scheduled for presentation to nearly 70,000 waterless beauty consultants in the US and Canada at the North American Convention in Los Angeles in early October.

Oliveda also reaffirmed its longer-term investments in infrastructure. The company confirmed continued acquisition of olive groves and the construction of a modern processing mill in partnership with the municipality of Arroyomolinos de León.

In terms of sentiment and outlook, the sharp decline in September suggests increased volatility and investor risk perception. Nonetheless, the company’s prior growth in its beauty arm and its pipeline of launches and global expansion remain central pillars of its narrative. The participation in New York Fashion Week and the Olive Rose rollout may help restore market confidence, but near-term pressure on the stock remains significant.

Analyst coverage is limited given the OTC status of OLVI, but the fundamentals and strategic positioning continue to attract attention from investors seeking exposure to innovative beauty and wellness companies with integrated agritech origins.

Overall, September marked a challenging month for Oliveda, with pronounced downward pressure on its share price. However, underlying initiatives in brand launches, infrastructure investment and continued global expansion continue to frame its long-term growth story.

For more insights, read these articles: Oliveda Cosmetics Line to Appear at New York Fashion Week, Oliveda International Hosts Olive Tree Art Installation in LA

The Beachbody Company, Inc. (NYSE: BODI) operates as a fitness and nutrition company in the United States and internationally. The company offers Beachbody on Demand, a subscription streaming service providing fitness programs such as P90X, Insanity and 21 Day Fix; nutrition programs including Portion Fix and 2B Mindset; and nutritional products like Shakeology shakes and Beachbody Performance supplements.

The company also faces legal challenges in California, where efforts are underway to reclassify independent consultants as employees, which may impact its direct selling model.

In September 2025, the stock price increased by 7.1% compared to August 2025. For the first nine months of 2025, the stock price declined by 4.1%, indicating moderate recovery momentum following the strong August rebound.

Throughout September, investor sentiment toward Beachbody remained cautiously optimistic, supported by continued progress in the company’s transformation strategy. Following its decision to transfer stock listing from the NYSE to NASDAQ, Beachbody emphasized that the move aligns with its efforts to enhance visibility, streamline operations and attract new investors. The transition is also seen as part of the company’s broader restructuring plan focused on achieving positive free cash flow for the full year 2025, a milestone not reached since 2020.

According to Yahoo Finance, analysts have highlighted the company’s improved cost discipline and its success in lowering the breakeven point through significant operating expense reductions. Beachbody’s focus on digital growth and the relaunch of its flagship Shakeology brand continue to underpin its long-term strategy.

Meanwhile, Direct Selling News noted that the company’s renewed emphasis on product innovation, simplified compensation structure and technology-driven community engagement reflects a broader industry trend toward hybrid fitness and wellness models. Beachbody’s management continues to position the company as a “modern wellness platform,” combining fitness, nutrition and personal development tools to strengthen customer retention and distributor engagement.

Overall, September performance demonstrated steady investor confidence and stabilization following prior months of volatility. The company’s improved cash flow outlook, reduced expenses and strategic repositioning within the digital wellness space contributed to a more positive market tone, though challenges related to declining revenue and regulatory scrutiny remain key factors to monitor going into Q4 2025.

The Real Brokerage Inc. (NASDAQ: REAX) was Founded in 2014, The Real Brokerage is a technology-driven, asset-light real estate brokerage that empowers agents through a cloud-based platform, AI tools and fintech solutions. Operating across the U.S. and Canada, the company combines commission-based revenue, innovative agent incentives, and strategic acquisitions to disrupt traditional brokerage models and drive scalable growth.

In September 2025, The Real Brokerage’s stock remained relatively stable compared to August, consolidating the strong gains achieved earlier in the year. Year-to-date, the shares continued to reflect solid performance momentum following the company’s first-ever quarterly net profit in Q2 2025. Since its inclusion in the DSCI on February 1, 2020, the stock has delivered robust relative growth, supported by ongoing expansion and profitability improvements.

During the month, The Real Brokerage surpassed the milestone of 30,000 agents across the United States and Canada, underscoring the scalability of its asset-light business model. The company also announced the addition of The Collective Group, a top-producing real estate team from Washington with over $575 million in lifetime sales, and the Landmark Group, an award-winning team of approximately 250 agents in the Mid-Atlantic region. These partnerships reinforced Real’s growing presence in both luxury and regional markets, while enhancing agent productivity and engagement across its cloud-based platform.

Operationally, the company maintained a strong pace of agent recruitment and digital adoption, building on its record Q2 results, which included $540.7 million in revenue (+59% YoY), $47.9 million in gross profit (+50% YoY) and adjusted EBITDA of $20.0 million. Analysts noted that Real’s focus on technology integration and strategic team acquisitions continues to differentiate its model from traditional brokerages, driving network effects and sustained earnings potential.

While September did not bring major share price movements, the company’s operational updates highlighted continued strength in fundamentals. Analysts remain constructive on Real’s long-term outlook, emphasizing the combination of profitability, scalability and innovation as key drivers for future performance.
Below are two summary diagrams on the direct selling large cap companies.

Small Cap

Below are the September information for the two largest small cap companies, Nature’s Sunshine and LifeVantage.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR), a natural health and wellness company, manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America and other international markets. The company provides general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy and vision; immune products; cardiovascular products; and digestive products. It also offers personal care items including oils and lotions, aloe vera gel, herbal shampoo, herbal skin treatment, toothpaste and skin cleansers, as well as weight management products. The company markets its products under the Nature’s Sunshine Products and Synergy WorldWide brands directly to customers and through a sales force of independent consultants. Nature’s Sunshine Products, Inc. was founded in 1972 and is headquartered in Lehi, Utah.

In September, NATR’s stock price declined by 9.7% compared to August 2025, partially reversing the strong 20.3% gain recorded the prior month. For the first nine months of 2025, the stock increased by 3.8%, marking a modest recovery from earlier-year weakness. Since the inception of the DSCI, NATR has gained 95.9%, maintaining one of the stronger long-term performances among small-cap direct selling companies.

While no new quarterly earnings were released in September, the company’s Q2 2025 financial results (reported in August) remain the most recent benchmark of performance. NATR reported net sales of $114.8 million, up 4% year-over-year, and adjusted EBITDA of $11.3 million, an 8% increase compared to Q2 2024. GAAP net income rose sharply to $5.3 million ($0.28 per diluted share), compared to $1.3 million ($0.07) in the prior-year quarter. Gross profit margin improved slightly to 71.7% from 71.4%, while operating income declined to $4.3 million from $5.6 million due to higher SG&A expenses associated with expanded digital marketing, compensation and one-time costs.

The company continued to demonstrate strong financial discipline, ending Q2 with $81.3 million in cash and no debt, and having repurchased over 1 million shares for approximately $12.4 million in the first half of 2025. Management reaffirmed confidence in full-year prospects, maintaining raised guidance for net sales between $460 million and $475 million and adjusted EBITDA between $41 million and $45 million.

Operationally, momentum remained solid across Japan and Central Europe, with continued strength in digital channels and autoship programs. No major insider transactions were reported in September, following the sale of roughly 9,700 shares by EVP Bryant Yates in late August.

The September decline is viewed largely as a market correction following the sharp rebound in August, reflecting profit-taking and sector-wide volatility among small-cap consumer stocks. Despite short-term pressure, Nature’s Sunshine’s improved margins, strong cash position, share repurchases and reaffirmed full-year guidance support continued investor confidence. Analysts continue to highlight the company’s undervalued status and solid fundamentals, maintaining a generally bullish long-term outlook on NATR’s growth trajectory and profitability.

LifeVantage Corporation (NASDAQ: LFVN) engages in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management and skin and hair care products. It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, support cognitive functions and support normal sleep patterns; LifeVantage Daily Wellness, a dietary supplement designed to strengthen immune health; LifeVantage Rise AM & Reset PM System that provides the body with the right nutrients; LifeVantage D3+, a dietary supplement that provides vitamin D3, vitamin K2, magnesium, calcium and other trace minerals to support a balanced immune system, strong bones and cardiovascular health; PhysIQ Fat Burn to support weight management; PhysIQ Prebiotic is a dietary supplement designed to support the good bacteria in the gut and a healthy microbiome; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix. The company also provides anti-aging skincare products, including liquid collagen, facial cleansers, eye cream, moisturizing cream, sunscreen, perfecting lotions, hand creams as well as hair care products, such as invigorating shampoos, nourishing conditioners and scalp serums under the TrueScience brand name. It sells its products through its website and network of independent consultants in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore and the Philippines. The company also launched Evolve Compensation Plan and other LV360 initiatives into the Philippines, Taiwan, Hong Kong and Singapore. The company is based in Lehi, Utah.

In September, LifeVantage’s stock price declined by 25.2% compared to August 2025, marking a significant reversal from the previous month’s modest gain. For the first nine months of 2025, the stock price has declined 44.3% year-to-date. Since the February 1, 2020 establishment of the DSCI, LFVN has decreased by 18.1%.

Recent developments include the company’s release of fiscal Q4 2025 results in early September, reporting net sales of $55.1 million, an increase of 12.6% year-over-year. Gross margin improved slightly to 79.9%, while adjusted EBITDA remained stable at $4.8 million. Earnings per share (EPS) came in at $0.17, slightly above analyst expectations of $0.16. The company ended the quarter with $20.2 million in cash and no debt and returned $18.6 million to shareholders through dividends and share repurchases, including a $0.045 per share dividend declared in August.

Operationally, LifeVantage continued to pursue international growth through the rollout of its MindBody GLP-1 System in Japan, Australia and Europe. The company also acquired assets from LoveBiome, a microbiome wellness company, further strengthening its leadership position in gut health and expanding its nutrigenomic product portfolio. The integration of LoveBiome aligns with LifeVantage’s strategic shift toward holistic wellness and its “Activate Wellness” philosophy, enhancing its product diversification and scientific credibility within the direct selling space.

The steep stock decline in September followed a period of investor optimism in August and likely reflects broader market volatility, profit-taking after recent gains and cautious sentiment toward small-cap wellness and direct selling stocks. While revenue and EPS results exceeded prior-year levels, top-line growth modestly lagged consensus expectations, potentially tempering investor enthusiasm.

Despite these short-term pressures, LifeVantage remains financially sound, supported by strong margins, a debt-free balance sheet and disciplined capital allocation. The company’s continued innovation in gut health, expanding international presence and focus on operational efficiency provide a foundation for long-term growth. However, sustained improvement in investor sentiment will depend on consistent revenue execution, successful integration of LoveBiome assets and resilience in a competitive and evolving global wellness market.

For more insights, read the article: LifeVantage Reports Fiscal Q4 Financial Results, LifeVantage Acquires LoveBiome

Below are two summary diagrams on the direct selling small cap companies.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 6.2 days as of September 15, 2025. Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index mirrors the DJIA for the month of August 2025

The Direct Selling Capital Advisors Direct Selling Index (DSCI) rose 3.2% in August compared to July 2025, underperforming the Dow Jones Industrial Average (DJIA), which gained 4.0% over the same period.

Year-to-date, the DSCI has advanced 7.1% in the first eight months of 2025. Since its inception, the index has delivered a cumulative return of 79.2%, underscoring the sustained strength and resilience of the direct selling channel over time.

Market and Economic Environment

Consumer sentiment weakened in August. A New York Fed survey showed that the probability of finding a new job dropped to 44.9%, the lowest since 2013. Payroll growth slowed to just 22,000 jobs, while the unemployment rate ticked up to 4.3%, its highest level in four years.

Tariff-related inflation concerns resurfaced mid-month. Core producer prices rose 0.9% month-over-month, the sharpest increase in over three years, briefly unsettling equity markets and pushing bond yields higher.

Bond markets saw notable moves as well. The 10-year US Treasury yield ended August at 4.22%, down 14 basis points from July. Credit markets remained strong, with corporate bond spreads tightening to historically low levels of about 0.78 percentage points, reflecting investor confidence in corporate creditworthiness.

The Federal Reserve kept rates unchanged at its early August meeting. However, at the Jackson Hole Symposium, Chair Jerome Powell signaled that conditions “may warrant” interest-rate cuts later in the year. Markets are now pricing in two 0.25% cuts, with the first expected as soon as September.

Equity markets posted broad gains in August. The S&P 500 rose 1.9%, the DJIA gained 4.03% and the Nasdaq added 1.6%. International developed markets rose 4.1%, while emerging markets gained 1.2%.

Direct Selling Industry Developments

A study released in late August by the Direct Selling Association (DSA) highlighted the industry’s continued relevance:

• US retail sales in direct selling totaled $34.7 billion in 2024.
• 34.3 million individuals participated as preferred customers or discount buyers.
• Industry perception improved by 21% since 2019, with 70% of consumers expressing favorable views toward supporting local business owners.

Companies are increasingly leveraging mobile loyalty apps to strengthen customer retention, with personalized rewards and experiences driving deeper brand engagement.

Beyond the US, international opportunities remain strong. Germany, for example, is projected to see 4.8% growth in direct selling in 2025, supported by AI-driven innovation, favorable consumer trends and a stable legal framework.

Looking Forward

The direct selling channel continues to face both challenges and opportunities.

• Labor market softness may pressure discretionary spending.
• Potential Fed rate cuts could support both equities and consumer confidence.
• Tariff-driven inflation risks remain a key watchpoint.
• Positive consumer sentiment and the growth of omnichannel strategies suggest that well-positioned companies in the sector can continue to deliver strong performance.
• International expansion, particularly in Germany and other developed markets, provides additional growth avenues.
• Companies integrating mobile loyalty programs are likely to strengthen customer retention and brand engagement.

The Direct Selling Capital Advisors Index (DSCI) is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

For more insights, read the articles: DSA Releases 2025 Growth & Outlook Study Results, Brand Loyalty in Your Pocket and Why Direct Selling Companies Should Consider Entering the German Market

Large Cap

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Betterware de Mexico (NASDAQ: BWMX), founded in 1995, is the leading direct-to-consumer company in Mexico focused on innovative products related to household organization, practicality, space-saving and hygiene. Through the acquisition of JAFRA on April 7, 2022, the company expanded into the beauty market in Mexico and the US, offering fragrances, color cosmetics, skincare and toiletries. The combined business operates an asset-light model with low capital expenditure, consistent profitability, double-digit revenue growth and strong free cash flow generation. Today, Betterware distributes its products in both Mexico and the United States.

In August 2025, Betterware’s stock price rose 1.7% versus July. Year-to-date, the shares are up 19.6%, and since the establishment of the DSCI on February 1, 2020, the stock has gained 42.0%.

On August 1, the company declared a special dividend of $200 million, underscoring its strong financial position and commitment to shareholder returns.

While stock performance has been positive, analysts continue to highlight challenges around profit margins and interest coverage, factors that investors should monitor closely when evaluating BWMX.

Nu Skin Enterprises, Inc. (NYSE: NUS), together with its subsidiaries, engages in the development and distribution of various beauty and wellness products worldwide. It offers skincare devices, cosmetics and other personal care products, including ageLOC LumiSpa and ageLOC LumiSpa iO; and nutrition skincare products. The company also provides wellness products, such as LifePak nutritional supplements, ageLOC TR90 weight management system and Beauty Focus Collagen+. In addition, it is involved in the research and product development of skincare products and nutritional supplements. The company sells its products under the Nu Skin, Pharmanex and ageLOC brands through retail stores, website, digital platforms and independent direct sellers and marketers, as well as a service center. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.

In August 2025, Nu Skin’s stock surged 45.2% versus July, lifting its year-to-date performance to +76.6%. Since the launch of the DSCI in February 2020, however, the shares have declined 64.5%. The stock traded in a 52-week range of $5.32–$12.41 as of the end of August. Analysts project a 23.25% growth estimate for 2025.

Momentum in August followed stronger-than-expected Q2 earnings, with EPS and margins exceeding forecasts. Institutional interest also grew after Stonegate Capital Partners initiated coverage, citing profitability improvements and the potential of Rhyz Manufacturing.
Nu Skin maintained its quarterly dividend of $0.06 per share, payable in September. However, insider selling by Director Daniel W. Campbell (over 32,000 shares) created questions about insider confidence, even as institutional ownership remains robust at ~75%.

Governance remains under scrutiny: ISS continues to assign Nu Skin a QualityScore of 3/10, suggesting room for improvement in shareholder rights and board structure. Analysts remain cautiously constructive, focusing on sustaining momentum in H2 2025, with management highlighting product innovation (e.g., Prysm iO launch) and enhanced distributor incentives as key growth drivers.

Herbalife Ltd. (NYSE: HLF) (formerly Herbalife Nutrition, Inc.) provides health and wellness products across North America, Latin America, EMEA, China and the Asia Pacific. The company offers products in the areas of weight management; targeted nutrition; energy, sports and fitness; outer nutrition; and literature, promotional and other items. It also provides weight management products, including meal replacement products, protein shakes, drink mixes, weight loss supplements, healthy snacks and metabolism boosting teas; targeted nutrition products, which comprise functional beverages and dietary and nutritional supplements that contain herbs, vitamins, minerals and other natural ingredients; outer nutrition products, such as facial skin, body and hair care products; and energy, sports and fitness products, including N-R-G tea and energy drink products. In addition, it offers literature, promotional and other materials that comprise start-up kits, sales tools and educational materials. The company sells its products through sales representatives, independent service providers and company-operated retail stores and platforms. The company was formerly known as Herbalife Nutrition Ltd. and changed its name to Herbalife Ltd. in April 2023. Herbalife Ltd. was founded in 1980 and is headquartered in Los Angeles, California.

In August 2025, Herbalife’s stock rose 6.3% compared to July, extending year-to-date gains to +46.2%. Since the creation of the DSCI in February 2020, however, shares have declined 69.8%.
Q2 2025 results showed net sales of $1.3 billion (–1.7% YoY), but EPS of $0.59 beat consensus, reflecting an improved operating margin of 10.5%. Management emphasized debt reduction, with $55 million repaid in the quarter.

Strategically, the company advanced its digital initiatives, including the Pro2col app and MultiBurn subscription, aimed at boosting distributor engagement and recurring revenues. Analysts remain cautious on the monetization timeline.

Institutional investors increased positions in August, and Mizuho raised its price target to $9, citing attractive valuation at just 3.5x earnings. Herbalife also strengthened its ESG profile, with Herbalife India winning the Sustainable Supply Chain Award at the BIGBOX India 2025 summit.
Leadership remains a focus: new CEO Stephan Gratziani is the first distributor to lead since the founder, while former CEO Michael O. Johnson continues as Executive Chairman, providing continuity.

For more insights, read the article: Herbalife India Honored with Sustainable Supply Chain Award

Medifast, Inc. (NYSE: MED), through its subsidiaries, operates as a health and wellness company offering habit-based, coach-guided lifestyle solutions focused on weight management and obesity support in the United States. The company’s flagship brand, OPTAVIA, delivers clinically supported weight loss programs, GLP-1 support plans and a wide variety of food products, such as bars, shakes, soups, cereals and snacks, complemented by one-on-one coaching, digital tools and community support. Medifast was founded in 1980 and is headquartered in Baltimore, Maryland. Its products are sold via point-of-sale transactions and ecommerce.

In August 2025, Medifast shares gained 1.9% compared to July, a modest rebound after July’s decline. Year-to-date, the stock remains down 20.4%, and since the DSCI’s inception, it has lost 82.3%.

The company is rolling out initiatives such as the Premier Plus auto-ship program and Edge incentive program to drive coach productivity. Focus remains on metabolic health solutions, particularly support for clients using GLP-1 medications.

For Q3 2025, management projects revenue of $70–90 million and EPS in the range of $0.00 to –$0.60, reflecting ongoing challenges versus prior years’ volumes. Stabilizing coach numbers, managing operational efficiency and executing digital strategies remain key investor watchpoints.

USANA Health Sciences, Inc. (NYSE: USNA) develops, manufactures and sells science-based nutritional, personal care and skincare products across the Asia Pacific, the Americas and Europe. The company operates in two segments: direct selling and direct-to-consumer. Its product lineup includes USANA Nutritional Optimizers, including supplements for cardiovascular, skeletal/structural and digestive health; Essentials/CellSentials, including vitamin and mineral supplements for all ages starting from 13 months; and food products, such as meal replacement shakes, snack bars and other related products for healthy weight management, digestive health and energy and hydration. USANA also offers Celavive, a skincare regimen tailored for various skin types and ethnicities and other products, including materials and online tools that support associates in building their business and marketing the company’s products. The company sells its products through retail, subscription-based models, direct selling and online platforms. It maintains research collaboration agreements with the Beijing University of Chinese Medicine and the National Sports Training Bureau. USANA Health Sciences, Inc. was founded in 1992 and is headquartered in Salt Lake City, Utah.

In August 2025, USANA’s stock increased 8.6% from July, partly recovering from earlier weakness. Year-to-date, shares are down 11.1%, and since the DSCI’s inception, they have fallen 51.7%.

Q2 2025 earnings supported the rebound: revenue of $235.9 million (+10.8% YoY) and net income of $10.4 million, with EPS of $0.52, slightly below the prior year but above internal forecasts. The balance sheet remains debt-free, with $151 million cash on hand.
At its August Global Convention, USANA unveiled new products including Circulate+, Core Aminos, Marine Collagen Peptides, and additions to Celavive, while also reformulating legacy items. The launch of a Health Professional Advisory Council further bolstered credibility.
From a technical perspective, August trading showed volatility, with bearish signals such as widening Bollinger Bands and a Marubozu candlestick pattern. Insider selling by Director Gilbert Fuller (~$30,800 worth of shares) also added to caution.

For more insights, read the article: USANA Introduces Health Professional Advisory Council

eXp World Holdings, Inc. (NASDAQ: EXPI), together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. The company operates through three segments: North American Realty, International Realty and Other Affiliated Services. It acts as a licensed broker for processing residential and commercial real estate transactions and provides other real estate support services. In addition, the company offers FrameVR.io, a web-accessible proprietary technology providing immersive 3D platforms; SUCCESS magazine and its related media properties, which offer training, classes, resources and tools under the SUCCESS brand; and SUCCESS Space, a coworking solution that provides rental workspaces, professional development coaching, media production services, virtual-world communications technology and full-service cafes.

The company operates primarily in North America, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, Poland, Dubai and recently expanded into Japan, with additional international markets across Europe and Asia. eXp World Holdings, Inc. was formerly known as eXp Realty International Corporation and changed its name in May 2016. The company was incorporated in 2008 and is headquartered in Bellingham, Washington.

In August 2025, EXPI’s stock increased by 0.5% compared to July, easing the year-to-date decline to 5.9%. Since the establishment of the DSCI on February 1, 2020, shares of eXp have appreciated 126.6%, maintaining one of the strongest long-term performances among index constituents.

August trading was relatively muted compared to July’s sharp gains, with investors weighing the company’s Q2 2025 earnings report released on August 1. Revenue rose 1% year-over-year to $1.3 billion, supported by stable transaction volume and a modest uptick in total real estate sales volume to $52.5 billion. However, profitability metrics lagged: the company reported a net loss of $2.3 million, or –$0.01 EPS, missing consensus expectations of +$0.09. Adjusted EBITDA was $11.2 million, and operating cash flow totaled $36.1 million, highlighting continued cash generation despite margin pressures.

Operationally, headwinds were visible. Agent count declined 5% to 82,704, while closed transactions fell 2% to 118,612. Liquidity remained solid at $94.6 million in cash and equivalents, though lower than the prior year due to a $17 million antitrust settlement. The company continued its capital return program, distributing $32.6 million to shareholders during the quarter, including $24.9 million in share repurchases and $7.7 million in dividends. A Q3 cash dividend of $0.05 per share was declared, payable on August 29.

Strategically, eXp reinforced its long-term growth plan by investing in global expansion, platform enhancements, and agent support tools. Management emphasized the scalability of its cloud-based model and its differentiated revenue-sharing incentives, while acknowledging challenges from agent attrition and rising competitive pressures.

From a technical perspective, despite the modest stock gain in August, sentiment remained mixed. Strong five-year returns, positive cash flow and disciplined shareholder distributions underpin long-term optimism, while near-term risks include agent retention, margin compression and earnings volatility. The ability of eXp to stabilize its agent base and translate platform investments into higher transaction growth will be key for regaining momentum into late 2025.

Primerica, Inc. (NYSE: PRI), together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates through three segments: Term Life Insurance; Investment and Savings Products; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment offers mutual funds, various retirement plans, managed investments, variable and fixed annuities, fixed indexed annuities and segregated funds. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services assisting subscribers with matters such as drafting wills, living wills and powers of attorney; trial defense and motor vehicle-related matters; ID theft defense services; auto and homeowners’ insurance; home automation solutions; and supplemental, accidental death and disability insurance. The company distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.

In August 2025, the stock price increased by 1.4% compared to July, while year-to-date performance shows a decline of 0.8%. Since the inception of the DSCI on February 1, 2020, PRI has appreciated 145.8%, the strongest long-term performance among index constituents.
August performance was supported by resilience in Primerica’s core middle-income client base and solid Q2 2025 results released earlier in the month. Revenue and earnings both exceeded analyst expectations, with EPS surprising to the upside by over 5% and revenue modestly above consensus. Operationally, the company reported 5% year-over-year growth in its life-licensed sales force, a 5% increase in term life adjusted direct premiums and a 4% increase in net premiums, underscoring the strength of its insurance business. Analysts continue to highlight the firm’s conservative underwriting standards and strong capital reserves as ongoing sources of stability.

Primerica also released its latest Household Budget Index™ (HBI) in late August, showing a July reading of 100.1%, up slightly from June and 1% higher than the prior year. According to consulting economist Amy Crews Cutts, wage growth continues to offset rising costs of essentials, though inflation for middle-income households remains above headline CPI levels. This indicates that families remain resilient but continue to face cost-of-living pressures in food, energy and healthcare.

Analyst sentiment remains constructive, with Zacks maintaining a Rank #2 (Buy) rating, placing Primerica in the top tier of its industry. The combination of disciplined financial management, strong underwriting performance and resilient client demand continues to support a favorable long-term outlook, even amid near-term macroeconomic uncertainty.

Overall, August highlighted Primerica’s ability to deliver consistent results and maintain investor confidence despite ongoing economic headwinds, reinforcing its position as a stable, long-term performer within the DSCI.

Oliveda International, Inc. (OTC: OLVI) was founded in 2003 and has more than 20 years of experience in: 1) the management and organic certification of mountain olive trees; 2) the extraction of international award-winning extra virgin olive oils; 3) the extraction of hydroxytyrosol, a compound with antioxidant, anti-inflammatory, anticancer and skin- and eye-protective effects; and 4) the production and distribution of cosmetic and holistic waterless products derived from the olive tree.

Oliveda International, Inc. and its subsidiaries, including Olive Tree People Inc., Olive Tree People Europe AG, Oliveda Deutschland GmbH and Olive Tree Farmers SL, were founded by German real estate investor Thomas Lommel. The group has established a unique market position through innovations such as Olive Tree Therapy “10 years in 14 days,” olive matcha (made from ground olive leaves) and a coffee alternative based on olive leaves and hydroxytyrosol. Lommel is also active in the mindfulness sector with his olive tree sound bath meditations and the broadcast of olive tree frequencies globally.

In addition to online sales and a broad retail network across Europe, Oliveda Deutschland GmbH operates flagship stores in Berlin and Düsseldorf. Its brand portfolio includes Oliveda, LA Dope, Re:connected to Nature, The Intuition of Nature and Olive Mush. Through the Thomas Lommel Foundation, the company donates unused water from its waterless beauty production to communities in Africa by building wells on-site.

Comparing August 2025 to July 2025, the stock price increased by 5.1%. For the first eight months of 2025, the stock declined by 65.2%.

Olive Tree People, OLVI’s waterless beauty subsidiary, continued to build on its 70% growth in the first half of 2025, following extraordinary 3,000% growth in 2024 and surpassing $100 million in US sales. While no new major announcements were made in August, the company remained focused on its expansion strategy: Canadian operations launched in July, European market entry was confirmed for October and preparations are underway for several high-profile initiatives. These include the unveiling of a surprise new brand at the Los Angeles flagship store in October, the launch of a hydroxytyrosol-based pet care brand, “Is that Matty,” in November, and participation in New York Fashion Week in September, where Olive Rose products will be featured by 75 makeup artists on over 150 models.

OLVI also confirmed ongoing investment in its supply chain through the acquisition of additional olive groves and the construction of a modern mill in partnership with the municipality of Arroyomolinos de León. CEO Thomas Lommel reiterated that the direct selling industry is not in decline but is evolving, driven by innovation, sustainable practices and premium product experiences—principles that continue to shape OLVI’s strategy and market leadership.

The Beachbody Company, Inc. (NYSE: BODI) operates as a fitness and nutrition company in the United States and internationally. The company offers Beachbody on Demand, a subscription streaming service providing fitness programs such as P90X, Insanity and 21 Day Fix; nutrition programs including Portion Fix and 2B Mindset; and nutritional products like Shakeology shakes and Beachbody Performance supplements. The company also faces legal challenges in California, where efforts are underway to reclassify independent consultants as employees, which may impact its direct selling model.

In August, the stock price increased by 26.7% compared to July 2025. For the first eight months of 2025, the stock price declined by 10.4%. Recent developments include Q2 2025 financial results showing revenue of $63.9 million, down from $110.2 million in Q2 2024. Digital revenue reached $39.7 million, Nutrition and Other contributed $24.2 million, while Connected Fitness fell to $0.1 million following the discontinuation of bike sales. Operating expenses were reduced to $50.2 million from $85.9 million a year earlier, leading to an improved operating loss of $5.5 million year-over-year. Adjusted EBITDA was $4.6 million, with operating cash flow of $6.6 million in the first half. The company emphasized that results were “better than expected” and reaffirmed its goal of achieving positive free cash flow for full-year 2025 for the first time since 2020.

In addition, Beachbody presented at the Canaccord Genuity Growth Conference in August, where management outlined its strategic turnaround, including further cost reductions, a lower breakeven point and improving financial flexibility. The company also announced that it will transfer its stock listing from the NYSE to Nasdaq, underscoring its transformation efforts and future growth initiatives, including the relaunch of Shakeology.

The strong stock price recovery in August, coupled with narrowing losses, improved cash flow, and corporate restructuring initiatives, reflects renewed investor confidence, although revenue declines and legal challenges remain potential headwinds.

Below are two summary diagrams on the direct selling large cap companies.

The Real Brokerage Inc. (NASDAQ: REAX) was founded in 2014, The Real Brokerage is a technology-driven, asset-light real estate brokerage that empowers agents through a cloud-based platform, AI tools, and fintech solutions. Operating across the U.S. and Canada, the company combines commission-based revenue, innovative agent incentives, and strategic acquisitions to disrupt traditional brokerage models and drive scalable growth.

Comparing August 2025 to July 2025, The Real Brokerage maintained strong operating momentum, building on its record Q2 results while advancing several growth initiatives. Following the August 7 earnings release (revenue $540.7 million, +59% YoY; gross profit $47.9 million, +50% YoY; first-ever quarterly net income of $1.5 million; adjusted EBITDA $20.0 million), Real highlighted continued agent expansion and platform engagement.

Operational updates in August included: the launch of Agent BreakThru, a free 8-week coaching experience aimed at boosting agent productivity; a Real Luxury assignment to lead sales and marketing for Bozeman Yards, a new high-end condo project; publication of the July Agent Survey, which showed agent optimism at a four-month high and signs of improving transaction activity; and the formation of Benson Crew, now Real’s largest team in Canada, through the merger of three top Ontario teams with $6 billion in lifetime sales. Collectively, these initiatives support productivity, brand elevation in luxury and deeper network effects in recruiting and retention.

Management also noted that agent count surpassed ~29,200 by early August, underscoring the company’s ability to scale its asset-light model across the U.S. and Canada while sustaining profitability.

Small Cap

Below is the July information for the two largest small cap companies, Nature’s Sunshine and LifeVantage.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR), a natural health and wellness company, manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America and internationally. The company provides general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy and vision; immune products; cardiovascular products; and digestive products. It also offers personal care products, including oils and lotions, aloe vera gel, herbal shampoo, herbal skin treatment, toothpaste and skin cleanser products, as well as weight management products. The company provides its products under the Nature’s Sunshine Products and Synergy WorldWide brands directly to customers and to a sales force of independent consultants. Nature’s Sunshine Products, Inc. was founded in 1972 and is headquartered in Lehi, Utah.

In August, their stock price increased by 20.3% compared to July 2025, the largest gain among the small cap direct selling companies. For the first eight months of 2025, the stock declined by 14.9%. Since the inception of the DSCI, NATR has gained 117.0%.

Recent developments include Q2 2025 financial results showing net sales of $114.8 million, up 4% year-over-year, and adjusted EBITDA of $11.3 million, up 8% year-over-year. GAAP net income increased significantly to $5.3 million ($0.28 per diluted share), compared to $1.3 million ($0.07 per diluted share) in Q2 2024. Gross profit margin improved slightly to 71.7% from 71.4%. Operating income, however, declined to $4.3 million from $5.6 million in the prior-year period due to higher SG&A expenses, reflecting increased digital marketing investments, compensation and one-time costs.

The company strengthened its balance sheet, ending the quarter with $81.3 million in cash and no debt, while also repurchasing over 1 million shares for $12.4 million in the first half of 2025. Management raised its full-year 2025 guidance, now expecting net sales between $460 million and $475 million, and adjusted EBITDA between $41 million and $45 million.

Operational performance highlights include strong sales momentum in Japan and Central Europe and continued strength in digital channels and autoship programs. Notably, insider activity included the sale of approximately 9,700 shares by EVP Bryant Yates in late August, though analysts continue to rate the stock as a “Strong Buy,” citing potential undervaluation.

The sharp rebound in August, following July’s decline, reflects renewed investor confidence in Nature’s Sunshine’s growth trajectory and profitability outlook. Despite elevated operating expenses, improved margins, a strong cash position, share repurchases and raised full-year guidance underscore management’s confidence and provide a foundation for cautious optimism going forward.

LifeVantage Corporation (NASDAQ: LFVN) engages in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and probiotics, weight management and skin and hair care products. It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids, and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, supports cognitive functions and support normal sleep patterns; LifeVantage Daily Wellness, a dietary supplement designed to strengthen immune health; LifeVantage Rise AM & Reset PM System that provides the body with the right nutrients; LifeVantage D3+, a dietary supplement that provides vitamin D3, vitamin K2, magnesium, calcium and other trace minerals to support a balanced immune system, strong bones and cardiovascular health; PhysIQ Fat Burn to support weight management; PhysIQ Prebiotic is a dietary supplement designed to support the good bacteria in the gut and a healthy microbiome; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix. The company also provides anti-aging skincare products, including liquid collagen, facial cleansers, eye cream, moisturizing cream, sunscreen, perfecting lotions, hand creams as well as hair care products, such as invigorating shampoos, nourishing conditioners and scalp serums under the TrueScience brand name. It sells its products through its website and network of independent consultants in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore and the Philippines. The company also launched Evolve Compensation Plan and other LV360 initiatives into the Philippines, Taiwan, Hong Kong and Singapore. The company is based in Lehi, Utah.

In August, LifeVantage’s stock price increased by 4.4% compared to July 2025, narrowing the company’s year-to-date losses to 25.3%. Since the February 1, 2020 establishment of the DSCI, LFVN has gained 10.0%.

Recent developments include Q4 FY 2025 financial results showing net sales of $55.1 million, up 12.6% year-over-year, and gross margin improving slightly to 79.9%. Adjusted EBITDA remained flat at $4.8 million, and EPS came in at $0.17, beating analyst expectations of $0.16. The company ended the quarter with $20.2 million in cash and no debt and returned $18.6 million to shareholders through buybacks and dividends, including a $0.045 per share dividend declared in August.

Operational highlights include continued international growth through the rollout of the MindBody GLP‑1 System in key markets such as Japan, Australia and Europe. The company also acquired assets from LoveBiome, a microbiome wellness company, strengthening LifeVantage’s position in gut health and complementing its existing nutrigenomic product portfolio.

The modest stock price gain in August, following July’s decline, reflects renewed investor confidence driven by strong financial results, strategic acquisitions and international expansion. While market volatility and cost pressures remain considerations, the company’s solid balance sheet, product innovation and global initiatives support cautious optimism for future growth.

For more insights, read the article: LifeVantage Acquires LoveBiome and LifeVantage Reports Fiscal Q4 Financial Results.

Below are two summary diagrams on the direct selling small cap companies.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 5.8 days as of August 15, 2025. Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

The Direct Selling Capital Advisors Direct Selling Index (DSCI) increased by 0.1% in July vs June 2025. The DJIA increased by 0.08% in July vs. June. Over the first seven months of 2025, the DSCI has a small increase of 3.7%. Since inception, the DSCI has delivered a return of 73.7%, underscoring the sustained strength and stability of our channel over time.

   

July’s broader market backdrop was mixed, with equity gains slowing after the strong rebound in Q2. During the first half of 2025, 50% of surveyed companies achieved at least 2% year-over-year revenue growth, while 22.5% grew more than 20%. However, 37.5% experienced declines of 2% or more, reflecting uneven performance across the channel.

Key trends shaping the month included moderate consumer spending, continued strength in top-performing companies embracing omnichannel strategies, and resilience among those committed to the MLM model. At the same time, macroeconomic uncertainty, driven by trade policy risks, interest rate speculation and geopolitical tensions, remained a headwind. The channel is not in decline but is evolving, with innovation and diversification emerging as critical growth drivers.

The Direct Selling Capital Advisors Index (DSCI) is a market capitalization-weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue may represent more than 20% of its total value. Any excess weighting is redistributed among the remaining components.

Looking Forward

The channel enters the second half of the year navigating both growth opportunities and persistent challenges. While July’s DSCI performance was modest, underlying trends suggest a cautiously optimistic outlook for the remainder of 2025. Companies that continue to diversify their sales channels, strengthen digital engagement and innovate their product offerings are best positioned to capture growth opportunities. At the same time, uneven revenue performance across the channel highlights the need for agility in responding to shifting consumer behavior and macroeconomic uncertainty. External factors, including potential policy changes, global trade developments and evolving competitive dynamics, will remain influential. The direct selling channel’s ability to adapt and evolve will be a critical determinant of sustained momentum in the months ahead.

For more insights, read the articles: Direct Selling Channel Sees Growth in the First Half of 2025 and Direct Selling Isn’t Declining—It’s Evolving.

Large Cap

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Betterware de Mexico (NASDAQ: BWMX), founded in 1995, Betterware de Mexico is the leading direct-to-consumer company in Mexico focused on offering innovative products that solve specific needs related to household organization, practicality, space-saving and hygiene. Through the acquisition of JAFRA on April 7, 2022, the Company now offers a leading brand of direct-to-consumer in the Beauty market in Mexico and the United States where it offers fragrances, color & cosmetics, skincare, and toiletries. The combined company possesses an asset-light business model with low capital expenditure requirements and a track record of strong profitability, double digit rates of revenue growth and free cash flow generation. Today, the Company distributes its products in Mexico and the US.

In July 2025, Betterware’s stock price increased by 52.0% compared to June. Year to date, the stock’s performance turned positive, showing a gain of 17.6%. Since the establishment of the DSCI on February 1, 2020, BWMX has increased by 39.6%.

In its Q2 2025 financial results, the company reported net revenue of MXN 1.46 billion, down 1.2% year-over-year, and an EBITDA margin of 19.9%, reflecting stable profitability despite a 4.5% decline in EBITDA. Betterware’s associate base grew for the first time since Q1 2021, reaching 670,349 by quarter-end, driven by new product innovations, enhanced incentives and seasonal promotions. JAFRA Mexico delivered strong performance with 10.9% revenue growth and a 21.2% EBITDA margin, supported by product rebranding, improved salesforce productivity and strategic pricing adjustments.

July also marked a milestone year for the company, celebrating 30 years of Betterware Mexico, five years as a public company, and one year since the creation of BeFra following the JAFRA acquisition. The group reaffirmed its long-term ambition to reach USD 1 billion in net revenue and advance its international expansion, including recent launches in Ecuador and Guatemala. Despite ongoing operational challenges, Betterware’s strong July rally and solid Q2 performance signaled renewed investor confidence in its growth strategy.

For more insights, read the articles: BeFra Reports Q2 2025 Financial Results and BeFra: Betterware and Jafra’s Visionary New Home

Nu Skin Enterprises, Inc. (NYSE: NUS), together with its subsidiaries, engages in the development and distribution of various beauty and wellness products worldwide. It offers skincare devices, cosmetics and other personal care products, including ageLOC LumiSpa and ageLOC LumiSpa iO; and nutrition skincare products. The company also provides wellness products, such as LifePak nutritional supplements, ageLOC TR90 weight management system and Beauty Focus Collagen+. In addition, it is involved in the research and product development of skincare products and nutritional supplements. The company sells its products under the Nu Skin, Pharmanex and ageLOC brands through retail stores, website, digital platforms and independent direct sellers and marketers, as well as a service center. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.

In July 2025, Nu Skin’s stock price increased by 4.9% compared to June. Year-to-date, the stock is up 21.6%. Since the establishment of the DSCI on February 1, 2020, Nu Skin’s stock has declined by 64.5%. The stock’s 52-week high is $11.64, and the low is $5.32. Analysts continue to forecast a 23.25% growth estimate for 2025.

Nu Skin reported Q2 2025 financial results showing total revenue of $386.1 million, a 12.1% decline year-over-year. Gross margin for the Nu Skin business improved slightly to 77.5%, although overall gross margin fell nearly 2% compared to Q2 2024. The company posted EPS of $0.43, reflecting strong operational management despite top-line pressures. Other income resulted in a loss of $0.8 million, compared to income of $0.6 million in Q2 2024.

Operational metrics indicated a contraction in the direct-selling network: customers decreased 14% to 771,407, paid affiliates fell 16% to 130,799, and sales leaders declined 23% to 29,593. However, growth pockets were evident: Rhyz Manufacturing revenue grew 17% YoY, and Latin America revenue surged 107% YoY.

The company emphasized strategic initiatives to drive future growth, including a mid-Q4 limited preview of the Prysm iO intelligent wellness device, expected to stimulate the nutritional supplements business with personalized product recommendations and subscriptions. Expansion into new markets continues, with pre-opening activities in India on track for a formal mid-2026 launch.
Nu Skin’s updated 2025 guidance projects revenue of $1.48B–$1.55B, EPS of $3.05–$3.25, and adjusted EPS of $1.15–$1.35. For Q3 2025, the company expects revenue of $360M–$390M and EPS of $0.25–$0.35.

Management highlighted continued operational optimization, resulting in an 8% operating margin, and progress in aligning sales leaders with key initiatives for late 2025 and 2026. Analysts remain cautiously constructive, noting that while revenue pressures persist, strategic investments in product innovation, emerging market expansion, and customer engagement offer potential upside for sustained growth.

For more insights, read the article: Nu Skin Reports Q2 2025 Financial Results

Herbalife Nutrition, Inc. (NYSE: HLF), together with its subsidiaries, provides health and wellness products in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China and the Asia Pacific region. The company offers products in the areas of weight management; targeted nutrition; energy, sports and fitness; outer nutrition; and literature, promotional and other items. It also provides weight management products, including meal replacement products, protein shakes, drink mixes, weight loss supplements, healthy snacks and metabolism-boosting teas; targeted nutrition products, which comprise functional beverages, and dietary and nutritional supplements that contain herbs, vitamins, minerals and other natural ingredients; outer nutrition products, such as facial skin, body and hair care products; and energy, sports and fitness products, including N-R-G tea and energy drink products. In addition, it offers literature, promotional and other materials that comprise start-up kits, sales tools and educational materials. The company sells its products through sales representatives, independent service providers and company-operated retail stores and platforms. The company was formerly known as Herbalife Nutrition Ltd. and changed its name to Herbalife Ltd. in April 2023. Herbalife Ltd. was founded in 1980 and is headquartered in Los Angeles, California.

For the month of July 2025, Herbalife’s stock rose by 6.7% compared to June, continuing its positive momentum. Year-to-date, the stock has increased by 37.5%, making it the only large-cap stock to post a positive return in the first seven months of 2025. However, HLF remains down 71.6% since the establishment of the DSCI on February 1, 2020.

In July, the stock’s Relative Strength Rating increased from 87 to 92, reflecting strong technical performance compared to other stocks. The share price moved more than 5% above the $9.23 entry point from a cup-without-handle technical pattern, indicating it was outside the optimal buying range. Analysts note that investors may watch for new entry setups such as a three-weeks-tight pattern or a pullback to the 50-day or 10-week moving average. Earnings in the last quarter rose 20% year-over-year, while sales declined by 3%.

On August 6, 2025, Herbalife reported its Q2 2025 financial results, showing net sales near the midpoint of guidance, adjusted EBITDA above expectations and stronger full-year guidance. In July, the company also launched MultiBurn, a multifunctional weight-loss supplement supporting metabolic health and introduced the beta version of its AI-assisted Pro2col app, which engaged more than 7,000 distributors.

Herbalife continues to trade at a discount to fair value estimates, suggesting potential upside if current trends persist. While earnings forecasts point to an average annual decline of 9.2% over the next three years, operational improvements, product innovation, and technical strength could support recovery.

With continued momentum in stock performance, stronger distributor engagement and new product launches, Herbalife enters the second half of 2025 positioned for potential growth, making upcoming quarters important for confirming this trajectory.

For more insights, read the article: Herbalife Reports Q2 2025 Financial Results

Medifast, Inc. (NYSE: MED), through its subsidiaries, operates as a health and wellness company offering habit-based, coach-guided lifestyle solutions focused on weight management and obesity support in the United States. The company’s flagship brand, OPTAVIA, delivers clinically supported weight loss programs, GLP-1 support plans and a wide variety of food products, such as bars, shakes, soups, cereals and snacks, complemented by one-on-one coaching, digital tools and community support. Medifast was founded in 1980 and is headquartered in Baltimore, Maryland. Its products are sold via point-of-sale transactions and ecommerce.

For the month of July 2025, shares of Medifast declined by 2.0% compared to June. Year to date, the stock is down 21.9%, and since the establishment of the DSCI on February 1, 2020, the stock has declined by 82.7%, making it the worst-performing large-cap DSCI member over the long term.

In Q2 2025, the company reported revenue of $105.6 million, a 37.4% decrease compared to the same period in 2024. Despite this decline, Medifast achieved net income of $2.5 million, or $0.22 per diluted share, reversing a loss of $0.75 per share a year earlier. Gross profit fell 37.9% to $76.6 million, with a gross margin of 72.6%. The number of active OPTAVIA coaches dropped by 32.7% to 22,800, while SG&A expenses decreased by 40.8% to $77.7 million, primarily due to lower coach compensation and cost reductions. The company ended the quarter with $162.7 million in cash and investments and no debt.

During the quarter, Medifast launched the Premier Plus auto-ship program and the Edge incentive program to increase coach engagement and productivity. The company also continued to emphasize metabolic health solutions, including support for clients using GLP-1 medications. For Q3 2025, Medifast expects revenue between $70 million and $90 million, with earnings per share projected in the range of $0.00 to –$0.60.

Following the Q2 earnings release, Medifast’s shares experienced a modest decline despite exceeding earnings expectations, as investors focused on the steep drop in revenue and cautious forward guidance.

For more insights, read the article: Medifast Reports Q2 2025 Financial Results

USANA Health Sciences, Inc. (NYSE: USNA) develops, manufactures and sells science-based nutritional, personal care and skincare products across the Asia Pacific, the Americas and Europe. The company operates through two segments: Direct Selling and Hiya Direct-To-Consumer. Its product lineup includes USANA Nutritional Optimizers for cardiovascular, skeletal, and digestive health; Essentials/CellSentials. vitamin and mineral supplements for all ages beginning at 13 months; and food products such as meal replacement shakes and snack bars for healthy weight management, digestive health and hydration. USANA also offers the Celavive skincare line tailored for various skin types and ethnicities, as well as online tools and business materials for associates. Products are sold through retail, subscription-based models and direct selling. The company holds research collaboration agreements with the Beijing University of Chinese Medicine and the National Sports Training Bureau. USANA was founded in 1992 and is headquartered in Salt Lake City, Utah.

For the month of July 2025, USANA’s stock declined by 3.7% compared to June, breaking the modest upward trend observed earlier in the year. Year to date, the stock is down 18.1%, reflecting underperformance relative to broader markets and peers. Since the establishment of the DSCI on February 1, 2020, USANA shares have lost 55.5%.

July was marked by significant volatility. On July 22, USANA reported Q2 2025 results that exceeded analyst expectations: EPS of $0.74 (37% above consensus) and revenue of $236 million (+11% year-over-year), triggering a pre-market stock surge of nearly 19%. Despite the initial rally, the stock retreated later in the month, pressured by macroeconomic uncertainties and cautious investor sentiment. Short interest spiked dramatically, rising 2,787% from mid-June levels to 796,800 shares, representing approximately 7.2% of the company’s outstanding shares, suggesting heightened bearish positioning.

Operationally, USANA maintained solid gross margins and a debt-free balance sheet, but revenue pressures persisted amid challenging global demand trends. The company continued to invest in R&D and digital tools for its associates, reinforcing its long-term innovation strategy. On the leadership front, analyst sentiment improved, with Zacks upgrading the stock to a Rank #2 (Buy), citing favorable earnings momentum and operational discipline.

However, challenges remain. Elevated short interest, ongoing revenue headwinds, and cautious consumer spending in key Asia-Pacific markets temper the near-term outlook. While USANA’s valuation remains fair and its fundamentals sound, the absence of a dividend yield limits its attractiveness to income-focused investors.

With strong quarterly results but a net monthly decline in share price, July underscored the push-pull dynamic between bullish earnings reactions and broader market caution. As the second half of 2025 unfolds, USANA’s ability to convert its operational strengths into sustained top-line growth will be critical to regaining investor confidence.

For more insights, read the article: USANA Reports Q2 2025 Financial Results

eXp World Holdings, Inc. (NASDAQ: EXPI), together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. It operates through three segments: North American Realty, International Realty and Other Affiliated Services. The company acts as a licensed broker for processing residential and commercial real estate transactions; and provides other real estate support services. It also offers FrameVR.io, a web-accessible proprietary technology offering immersive 3D platforms; magazine and its related media properties which provide training, classes, resources and tools under the SUCCESS brand; SUCCESS Space, a coworking solution offering rental workspaces for individual and group use, access to professional development coaching, media production services, virtual-world communications technology and full-service cafes.

It operates in North America, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, Poland, Dubai and recently expanded into Japan. The company was formerly known as eXp Realty International Corporation and changed its name to eXp World Holdings, Inc. in May 2016. eXp World Holdings, Inc. was incorporated in 2008 and is headquartered in Bellingham, Washington.

The stock price increased 18.5% in July vs. June 2025. For the first seven months of 2025, their stock price has declined by 6.3%. More constructively, EXPI shares have appreciated an aggregate 125.5% over the five years the DSCI has been computed, the third best long-term mark for any DSCI member. Additional financial data is at the end of this report.

On August 1, the company reported its Q2 2025 financial results. Revenue grew 1% year-over-year to $1.3 billion, driven by stable transaction volume and a modest increase in real estate sales volume, which reached $52.5 billion (+1% YoY). However, agent count declined 5% to 82,704, and closed transactions fell 2% to 118,612. Adjusted EBITDA came in at $11.2 million, while net cash provided by operating activities totaled $36.1 million. EPS for the quarter was

–$0.01, missing analyst expectations of +$0.09, which pressured sentiment despite revenue stability.

Operationally, eXp maintained a strong liquidity position and continued investing in platform enhancements, agent tools and global expansion initiatives. The revenue-sharing model and stock-based incentives remain key differentiators in attracting and retaining agents, though the year-over-year decline in agent count suggests competitive pressures in the real estate brokerage market.

While July’s sharp price gain reflected renewed investor optimism—likely tied to the company’s long-term growth track record and relative strength compared to the sector—headwinds remain. Lower agent retention, modest transaction softness and EPS misses may challenge near-term momentum. Nonetheless, eXp’s strong five-year stock performance, scalable cloud-based model and disciplined financial management position it for potential recovery if real estate market conditions stabilize in late 2025.

With a blend of strong historical returns, short-term operational challenges and solid platform fundamentals, July highlighted the market’s confidence in eXp’s long-term growth story despite immediate profitability pressures.

For more insights, read the article: eXp World Holdings Reports Q2 2025 Financial Results

Primerica, Inc. (NYSE: PRI), together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities and fixed indexed annuities; and offers segregated funds. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense and motor vehicle-related matters; ID theft defense services; auto and homeowners’ insurance; home automation solutions; and insurance products, including supplemental and accidental death and disability insurance. It distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.

In July, the stock price declined by 2.9% vs. June 2025. For the first seven months of 2025, the stock has declined 2.1%. PRI has appreciated 142.5% since February 1, 2020, the best long-term performance for any DSCI member.

Primerica shares slipped in July after modest gains in the prior month, as investors awaited the company’s second quarter earnings report and monitored broader consumer spending trends. Despite the pullback, Primerica remains among the strongest long-term performers within DSCI, underpinned by a resilient client base and disciplined financial management.

The Primerica Household Budget Index™ (HBI™) for June 2025, released in July, came in at 100%, down 0.1 percentage points from May’s 100.1%, according to Primerica’s consulting economist, Amy Crews Cutts. She noted, “The continued stability of the HBI suggests that wage growth remains sufficient to offset rising costs of essentials, though many families are still exposed to volatility in food and energy prices.” This signals that the company’s core middle-income customer base continues to face inflationary pressures but is managing to maintain relative financial stability.

Management continues to prioritize the expansion of its licensed representative force and the development of additional financial wellness offerings tailored to its core demographic. Analysts emphasize the company’s conservative underwriting standards and strong capital reserves as important factors supporting ongoing profitability and stability, even as economic conditions remain uncertain.

Oliveda International, Inc. (OTC: OLVI). was founded in 2003 and has more than 20 years of experience in: 1) the management and organic certification of mountain olive trees; 2) the extraction of international award-winning extra virgin olive oils; 3) the extraction of hydroxytyrosol, a compound with antioxidant, anti-inflammatory, anticancer and skin- and eye-protective effects; and 4) the production and distribution of cosmetic and holistic waterless products derived from the olive tree.

Oliveda International, Inc. and its subsidiaries, including Olive Tree People Inc., Olive Tree People Europe AG, Oliveda Deutschland GmbH, and Olive Tree Farmers SL, were founded by German real estate investor Thomas Lommel. The group has established a unique market position through innovations such as Olive Tree Therapy “10 years in 14 days,” olive matcha (made from ground olive leaves), and a coffee alternative based on olive leaves and hydroxytyrosol. Lommel is also active in the mindfulness sector with his olive tree sound bath meditations and the broadcast of olive tree frequencies globally.

In addition to online sales and a broad retail network across Europe, Oliveda Deutschland GmbH operates flagship stores in Berlin and Düsseldorf. Its brand portfolio includes Oliveda, LA Dope, Re:connected to Nature, The Intuition of Nature, and Olive Mush. Through the Thomas Lommel Foundation, the company donates unused water from its waterless beauty production to communities in Africa by building wells on-site.

Comparing July 2025 to June 2025, the stock price declined by 13.6%. For the first seven months of 2025, the stock declined by 66.9%.

Olive Tree People, OLVI’s waterless beauty subsidiary, reported 70% growth in the first half of 2025, following an extraordinary 3,000% growth in 2024 and surpassing $100 million in US sales. The company launched operations in Canada in July 2025, expanding its North American presence, and confirmed plans to enter the European market in October 2025. OLVI also announced several upcoming initiatives: the unveiling of a surprise new brand at the Los Angeles flagship store in October; the launch of a hydroxytyrosol-based pet care brand, “Is that Matty,” in November; participation in New York Fashion Week in September, where Olive Rose products will be featured by 75 makeup artists on over 150 models; and the acquisition of additional olive groves along with construction of a modern mill in partnership with the municipality of Arroyomolinos de León.

CEO Thomas Lommel emphasized that the direct selling industry is not in decline but is evolving, driven by innovation, sustainable practices and premium product experiences—principles that continue to shape OLVI’s strategy and market leadership.

For more insights, read the articles: Olive Tree People Sees 70% Growth in First Half of 2025 and Olive Tree People Launches in Canada

The Beachbody Company, Inc. (NYSE: BODI) operates as a fitness and nutrition company in the United States and internationally. The company offers Beachbody on Demand, a subscription streaming service providing fitness programs such as P90X, Insanity, and 21 Day Fix; nutrition programs including Portion Fix and 2B Mindset; and nutritional products like Shakeology shakes and Beachbody Performance supplements. The company also faces legal challenges in California, where efforts are underway to reclassify independent consultants as employees, which may impact its direct selling model.

In July, the stock price increased by 5.6% compared to June 2025. For the first seven months of 2025, the stock price declined by 29.3%. Recent developments include Q2 2025 financial results showing revenue of $103.1 million, down 16% year-over-year, and a net loss of $15.5 million, compared to a $45.7 million loss in the same quarter last year. The company highlighted progress in cost reduction efforts and growth in its subscription base, with digital subscriptions reaching 1.4 million.

The moderate stock price recovery in July, alongside narrowing losses and a growing subscription base, indicates cautious optimism, though revenue declines and ongoing legal challenges remain potential headwinds.

For more insights, read the article: Beachbody Reports Q2 2025 Financial Results

Below are two summary diagrams on the direct selling large cap companies.

The Real Brokerage Inc. (NASDAQ: REAX) was founded in 2014 and is a technology-driven, asset-light real estate brokerage that empowers agents through a cloud-based platform, AI tools and fintech solutions. Operating across the US and Canada, the company combines commission-based revenue, innovative agent incentives and strategic acquisitions to disrupt traditional brokerage moels and drive scalable growth.

In Q2 2025, Real reported revenue of $5490.7 million (59% YoY) and gross profit of $47.9 million (+5% Y0Y). Adjusted EBITDA rose to $20 million, up from $14 million a year earlier, while net income reached $1.5 million, marking the company’s first-ever quarterly profit compared to a $1.1 million loss in Q2 2024. Closed transactions totaled 49,282 (+62% YoY) with a transaction value of $20.1 billion (+60% YoY). Agent count grew 43% TO 28,034 at quarter-end, surpassing ~29,200 by early August and operating cash flow reached $41 million. The company ended the quarter with $54.8 million in cash and short-term investments and no debt.

Strategic highlights included the acquisition of Flyhomes; AI-powered home search portal, the expansion of the Real Wallet fintech platform to 3.600 agents and enhancements to its revenue share model. Real remains focused on leveraging technology, agent growth and platform innovation to expand its market share and sustain profitability.

For more insights, read the article: The Real Brokerage Inc. Reports Q2 2025 Financial Results

Small Cap

Below are the July summaries for the two largest small cap companies, Nature’s Sunshine and LifeVantage.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR), a natural health and wellness company, manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America and other markets internationally. The company provides general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy and vision; immune products; cardiovascular products; and digestive products. It also offers personal care products, including oils and lotions, aloe vera gel, herbal shampoo, herbal skin treatment, toothpaste, and skin cleanser products, as well as weight management products. The company provides its products under the Nature’s Sunshine Products and Synergy WorldWide brands directly to customers and to a sales force of independent consultants. Nature’s Sunshine Products, Inc. was founded in 1972 and is headquartered in Lehi, Utah.

In July, their stock price declined by 5.3% compared to June 2025, the largest decline among the small cap direct selling companies. For the first seven months of 2025, the stock declined by 4.4%. Since the inception of the DSCI, NATR has gained 80.4%.

Recent developments include Q2 2025 financial results showing net sales of $114.8 million, up 4% year-over-year, and adjusted EBITDA of $11.3 million, up 8% year-over-year. Gross profit margin improved slightly to 71.7% from 71.4%. The company raised its full-year 2025 guidance, now expecting net sales between $460 million and $475 million, and adjusted EBITDA between $41 million and $45 million.

Operational performance highlights include strong momentum in key international markets such as Japan and Central Europe and continued strength in digital sales and auto ship programs. The company ended the quarter with $81.3 million in cash and no debt.

The sharp stock price drop in July, despite solid Q2 operational performance and raised full-year guidance, suggests that investor sentiment may have been affected by broader market dynamics or near-term uncertainties. Nonetheless, improved margins, strong cash position and strategic focus on digital and international channels indicate resilience and cautious optimism in the company’s outlook.

For more insights, read the article: Nature’s Sunshine Reports Q2 2025 Financial Results

LifeVantage Corporation (NASDAQ: LFVN) engages in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and probiotics, weight management and skin and hair care products.

It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, supports cognitive functions and supports normal sleep patterns; LifeVantage Daily Wellness, a dietary supplement designed to strengthen immune health; LifeVantage Rise AM & Reset PM System that provides the body with the right nutrients; LifeVantage D3+, a dietary supplement that provides vitamin D3, vitamin K2, magnesium, calcium and other trace minerals to support a balanced immune system, strong bones and cardiovascular health; PhysIQ Fat Burn to support weight management; PhysIQ Prebiotic is a dietary supplement designed to support the good bacteria in the gut and a healthy microbiome; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix.

The company also provides anti-aging skincare products, including liquid collagen, facial cleansers, eye cream, moisturizing cream, sunscreen, perfecting lotions, hand creams as well as hair care products, such as invigorating shampoos, nourishing conditioners and scalp serums under the TrueScience brand name.

It sells its products through its website and network of independent consultants in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore and the Philippines. The company also launched Evolve Compensation Plan and other LV360 initiatives into the Philippines, Taiwan, Hong Kong and Singapore. The company is based in Lehi, Utah.

LifeVantage shares continued their downward trend in July, declining 4.1% and extending the company’s year-to-date losses to 28.4%, as market uncertainty and volatility persist. Since the February 1, 2020 establishment of the DSCI, LFVN has gained 5.4%.

July brought continued share price pressure for LifeVantage, reflecting persistent market uncertainty and volatility. Despite the challenging stock performance, the company remained active on the strategic front. It celebrated innovation at its annual Activate 2025 event, highlighting product advancements and brand momentum. LifeVantage also established operations in Iceland, expanding its European presence and announced promising results from a clinical trial showing a 200% increase in natural GLP-1 production, a hormone linked to appetite regulation and metabolic health.

While near-term stock movements remain negative, these strategic initiatives underscore LifeVantage’s commitment to innovation, scientific validation and international growth, laying the groundwork for potential long-term value creation.

For more insights, read the articles: LifeVantage Celebrates Innovation at Activate 2025, LifeVantage Clinical Trial Shows 200% Increase in Natural GLP-1 Production and LifeVantage Establishes Iceland Operations

Below are two summary diagrams on the direct selling small cap companies.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 5.2 days as of July 15, 2025. Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index mirrors the DJIA for the month of June 2025

The Direct Selling Capital Advisors Direct Selling Index (DSCI) increased by 4.3% in June vs. May 2025. The DJIA increased by 3.9% in June vs. May. Over the first six months of 2025, the DSCI has a small increase of 3.6%. Comparing the DSCI vs. the DJIA since the inception of the DSCI, the DSCJ return is 73.5%. This demonstrates the long-term resilience of our channel.

The first half of 2025 presented a mixed bag for investors, characterized by volatility and a significant recovery from early market corrections. While the first quarter saw a downturn, with some indexes even flirting with bear market territory, a strong rebound in the second quarter led to record highs for major indices like the S&P 500 and Nasdaq. Despite facing challenges like potential trade wars, geopolitical tensions and even recession fears, the market ultimately displayed resilience, with positive returns for the first half of the year.

Key Trends and Events
Volatility and Recovery

The market experienced a significant sell-off in the first quarter, with the S&P 500 declining as much as 17.8% in April. However, a strong recovery in the second quarter led to a positive return for the first half of the year, with the S&P 500 and Nasdaq reaching record highs.

“Magnificent 7” Outperformance

The “Magnificent 7” stocks, which include tech giants, significantly outperformed the rest of the S&P 500, delivering a 18.6% price return in the second quarter.

Dollar Weakness

The US dollar experienced weakness, which boosted returns for international investors and benefited emerging market equities.

Geopolitical Tensions

The war between Iran and Israel caused some market volatility, but its impact on markets was relatively muted.

Shifting Investor Sentiment

While initial concerns about tariffs and recession led to market downturns, investor sentiment improved as the market recovered, with some indicators reaching “extreme optimism” territory.

Emerging Markets Resilience

Emerging markets demonstrated resilience, with strong domestic demand and central bank credibility mitigating the impact of trade uncertainties.

There was a notable rotation in market leadership, with value stocks and certain sectors like basic materials, healthcare and energy outperforming growth stocks and technology.

Factors Contributing to the Recovery

Strong Earnings

A robust first quarter earnings season, with strong year-over-year growth and positive earnings surprises, contributed to the market’s recovery.

Resilient Economy

The US and global economies showed resilience, expanding at a near-trend pace despite facing policy surprises and geopolitical tensions.

Policy Easing

Easing trade tensions between the US and China, as well as the anticipation of potential rate cuts, also contributed to the positive market sentiment.

Investor Confidence

The market’s ability to recover from the April lows and reach new highs fueled investor confidence and optimism.

Potential Challenges and Risks

Tariffs and Trade Disputes

Ongoing trade tensions and the potential for further tariffs remain a concern for the market.

Geopolitical Instability

The war between Iran and Israel, along with other geopolitical risks, could continue to create market volatility.

Inflation and Interest Rates

The potential for continued inflation and interest rate hikes could pose challenges for the market.

Economic Slowdown

Concerns about a potential economic slowdown, particularly in the Eurozone, could impact market performance.

Looking Forward

The direct selling channel has some significant headwinds soon due to a lot of uncertainty in the global marketplace. We are seeing more companies moving away from a sole dependency for distributors to drive revenue through an omnichannel strategy. At the same time, we are seeing companies committed to the MLM business model showing growth.

The Direct Selling Capital Advisors Index (DSCI) is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

Large Cap

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization more than $1 billion “Large Cap.”

Betterware de Mexico (NASDAQ: BWMX), founded in 1995, is the leading direct-to-consumer company in Mexico specializing in household organization, practicality, space-saving, and hygiene products. Through the acquisition of JAFRA in April 2022, the company expanded into the beauty market in Mexico and the United States, offering fragrances, color cosmetics, skincare and toiletries. Betterware operates an asset-light business model with low capital expenditure requirements and has a track record of strong profitability, double-digit revenue growth and free cash flow generation. The company distributes its products in Mexico and the US.

In June 2025, Betterware’s stock price increased by 9.2% compared to May. Year-to-date, the stock’s decline narrowed to –22.6%. Since the establishment of the DSCI on February 1, 2020, BWMX has declined by 8.2%.

After a significant drop in May, Betterware showed a positive rebound in June, supported by an upgrade to a Zacks Rank #1 (Strong Buy) and rising earnings estimates, reflecting improving analyst sentiment. However, the company continues to face challenges including a 51% drop in EPS over the last year, weak interest coverage, shrinking profit margins (down from 8.7% to 4.1%) and a high dividend yield of approximately 17.5% that is not well covered by earnings. These financial risks temper the recent optimism.

Betterware’s upcoming Q2 earnings report will be important to assess if the recent positive momentum can be sustained amid ongoing operational and financial challenges.

Nu Skin Enterprises, Inc. (NYSE: NUS), together with its subsidiaries, engages in the development and distribution of various beauty and wellness products worldwide. It offers skincare devices, cosmetics and other personal care products, including ageLOC LumiSpa and ageLOC LumiSpa iO; and nutricentials skincare products. The company also provides wellness products, such as LifePak nutritional supplements, ageLOC TR90 weight management system and Beauty Focus Collagen+. In addition, it is involved in the research and product development of skincare products and nutritional supplements. The company sells its products under the Nu Skin, Pharmanex and ageLOC brands through retail stores, website, digital platforms and independent direct sellers and marketers, as well as a service center. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.

In June, the stock declined by 7.4% compared to May 2025. For the year, the stock is up 16%. Since the direct selling index was established in February 2020, their stock has declined 66.1%. The stock’s 52-week high is $11.64 and the low was $5.32. Analysts predict a growth estimate of 23.25% for 2025. Additional financial data is at the end of this report.

Nu Skin’s stock remains under pressure after a short-term rebound earlier this year, with valuation still attractive relative to cash flow and growth prospects, making it a potential value play.

In June, Nu Skin announced the appointment of James Winett to its Board of Directors, strengthening governance and signaling a renewed focus on operational strategy in a competitive direct-selling environment. Institutional ownership remains high at approximately 75%, while insider ownership is low, indicating confidence from large investors but limited internal equity exposure.

The company continues to face challenges with revenue momentum, as highlighted by some analysts, but margin improvements and cash on hand from the Mavely sale provide room to invest in product innovation and distributor incentives.

Nu Skin’s ISS Governance QualityScore in June was reported as 3 out of 10, with room for improvement particularly in shareholder rights and board structure. The recent addition of Winett is expected to improve board oversight. Analysts maintain a cautious but constructive outlook, reiterating the importance of delivering stronger sales trends and sustaining margins.

The company’s next earnings report for Q2 2025 is expected to provide further insight into the progress of its growth initiatives, especially in emerging markets and with new products like Prysm iO. Management continues to emphasize the value of combining innovative products with a competitive compensation plan for distributors as the key to long-term success.

Herbalife Ltd. (NYSE: HLF), together with its subsidiaries, provides health and wellness products across North America, Mexico, South and Central America, Europe, the Middle East, Africa, China and Asia Pacific. The company offers products in the areas of weight management; targeted nutrition; energy, sports, and fitness; outer nutrition; and literature, promotional and other materials. Herbalife’s offerings include protein shakes, meal replacements, healthy snacks, metabolism-boosting teas, dietary supplements with natural ingredients, skincare and body care products and energy drinks. These are sold through sales representatives, independent service providers and company-operated retail stores and platforms. Founded in 1980 and headquartered in Los Angeles, California, the company changed its name from Herbalife Nutrition Ltd. to Herbalife Ltd. in April 2023.

For the month of June 2025, Herbalife’s stock rose by 10.45%, continuing its positive momentum. Year-to-date, the stock has increased by 28.8%, making it the only large-cap stock to post a positive return in the first six months of 2025. However, HLF remains down 73.4% since the establishment of the DSCI on February 1, 2020.

Herbalife continues to trade at 16.3% below estimates of its fair value, suggesting potential upside if momentum sustains. The company saw earnings grow by 104.4% over the past year and currently trades at a better value compared to its industry peers. Despite this, earnings are forecast to decline by an average of 9.2% annually over the next three years. Interest payments remain poorly covered by earnings, and the company continues to operate with negative shareholder equity, alongside large one-off items that distort its core financial performance.

In June, Herbalife was recognized by U.S. News & World Report as one of the Best Companies to Work For (2025–2026), highlighting the company’s focus on internal culture and employee satisfaction. Additionally, the company received a Scientific Achievement Award from AOAC International for developing an analytical method to identify aloin content in Aloe Vera products, underscoring Herbalife’s commitment to product quality and safety.

With recent management changes, ongoing product innovation and stronger-than-expected stock performance in 2025, Herbalife is a company worth monitoring closely in the coming months—especially with its Q2 earnings report scheduled for August 6, 2025.

Medifast, Inc. (NYSE: MED), through its subsidiaries, operates as a health and wellness company offering habit-based, coach-guided lifestyle solutions focused on weight management and obesity support in the United States. The company’s flagship brand, OPTAVIA, delivers clinically-supported weight loss programs, GLP-1 support plans and a wide variety of food products—such as bars, shakes, soups, cereals and snacks—complemented by one-on-one coaching, digital tools, and community support. Medifast was founded in 1980 and is headquartered in Baltimore, Maryland. Its products are sold via point-of-sale transactions and ecommerce.

For the month of June 2025, shares of Medifast declined by 0.1% compared to May. Year-to-date, the stock is down 20.3%, and since the establishment of the DSCI on February 1, 2020, the stock has declined by 82.3%, making it the worst-performing large-cap DSCI member over the long term.

Medifast continues to navigate a major business transition, most notably through its strategic pivot toward GLP-1 integration, including the rollout of OPTAVIA ASCEND™, a high-protein product line designed for individuals using GLP-1 medications or seeking medically-guided weight management support. While this direction reflects an attempt to remain competitive in a changing health and nutrition landscape, the market response has been measured.

The company maintains a debt-free balance sheet and strong liquidity, but revenue pressures and growing competition in the weight-loss sector, especially from prescription GLP-1 drugs, continue to weigh on performance. Analysts remain neutral overall, citing Medifast’s stable fundamentals but uncertain growth outlook. The company’s upcoming earnings report, expected later in July, will be a critical moment for evaluating the progress of its transformation strategy.

Despite modest product momentum and a solid financial base, investor sentiment remains cautious amid broader uncertainty in the direct selling and weight-loss industries.

USANA Health Sciences, Inc. (NYSE: USNA) develops, manufactures and sells science-based nutritional, personal care and skincare products across Asia Pacific, the Americas, and Europe. The company operates through two segments: direct selling and Hiya direct-to-consumer. Its product lineup includes USANA Nutritional Optimizers for cardiovascular, skeletal and digestive health; Essentials/CellSentials—vitamin and mineral supplements for all ages beginning at 13 months; and food products such as meal replacement shakes and snack bars for healthy weight management, digestive health and hydration. USANA also offers the Celavive skincare line tailored for various skin types and ethnicities, as well as online tools and business materials for associates. Products are sold through retail, subscription-based models and direct selling. The company holds research collaboration agreements with the Beijing University of Chinese Medicine and the National Sports Training Bureau. USANA was founded in 1992 and is headquartered in Salt Lake City, Utah.

For the month of June 2025, USANA’s stock rose by 2.2% compared to May, continuing a modest upward trend. Year-to-date, the stock is down 14.9%, reflecting underperformance relative to broader markets and peers. Since the establishment of the DSCI on February 1, 2020, USANA shares have lost 53.8%, while the Direct Selling Index and the DJIA have gained 66.4% over the same period.

USANA continues to benefit from strong financial fundamentals, including solid gross margins and a stable balance sheet. Technical indicators show positive momentum, with the stock reaching a 2025 high in early July. However, several challenges persist, including declining revenues, cautious consumer sentiment and global trade uncertainties. The company’s valuation is considered fair, but the lack of a dividend yield may limit its appeal to income-focused investors.

In June, USANA was recognized with five Best-of-State awards, including accolades for its CellSentials supplement line, Celavive skincare products, R&D efforts, and community programs. The company also gained industry visibility when CEO Jim Brown was elected to the Board of the Direct Selling Association (DSA). On a more cautious note, Director John T. Fleming sold 500 shares in early June, a potential signal of limited short-term confidence from inside the company.

With its next earnings report scheduled for July 22, 2025 and a steady stream of both operational progress and ongoing challenges, USANA remains a stock to watch as it navigates the remainder of the year.

eXp World Holdings, Inc. (NASDAQ: EXPI), together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. It operates through three segments: North American Realty, International Realty and Other Affiliated Services. The company acts as a licensed broker for processing residential and commercial real estate transactions and provides other real estate support services. It also offers FrameVR.io, a web-accessible proprietary technology offering immersive 3D platforms; magazine and its related media properties which provide training, classes, resources and tools under the SUCCESS brand; SUCCESS Space, a coworking solution offering rental workspaces for individual and group use, access to professional development coaching, media production services, virtual-world communications technology and full-service cafes. It operates in North America, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, Poland and Dubai. The company was formerly known as eXp Realty International Corporation and changed its name to eXp World Holdings, Inc. in May 2016. eXp World Holdings, Inc. was incorporated in 2008 and is headquartered in Bellingham, Washington.

The stock price increased 6.8% in June vs. May 2025. For the first six months of 2025, their stock price has declined by 20.9%. More constructively, EXPI shares have appreciated an aggregate 90.4% over the five years the DSCI has been computed, the third best long-term mark for any DSCI member. Additional financial data is at the end of this report.

eXp shares rebounded in June after several months of declines, helped by positive sentiment ahead of the company’s Q2 earnings report and strength in international segment revenue. However, the company continues to face challenges with agent and broker growth, which remains flat at approximately 81,900. This stagnation points to increasing market competition and potential saturation, which could weigh on long-term transaction volume growth and profitability.

The company reported in its most recent earnings release that Q1 2025 revenue rose slightly to $954.9 million, while net loss widened to $11 million or $0.07 per share. Adjusted EBITDA was positive at $2.2 million, but operating margins remain thin. Management highlighted strong sales growth internationally, with revenue more than doubling in several markets outside North America.

eXp’s five-year average return on invested capital (ROIC) remains negative at -24.4%, indicating challenges in translating expansion into profitability. Operating expenses and an inefficient cost structure have been cited as key areas for improvement.

The company’s ISS Governance QualityScore for June was 6 out of 10, with strengths in shareholder rights but weaknesses in board composition and compensation practices. Institutional ownership remains high, while insider ownership is minimal, reflecting stable but limited internal alignment.

Management reiterated its focus on global expansion, technology innovation and improving its agent value proposition as the core strategies to reignite growth and enhance long-term shareholder value. Investors are expected to closely watch the upcoming Q2 earnings report in July for further signs of improving trends in agent count, profitability and international momentum.

Primerica, Inc. (NYSE: PRI), together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities and fixed indexed annuities and offers segregated funds. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense and motor vehicle-related matters; ID theft defense services; auto and homeowners’ insurance; home automation solutions; and insurance products, including supplemental and accidental death and disability insurance. It distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.

In June, the stock price increased by 1.1% vs. May 2025. For the first six months of 2025, the stock has a slight decline of 0.8%. PRI has appreciated 149.8% since February 1, 2020, the best long-term performance for any DSCI member. Additional financial data is at the end of this report.

Primerica shares posted modest gains in June, continuing their steady performance despite ongoing pressures from rising costs of living among its client base. The company remains the strongest long-term performer among DSCI members, reflecting its ability to maintain market leadership and generate consistent cash flows.

The Primerica Household Budget Index™ (HBI) for May 2025, released in June, came in at 99.7%, up slightly from April’s 99.6%, suggesting that middle-income households continue to see their purchasing power largely stable amid mixed inflation signals. According to Primerica’s consulting economist Amy Crews Cutts, “The steady HBI readings show that wage growth is keeping pace with increases in essential expenses, although families remain vulnerable to spikes in volatile food and energy prices.”

Management continues to focus on expanding its licensed representative base and enhancing its suite of financial wellness products to better serve middle-income families coping with inflationary pressures. Analysts view the company’s disciplined underwriting standards and strong capital position as key to sustaining profitability even if household budgets tighten further.

The company is expected to report Q2 earnings in late July, with analysts looking for evidence of continued stability in term life sales and positive trends in investment product flows.

Founded in 2003, Oliveda International, Inc. (OTC: OLVI) has more than 20 years of experience in: 1) the management and organic certification of mountain olive trees; 2) the extraction of international award-winning extra virgin olive oils; 3) the extraction of hydroxytyrosol, a substance which has several beneficial effects such as antioxidant, anti-inflammatory and as a protector of skin and eyes; and 4) the production and distribution of cosmetic and holistic waterless products related to the olive tree.

Oliveda International, Inc. and its subsidiary, Olive Tree People Inc., as well as the European companies, Olive Tree People Europe AG and Oliveda Deutschland GmbH, and Olive Tree Farmers SL, were founded by the German real estate investor Thomas Lommel and have more than 20 years of experience in the management and organic certification of growing mountain olive trees, the extraction of first-class, internationally award-winning extra virgin olive oils, the extraction of hydroxytyrosol, and in the production and distribution of cosmetic and holistic waterless products related to the olive tree. Lommel is the inventor of the Olive Tree Therapy 10 years in 14 days as well as the inventor of olive matcha, which is based on the ground olive leaf. Also unique is the coffee replacement developed by Lommel, which is based on olive leaf and hydroxytyrosol. In addition, Lommel is successfully active in the rapidly growing mindfulness industry with the olive tree sound bath meditation he developed and the frequencies of his olive trees, which he makes available worldwide.

In addition to the registered beauty brands Oliveda and LA Dope, as well as Re:connected to Nature, The Intuition of Nature and Olive Mush, to name just a few, Lommel is the region’s largest conservationist and protector of over 30,000 one-hundred-year-old mountain olive trees, and, with his Thomas Lommel Foundation, he brings the water that he does not use in his waterless beauty products to the people of Africa by building water wells on site.

In addition to online sales and a Europe-wide branch network of thousands of retail stores, Oliveda Deutschland GmbH operates its own flagship stores in Berlin and Düsseldorf.

Comparing June 2025 to May 2025, the stock price declined by 47.2%. For the first six months of 2025, the stock declined by 61.7%.

Despite the sharp stock price decline, OLVI announced the launch of its leading “waterless beauty” product line in Canada, marking a significant step in its international expansion strategy. This move is expected to diversify the company’s revenue streams and increase its global footprint.

CEO Thomas Lommel commented, “It wasn’t my goal to achieve a valuation of over $1 billion, but rather to bring the magic of our trees to the world. I had no idea about waterless beauty and developed it intuitively in the treehouse, simply because it makes so much more sense. For me, trees cannot be measured in money, as we wouldn’t exist without them. The magic emanating from our mountain olive trees cannot be measured in dollars, as they enable us humans to become healed and whole every day.”

The company has confirmed a valuation of over $1 billion after just two years, reflecting strong investor confidence despite recent stock volatility.

The Beachbody Company, Inc. (NYSE: BODI) operates as a fitness and nutrition company in the United States and internationally. The company offers Beachbody on Demand, a subscription streaming service providing fitness programs such as P90X, Insanity and 21 Day Fix; nutrition programs including Portion Fix and 2B Mindset; and nutritional products like Shakeology shakes and Beachbody Performance supplements. The company also faces legal challenges in California, where efforts are underway to reclassify independent consultants as employees, which may impact its direct selling model.

In June, the stock price increased by 11.7% compared to May 2025. For the first six months of 2025, the stock price declined by 33%. Recent developments include the launch of the new BODi program, focused on digital fitness and nutrition and a $35 million funding round from Tiger Capital Group to support growth initiatives.

The stock’s recovery in June suggests potential stabilization after previous declines, with new product launches and financial backing providing optimism for future growth.

Below are two summary diagrams on the direct selling large cap companies.

Small Cap

Below are two charts on the small companies as well as June information for the two largest small cap companies, Natures Sunshine and LifeVantage.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR), a natural health and wellness company, manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America and other international markets. The company provides general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy and vision; immune products; cardiovascular products; and digestive products. It also offers personal care products, including oils and lotions, aloe vera gel, herbal shampoo, herbal skin treatment, toothpaste, and skin cleanser products, as well as weight management products. The company provides its products under the Nature’s Sunshine Products and Synergy WorldWide brands directly to customers and to a sales force of independent consultants. Nature’s Sunshine Products, Inc. was founded in 1972 and is headquartered in Lehi, Utah.

In June, their stock price declined by 4.3% vs. May 2025, the largest decline among the small cap direct selling companies. For the first six months of 2025, the stock increased by 0.9%. Since the inception of the DSCI, NATR has gained 90.4%, the largest of any small cap stock and the second largest of any company in the DSCI.

During the month, the company announced that CEO Terrence Moorehead would step down from his role upon the appointment of a successor, while reaffirming its full-year financial outlook. Following this announcement, the stock fell approximately 7–8% in the morning session, indicating that the market views the leadership change as significant but not fundamentally altering the company’s outlook.

Later in June, Fosun Pharma USA, previously the company’s largest shareholder, sold nearly all of its stake (about 2.85 million shares) in a secondary public offering at a price of $11.46 per share, putting additional pressure on the stock during the month.

Nature’s Sunshine’s shares remain volatile, with 17 moves greater than 5% over the last year. In that context, June’s move reflects investor concerns about leadership transition and shareholder changes, while the long-term fundamentals of the business remain intact.

LifeVantage Corporation (NASDAQ: LFVN) engages in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management and skincare and hair care products. It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, supports cognitive functions, and support normal sleep patterns; LifeVantage Daily Wellness, a dietary supplement designed to strengthen immune health; LifeVantage Rise AM & Reset PM System that provides the body with the right nutrients; LifeVantage D3+, a dietary supplement that provides vitamin D3, vitamin K2, magnesium, calcium and other trace minerals to support a balanced immune system, strong bones, and cardiovascular health; PhysIQ Fat Burn to support weight management; PhysIQ Prebiotic is a dietary supplement designed to support the good bacteria in the gut and a healthy microbiome; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix. The company also provides anti-aging skincare products, including liquid collagen, facial cleansers, eye cream, moisturizing cream, sunscreen, perfecting lotions, hand creams as well as hair care products, such as invigorating shampoos, nourishing conditioners and scalp serums under the TrueScience brand name. It sells its products through its website and network of independent consultants in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore and the Philippines. The company also launched Evolve Compensation Plan and other LV360 initiatives into the Philippines, Taiwan, Hong Kong and Singapore. The company is based in Lehi, Utah.

In June, their stock price increased by 0.2% vs. May 2025. For the first six months of 2025, the stock price has declined 25.4%. Since the February 1, 2020 establishment of the DSCI, LFVN has gained 9.8%.

LifeVantage delivered modest stock price gains in June, showing signs of stabilization after a steep year-to-date decline. The company’s underlying fundamentals remain solid, supported by strong free cash flow generation and impressive EPS growth over the past year. In mid-June, institutional investors, including Millennium Management, increased their positions in the stock, signaling cautious optimism. While LFVN briefly traded below its 200-day moving average during the month, the late-month rebound suggests investors still have confidence in the company’s long-term growth prospects as it expands its global footprint.

LifeVantage’s shares remain volatile, and June’s muted move reflects a market still assessing the company’s trajectory amid ongoing global expansion and operational improvements.

Below are two summary diagrams on the direct selling small cap companies.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 5.4 days as of June 15, 2025. Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Mirrors the DJIA for the Month of May 2025

The Direct Selling Capital Advisors Direct Selling Index (DSCI) increased by 4.3% in May vs. April 2025. The DJIA increase by 4.1% in May vs. April. Over the first five months of 2025, the DSCI has a small increase of 0.086%. There seems to be an ongoing challenge with tariffs and the geopolitical landscape. Comparing the DSCI vs. the DJIA since the inception of the DSCI, the DSCJ return is 68.4%. This demonstrates the long-term resilience of the our channel.

     

Tariff concerns had already abated by the time May began, and investors seemed to grow more comfortable with the economic uncertainty as the month wore on. Investor sentiment surveys had shown more bears than bulls for 15 consecutive weeks dating back to mid-February. Those surveys flipped in favor of optimism by late May.

Some formal trade deals certainly helped. On May 8, the US and the UK announced a trade agreement that will exempt key British industries (cars, steel and beef among them) from President Donald Trump’s reciprocal tariffs.

On May 12, the US and China agreed to a temporary truce that reduced tariffs on US goods to 10% (down from 125%) and tariffs on Chinese goods to 30% (down from 145%). These reductions will remain in place for 90 days (until mid-August) while the two nations continue dialogue on a more permanent trade deal. Stocks soared on the US-China news, with the S&P 500 rising 3.3%.

Bond yields also increased following the positive US-China developments. Ten-year US Treasury yields climbed as high as 4.63% on May 22 (their highest mark since February) and ended the month at 4.42%. We foresee several reasons why yields are likely to fall in the coming months. Investors who have favored money market funds for their conservative dollars would be wise to consider bonds instead.

The Federal Reserve announced no changes to interest rates following its May 6-7 meeting and consensus projections now suggest two 0.25% rate cuts by year-end. The first of those is likely to come in either July or September. To its credit, the Fed has remained patient with regards to monetary policy and potential rate cuts.

With first-quarter earnings season nearly complete, S&P 500 companies have grown earnings by 13.3% compared to a year earlier. That is nearly twice the consensus of 7.1% growth projected as of March 31. It’s also the second consecutive quarter with earnings growth greater than 10% (following 18% year-over-year growth in Q4 2024).

First quarter GDP was revised in May to show a 0.2% contraction (read: “negative growth”), slightly better than initial reports suggesting -0.3%. We will find out in late July whether the US economy is in a recession, and it will be interesting to quantify some of the economic impact from tariffs.

Some have speculated that tariffs could actually boost GDP in the short-term since consumers may have purchased more goods in an attempt to avoid higher prices once tariffs are implemented. So far, US consumer spending has remained steady, increasing 0.2% month-over-month based on the most recent data.

International stocks lagged US equities in May but their year-to-date performance remains superior. Non-US-developed equities gained 4.8% last month and are up 17.5% so far this year. Emerging markets rose 4% in May and have increased 8.9% year-to-date.

A Republican-led tax bill passed the US House of Representatives in late May but still faces hurdles in the US Senate. If eventually signed into law, the bill would make permanent most of the 2017 income tax and estate tax cuts originally passed during Trump’s first term as president. In doing so, it would add roughly $4 trillion to the US debt, according to the Congressional Budget Office.

The US inflation rate continues to moderate with the April Consumer Price Index (CPI) falling to 2.31%. This was the lowest reading for the headline number since prior to the post-COVID spike that began in 2021. The Core Inflation Rate that strips out the more volatile food and energy prices also continues to trend in the right direction, coming in at 2.78%, which was roughly unchanged from the previous month.

Highlights

• Inflation continues to moderate
• Stocks had one of their best months since November of 2023
• The S&P is now up for 2025 and back near all-time highs
• Fixed income returns were impacted by rising rates

Looking Forward

The direct selling channel has some significant headwinds in near future due to a lot of uncertainty in the global marketplace. We are seeing more companies moving away from a sole dependency for distributors to drive revenue through an omnichannel strategy. At the same time, we are seeing companies committed to the MLM business model showing growth.

The Direct Selling Capital Advisors Index (DSCI) is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

Large Cap

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Betterware de Mexico (NASDAQ: BWMX) Founded in 1995, Betterware de Mexico is the leading direct-to-consumer company in Mexico focused on offering innovative products that solve specific needs related to household organization, practicality, space-saving and hygiene. Through the acquisition of JAFRA on April 7, 2022, the Company now offers a leading brand of direct-to-consumer in the beauty market in Mexico and the United States where it offers fragrances, color & cosmetics, skincare and toiletries. The combined company possesses an asset-light business model with low capital expenditure requirements and a track record of strong profitability, double digit rates of revenue growth and free cash flow generation. Today, the Company distributes its products in Mexico and in the United States of America.

Their stock price declined by 20% in May, bringing its YTD decline to -29.2%. Since the March 1, 2020 inception of the DSCI, BWMX has declined by 15.9%. Additional financial data is at the end of this report.

Active investors aim to buy stocks that vastly outperform the market but, in the process, they risk under-performance. That downside risk was realized by Betterware. Shareholders over the last year, as the share price declined 44%. That’s disappointing when you consider the market returned 13%. Longer term shareholders haven’t suffered as badly, since the stock is down a comparatively less painful 27% in three years. Furthermore, it’s down 25% in about a quarter. This could be related to the recent financial results; you can catch up on the most recent data by reading our company report.

Unfortunately, Betterware reported an EPS drop of 51% for the last year. We note that the 44% share price drop is very close to the EPS drop. So, it seems that the market sentiment has not changed much, despite the weak results. Rather, the share price remains a similar multiple of the EPS, suggesting the outlook remains the same.

Analysist have noted a few key risks with the future stock performance. First, their interest payments are not well covered by earnings. We have seen how problematic that has been for direct selling companies that have excessive debt. Second, profit margins (4.1%) are lower than last year (8.7%). Third, dividends of 17.51% are not well covered by earning.

Nu Skin Enterprises, Inc. (NYSE: NUS), together with its subsidiaries, engages in the development and distribution of various beauty and wellness products worldwide. It offers skincare devices, cosmetics and other personal care products, including ageLOC LumiSpa and ageLOC LumiSpa iO; and nutricentials skincare products. The company also provides wellness products, such as LifePak nutritional supplements, ageLOC TR90 weight management system and Beauty Focus Collagen+. In addition, it is involved in the research and product development of skincare products and nutritional supplements. The company sells its products under the Nu Skin, Pharmanex and ageLOC brands through retail stores, website, digital platforms and independent direct sellers and marketers, as well as a service center. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.

In May, the stock increased by 42.4% compared to April 2025. For the year, the stock is up 25.3%. Since the direct selling index was established in March 2020, their stock has declined 63.4%. The stock’s 52-week high is $14 and the low was $5.32. Analysts predict a growth estimate of 23.25% for 2025. Additional financial data is at the end of this report.

Nu Skin’s stock has found long-term technical support after a steep decline, with an attractive valuation and improving free cash flow, making it a potential value play.

Q1 2025 earnings beat expectations, with margin improvements and strong growth prospects in Latin America and India, plus a cash boost from the Mavely sale.

Innovative products like Prysm iO aim to drive customer engagement and recurring revenue, but stronger revenue growth is needed to offset compensation costs.

The recent sale of Mavely for a $176 million cash gain has boosted Nu Skin’s cash position and reduced outstanding debt to $155 million. The boost in liquidity is encouraging, given management’s plan to double down on what has been working for the company. To this point, the CEO knows full well that the best lineup of products combined with an excellent compensation plan (where leaders are rewarded generously) is the only way to succeed in a highly competitive direct selling environment.

Herbalife Nutrition, Inc. (NYSE: HLF), together with its subsidiaries, provides health and wellness products in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China and the Asia Pacific. The company offers products in the areas of weight management; targeted nutrition; energy, sports and fitness; outer nutrition; and literature, promotional and other items. It also provides weight management products, including meal replacement products, protein shakes, drink mixes, weight loss supplements, healthy snacks and metabolism boosting teas; targeted nutrition products, which comprise functional beverages; and dietary and nutritional supplements that contain herbs, vitamins, minerals and other natural ingredients; outer nutrition products, such as facial skin, body and hair care products; and energy, sports and fitness products, including N-R-G tea and energy drink products. In addition, it offers literature, promotional and other materials that comprise start-up kits, sales tools and educational materials. The company sells its products through sales representatives, independent service providers and company-operated retail stores and platforms. The company was formerly known as Herbalife Nutrition Ltd. and changed its name to Herbalife Ltd. in April 2023. Herbalife Ltd. was founded in 1980 and is headquartered in Los Angeles, California.

For the month of May, their stock increased by 10.5%. Year-to-date, their stock has increased by 16.7%, the only large cap stock that has had a positive return for the first four months of 2025. Conversely, HLF is down 75.9% since the establishment of the DSCI on March 1, 2020.

Their stock is trading at 16.3% below estimates of its fair value. Earnings grew by 104.4% over the past year. Trading at good value compared to peers and industry. However, earnings are forecast to decline by an average of 9.2% per year for the next 3 years. Interest payments are not well covered by earnings. The company has negative shareholder equity and large one-off items impacting their financial success. With recent acquisition and management changes, Herbalife is worth keep an eye on in the coming months.

Medifast, Inc. (NYSE: MED), through its subsidiaries, operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. The company offers weight loss and weight management plans; and GLP-1 support plans that provide access to GLP-1 medications where clinically appropriate under the OPTAVIA brand name. It also provides bars, puffs, cereal, crunchers, drinks, hearty choices, oatmeal, pancakes, pudding, soft serve, shakes, smoothies, soft bakes and soups, as well as provides coaching support along with community, nutrition and healthy habits, and helps people in their weight loss journey. It markets its products through point-of-sale transactions, as well as through ecommerce platform. Medifast, Inc. was founded in 1980 and is headquartered in Baltimore, Maryland.

In May, shares increased by 12.6% compared to April 2025. For the first five months of 2025, their stock price declined by 20.1%. MED is the worst performing DSCI large cap member on a long-term basis; since the March 1, 2020 establishment of the DSCI, the stock has declined 82.3%. As Medifast continues to transition the company, most analyst are neutral on the company.

USANA Health Sciences, Inc. (NYSE: USNA). develops, manufactures and sells science-based nutritional, personal care and skincare products in the Asia Pacific, the Americas and Europe. It operates in two segments, direct selling and Hiya Direct-To-Consumer. The company offers USANA nutritional optimizers, including supplements for cardiovascular health, skeletal/structural health and digestive health; Essentials/CellSentials, such as vitamin and mineral supplements for age groups beginning with children 13 months of age; and food products that include meal replacement shakes, snack bars and other related products for healthy weight management, digestive health and energy and hydration. It also provides Celavive, a skincare regimen for various skincare types and ethnicities; and all other products comprising materials and online tools for associates to build business and marketing of products. The company sells its products through retail customers, a subscription model and direct selling, as well as online. The company has a research collaboration agreement with Beijing University of Chinese Medicine and National Sports Training Bureau. USANA Health Sciences, Inc. was founded in 1992 and is headquartered in Salt Lake City, Utah.

In May, their stock value increased by 7.1% vs. April 2025. For the first five months of 2025, the stock declined by 16.8%%. Since the creation of the DSCI on March 1, 2020, USANA shares have lost 54.8% compared with gains of 66.4% for the direct selling index and the DJIA, respectively.

USANA Health’s stock is supported by strong financial fundamentals, with robust gross margins and a solid balance sheet. The positive momentum in technical indicators and promising growth trajectory from recent earnings calls are significant positives. However, challenges like declining revenues, cautious consumer sentiment and trade uncertainties slightly temper the overall outlook. The stock’s valuation is fair, but the lack of dividend yield may not appeal to all investors.

eXp World Holdings, Inc. (NASDAQ: EXPI), together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. It operates through three segments: North American Realty, International Realty and Other Affiliated Services. The company acts as a licensed broker for processing residential and commercial real estate transactions; and provides other real estate support services. It also offers FrameVR.io, a web-accessible proprietary technology offering immersive 3D platforms; magazine and its related media properties which provide training, classes, resources and tools under the SUCCESS brand; SUCCESS Space, a coworking solution offering rental workspaces for individual and group use, access to professional development coaching, media production services, virtual-world communications technology and full-service cafes. It operates in North America, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, Poland and Dubai. The company was formerly known as eXp Realty International Corporation and changed its name to eXp World Holdings, Inc. in May 2016. eXp World Holdings, Inc. was incorporated in 2008 and is headquartered in Bellingham, Washington.

The stock price declined 5.0% in May vs. April 2025. For the first four months of 2025, their stock prices has declined by 26.0%. More constructively, EXPI shares have appreciated an aggregate 78.2% over the five years the DSCI has been computed, the third best long-term mark for any DSCI member. Below is the first quarter consolidated financial highlights as compared to the same time a year-ago period. As noted below, the company has some headwinds at this time

1. Inability to Grow Agents and Brokers Points to Weak Demand

Revenue growth can be broken down into changes in price and volume (for companies like eXp World, our preferred volume metric is agents and brokers). While both are important, the latter is the most critical to analyze because prices have a ceiling.

Over the last two years, eXp World failed to grow its agents and brokers, which came in at 81,904 in the latest quarter. This performance was underwhelming and implies there may be increasing competition or market saturation. It also suggests eXp World might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability.

2. Operating margin is a key measure of profitability. Think of it as net income—the bottom line—excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. eXp World’s operating margin might have fluctuated slightly over the last 12 months but has generally stayed the same. The company broke even over the last two years, inadequate for a consumer discretionary business. Its large expense base and inefficient cost structure were the main culprits behind this performance.
3. Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? A company’s ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity). eXp World’s five-year average ROIC was negative 24.4%, meaning management lost money while trying to expand the business. Its returns were among the worst in the consumer discretionary sector.

Primerica, Inc. (NYSE: PRI), together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities and fixed indexed annuities; and offers segregated funds. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense and motor vehicle-related matters; ID theft defense services; auto and homeowners’ insurance; home automation solutions; and insurance products, including supplemental and accidental death and disability insurance. It distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.

In May, the stock price increased by 2.2% vs. April 2025. For the first five months of 2025, the stock has a slight decline of 0.3% for the first four months of 2025. PRI has appreciated 147.0% since March 1, 2020, the best long-term performance for any DSCI member.

The latest Primerica Household Budget Index™ (HBI™) data, a monthly economic metric that examines how inflation and wage trends impact the ability of middle-income families to afford life’s everyday necessities, was 99.6% in April, unchanged from a month ago and up 1.7% from a year ago. Purchasing power held steady as the average earned income of middle-income households rose enough to offset the increase in the cost of necessity goods in April.

The cost of necessity goods for middle-income households rose 0.4% in April, double the average inflation rate represented by the Consumer Price Index, which rose 0.2%. “The fact that the costs of necessity goods bought by middle-income households rose two times faster than the overall CPI in April illustrates how volatile food and energy inflation disproportionately impacts middle-income families who have little room in their budgets for unexpected cost increases,” said Amy Crews Cutts, consulting economist at Primerica. “The official CPI inflation measure doesn’t accurately depict this critical inflation narrative to account for the impact on these families’ budgets month-to-month.”

Oliveda International, Inc. (OTC: OLVI), founded in 2003, has more than 20 years of experience in: 1) the management and organic certification of mountain olive trees; 2) the extraction of international award-winning extra virgin olive oils; 3) the extraction of hydroxytyrosol, a substance which has several beneficial effects such as antioxidant, anti-inflammatory, anticancer and as a protector of skin and eyes; and 4) the production and distribution of cosmetic and holistic waterless products related to the olive tree.

Oliveda International, Inc. and its subsidiary, Olive Tree People Inc., as well as the European companies, Olive Tree People Europe AG and Oliveda Deutschland GmbH, as well as Olive Tree Farmers SL, were founded by the German real estate investor Thomas Lommel and have more than 20 years of experience in management and organic certification growing mountain olive trees, in the extraction of first-class, internationally award-winning extra virgin olive oils, the extraction of hydroxytyrosol, and in the production and distribution of cosmetic and holistic waterless products related to the olive tree. Lommel is the inventor of the Olive Tree Therapy 10 years in 14 days as well as the inventor of olive matcha, which is based on the ground olive leaf. Also unique is the coffee replacement developed by Lommel, which is based on olive leaf and hydroxytyrosol. In addition, Lommel is successfully active in the rapidly growing mindfulness industry with the olive tree sound bath meditation he developed and the frequencies of his olive trees, which he makes available worldwide.

In addition to the registered beauty brands, Oliveda and LA Dope, as well as Re:connected to Nature, The Intuition of Nature, and Olive Mush, to name just a few brands, Lommel is the region’s largest conservationist and protector of over 30,000 one-hundred-year-old mountain olive trees, and, with his Thomas Lommel Foundation, he brings the water that he does not use into his waterless beauty products to the people of Africa by building water wells on site.

In addition to online sales and a Europe-wide branch network of thousands of retail stores, Oliveda Deutschland GmbH operates its own flagship stores in Berlin and Düsseldorf.

Comparing May 2025 to April 2025, the stock price increased by 56.0%. For the first five months of 2025, the stock declined by 27.5%. CEO Thomas Lommel noted that “This hypergrowth naturally also had an impact on the price of our OLVI shares. The company was temporarily valued at over $3 billion and has now settled at over $1 billion after just two years.”

When asked about future developments, Mr. Lommel stated, “It wasn’t my goal to achieve a valuation of over $1 billion, but rather to bring the magic of our trees to the world. I had no idea about waterless beauty and developed it intuitively in the treehouse, simply because it makes so much more sense. For me, trees cannot be measured in money, as we wouldn’t exist without them. The magic emanating from our mountain olive trees cannot be measured in dollars, as they enable us humans to become healed and whole every day.”

The Beachbody Company, Inc. (NYSE: BODI). operates as a fitness and nutrition company in the United States and internationally. The company operates Beachbody on Demand, a streaming service through subscription that provides fitness programs, including P90X, Insanity and 21 Day Fix brands; and offers nutrition programs, through subscription to Beachbody On Demand Interactive, such as Portion Fix and 2B Mindset brands. It also provides nutritional products, such as Shakeology, a nutrition shake; Beachbody Performance supplements comprising pre-workout energize, hydrate, post-workout recovery and protein supplement recharge products; BEACHBAR, a low-sugar snack bar; Belle Vitale, a hormone health solution for women to address symptoms of hormone imbalance; and connected fitness products. The Beachbody Company, Inc. was founded in 1998 and is headquartered in El Segundo, California.

Their stock price declined by 13.2% in May vs. April 2025. For the first five months of 2025, their stock price declined by 40.0%. BODI was the first public company to announce a movement away from a multi-tiered compensation model to a single level affiliated model and clearly show the impact of this type of change.

The company is also facing legal issues in the State of California. California is trying to reclassify independent consultants as employees. We are seeing an increase in other states trying to reclassify independent consultants. In California, they are attempting to treat any independent consultant as an employee if they sell the same products and services of the company they represent in the marketplace. Another direct selling company is currently in litigation over this issue and this lawsuit should provide useful guidance from the courts as it relates to this issue.

In conclusion, the direct selling public companies are flat for the year with slight decline of 0.6% vs. the DJIA average for the first five months of 0.51%. With the level of uncertainty in the marketplace, the markets seem flat and are looking for future guidance on the economic and geopolitical landscape. Below are summaries of the large cap stocks.

Small Cap

Below are two charts on the small companies. Below are the April information for the two largest small cap companies, Nature’s Sunshine and LifeVantage.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR), a natural health and wellness company, manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America and internationally. The company provides general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy and vision; immune products; cardiovascular products; and digestive products. It also offers personal care products, including oils and lotions, aloe vera gel, herbal shampoo, herbal skin treatment, toothpaste and skin cleanser products, as well as weight management products. The company provides its products under the Nature’s Sunshine Products and Synergy WorldWide brands directly to customers and to a sales force of independent consultants. Nature’s Sunshine Products, Inc. was founded in 1972 and is headquartered in Lehi, Utah.

In May, their stock price increased by 29.2% vs. April 2025, the largest of the small cap direct selling companies. For the first five months of 2025, the stock increased by 5.5%. Since the inception of the DSCI, NATR has gained 99.1%, the largest of any small cap stock and the second largest of any company in the DSCI.

Terrence Moorehead has notified the Company’s Board of Directors (the “Board”) of his decision to step down as President and Chief Executive Officer, effective upon the appointment of a successor. Upon this announcement, the stock fell 7.2% in the morning session after CEO Terrence Moorehead, announced his decision to step down from his role.

Nature’s Sunshine’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, this move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

LifeVantage Corporation (NASDAQ: LFVN), engages in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management and skin and hair care products. It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, supports cognitive functions and support normal sleep patterns; LifeVantage Daily Wellness, a dietary supplement designed to strengthen immune health; LifeVantage Rise AM & Reset PM System that provides the body with the right nutrients; LifeVantage D3+, a dietary supplement that provides vitamin D3, vitamin K2, magnesium, calcium and other trace minerals to support a balanced immune system, strong bones and cardiovascular health; PhysIQ Fat Burn to support weight management; PhysIQ Prebiotic is a dietary supplement designed to support the good bacteria in the gut and a healthy microbiome; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix. The company also provides anti-aging skincare products, including liquid collagen, facial cleansers, eye cream, moisturizing cream, sunscreen, perfecting lotions, hand creams, as well as hair care products, such as invigorating shampoos, nourishing conditioners and scalp serums under the TrueScience brand name. It sells its products through its website and network of independent consultants in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore and the Philippines. The company also launched Evolve Compensation Plan and other LV360 initiatives into the Philippines, Taiwan, Hong Kong and Singapore. The company is based in Lehi, Utah.

Their stock increased in May vs. April by 5.7%. For the first five months of 2025, the stock price has declined 25.6%. Since the March 1, 2020 establishment of the DSCI, LFVN has gained 9.8%.

Happily for shareholders, LifeVantage produced plenty of free cash flow to back up its statutory profit numbers. Because of this, LifeVantage’s underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem. And on top of that, its earnings per share have grown at an extremely impressive rate over the last year. As the company expands into new products globally, they should see continued revenue growth.

Below are two summary diagrams on the direct selling small cap companies.

On May 5, 2025, NATR reported on their first quarter 2025 and noted the following.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 4.9 days as of May 15, 2025. Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Three Consecutive Months of Decline for the Direct Selling Index and the Dow Jones Industrial Average

The Direct Selling Capital Advisors Direct Selling Index (DSCI) declined 3.5% lower in April. The Dow Jones Industrial Average (DJIA) also fell 2.9% in April. Over the first four months of 2025, the DSCI has declined by 4.7%. After a positive increase in January, the DJIA’s has declined for 3 consecutive months, due to a lot of uncertainty in the global tariffs put in place by the Trump administration. We continue to see the DSCI under perform other major indices. However, the DSCI has over performed vs. other indices. As our channel continues to transition, the DSCI should improve vs. other indices.

There continues to be uncertainty in the marketplace due to President Trump’s near daily announcements regarding potential tariffs on Mexico, Canada, China and the European Union, among others, which has created significant policy uncertainty and weighed on investor sentiment. In addition, recent key economic releases, including retail sales, services PMI (a measure of business activity in the sector) and The Conference Board’s widely followed Consumer Confidence Index^, have fallen short of analysts’ expectations.

New data from S&P Global showed its flash composite PMI output index, which captures activity in the services and manufacturing sectors, fell to 51.2 in April, hitting its lowest level in 16 months. Manufacturing activity rose to 50.7, up from 50.2 in March, while services activity fell to 51.4 from 54.4. Readings above 50 indicate an expansion in activity in the sector; readings below 50 indicate contraction.

The United States added 177,000 jobs in April, more than analysts had expected, in the face of broader economic uncertainty sparked by President Donald Trump’s tariffs. Last month’s job gains were a bit softer than the revised 185,000 added in March, according to data released by the Bureau of Labor and Statistics, but ahead of forecasts for 133,000 net new roles in April. The annual unemployment rate remained unchanged at 4.2%.

Transportation and warehousing employers added 29,000 roles in April as consumers and businesses went on a pre-tariff buying spree of foreign goods. Federal government head counts, meanwhile, fell by 9,000 and have declined by 26,000 since January, reflecting the impact of sweeping cuts largely driven by multibillionaire Trump adviser Elon Musk’s Department of Government Efficiency (DOGE) initiative.

Despite the job gains, the report showed signs of a slowing economy elsewhere. Average hourly earnings climbed just 0.17% for the month, below the 0.3% forecast by economists. The share of unemployed people out of work for at least 27 weeks also returned to its pandemic-era high of 23.5%. So did the median unemployment duration, which climbed to 10.4 weeks.

Those latter two figures “both suggest that it is taking longer for unemployed workers to find new opportunities and reinforce a growing divide in the market between those out of work and those who are employed,” Cory Stahle, an economist at Indeed Hiring Lab said in a statement. “So far in 2025, the market has been marked by a low firing, low hiring trend that can’t last forever.”

Over the past 12 months, just three sectors have accounted for about 80 percent of all job growth, according to Vanguard financial group: government; health care and social assistance; and leisure and hospitality. The first two face pressure from DOGE cuts, while leisure and hospitality jobs are vulnerable to Trump’s immigration crackdown, according to Vanguard.

Americans’ confidence in the economy slumped for the fifth straight month to the lowest level since the onset of the COVID-19 pandemic as anxiety over the impact of tariffs takes a heavy toll.

The Conference Board noted that its consumer confidence index fell 7.9 points in April to 86, its lowest reading since May 2020. Nearly one-third of consumers expect hiring to slow in the coming months, nearly matching the level reached in April 2009, when the economy was mired in the Great Recession.

The figures reflect a rapidly souring mood among Americans, most of whom expect prices to rise because of the widespread tariffs imposed by President Donald Trump. About half of Americans are also worried about the potential for a recession, according to a survey by The Associated Press-NORC Center.

“Rattled consumers spend less than confident consumers,” said Carl Weinberg, chief economist at High Frequency Economics, in an email. “If confidence sags and consumers retrench, growth will go down.” A measure of Americans’ short-term expectations for their income, business conditions and the job market plunged 12.5 points to 54.4, the lowest level in more than 13 years. The reading is well below 80, which typically signals an impending recession. More Americans are also now worried that the economy could tip into a recession, with the proportion of consumers expecting a downturn in the next 12 months reaching a two-year high.

The PR Newswire provided a breakdown on consumer confidence that provides a useful summary.

Present Situation

Consumers’ assessments of current business conditions were more positive in April.

• 19.2% of consumers said business conditions were “good,” up from 18.3% in March.
• 16.1% said business conditions were “bad,” down from 16.5%.

Consumers’ views of the labor market weakened in April.

• 31.7% of consumers said jobs were “plentiful,” down from 33.6% in March.
• 16.6% of consumers said jobs were “hard to get,” up from 16.1%.

Expectations Six Months Hence

Consumers’ outlook for business conditions fell further in April.

• 15.7% of consumers expected business conditions to improve, down from 17.8% in March.
• 34.8% expected business conditions to worsen, up from 26.1%.

Consumers’ outlook for the labor market outlook also worsened in April.

• 13.7% of consumers expected more jobs to be available, down from 16.7% in March.
• 32.1% anticipated fewer jobs, up from 28.8%.

Consumers turned negative about their income prospects in April.

• 15.0% of consumers expected their incomes to increase, down from 17.1% in March.
• 18.2% expected their income to decrease, up from 14.9%.

Assessment of Family Finances and Recession Risk

• Consumers’ assessments of their Family’s Current Financial Situation deteriorated in April.
• Consumers’ assessments of their Family’s Expected Financial Situation declined to the lowest level since the question was first asked in 2022.
• Consumers’ Perceived Likelihood of a US Recession over the Next 12 Months increased in April.

The chart below continues to show the declining confidence that has seen significant declines since the Presidential election in November 2024.

Comments on the current Administration and its policies—both positive and negative—dominated consumers’ write-in responses on what is affecting their views of the economy. Write-in responses also showed that inflation is still a major concern for consumers, and that worries about the impact of trade policies and tariffs in particular are on the rise. There were also more references than usual to economic uncertainty.

One factor that impacts spending is the inflation rate. As you can see from the chart below, inflation is historically low from its peak during the COVID period. The annual inflation rate for the United States was 2.4% for the 12 months ending March, compared to the previous rate increase of 2.8%, according to US Labor Department data published on April 10, 2025.

 

The consensus of the investment community is that 2025 will see lower growth and higher inflation. According to Joe Davis, the Global Chief Economist and Head of Investment Strategy Group, “the potential for further tariff announcements, the average effective US tariff rate could rise above 25%, well above the baseline we had anticipated at the start of the year. The global marketplace was far less integrated the last time tariffs were that high, more than a century ago. Although we don’t expect the rate to remain at that level given the prospect of negotiations, one that settles just below 20% (our baseline) still augurs significant economic ramifications. The effective US rate before the latest tariffs was below 5%.”

He continues, “Under our revised baseline scenario, 2025 US GDP growth would fall below 1%, nearly a percentage point below our previous forecast. That would put the economy at a potential “stall speed” that raises the specter of recession. We also foresee core inflation ending 2025 at nearly 4% year-over-year, more than a percentage point above our previous forecast. Unemployment that we foresee rising to just above 5% by year-end would be the highest in a decade outside the COVID-19 era.”

Davi concludes, “The combination of stagnating activity and rising prices introduces the prospect of stagflation that would be a strong headwind for both stocks and bonds. Given their dual mandate, the Federal Reserve may be challenged to lower rates meaningfully amidst a push and pull of lower growth and higher inflation. In the end, the Federal Reserve is likely to lower rates in the event of the labor market weakening further. Outside the US, we anticipate weakening economic growth, although softening demand will likely temper any inflationary impulses.”

Present Situation and its Impact to Direct Selling

ike all business industries and channels, direct selling faces some significant headwinds. Approximately 70 percent of the US GDP is tied to consumer spending. As discretionary spending decreases, direct sellers will find additional challenges to acquire and retain customers.

In April, US Consumer spending rose as everyday Americans rushed to make purchases before President Donald Trump’s full tariff plan took effect, data released from JPMorgan shows. Spending through the first 15 days in April climbed about 3.8% from the same period a year ago. Spending in March increased about 2.7% from the comparable month a year ago.

The pickup in spending shouldn’t be construed as heralding faster economic growth, however. “April data may reflect a pull forward of discretionary spending on big-ticket items if consumers tried to lock in lower prices before tariffs went into effect,” JPMorgan analysts led by Richard Shane wrote to clients. Much of the April gain came from discretionary spending, which rose by 4.3% in the first 15 days year-over-year, versus 2.9% growth in non-discretionary spending.

Consumers’ assessments of current business conditions were significantly less positive in March.

• 17.7% of consumers said business conditions were “good,” down from 19.1% in February.
• 16.6% said business conditions were “bad,” up from 14.8%.

Consumers’ views of the labor market improved slightly in March.

• 33.6% of consumers said jobs were “plentiful,” unchanged from February.
• 15.7% of consumers said jobs were “hard to get,” down from 16.0%.

The Direct Selling Association did a recent Quick Pulse survey focused on tariffs. Based on the survey, direct sellers are already experiencing the impact from the Trump tariffs.

Is your company experiencing the effects of inflation in the U.S.?

1. Yes—largely in line with the consumer price index (2-3%), which is much more modest compared to the inflationary period of 2021-2022.
2. Cost of ingredients and shipping increases.
3. Cost of shipping and products.
4. Remains the same with disposable income being limited impacting sales.
5. Lower overall sales.
6. It is less but we are still seeing a decline in demand due to higher prices.
7. Higher prices, lower margins.
8. Continuing to see impacts to overall sales because of tightening budgets.
9. Higher costs.

Is your company experiencing the effects of inflation globally?

1. Yes—as a global manufacturer, we feel the impact of inflation both locally and through increased input costs when shipping products internationally. On average, inflation has been higher across our markets in Asia.
2. The primary areas where we experience inflation are labor and raw material costs related to product manufacturing.
3. Shipping.
4. Cost of shipping and products.
5. Remains the same with disposable income being limited impacting sales lower overall sales needing to raise prices.
6. It is less but we are still seeing a decline in demand due to higher prices.
7. Continuing to see impacts to overall sales as a result of tightening budgets.
8. Higher costs.

Are you impacted by the new tariffs?

1. Yes, we are directly and indirectly impacted by the new tariffs. We are a net-exporter out of the US, so the import tariffs into the U.S. are not as significant. Greater exposure exists in foreign governments implementing reciprocal or retaliatory tariffs in response. Manufacturing capabilities exist in China as well (largely for selling product in China), which doesn’t eliminate, but helps mitigate exposure. Indirect exposure exists in the form of various suppliers sourcing product from tariffed countries.
2. Our goods will increase in terms of cost, we are in the planning stages of how to overcome any increases in price to consumers. We are also limiting our orders from vendors until we know officially what the final results will be.
3. Looking at switching product vendors for seasonal offerings based on high tariffs.
4. Many of our product are imported so we will likley see a rise in cost of goods.
5. Certain products are made in China and the USA and will now have tariffs added when selling USA products in EU or importing China products to the US.

Is your company taking actions regarding the tariffs?

1. Planning for higher costs of goods in each market.
2. We are evaluating the cost implications from the tariffs to determine future product offerings/pricing.
3. We have traced our supply chains to see what raw materials might be impacted, as well as investigated the impacts of distributing from the US to other countries. Now we wait…
4. Scenario planning to not have impact on costs.
5. A global taskforce is being established with cross-functional representatives. Given the recent pause in US tariffs, we are largely operating under a wait-and-see approach with many scenarios being modeled simultaneously. The exception to this is our North America affiliate, which is feeling the Canada retaliatory tariffs more acutely. Since those remain in place, a surcharge is being passed onto the end consumer to account for this cost. We consider the situation, and our response, as being very fluid.
6. Limiting orders from vendors until the official results are in.
7. Looking at switching product vendors for seasonal offerings based on high tariffs.
8. To mitigate the impact of the recent tariff increases, we have tripled our imports of the finished product from Mexico, securing enough supply for the next 4 to 5 months. Similarly, we have taken the same approach with the import of raw materials from the US to Mexico to ensure continuity in production.

Has your company experienced a change in distributor retention as we moved through Q4 2024 and into Q1 2025?

1. Due to our annual renewal cycle (December through January), we always see lowest retention numbers after renewal. We then gain them throughout the year. Compared to the prior year, we saw lower than retention rates from Q4 2024 through Q1 2025.
2. Decline.
3. We are seeing lower retention in at all levels in NA.
4. Lower retention.
5. In Oct 2024, we launched a new product and saw a surge in recruiting, followed by a month with larger than normal attrition. In Q1, retention normalized, and we are back to normal retention numbers.
6. Stronger Distributor retention.

Has your company experienced a change in recruiting as we moved through Q4 2024 and into Q1 2025?

1. We saw a marginal decline in applications as we moved through Q4 2024 and into Q1 2025: -1.2%.
2. Decline.
3. We are seeing lower recruiting for both US and CA. 6% decrease.
4. Increase of 31.84%, this was impacted by recruiting promotion.
5. Lower number of recruits.
6. Recruiting in Q4 was very high, due to a new product launch. Q1 has dropped back down but are still higher than Q3 2024. -6%.
7. We ran a promotion in Q4. The change is reflective of the lack of promotion in Q1. Q1 recruiting is in line with Q3 of the prior year.
8. Higher levels of recruiting. Difficult to give a percent change moved through Q4 2024 and into Q1 2025.

Has your company experienced global supply chain issues as we moved through Q4 2024 and into Q1 2025?

1. Tariffs has caused us to rethink product strategies.
2. Only threats of the tariffs.

Please select the supply chain issue’s you’re experiencing:

1. Product/component/raw material production delays outside the US. (49%)
2. Product/component/raw material production delays in the US. (29%)
3. Warehousing, manufacturing or other supply chain staffing challenges in the US. (14%)
4. Higher production or shipping costs. (14%)

In the U.S., what is your company’s biggest ongoing strategic challenge in order fulfillment?

1. Offsetting cost increases in home delivery (labor/fuel/supplies) and lower sales to maintain/reduce total distribution expenses as a percentage of sales.
2. Associate retention.
3. Higher Shipping Costs and shipping times.
4. Increasing costs.
5. Shifting production of goods from China to other (lower tariff) countries.
6. It is increasingly difficult to bring in new distributors. There are so many gig opportunities to compete with now.
7. Determining demand for new items.
8. Cost.
9. Cost of shipping goods to the customer.
10. Positive sales growth.

Looking Forward

The direct selling channel has some significant headwinds in the near future due to a lot of uncertainty in the global marketplace. We are seeing more companies moving away from a sole dependency for distributors to drive revenue through an omnichannel strategy. At the same time, we are seeing companies committed to the MLM business model showing growth.

The Direct Selling Capital Advisors Index (DSCI) is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

Large Cap

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Betterware de Mexico (NASDAQ: BWMX) Founded in 1995, Betterware de Mexico is the leading direct-to-consumer company in Mexico focused on offering innovative products that solve specific needs related to household organization, practicality, space-saving and hygiene. Through the acquisition of JAFRA on April 7, 2022, the Company now offers a leading brand of direct-to-consumer in the Beauty market in Mexico and the United States where it offers Fragrances, Color & Cosmetics, Skincare and Toiletries. The combined company possesses an asset-light business model with low capital expenditure requirements and a track record of strong profitability, double digit rates of revenue growth and free cash flow generation. Today, the Company distributes its products in Mexico and in the United States of America.

Their stock price declined by 12.9% in April, bringing its YTD decline to -11.4%. Since the March 1, 2020 inception of the DSCI, BWMX has appreciated 5.1%. Additional financial data is at the end of this report.

The first quarter results, the President and CEO of BeFra Group, Andrés Campos Chevallier, noted the following:

“Reflecting on the first quarter of 2025, I want to provide a comprehensive overview of our performance amid an increasingly complex macroeconomic environment, the short-term challenges that we are currently navigating, and the progress that we continued making toward our long-term goals.”

He continued, “During the first quarter, we faced revenue pressure across our business, particularly in Mexico. The broader economic environment—characterized by deteriorating consumption trends, lower consumer confidence and reduced household discretionary spending—resulted in a decline in volumes sold and ultimately weighed on our revenues, which ended the quarter with a 2.9% decrease versus last year. These economic factors impacted Betterware Mexico’s revenue, which decreased 9.8%, while Jafra Mexico posted a 1.1% increase. The macroeconomic landscape in Mexico not only reduced demand for our products but also led to a reduction in our Associate and Distributor base, alongside lower activity levels across both brands. Profitability was also impacted by a prevailing environment of uncertainty, particularly because the depreciation of the Mexican peso led to higher costs of imported products and some raw materials. This cost pressure affected our profitability in two ways primarily—an immediate impact on gross margin and, to protect profitability, the implementation of price increases for certain SKUs. The price adjustments, while necessary, created additional pressure on customer demand.”

Additionally, “Despite the current macroeconomic challenges, our agile business model and financial strength provide resiliency, as BeFra has consistently demonstrated during adverse economic cycles in the past. We believe that BeFra’s flexible and low fixed-cost structure, financial discipline, a now diversified business portfolio as well as steps we have taken to more actively engage our salesforce, will continue giving us the agility needed to respond to the rapidly changing conditions in our markets today. While we are acting with caution in the short term, we remain fully committed to our long-term vision and growth strategy, continuing to advance on key strategic initiatives that position us for stronger performance when the macroeconomic landscape stabilizes and improves. Our international expansion remains a priority, and we are confident in the potential of our core business in Mexico as well as our entry into new markets in Latin America and the United States. Jafra US had a slow start to the year, especially in January and February, amid cautious consumer sentiment—particularly within the Hispanic community. However, we saw a meaningful recovery in March. With the Shopify+ platform now fully implemented and other operational improvements in place, we are seeing the first signs of this business’s recovery. Although we remain cautiously optimistic, due to current macro uncertainty, we believe it has strong mid to long-term potential, given the size and growth of the US beauty market.”

He concluded, “The expansion of Betterware in Latin America is progressing well, with Guatemala showing encouraging signs of growth, and Ecuador on track to launch in May of this year. Betterware US is currently facing uncertainty due to recent policies introduced by the country’s new administration. Accordingly, we have decided to pause operations for the time being. Across our businesses, we are executing with operational discipline, preserving financial flexibility and focusing our resources on areas with the highest strategic potential. BeFra’s brands remain strong, our sales model is effective—particularly in challenging operating environments such as the current one—and we believe that our Company is well-positioned to capture renewed growth when economic and market conditions improve. We will continue to operate with caution in the near term—remaining vigilant and agile—while steadfastly advancing toward our long-term goals.”

Q1 2025 Select Consolidated Financial Information

• Net revenue decreased 2.9% year-over-year, primarily driven by a decline in sales from Betterware Mexico and slower-than-expected, yet still positive, growth at Jafra Mexico. Sales for both brands were tempered by weak consumer spending amid widespread macroeconomic uncertainty. A corresponding decrease in sales volume was also due to a reduced Distributor and Associate base at both brands in Mexico during the quarter, a decrease that was a result of the macroeconomic environment.
• Gross margin declined 353 basis points compared to the prior year, mainly due to margin pressure in Betterware Mexico and Jafra Mexico that resulted from higher supply and raw material costs related to the depreciation of the Mexican Peso, which fell an average of 20.3% year-over-year (YoY) versus the US dollar from $16.98 to $20.42 in the quarter.
• EBITDA decreased 29.1% YoY, primarily at the Betterware and Jafra Mexico business units, reflecting lower sales and compressed margins. Of the 567 bps EBITDA margin contraction, ~350 bps came from the reduction in gross margin explained above; ~150 bps was due to lower sales; and ~60 bps came from an increase in administrative expenses related to one-time expenses at Betterware and Jafra Mexico. As with revenue, given the ongoing economic uncertainty and persistent weakness in consumption levels, the Company remains cautious about its revenue and EBITDA performance for the remainder of the year.
• Negative Free Cash Flow (FCF) for the quarter was primarily due to extraordinary cash outflows. Historically, BeFra has converted ~60% of EBITDA to FCF, and ~40% in the first quarter due to seasonality. Based on this trend, the Company would have generated ~$215M of FCF. However, during the quarter there were extraordinary uses of cash, mainly by Jafra Mexico, resulting from increases in working capital. The increase in working capital was primarily driven by higher inventory levels related to product investments of ~$190M under rebranding and innovation strategies, although these levels are expected to decrease during the remainder of the year. FCF was also impacted by a ~$90M tax payment related to the difference between total taxes incurred versus provisional tax payments by Jafra, which did not occur in Q1 2024.
• Net Income decreased 48.7% in Q1 versus last year’s quarter, reflecting the combined impact of lower sales and the decrease in EBITDA explained above. In addition, financial costs had a positive ~$26M impact on net income, due to a decrease in net interest expenses that resulted from lower interest rates, as well as a positive ~$21M in net currency effects related to the implementation of hedge accounting. Also impacting net income was higher taxes paid, which had a negative effect of ~$33M in the quarter.

Betterware de México, S.A.P.I., announced that after the shareholders meeting held on April 30, 2025, the payment of an aggregate dividend of MX $200,000,000 has been approved. This amount represents approximately US $0.2736 per share before applicable tax withholdings, or approximately US $0.2463 per share after applicable tax withholdings. The dividend is payable on May 23, 2025 to shareholders of record as of May 12, 2025.

Nu Skin Enterprises, Inc. (NYSE: NUS)

Nu Skin Enterprises, Inc., together with its subsidiaries, engages in the development and distribution of various beauty and wellness products worldwide. It offers skincare devices, cosmetics and other personal care products, including ageLOC LumiSpa and ageLOC LumiSpa iO; and nutricentials skincare products. The company also provides wellness products, such as LifePak nutritional supplements, ageLOC TR90 weight management system, and Beauty Focus Collagen+. In addition, it is involved in the research and product development of skincare products and nutritional supplements. The company sells its products under the Nu Skin, Pharmanex and ageLOC brands through retail stores, website, digital platforms and independent direct sellers and marketers as well as a service center. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.

In April, the stock declined 16.5% and has declined 12.0% for the first four months of 2025. Since the direct selling index was established in March 2020, their stock has declined 74.3%. The stock’s 52-week high is $14 and the low was $5.32. Analysts predict a growth estimate of 23.25% for 2025. Additional financial data is at the end of this report.

First quarter 2025 are summarized below including notes from their analyst call on May 8^th.

• Revenue: US$364.5m (down 13% from 1Q 2024).
• Net income: US$107.5m (up from US$533.0k loss in 1Q 2024).
• Profit margin: 30% (up from net loss in 1Q 2024).
• EPS: US$2.16 (up from US$0.011 loss in 1Q 2024).

Positive Points

• Nu Skin Enterprises Inc (NYSE:NUS) achieved first-quarter revenue at the high end of their guidance range, driven by improving business trends in certain markets.
• The company experienced significant growth in Latin America, with a 144% year-on-year increase, as their developing market strategy takes hold.
• Nu Skin Enterprises Inc (NYSE:NUS) surpassed their earnings expectations for adjusted earnings per share by effectively controlling expenses globally.
• The company is accelerating innovation with the introduction of PRISM IO, an intelligent wellness platform, leveraging advancements in AI and machine learning.
• Nu Skin Enterprises Inc (NYSE:NUS) reduced their outstanding debt by $155 million, achieving their lowest debt level in over 10 years, and maintained a strong cash position of $204 million.

Negative Points

• The company continues to face macroeconomic pressures, with consumers remaining cautious in their purchasing behaviors for premium beauty and wellness products.
• Nu Skin Enterprises Inc (NYSE:NUS) experienced lower sales performance in the US, China and Southeast Asia Pacific markets due to global trade tensions and other macroeconomic pressures.
• The company’s gross margin decreased to 67.8% from 70.5% in the prior year, primarily due to the revenue mix between rise entities and the core business.
• Selling expenses as a percentage of revenue were 32.5%, reflecting a decline in sales performance in key markets.
• Nu Skin Enterprises Inc (NYSE:NUS) anticipates continued foreign currency headwinds, impacting their revenue projections for the second quarter.

The highlights from the investor call are below in a question/answer format:

Can you provide more details on the revenue performance for Q1 2025?

Ryan Nairsky, President and CEO, stated that Nu Skin achieved first-quarter revenue at the high end of their guidance range, totaling $364.5 million. This was partly due to improving business trends in certain markets, despite a 3% negative foreign currency impact. The company also exceeded earnings expectations for adjusted earnings per share by effectively controlling expenses globally.

What are the key strategic priorities for Nu Skin in 2025?

Nairsky outlined three strategic priorities: strengthening the core Nu Skin business; accelerating innovation with the introduction of the PRISM IO intelligent wellness platform; and improving operational performance and efficiency. These priorities aim to move the company closer to its long-term vision of a beauty, wellness and lifestyle ecosystem.

How is Nu Skin planning to expand into new markets, particularly India?

Nairsky mentioned that Nu Skin plans to enter the Indian market with a pre-launch for qualified brand representatives in Q4 2025, followed by a formal market launch in mid-2026. The company will introduce locally manufactured beauty and wellness products tailored to Indian consumer needs and a localized sales compensation plan.

What is the PRISM IO platform, and how does it fit into Nu Skin’s strategy?

Nairsky explained that PRISM IO is an intelligent wellness platform that leverages machine learning and AI to provide consumers with insights into their antioxidant levels and health. It aims to enhance customer relationships and product recommendations, ultimately driving revenue and retention. The platform will be rolled out in limited quantities in Q3 and Q4 2025.

How is Nu Skin addressing macroeconomic pressures and geopolitical uncertainties?

James Thomas, CFO, stated that Nu Skin is implementing proactive supply chain strategies, such as diversified sourcing and optimized inventory planning, to mitigate risks. The company is closely monitoring potential impacts of tariffs and geopolitical dynamics on consumer sentiment and demand for its products.

Herbalife Nutrition, Inc. (NYSE: HLF)

Herbalife Ltd., together with its subsidiaries, provides health and wellness products in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China and the Asia Pacific. The company offers products in the areas of weight management; targeted nutrition; energy, sports and fitness; outer nutrition; and literature, promotional and other items. It also provides weight management products, including meal replacement products, protein shakes, drink mixes, weight loss supplements, healthy snacks and metabolism boosting teas; targeted nutrition products, which comprise functional beverages, and dietary and nutritional supplements that contain herbs, vitamins, minerals and other natural ingredients; outer nutrition products, such as facial skin, body and haircare products; and energy, sports and fitness products, including N-R-G tea and energy drink products. In addition, it offers literature, promotional and other materials that comprise start-up kits, sales tools and educational materials. The company sells its products through sales representatives, independent service providers and company-operated retail stores and platforms. The company was formerly known as Herbalife Nutrition Ltd. and changed its name to Herbalife Ltd. in April 2023. Herbalife Ltd. was founded in 1980 and is headquartered in Los Angeles, California.

For the month of April, their stock declined by 18.1%. Year-to-date, their stock has increased by 5.7%, the only large cap stock that has had a positive return for the first four months of 2025. Conversely, HLF is down 78.2% since the establishment of the DSCI on March 1, 2020.

Below is key information from their first quarter of 2025 as noted in a DSN article on May 2^nd.

Herbalife Ltd. announced its financial results for the first quarter of 2025. Net sales during the quarter reached $1.2 billion, a 3.4% year-over-year decrease, with a net income of $50.4 million. Adjusted EBITDA exceeded guidance at $164.9 million with an adjusted diluted EPS of $0.59.

Gross profit margin in the quarter improved slightly to 78.3%. Net cash provided by operating activities fared better than expected and reached $0.2 million. The company cited the first quarter as one that tends to be “the lowest cash flower quarter of the year” because of distributor and employee performance bonuses. Even so, this is the fourth consecutive quarter of year-over-year growth for new distributor numbers worldwide, which the company believes signals strong global engagement and positive momentum.

“Our first quarter results were strong, and we raised our full-year 2025 Adjusted EBITDA expectations,” said Stephan Gratziani, Herbalife President and incoming CEO. “Our recent acquisitions strengthen our position and support our commitment to transformative growth.

The company’s recent asset acquisition of Pro2col LLC and Prüvit as well as gaining a 51% ownership interest in Texas-based manufacturing company HBL Link Bioscience LLC, required an investment of $25.5 million, but is expected to create unique opportunities to expand customer reach through a personalized health, wellness and nutrition platform. Blake Mallen, previously Prüvit President, will now serve as Herbalife Chief Strategy Officer and Pro2col President.

“As I transition into the role of CEO, I am committed to honoring Herbalife’s 45-year legacy of empowering our communities through health, wellness and a strong entrepreneurial opportunity,” Gratziani said. “Our recent acquisitions are a bold step to provide innovation and growth as we move toward our vision of becoming the world’s premier health and wellness company, community and platform.”

Medifast, Inc. (NYSE: MED)

Medifast, Inc., through its subsidiaries, operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. The company offers weight loss and weight management plans; and GLP-1 support plans that provide access to GLP-1 medications where clinically appropriate under the OPTAVIA brand name. It also provides bars, puffs, cereal, crunchers, drinks, hearty choices, oatmeal, pancakes, pudding, soft serve, shakes, smoothies, soft bakes and soups as well as provides coaching support along with community, nutrition, and healthy habits, and helps people in their weight loss journey. It markets its products through point-of-sale transactions, as well as through ecommerce platform. Medifast, Inc. was founded in 1980 and is headquartered in Baltimore, Maryland.

In April, shares declined 7.3% compared to March 2025. For the first four months of 2025, their stock price declined by 29.1%. MED is the worst performing DSCI large cap member on a long-term basis; since the March 1, 2020 establishment of the DSCI, the stock has declined 84.3%.

Wellness company Medifast (NYSE:MED) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 33.8% year-on-year to $115.7 million. Next quarter’s revenue guidance of $95 million underwhelmed, coming in 15.4% below analysts’ estimates. Its GAAP loss of $0.07 per share was 72% above analysts’ consensus estimates.

Below is more information on their first quarter of 2025.

• Revenue: $115.7 million vs. analyst estimates of $116.4 million (33.8% year-on-year decline, 0.6% miss).
• EPS (GAAP): -$0.07 vs. analyst estimates of -$0.25 (72% beat).
• Revenue Guidance for Q2 CY2025 is $95 million at the midpoint, below analyst estimates of $112.3 million.
• EPS (GAAP) guidance for Q2 CY2025 is -$0.28 at the midpoint, missing analyst estimates by 293%.
• Operating Margin: -1.1%, down from 5.3% in the same quarter last year.
• Market Capitalization: $131.5 million.

Sales Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $543.5 million in revenue over the past 12 months, Medifast is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers.

As you can see below, Medifast’s demand was weak over the last three years. Its sales fell by 30.3% annually, a tough starting point for our analysis.

Medifast missed Wall Street’s estimates and reported a rather uninspiring 33.8% year-on-year revenue decline, generating $115.7 million of revenue. Company management is currently guiding for a 43.6% year-on-year decline in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to decline by 27.8% over the next 12 months. While this projection is better than its three-year trend, it’s tough to feel optimistic about a company facing demand difficulties.

Dan R. Chard, the CEO of Medifast noted the following,

“There’s no question that we are operating in a time of tremendous opportunity. The health and wellness space, particularly around weight loss and weight management, is evolving rapidly, and we believe Medifast is well positioned to take advantage. Scientific research has shown that use of GLP-1 medications can result in up to 40% of weight loss coming from muscle mass, equivalent to a decade’s worth of muscle loss within just 12 months to 18 months.

Furthermore, for 88% of patients, GLP-1 medications do not fully support their achieving a healthy weight. We believe these findings reinforce the importance of supporting any health journey with a straightforward health and wellness lifestyle solution to achieve long-term health goals. This is relevant for those using weight-loss medications, as well as for those pursuing weight loss and improved health without the use of medications.”

In either case, Medifast’s OPTAVIA program helps preserve lean muscle and delivers healthier outcomes through healthy habits, nutrition and coaching for those seeking lasting health outcomes. At the same time, independent research that we have commissioned indicated that 83% of people looking to lose weight lack confidence in transitioning to a long-term healthy lifestyle. This is precisely the strength of our OPTAVIA program, which offers a holistic approach to weight loss and healthier living.

Our offering combines science-backed products, personalized nutrition plans, the support of a dedicated OPTAVIA coach and integration into a like-minded community. Additionally, where appropriate, we provide access to weight loss medications through our collaboration with LifeMD. This integrated solution gives people the tools, accountability and encouragement they need to learn how to make a healthy lifestyle second nature, lose weight, keep it off and simplify a complex health journey.

Coaches play a vital role in helping people navigate both the active weight loss phase and the weight management phase that follows. These coaches, having faced similar challenges themselves, bring in valuable experience to the process.

Studies indicate that most people using GLP-1 medications for weight loss struggle with long-term weight maintenance. An average of 2/3 of weight loss by people using medications is regained within a year of stopping them. And with up to 74% of people discontinuing GLP-1 medications within the first 12 months, it is clear that there is a demonstrated need for guidance in achieving health and wellness.

This is exactly why our approach is so relevant. It not only helps people lose weight, but also instructs them in healthy habits that can be utilized to help preserve muscle mass, manage weight loss and improve health and wellness.

With more than 40 years of experience supporting people with their health and wellness goals, including many years when we were selling through multiple channels, we continue to believe that our coaches represent a core competitive advantage. They are our most effective customer acquisition engine and the most efficient way to scale our business.

In 2025, we are sharpening our focus on reigniting that engine. We’re taking action to help simplify the coaching experience, increase productivity and create scalable and successful businesses through stronger new customer acquisition, better retention and the re-engagement of former customers.

There are three key elements to this initiative. First, we are streamlining the coach development path, making it easier for coaches to succeed in the changed competitive environment. We envision that a more clearly defined path will show them how to achieve early wins and develop their business by placing more emphasis on building coach leadership skills.

We anticipate that with more intuitive incentives and clearer guidance on how to grow their businesses, coaches will be better empowered to optimize their efforts and achieve financial success. Through leadership education, podcasts, networking events and shared best practices, we are working to create an environment where coaches can thrive and where their success becomes repeatable and scalable.

Second, we are enhancing the tools and insights available to the coaches. Upgrading digital business tools are expected to provide a more seamless way for coaches to track customers’ progress. And they can use that data tailor solutions that best meet individual customer needs.

Education resources will focus on how to deliver more personalized customer service, equipping coaches with the skills and strategies to build stronger relationships and more sustainable businesses. This is especially important in their ability and confidence in supporting customers who are currently using or have used a GLP-1 medication.

Currently, almost half of OPTAVIA coaches have supported GLP-1 medication patients, the highest level we’ve seen to date, with 25% of coaches having had personal experience using GLP-1 medications themselves as part of their own weight loss and health journey.

Third, we are continuing to broaden our product offerings to give coaches more tools to serve their customers. Over the past 18 months, we’ve launched OPTAVIA ACTIVE for those individuals who want to incorporate exercise into their plans, as well as the OPTAVIA ASCEND line, which is designed specifically for those using GLP-1 medications for transitioning into a weight management phase after achieving their healthy weight.

With its high protein content, the ASCEND line helps customers preserve lean muscle mass, a core concern for GLP-1 users and all people trying to lose weight and learning how to keep it off. With a more diverse set of offerings, our coaches have the flexibility to create highly tailored plans that meet customers wherever they are in their health and wellness journey.

Science remains at the core of our program and products. With recent development breakthroughs, our programs and products should be even more effective in delivering key benefits to support customer health and wellness journey. These development breakthroughs will first impact our OPTAVIA Essential line and will play an important role in the business transformation as we continue to implement changes over the next 12 months to 18 months.

Additionally, we are currently developing studies that will evaluate the efficacy of the new ASCEND line in the more established Essential line, along with the holistic OPTAVIA model, which pairs customers with a coach and teaches customers how to make a healthy lifestyle second nature, giving coaches even more points to demonstrate why OPTAVIA offers a unique and effective solution. We expect investment in these areas to be mitigated by reductions in company-led marketing costs. While those efforts helped re-engage past customers, they prove less efficient at attracting new ones.

This year, we’re putting the emphasis squarely back on our coach community, which remains central to the strength of our brand and the success of our program. The impact of coach support was measured in our clinical research and showed that customers who receive coaching support while using the OPTAVIA plan lost 10 times more weight, 17 times more fat for the self-directed group.

Turning to our first quarter results. Revenues and EPS were in guidance range, with bright spots continuing to appear in parts of the business. For the fourth consecutive quarter, we saw lower year-over-year coach productivity declines, driven in part by increased productivity of newer coach cohorts. These new cohorts are exhibiting new customer growth ahead of last year and are at levels we experienced back when the business was growing.”

Below is additional information provided in their investment call.

Can you explain the reasoning behind the second quarter top line guidance, which seems to imply an acceleration in the year-over-year rate of decline?

Jim Maloney, CFO, explained that the guidance reflects the timing of promotions. A successful promotion in Q1 led to a year-over-year improvement in new coaches, which impacted Q2 projections. The company does not plan similar promotions in Q2, affecting the guidance. However, this does not imply a continued trend of acceleration in decline for future quarters.

How has the introduction of GLP-1 medications impacted the coaching community?

Nicholas Johnson, Chief Field Operations Officer, noted that GLP-1 medications have required retraining for coaches to adapt to the new environment. While initially disruptive, new coaches who have only known the GLP-1 environment are performing well. The focus is on lifestyle transformation, and many coaches have experience with GLP-1, either personally or through clients.

What is the current status of the ASCEND product line, and how has it progressed?

Maloney stated that the ASCEND line continues to perform in line with expectations, with orders in the mid-teen percentage of total orders by the end of Q1. This aligns with the company’s projections for the product line.

How will the shift from company-led marketing to investing in coaches impact SG&A expenses?

Maloney explained that while there will be some reduction in company-led marketing, it was not a large percentage of revenue compared to coach compensation. The focus will be on reactivation efforts, which have proven effective, and the impact on SG&A will not be dramatic.

What are the costs associated with being on a GLP-1 medication and the supporting nutritional programs?

Dan Chard, CEO, mentioned that the majority of clients on GLP-1 drugs use the OPTAVIA 5 & 1 program, costing roughly $400 per month. This covers 80% of their daily meals. LifeMD offers telehealth services for less than $20 per month, with most clients using their own insurance for GLP-1 medications.

Q1 marked the first meaningful year-over-year increase in new coaches in the past three years, with a double-digit increase compared to the same period last year. While this hasn’t yet made a meaningful impact on revenue, we believe it sets the stage for future improvement in overall coach productivity and new customer acquisition and positions us for coach growth the back half of 2026 if the trend holds. In the meantime, our continued focus on driving cost savings is helping us maintain a strong balance sheet.

USANA Health Sciences, Inc. (NYSE: USNA)

USANA Health Sciences, Inc. develops, manufactures and sells science-based nutritional, personal care and skincare products in Asia Pacific, the Americas and Europe. It operates in two segments, direct selling and Hiya Direct-To-Consumer. The company offers USANA nutritional optimizers, including supplements for cardiovascular health, skeletal/structural health and digestive health; Essentials/CellSentials, such as vitamin and mineral supplements for age group beginning with children 13 months of age; and food products that include meal replacement shakes, snack bars and other related products for healthy weight management, digestive health and energy and hydration. It also provides Celavive, a skincare regimen for various skin types and ethnicities; and all other products comprising materials and online tools for associates to build business and marketing of products. The company sells its products through retail customers, a subscription model and direct selling, as well as online. The company has a research collaboration agreement with Beijing University of Chinese Medicine; and National Sports Training Bureau. USANA Health Sciences, Inc. was founded in 1992 and is headquartered in Salt Lake City, Utah.

In April, their stock value increased by 3.4% vs. March 2025. For the first four months of 2025, the stock declined by 22.3%. Since the creation of the DSCI on March 1, 2020, USANA shares have lost 57.8% compared with gains of 59.5% for the direct selling index and the DJIA, respectively.

Key Financial Results

• Revenue: US $249.5M (up 9.5% from 1Q 2024).
• Net income: US $9.40m (down 43% from 1Q 2024).
• Profit margin: 3.8% (down from 7.3% in 1Q 2024). The decrease in margin was driven by higher expenses.
• EPS: US $0.49 (down from US$0.86 in 1Q 2024).
• Revenue exceeded analyst estimates by 2.7%. Earnings per share (EPS) also surpassed analyst estimates by 14%.
• Looking ahead, revenue is forecast to grow 8.4% p.a. on average during the next 2 years, compared to a 3.6% growth forecast for the Personal Products industry in the US.

In April, DSN shared the following regarding Usana’s first quarter 2025.

USANA Health Sciences, Inc. announced the financial results for the first fiscal quarter of 2025. Net sales within the quarter represented a 10% year-over-year growth rate, totaling $250 million versus $228 million in the first quarter of 2024. Net earnings, however, showed a decline from $16.5 million in Q1 2024 to $9.4 million. Adjusted EBITDA was $30 million, down from $33 million in Q1 2024, and adjusted diluted EPS was $0.73, compared to $0.86 in the same period last year.

Total active customers in the quarter totaled 459,000, down from 494,000 in the first quarter of 2024. Hiya active monthly subscribers reached 224,000, which the company described as strong momentum that “should continue building as their team executes their plans to launch several new products this year, unveil another strategic partnership, and expand to additional channels.” The company remains confident in Hiya’s growth trajectory and its ability to reach a new customer demographic.”

“USANA is off to a solid start to the year as we continue to execute our growth strategy through our core direct sales business and our recently acquired direct-to-consumer business, Hiya,” said Jim Brown, USANA President and Chief Executive Officer. “We are seeing encouraging signs in our direct sales business with net sales and active customers growing modestly on a sequential basis for the second consecutive quarter. While the global macroeconomic environment has become less certain since the beginning of the year due to volatility in international trade, tariffs and consumer sentiment, the underlying demand for our products has remained strong. Operationally, our manufacturing facilities in the United States and mainland China uniquely position us to deliver the best possible shopping experience and value to our customers in every market around the world. Our supply chain team has actively managed our inventory levels and sourcing and will continue to work with our stakeholders in each of our markets to navigate the increasingly dynamic operating environment.”

The company generated $15 million in operating cash flow and ended the quarter with $180 million in cash and cash equivalents with $23 million in debt.

Looking ahead, revenue is forecast to grow 8.4% p.a. on average during the next 2 years, compared to a 3.6% growth forecast for the Personal Products industry in the US.

USANA projects 2025 revenue and adjusted diluted EPS of $920 million to $1.0 billion and $2.35-$3.00, respectively. The company’s 2024 revenue totaled $855 million, and its 2024 adjusted diluted EPS was $2.59. USANA’s 2025 revenue guidance includes $145-160 million from recently acquired Hiya Health Products, LLC, a leading direct-to-consumer provider of high-quality children’s health and wellness products. On December 23, 2024, USANA closed its acquisition of a 78.8% controlling ownership stake in Hiya. The $205 million cash transaction is expected to be immediately accretive to USANA’s 2025 adjusted EBITDA. As of September 30, 2024, Hiya had more than 200,000 customers. For the twelve months ended September 30, 2024, Hiya generated net sales of $103 million, net income of $19 million, and adjusted EBITDA of $22 million. Hiya’s revenue for 2024 was about $112.5 million.

eXp World Holdings, Inc. (NASDAQ: EXPI)

eXp World Holdings, Inc., together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. It operates through three segments: North American Realty, International Realty and Other Affiliated Services. The company acts as a licensed broker for processing residential and commercial real estate transactions; and provides other real estate support services. It also offers FrameVR.io, a web-accessible proprietary technology offering immersive 3D platforms; magazine and its related media properties which provide training, classes, resources and tools under the SUCCESS brand; SUCCESS Space, a coworking solution offering rental workspaces for individual and group use, access to professional development coaching, media production services, virtual-world communications technology and full-service cafes. It operates in North America, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, Poland and Dubai. The company was formerly known as eXp Realty International Corporation and changed its name to eXp World Holdings, Inc. in May 2016. eXp World Holdings, Inc. was incorporated in 2008 and is headquartered in Bellingham, Washington.

The stock price declined 8.3% in April vs. March 2025. For the first four months of 2025, their stock prices has declined by 22.1%. More constructively, EXPI shares have appreciated an aggregate 87.7% over the five years the DSCI has been computed, the second-best long-term mark for any DSCI member. Below is the first quarter consolidated financial highlights as compared to the same time a year-ago period.

• Revenue increased 1% to $954.9 million.
• Net loss of $11 million and loss per diluted share of $.07.
• Adjusted EBITDA1 (a non-GAAP financial measure) of $2.2 million.
• As of March 31, 2025, cash and cash equivalents totaled $115.7 million, compared to $109.2 million as of March 31, 2024.
• Net cash provided by operating activities of $39.8 million.
• Adjusted operating cash flow (a non-GAAP financial measure) of $28.2 million.
• Distributed $12.6 million to shareholders, including $5.0 million of common stock repurchases and $7.6 million of cash dividends.
• Revenue: US $249.5M (up 9.5% from 1Q 2024).
• Net income: US $9.40m (down 43% from 1Q 2024).
• Profit margin: 3.8% (down from 7.3% in 1Q 2024). The decrease in margin was driven by higher expenses.
• EPS: US $0.49 (down from US $0.86 in 1Q 2024).
• Revenue exceeded analyst estimates by 2.7%. Earnings per share (EPS) also surpassed analyst estimates by 14%.
• Looking ahead, revenue is forecast to grow 8.4% p.a. on average during the next two years, compared to a 3.6% growth forecast for the Personal Products industry in the US.

The Company paid a cash dividend for the first quarter of 2025 of $0.05 per share of common stock on March 19, 2025. On May 5, 2025, the Company’s Board of Directors declared a cash dividend of $0.05 per share of common stock for the first quarter of 2025, expected to be paid on June 4, 2025 to stockholders of record on May 19, 2025.

Glenn Sanford, Founder, Chairman and CEO noted the following, “We’re entering 2025 from a position of strength. eXp has built one of the most comprehensive, tech-enabled agent value stacks in the industry – one that’s driving record international agent productivity and empowering entrepreneurs at scale. This quarter alone, we more than doubled our international revenue year-over-year and expanded our footprint into Perú and Türkiye, further proving that our agent-first model transcends borders. Agent success has always been the foundation of eXp’s strategy—and in 2025, we plan to double down with enhanced tech, smarter training and even more pathways to help agents close more deals, build generational wealth and create the freedom they deserve.”

“The real estate industry is at a pivotal crossroads, and eXp is proudly leading the charge to protect transparency, consumer choice and healthy competition—values that have defined our marketplace for decades,” said Leo Pareja, CEO of eXp Realty. “eXp was built by agents, for agents, and we continue to raise the bar. Recently, we launched the industry’s first open-sourced seller advisory form and were the first to partner with Zillow to support consumer transparency. With the rollout of our co-sponsor program, we’ve also unlocked new income pathways for agents. As we look forward, we’re not just defending our industry—we’re building the future of it, with our agents at the center.”

Primerica, Inc. (NYSE: PRI)

Primerica, Inc., together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities and fixed indexed annuities; and offers segregated funds. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters; ID theft defense services; auto and homeowners’ insurance; home automation solutions; and insurance products, including supplemental and accidental death and disability insurance. It distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.

In April, the stock price declined by 6.9% vs. March 2025 and has declined by 2.5% for the first four months of 2025. PRI has appreciated 141.7% since March 1, 2020, the best long-term performance for any DSCI member. The first quarter results posted on May 5, 2025, noted the following:

• Adjusted Net Operating Income: $168 million, up 14% year over year.
• Diluted Adjusted Operating EPS: Increased 20% to $5.02.
• Shareholder Returns: $153 million returned, including $118 million in share repurchases and $35 million in dividends.
• Recruitment: 100,867 individuals recruited, a 9% decline year-over-year.
• New Life Licenses: Declined 5% year over year.
• New Term Life Policies: 86,415 issued, representing $28 billion in new protection.
• Term Life Operating Revenue: $458 million, up 4% year-over-year.
• Term Life Pre-Tax Operating Income: $147 million, up 6% year-over-year.
• ISP Segment Sales: $3.6 billion, up 28% year-over-year.
• Net Inflows: $839 million, compared to $274 million in the prior year period.
• Client Asset Values: $110 billion, up 6% year-over-year.
• Investment and Savings Product Operating Revenue: $291 million, up 19% year-over-year.
• Investment and Savings Product Pre-tax Income: $81 million, up 24% year-over-year.
• Closed Loans in the US: $93.5 million, up 31%.
• Closed Loans in Canada: $43.3 million, up 78%.
• Consolidated Insurance and Other Operating Expenses: $163 million, up 4% year-over-year.
• Holding Company Cash and Invested Assets: $407 million.
• Primerica Life Estimated RPC Ratio: 470%.

Positive Points

• Adjusted net operating income increased by 14% year-over-year to $168 million, with diluted adjusted operating EPS up 20% to $5.02.
• The investment and savings product segment saw a 28% year-over-year increase in total sales, driven by strong demand across mutual funds, variable annuities and managed accounts.
• Primerica Inc (NYSE:PRI) returned $153 million to stockholders through share repurchases and dividends during the quarter.
• The company experienced strong sales growth in its mortgage business in both the US and Canada, with closed loans up 31% in the US and 78% in Canada.
• Persistency in term life policies remained stable, with $957 billion of protection in place for middle-income families at quarter-end.

Negative Points

• Recruiting declined by 9% year-over-year, with new life licenses down 5%, attributed to economic uncertainty and cost-of-living pressures.
• Term life insurance sales faced pressure, with productivity slightly below historical ranges at 0.19 policies per representative.
• The company experienced a 2% decline in client asset values during the first three months of 2025 due to negative market performance.
• Overall lapse rates remain above long-term expectations, reflecting ongoing financial impacts from higher cost-of-living pressures on middle-income families.
• Economic uncertainty is contributing to a slowdown in recruiting and investment sales momentum, with potential impacts on future growth.

The highlights from the Q&A on this call noted the following:

What is causing the difference in performance between term life sales and ISP sales?

Glenn Williams, CEO, explained that the complementary nature of Primerica’s business model allows for different reactions under the same circumstances. Term life sales are impacted by cost-of-living pressures, as families prioritize their spending. In contrast, ISP sales, particularly larger transactions like rollovers, are less affected by such pressures. The demand for variable annuities with guarantees has increased due to economic uncertainty, which has bolstered ISP sales.

How does the company view the recruiting environment given current economic conditions?

Williams noted that economic disruption can sometimes aid recruiting as people seek additional income opportunities. However, the current uncertainty is causing potential recruits to be more cautious. Despite this, Primerica remains optimistic that once clarity returns, recruiting will benefit as people seek to take control of their financial futures.

Are there any particular ISP products more impacted by current market conditions?

Williams stated that variable annuities and index-linked variable annuities are seeing increased demand due to their guarantees, which are attractive in uncertain times. Managed accounts are also growing rapidly, benefiting from being a newer product line with strong momentum.

What drove the increase in the RBC ratio this quarter?

Tracy Tan, CFO, explained that the increase in the RBC ratio to 470% was due to a combination of factors, including growth in the investment portfolio and a shift to slightly higher-yielding investments without increasing risk. The company maintains a strong capital position to support growth and withstand potential downturns.

How are lapse rates trending in the term life segment, and what is the outlook?

Tan reported that lapse rates remain higher than pre-pandemic levels but have stabilized recently. Persistency for new policies is in line with expectations, and overall trends are expected to normalize over time. The company has factored higher lapse rates into its guidance, and the term life business remains stable.

Oliveda International, Inc. (OTC: OLVI)

Founded in 2003, OLVI has more than 20 years of experience in: 1) the management and organic certification of mountain olive trees; 2) the extraction of international award-winning extra virgin olive oils; 3) the extraction of hydroxytyrosol, a substance which has several beneficial effects such as antioxidant, anti-inflammatory, anticancer and as a protector of skin and eyes; and 4) the production and distribution of cosmetic and holistic waterless products related to the olive tree.

Oliveda International, Inc. and its subsidiary, Olive Tree People Inc., as well as the European companies, Olive Tree People Europe AG and Oliveda Deutschland GmbH, as well as Olive Tree Farmers SL, were founded by the German real estate investor Thomas Lommel.

In addition to the registered beauty brands, Oliveda and LA Dope, as well as Re:connected to Nature, The Intuition of Nature, and Olive Mush, to name just a few brands, Lommel is the region’s largest conservationist and protector of over 30,000 100-year-old mountain olive trees, and, with his Thomas Lommel Foundation, he brings the water that he does not use into his waterless beauty products to the people of Africa by building water wells on site.

In addition to online sales and a Europe-wide branch network of thousands of retail stores, Oliveda Deutschland GmbH operates its own flagship stores in Berlin and Düsseldorf.

Comparing April 2025 to March 2025, the stock price declined by 2.3%. For the first four months of 2025, the stock declined by 53.5%, the worst performing large cap direct selling stock during the first four months of 2025. Over the first two months of 2025, OLVI has declined 53.5%.

Olive Tree People started in Venice Beach, in the garage of Oliveda and Olive Tree People founder and CEO Thomas Lommel in March 2023 with around 40 orders a day and then exploded to up to 10,000 orders a day within a few months.

Lommel shared, “Those were extremely challenging times because, despite moving from my garage to our first warehouse in Culver City, Los Angeles, we no longer knew what to do with the pallets and products that were arriving from Germany in ever-increasing quantities. No less challenging was flying these quantities of products from Germany to the US within a short period of time and increasing production by up to 3,000%. We’ve experienced days when we had thousands of backorder lists, and dozens of products were out of stock. When new products, like our order-friendly F59, were back in stock, they were sold out within seconds. Thanks to a fantastic team, we mastered these extremely challenging times with excellence and now have enough space in our current warehouse to multiply our two-year sales of over $100 million. This hypergrowth naturally also had an impact on the price of our OLVI shares. The company was temporarily valued at over $3 billion and has now settled at over $1 billion after just two years.”

When asked about future developments, Lommel stated, “It wasn’t my goal to achieve a valuation of over $1 billion, but rather to bring the magic of our trees to the world. I had no idea about waterless beauty and developed it intuitively in the treehouse, simply because it makes so much more sense. For me, trees cannot be measured in money, as we wouldn’t exist without them. The magic emanating from our mountain olive trees cannot be measured in dollars, as they enable us humans to become healed and whole every day. 2025 is another challenging year in which we will continue to grow and expand to Canada in the summer of 2025, and then reach Europe with our waterless movement in October 2025. The potential of waterless beauty is almost endless, as it triggers an ‘a-ha moment’ in the vast majority of people who come into contact with it, and our 365-day satisfaction guarantee lets people experience the difference without pressure.”

The Beachbody Company, Inc. (NYSE: BODI)

The Beachbody Company, Inc. operates as a fitness and nutrition company in the United States and internationally. The company operates Beachbody on Demand, a streaming service through subscription that provides fitness programs, including P90X, Insanity and 21 Day Fix brands; and offers nutrition programs, through subscription to Beachbody On Demand Interactive, such as Portion Fix and 2B Mindset brands. It also provides nutritional products, such as Shakeology, a nutrition shake; Beachbody Performance supplements comprising pre-workout energize, hydrate, post-workout recovery and protein supplement recharge products; BEACHBAR, a low-sugar snack bar; Belle Vitale, a hormone health solution for women to address symptoms of hormone imbalance; and connected fitness products. The Beachbody Company, Inc. was founded in 1998 and is headquartered in El Segundo, California.

Their stock price declined by 43.8% vs. March 2025. For the first four months of 2025, their stock price declined by 21.8%. BODI was the first public company to announce a movement away from a multi-tiered compensation model to a single-level affiliated model and clearly shows the impact of this type of change. Although private companies had made similar changes, the results mirror what BODI experienced after their first quarter of making this change. They report their first quarter results for 2025 on May 14, 2025, and we will cover that in May.

BODI announced that it received notice from the New York Stock Exchange (the “NYSE”) that it was not currently in compliance with the requirement of Section 802.01B of the New York Stock Exchange Listed Company Manual (the “NYSE Manual”) that the Company has an average market capitalization of not less than $50.0 million over a consecutive 30-trading-day period and stockholders’ equity of not less than $50.0 million (the “NYSE Notice”).

Pursuant to the NYSE Notice, the Company is subject to the procedures set forth in Sections 801 and 802 of the NYSE Manual and must submit a business plan within 45 days of receipt of the NYSE Notice that demonstrates how the Company expects to return to compliance with this continued listing standard within 18 months of receipt of the NYSE Notice.

The notice and procedures described above have no effect on the listing of the Company’s securities at this time, subject to the Company’s compliance with other continued listing requirements, and the Company intends to submit a plan to regain compliance as required by the rules of the NYSE and as set forth in the NYSE Notice.

Below are two charts that summarize the large cap direct selling companies.

Small Cap

Below are two charts on the small companies. Below is the April information for the two largest small cap companies, Nature’s Sunshine and LifeVantage.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR)

Nature’s Sunshine Products, Inc., a natural health and wellness company, manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America and other locations internationally. The company provides general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy and vision; immune products; cardiovascular products; and digestive products. It also offers personal care products, including oils and lotions, aloe vera gel, herbal shampoo, herbal skin treatment, toothpaste and skin cleanser products, as well as weight management products. The company provides its products under the Nature’s Sunshine Products and Synergy WorldWide brands directly to customers and to a sales force of independent consultants. Nature’s Sunshine Products, Inc. was founded in 1972 and is headquartered in Lehi, Utah.

In April, their stock price declined by 4.6% vs. March 2025. For the first four months of 2025, the stock declined by 18.3%. Since the inception of the DSCI, NATR has gained 54.1%, On May 5, 2025, NATR reported on their first quarter 2025 and noted the following.

Positive Points

• Nature’s Sunshine Products Inc (NASDAQ:NATR) reported a strong start to 2025 with first-quarter revenue of $113 million, exceeding analyst expectations.
• The company achieved a 5% revenue increase on a constant currency basis, driven by strong performance in Asia Pacific and Europe.
• Adjusted EBITDA increased by 20% to $11 million, reflecting effective execution of strategies.
• Digital sales grew by 19%, more than double the supplement industry’s digital growth rate, indicating successful digital transformation efforts.
• The company achieved most of its sustainability goals, including reducing carbon emissions and cutting waste, showcasing its commitment to responsible business practices.

Negative Points

• Sales in North America declined by 4% due to a difficult comparison with the previous year and macroeconomic uncertainties impacting consumer sentiment.
• The company faces challenges from international trade tariffs and volatile consumer sentiment, which could impact future performance.
• Despite strong performance in Asia Pacific and Europe, the company anticipates challenges in maintaining growth rates due to tough comparisons in the latter half of the year.
• There is ongoing uncertainty regarding the impact of tariffs on raw materials and supply chain disruptions, which could affect future financial results.
• The company remains cautious in its 2025 outlook, reflecting potential macroeconomic instability and the impact of tariffs on consumer behavior.

On the investor call, the company shared some additional information that is worth noting in this report.

Q&A Highlights

How did the first quarter results compare to internal expectations, and what does this mean for the guidance for the rest of the year?

Shane Jones, CFO, stated that the first quarter results were slightly ahead of internal expectations. The guidance for the rest of the year remains conservative due to the uncertain macroeconomic environment. The midpoint of the guidance assumes continued macroeconomic instability and tariff issues, while the lower end assumes a recession-type environment. The upper end would reflect continued positive results similar to Q1.

Are there any changes in the outlook regarding tariffs since the initial guidance was issued?

Jones mentioned that the environment is rapidly changing, and while there have been no significant changes since the initial guidance, the company has been conservative in its estimates to encompass all potential scenarios. CEO Terrence Moorhead added that the company has taken steps to offset potential tariff impacts and is prepared to adapt to changes.

Is the new digital toolkit for North America still on track for launch in the second half of 2025, and how will it affect order disruption?

CEO Terrence Moorehead confirmed that the digital toolkit is on track for a launch in the second half of the year. It is expected to be an incremental opportunity without disrupting existing processes. The toolkit aims to enhance customer management and attract new customers.

What are the growth drivers in Europe and Asia, and do you see continued market opportunities there?

Moorehead highlighted strong fundamentals in sales and marketing as key drivers in both regions. The company sees ongoing market opportunities, although Asia Pacific will face challenging comparisons in the latter half of the year. Jones noted significant new customer growth in Japan as a positive indicator for future growth.

How is the company planning to improve the North American market, particularly with practitioners and retailers?

Moorehead explained that the company is focusing on building fundamentals, implementing new leadership, and providing better tools for practitioners and retailers. The introduction of a new toolkit in the latter half of the year is expected to enhance consumer engagement and marketing effectiveness.

Following the earnings report, Nature’s Sunshine Products’ two analysts are forecasting 2025 revenues to be US $459.2M, approximately in line with the last 12 months. Statutory earnings per share are predicted to shoot up 41% to US $0.78. Before this earnings report, the analysts had been forecasting revenues of US $460.0m and earnings per share (EPS) of US $0.77 in 2025. So, it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.

LifeVantage Corporation (NASDAQ: LFVN)

LifeVantage Corporation engages in the identification, research, development, formulation, and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management, and skin and hair care products. It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids, and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, supports cognitive functions, and support normal sleep patterns; LifeVantage Daily Wellness, a dietary supplement designed to strengthen immune health; LifeVantage Rise AM & Reset PM System that provides the body with the right nutrients; LifeVantage D3+, a dietary supplement that provides vitamin D3, vitamin K2, magnesium, calcium, and other trace minerals to support a balanced immune system, strong bones, and cardiovascular health; PhysIQ Fat Burn to support weight management; PhysIQ Prebiotic is a dietary supplement designed to support the good bacteria in the gut and a healthy microbiome; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix. The company also provides anti-aging skincare products, including liquid collagen, facial cleansers, eye cream, moisturizing cream, sunscreen, perfecting lotions, hand creams as well as haircare products, such as invigorating shampoos, nourishing conditioners and scalp serums under the TrueScience brand name. It sells its products through its website and network of independent consultants in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore and the Philippines. The company also launch Evolve Compensation Plan and other LV360 initiatives into the Philippines, Taiwan, Hong Kong and Singapore. The company is based in Lehi, Utah.

Their stock declined in April by 15.3% vs. March 2025. For the first four months of 2025, the stock price has declined 29.5%. Since the March 1, 2020 establishment of the DSCI, LFVN has gained 3.7%. It is worth noting that share price is 228% higher than it was three years ago. Their first quarter of 2025 noted the following results.

• Revenue: $58.4 million, up 21% year-over-year.
• US Revenue Growth: 31% increase year-over-year.
• International Revenue Decline: 7% decrease year-over-year.
• Gross Margin: Improved by 210 basis points to 81%.
• Adjusted EBITDA: $6.4 million, a 27% increase year-over-year.
• Adjusted EBITDA Margin: Improved by 50 basis points to 11%.
• Active Accounts Growth in Americas: 17% increase year-over-year.
• Adjusted Non-GAAP Net Income: $3.5 million or $0.26 per diluted share.
• Cash Position: $22.5 million with no debt.
• Capital Expenditures: $300,000 in the third quarter.
• Share Repurchase: 140,000 shares repurchased for $1.1 million in fiscal 2025.
• Quarterly Dividend: $0.045 per share, totaling approximately $600,000.
• Fiscal 2025 Revenue Guidance: $228 million to $235 million.
• Fiscal 2025 Adjusted EBITDA Guidance: $21 million to $24 million.
• Fiscal 2025 Adjusted EPS Guidance: $0.72 to $0.88.

Positive Points

• Lifevantage Corp (NASDAQ:LFVN) reported a strong third quarter with revenues of $58.4 million, up 21% year-over-year.
• The MindBody GLP-1 system was a primary growth driver, with US revenues increasing by 31%.
• Gross margin improved by 210 basis points to 81%, driven by product mix and lower inventory-related expenses.
• Adjusted EBITDA increased by 27% year-over-year to $6.4 million, with an improved margin of 11%.
• The company launched the Evolve Compensation Plan and LV360 initiatives in multiple international markets, aiming to enhance consultant opportunities and business growth.

Negative Points

• International revenues declined by 7% year-over-year, highlighting ongoing challenges in these markets.
• Foreign currency fluctuations negatively impacted revenue by $500,000 in the third quarter.
• Commissions and incentive expenses increased to 44.8% of revenue, up from 40.9% in the prior year period.
• There was a sequential decline in active accounts in the Americas, attributed to previous stock-out issues.
• The company revised its fiscal 2025 revenue outlook downward, citing uncertainties in international market growth.

On the investor call, the company shared some additional information that is worth noting in this report.

Q & A Highlights:

Can you provide insights into the percentage of new customers subscribing to your products, and how does this impact your top-line assumptions?

Steven Fife, President and CEO, noted that while there was a slight decline in active accounts sequentially, the subscription rate increased. Historically, about 70% of revenue has been from subscriptions, and during the quarter, 85% of new MindBody customers subscribed. This reflects the product’s positioning as a lifestyle choice requiring long-term use for full benefits.

Are you seeing more purchases in product stacks versus stand-alone products?

Fife explained that about 55% of MindBody revenue was from stand-alone purchases, while 45% included additional products, such as Protandim Nrf2 or Liquid Collagen. This stacking approach aligns with the company’s strategy of promoting synergistic benefits, enhancing average revenue per account and customer retention.

What factors contributed to the reduction in revenue outlook, and is it due to past or anticipated future results?

Fife attributed the revenue outlook adjustment to both past and anticipated future results. The initial product launch success led to inventory shortages, affecting sales. Although supply chain issues are resolved, uncertainty remains in international markets, prompting a cautious revenue forecast.

What caused the decline in active accounts in the Americas, and is it related to the stock-out situation?

Carl Aure, CFO, confirmed that the decline in active accounts was primarily due to the stock-out situation, particularly affecting customer accounts. Consultant accounts remained flat sequentially, and the company believes the majority of the attrition is behind them, with plans to rebuild moving forward.

What have you learned about the MindBody product and educating your sales force on its benefits?

Fife shared that the company learned the importance of positioning MindBody as a long-term health solution rather than a quick weight-loss fix. Consultants who focused on sustainable health benefits saw better retention and growth. The company emphasized lifestyle changes and the natural, long-term benefits of the product, which has resonated well with consultants.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 5.3 days as of March 31, 2025. Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index mirrors the DJIA for the month of March and for the first quarter 2025

The Direct Selling Capital Advisors Direct Selling Index (DSCI) declined 4.2% lower in March. The DJIA also fell 4.2% in March. Over the first quarter of 2025, the DSCI and the DJIA’s both declined by 1.3%. We continue to see the DSCI under perform other major indices. However, the DSCI has over performed vs. other indices. As our channel continues to transition, the DSCI should improve vs. other indices.

There is a lot of uncertainty in the marketplace due to President Trump’s near daily announcements regarding potential tariffs on Mexico, Canada, China and the European Union among others, which has created significant policy uncertainty and weighed on investor sentiment. In addition, recent key economic releases, including retail sales, services PMI (a measure of business activity in the sector) and The Conference Board’s widely followed Consumer Confidence Index^®, have fallen short of analysts’ expectations.

The Conference Board Consumer Confidence Index fell by 7.2 points in March to 92.9 (1985=100). The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—decreased 3.6 points to 134.5. The Expectations Index—based on consumers’ short-term outlook for income, business and labor market conditions—dropped 9.6 points to 65.2, the lowest level in 12 years and well below the threshold of 80 that usually signals an impending recession. The cutoff date for preliminary results was March 19, 2025.

“Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022,” said Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board. “Of the Index’s five components, only consumers’ assessment of present labor market conditions improved, albeit slightly. Views of current business conditions weakened to close to neutral. Consumers’ expectations were especially gloomy, with pessimism about future business conditions deepening and confidence about future employment prospects falling to a 12-year low. Meanwhile, consumers’ optimism about future income—which had held up quite strongly in the past few months—largely vanished, suggesting worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations.”

March’s fall in confidence was driven by consumers over 55 years old and—to a lesser extent—those between 35 and 55 years old. By contrast, confidence rose slightly among consumers under 35, as an uptick in their assessments of the present situation more than offset gloomier expectations. The decline was also broad-based across income groups, with the only exception being households earning more than $125,000 a year.

Guichard added: “Likely in response to recent market volatility, consumers turned negative about the stock market for the first time since the end of 2023. In March, only 37.4% expected stock prices to rise over the year ahead—down nearly 10 percentage points from February and 20 percentage points from the high reached in November 2024. On the flip side, 44.5% expected stock prices to decline (up 11 ppts from February and over 22 ppts more than November 2024). Meanwhile, average 12-month inflation expectations rose again—from 5.8% in February to 6.2% in March—as consumers remained concerned about high prices for key household staples like eggs and the impact of tariffs.”

Consumers’ views of their Family’s Current Financial Situation improved slightly but their expectations for future finances declined to the lowest level since July 2022. The proportion of consumers anticipating a recession over the next 12 months remained steady at a nine-month high. (These measures are not included in calculating the Consumer Confidence Index). The share of consumers expecting higher interest rates over the next 12 months increased to 54.6% from 52.6% in February, while the share of consumers expecting lower interest rates dropped further to 22.4% from 24.1%.

A special question about how easy it is for consumers to form expectations about the future found considerable self-confidence among consumers in assessing their own future income prospects and family financial situation, with over 45% finding it easy and only about 20% finding it difficult. However, forming expectations about broader economic trends appeared more challenging: over one-third found it difficult to assess future employment and business conditions while 38.8% found it difficult to predict inflation.

On a six-month moving average basis, purchasing plans for both homes and cars declined. Surprisingly, given the anxiety about the future, intentions to buy big-ticket items—including appliances and electronics—ticked up, which may reflect plans to buy before impending tariffs lead to price increases. Consumers’ overall intentions to purchase additional services in the months ahead were little changed, but their priorities shifted. Fewer consumers planned to spend more on movies and live entertainment or sports, and more planned to spend on outdoor activities and travel. Vacation plans also increased.

Comments on the current Administration and its policies, both positive and negative, dominated consumers’ write-in responses on what is affecting their views of the economy. Write-in responses also showed that inflation is still a major concern for consumers and that worries about the impact of trade policies and tariffs specifically are on the rise. There were also more references than usual to economic and policy uncertainty.

Present Situation

Consumers’ assessments of current business conditions were significantly less positive in March. 17.7% of consumers said business conditions were “good,” down from 19.1% in February. 16.6% said business conditions were “bad,” up from 14.8%. Consumers’ views of the labor market improved slightly in March. 33.6% of consumers said jobs were “plentiful,” unchanged from February. 15.7% of consumers said jobs were “hard to get,” down from 16.0%.

Expectations for the coming six months worsened in March. 17.1% of consumers expected business conditions to improve, down from 20.8% in February. 27.3% expected business conditions to worsen, up from 25.5%. Consumers’ outlook for the labor market outlook also deteriorated. 16.7% of consumers expected more jobs to be available, down from 18.8% in February. 28.5% anticipated fewer jobs, up from 26.6% in February. Consumers were more pessimistic about their income prospects in March. 16.3% of consumers expected their incomes to increase, down from 18.8% in February. 15.5% expected their income to decrease, up from 12.8%.

Consumers’ assessments of their Family’s Current Financial Situation improved slightly in March.

Consumers’ assessments of their Family’s Expected Financial Situation weakened to a 2½-year low.

Consumers’ Perceived Likelihood of a US Recession over the Next 12 Months held steady in March.

Looking Forward

The direct selling channel has some significant headwinds in near future due to a lot of uncertainty in the global marketplace. We are seeing more companies moving away from a sole dependency for distributors to drive revenue through an omnichannel strategy. At the same time, we are seeing companies committed to the MLM business model showing growth. As the first quarter reports are filed, it will provide a more detailed look at the state of our channel with these publicly traded companies. We are likely to see more acquisitions and companies closing the doors, similar to what Modere did in April 2025.

The Direct Selling Capital Advisors Index (DSCI) is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

Large Cap

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Betterware de Mexico (NASDAQ: BWMX) Founded in 1995, Betterware de Mexico is the leading direct-to-consumer company in Mexico focused on offering innovative products that solve specific needs related to household organization, practicality, space-saving and hygiene. Through the acquisition of JAFRA on April 7, 2022, the Company now offers a leading brand of direct-to-consumer in the Beauty market in Mexico and the United States where it offers Fragrances, Color & Cosmetics, Skincare and Toiletries. The combined company possesses an asset-light business model with low capital expenditure requirements and a track record of strong profitability, double digit rates of revenue growth and free cash flow generation. Today, the Company distributes its products in Mexico and the United States.

Their stock price inched 0.8% higher in March, bringing its YTD gain to 0.2%. For the first quarter, their stock has increased by 1.7%. Since the March 1, 2020 inception of the DSCI, BWMX has appreciated 20.5%. Additional financial data is at the end of this report.

The first quarter results will be posted on April 24^th, the revenue estimates for the first quarter were $4.91%. Analyst project the revenue growth this year will be 14.08%. We will update the first quarter numbers in our April Stock Performance report.

Betterware de México paid an aggregate dividend of MX $250,000,000. This amount represents approximately US $0.3212 per share before applicable tax withholdings, or approximately US $0.2891 per share after applicable tax withholdings. That dividend was paid out on March 25, 2025 to shareholders of record as of March 18, 2025.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS)

Nu Skin Enterprises, Inc., together with its subsidiaries, engages in the development and distribution of various beauty and wellness products worldwide. It offers skin care devices, cosmetics and other personal care products, including ageLOC LumiSpa and ageLOC LumiSpa iO; and nutricentials skincare products. The company also provides wellness products, such as LifePak nutritional supplements, ageLOC TR90 weight management system and Beauty Focus Collagen+. In addition, it is involved in the research and product development of skincare products and nutritional supplements. The company sells its products under the Nu Skin, Pharmanex, and ageLOC brands through retail stores, website, digital platforms, and independent direct sellers and marketers, as well as a service center. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.

In March, the stock had a decline of 8.3% although for the first quarter, the stock was up 5.4%. Since the direct selling index was established in March 2020, their stock has declined 69.2%. The stock’s 52 week high is $14 and the low was $5.95. Analyst predict a growth estimate of 23.25% for 2025. First quarter results will be posted on May 8, 2025. Additional financial data is at the end of this report.

The company has now essentially completed its restructuring plan. In 2025, NUS anticipates improving business trends and a return to year-over-year growth in several of its markets, but it also expects continued economic challenges and poor consumer sentiment, particularly in Greater China and South Korea. Management projects full-year 2025 revenue and ongoing EPS of $1.48-$1.62 billion and $0.90-$1.30, respectively. Full-year 2024 revenue and EPS from ongoing operations totaled $1.73 billion and $0.84, respectively.

Herbalife Nutrition, Inc. (NYSE: HLF) Herbalife Ltd., together with its subsidiaries, provides health and wellness products in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China and the Asia Pacific. The company offers products in the areas of weight management; targeted nutrition; energy, sports and fitness; outer nutrition and literature, promotional and other items. It also provides weight management products, including meal replacement products, protein shakes, drink mixes, weight loss supplements, healthy snacks and metabolism boosting teas; targeted nutrition products, which comprise functional beverages and dietary and nutritional supplements that contain herbs, vitamins, minerals and other natural ingredients; outer nutrition products, such as facial skin, body and hair care products; and energy, sports, and fitness products, including N-R-G tea and energy drink products. In addition, it offers literature, promotional, and other materials that comprise start-up kits, sales tools and educational materials. The company sells its products through sales representatives, independent service providers as well as company-operated retail stores and platforms. The company was formerly known as Herbalife Nutrition Ltd. and changed its name to Herbalife Ltd. in April 2023. Herbalife Ltd. was founded in 1980 and is headquartered in Los Angeles, California.

For the month of March, their stock increased by 4.9%. Year-to-date, their stock has soared to 29%, one of the top three annual returns for a DSCI-best 52.0. Conversely, HLF is down 73.3% since the establishment of the DSCI on March 1, 2020. HLF will release its first quarter 2025 financial results after the close of trading on the NYSE on Wednesday, April 30, 2025, and we will update their information in our April Stock Performance Report. Additional financial data can be found at the end of this report.

On February 19, 2025, HLF reported 4Q 2024 sales of $1.21 billion, down 0.6% from $1.22 billion in 4Q 2023. On a constant currency basis, the company’s revenue increased 2.7% in the quarter. Even more constructive, HLF’s 4Q 2024 adjusted EBITDA reached $150.0 million, up from $108.0 million in the year-ago period, which translated into an adjusted EBITDA margin of 12.4% in 4Q 2024, up 340 basis points from 4Q 2023. In 4Q 2024, the number of new distributors joining HLF worldwide increased 22%, marking the company’s third consecutive quarter of year-over-year growth.

Also on February 19, HLF management issued guidance for full-year 2025 results. The company expects 2025 revenue to range from 3% below 2024 revenue of $4.99 billion to 3% above this figure. Furthermore, HLF’s 2025 adjusted EBITDA should be $600-$640 million compared with $634.8 million in 2024, and its 2025 capital expenditures should range from $100 to $130 million compared with $122.0 million in 2024.

On March 12, 2025, HLF announced it has entered into a binding memorandum of understanding to acquire 100% of the assets of Pro2col Health LLC (Pro2col) and Prüvit Ventures, Inc. (Prüvit), as well as a 51% controlling ownership interest in Link BioSciences Inc. (Link BioSciences).

Link BioSciences is an established manufacturing company that utilizes proprietary technology to process biometrics, biomarkers, lifestyle data and DNA and will harness the information from Pro2col to formulate personalized nutritional supplements for customers.

“By acquiring and leveraging Pro2col’s personalized digital technology, along with Link Biosciences’ manufacturing capabilities, Herbalife will be providing our expansive network of distributors with unique opportunities to expand their customer base through a personalized health, wellness and nutrition platform,” said Stephan Gratziani, Herbalife President and incoming CEO. “These investments further accelerate our vision to modernize our business and represent a belief in our business model that better positions us to become the world’s premier health and wellness company, community and platform.”

A beta version of the Pro2col technology platform is expected to be available to select Herbalife independent distributors in the US during the third quarter of 2025. A full release in the US is planned for the fourth quarter of 2025 with additional markets to follow beginning in 2026.

Pro2col is a health and wellness digital application company, which will use individual biometrics to provide personalized nutrition recommendations in support of a healthy, active lifestyle. The platform is designed to deliver tailored health and longevity protocols.

On May 1, 2025, Stephan Gratziani will succeed Michael Johnson as HLF’s CEO. At that time, Johnson will transition to the role of HLF’s Executive Chairman.

Medifast, Inc. (NYSE: MED) Medifast, Inc., through its subsidiaries, operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. The company offers weight loss and weight management plans; and GLP-1 support plans that provide access to GLP-1 medications where clinically appropriate under the OPTAVIA brand name. It also provides bars, puffs, cereal, crunchers, drinks, hearty choices, oatmeal, pancakes, pudding, soft serve, shakes, smoothies, soft bakes and soups, as well as provides coaching support along with community, nutrition and healthy habits and helps people in their weight loss journey. It markets its products through point-of-sale transactions, as well as through ecommerce. Medifast, Inc. was founded in 1980 and is headquartered in Baltimore, Maryland.

In March, shares declined 6.1% compared to February 2025. For the first quarter of 2025, their stock price declined by 23.5%. MED is the worst performing DSCI large cap member on a long-term basis; since the March 1, 2020 establishment of the DSCI, the stock has declined 83%. First quarter results will be posted on April 28, 2025, and we will share those results in our April Stock Performance report. Additonal financial information can be found at the end of this report.

MED is realigning its business to respond to the evolving dynamics in the weight loss industry and to transform its business model to meet the soaring demand for GLP-1 medications. Indeed, up to 20 million people in the US could be using GLP-1 treatments by 2030 according to some projections. MED offers comprehensive support for GLP-1 medication users, including access to clinicians through LifeMD, as well as programs and products to help maintain muscle and minimize side effects. One such product designed for people on GLP-1 medications is OPTAVIA ASCEND, a line of high-protein, fiber-rich mini meals as well as a daily nutrient pack. MED announced OPTAVIA ASCEND on January 7, 2025.

One recent FDA ruling could impact the strategy of marketing weight loss through injectable peptides. In October 2025, a compounding industry group, the Outsourcing Facility Association, filed a lawsuit against the FDA’s decision that there was no longer a shortage of tirzepatide, the active ingredient in Zepbound and Mounjaro. The FDA said it would not take enforcement action against compounders before the court ruled.

Now, the FDA has announced a timeline for when most compounded versions may no longer be made. “The agency in October ended the tirzepatide injection shortage prematurely based on representations from drugmakers and incomplete data on demand for the compounded versions of the drug,” Scott Brunner, CEO of Alliance for Pharmacy Compounding, another compounding industry group, said in a statement to ABC News. “That premature decision resulted in unnecessary patient angst and interruptions of therapy when pharmacies could not access the FDA-approved drugs for those patients. When pharmacies consistently can’t obtain the FDA-approved drug in quantities they need to meet patient demand, that drug is not commercially available—the very definition of a shortage.”

The FDA says state-licensed compounding pharmacies must immediately stop making most compound versions of GLP-1 drugs based on tirzepatide. Larger outsourcing pharmacies making compound versions of Zepbound have until March 19 to stop, according to the FDA. State-licensed pharmacies must stop making most compounded semaglutide (copies of Novo Nordisk’s Wegovy and Ozempic) by April 22, and larger outsourcing pharmacies by May 22, or when district court rules on a pending injunction, whichever is first.

ABC News chief medical correspondent Dr. Tara Narula said on Good Morning America that the FDA’s decision to halt the making of compound versions of GLP-1 drugs will impact many people who have found the compound versions of the drugs easier to access and lower in price. There are some ways to help lower the price of GLP-1 medications, which can cost upward of $1,000 per month without insurance coverage. If insurance coverage is not an option, people can look for outside coupons, often found on drug manufacturers’ websites, to help lower the cost, according to Narula. Both Eli Lilly and Novo Nordisk now also offer consumers who lack insurance coverage the option to buy Zepbound and Wegovy, respectively, on direct-to-consumer platforms at a lower cost.

The FDA has previously warned consumers about using compounded versions of FDA-approved medications. “Compounded drugs pose a higher risk to patient than FDA-approved drugs because compounded drugs do not undergo FDA premarket review for safety, effectiveness, or quality,” the agency said in a statement to ABC News in 2023. “The FDA’s compounding program aims to protect patients from poor quality compounded drugs, while preserving access to lawfully marketed compounded drugs for patients.”

On February 18, MED reported 4Q 2024 revenue of $119.0 million, down 37.7% from $191.0 million in 4Q 2023. The company’s adjusted diluted EPS fell even more sharply to $0.10 in 4Q 2024 from $1.09 in the year ago period. The number of active earning OPTAVIA coaches decreased to 27,100 in 4Q 2024 from 41,100 in 4Q 2023. MED expects its 1Q 2025 revenue and adjusted diluted EPS will be in the $100-120 million and a loss of $0.50 to break-even ranges, respectively.

In February, shares of USANA Health Sciences, Inc. (NYSE: USNA) USANA Health Sciences, Inc. develops, manufactures, and sells science-based nutritional, personal care and skincare products in the Asia Pacific, the Americas and Europe. It operates in two segments, Direct selling and Hiya Direct-to-Consumer. The company offers USANA nutritional optimizers, including supplements for cardiovascular health, skeletal/structural health and digestive health; Essentials/CellSentials, such as vitamin and mineral supplements for age group beginning with children 13 months of age; and food products that include meal replacement shakes, snack bars and other related products for healthy weight management, digestive health and energy and hydration. It also provides Celavive, a skincare regimen for various skincare types and ethnicities; and all other products comprising materials and online tools for associates to build business and marketing of products The company sells its products through retail customers, a subscription model and direct selling as well as online. The company has a research collaboration agreement with Beijing University of Chinese Medicine and National Sports Training Bureau. USANA Health Sciences, Inc. was founded in 1992 and is headquartered in Salt Lake City, Utah.

In March, their stock value declined by 8.9% vs. February 2025. For the first quarter of 2025, the stock declined by 24.9%. Since the creation of the DSCI on March 1, 2020, USANA shares have lost 59.2% compared with gains of 65.3% for the direct selling index and the DJIA, respectively. For additional information, see the reports at the end of this report. Their first quarter will be posted April 22, 2025, and we will update those results in the April Stock Performance report.

USANA projects 2025 revenue and adjusted diluted EPS of $920 million to $1.0 billion and $2.35-3.00, respectively. The company’s 2024 revenue totaled $855 million, and its 2024 adjusted diluted EPS was $2.59. USANA’s 2025 revenue guidance includes $145-160 million from recently acquired Hiya Health Products, LLC, a leading direct-to-consumer provider of high-quality children’s health and wellness products. On December 23, 2024, USANA closed its acquisition of a 78.8% controlling ownership stake in Hiya. The $205 million cash transaction is expected to be immediately accretive to USANA’s 2025 adjusted EBITDA. As of September 30, 2024, Hiya had more than 200,000 customers. For the twelve months ended September 30, 2024, Hiya generated net sales of $103 million, net income of $19 million and adjusted EBITDA of $22 million. Hiya’s revenue for 2024 was about $112.5 million.

Reorganization and Hiya Health acquisition will accelerate market expansion, aim to improve efficiency, boost revenue growth and enhance market responsiveness through product launches and sales incentives. Acquiring Hiya Health and strengthening brand presence target growth in children’s health and overall brand differentiation for increased revenue and earnings. Economic uncertainties, strategic risks from a new acquisition and rising promotional costs could pressure USANA’s net margins and revenue growth, especially in China.

The reorganization of the R&D and commercial teams is meant to increase efficiency and speed in bringing new products to market, potentially leading to increased revenue growth by catering more effectively to market demands.

The acquisition of a majority stake in Hiya Health positions USANA to capture growth in the children’s health and wellness market, expected to drive both revenue and earnings growth as Hiya’s subscription model continues to deliver strong sales. The implementation of a strategic enhancement to the Associate incentive offering and modernized sales incentives is expected to drive customer growth and improve net margins by increasing sales efficiency and retention. The planned increase in the cadence of new product launches and reformulations, with over 20 planned for 2025, is likely to bolster revenue growth by continuously refreshing the product portfolio and catering to both existing and new markets. Enhanced brand messaging, story and value proposition aimed at delivering a stronger, more cohesive brand presence, are anticipated to support revenue growth by strengthening the overall brand reputation and differentiation in the marketplace.

eXp World Holdings, Inc. (NASDAQ: EXPI) eXp World Holdings, Inc., together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. It operates through three segments: North American Realty, International Realty and Other Affiliated Services. The company acts as a licensed broker for processing residential and commercial real estate transactions and provides other real estate support services. It also offers FrameVR.io, a web-accessible proprietary technology offering immersive 3D platforms; magazine and its related media properties which provide training, classes, resources and tools under the SUCCESS brand; SUCCESS Space, a coworking solution offering rental workspaces for individual and group use, access to professional development coaching, media production services, virtual-world communications technology and full-service cafes. It operates in North America, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, Poland and Dubai. The company was formerly known as eXp Realty International Corporation and changed its name to eXp World Holdings, Inc. in May 2016. eXp World Holdings, Inc. was incorporated in 2008 and is headquartered in Bellingham, Washington.

The stock price dropped 3.3% in March vs. February 2025. For the first quarter of 2025, their stock prices have declined by 15%, 11.2% in February, adding to its 12.2% YTD loss. More constructively, EXPI shares have appreciated an aggregate 104.6% over the five years the DSCI has been computed, the second-best long-term mark for any DSCI member. The first quarter results will be posted on April 29, 2025, and we will cover those results in our April Stock Performance Report.

eXp World Holdings, Inc. announced that Jesse Hill, VP, International Finance & Corporate FP&A of eXp Realty has been named Interim Chief Financial Officer of the company effective April 1, 2025. The Company and its Board of Directors continue to conduct an active search for a permanent Chief Financial Officer among highly qualified external and internal candidates.

Earnings vs. Savings Rate is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.8%). When comparing earnings vs. the market, EXPI is forecast to become profitable over the next 3 years, which is considered above average market growth. However, EXPI’s revenue (6.6% per year) is forecast to grow slower than the US market (8.3% per year).

On February 20, EXPI, the fastest growing real estate brokerage in the world, reported 4Q 2024 revenue and adjusted EBITDA of $1.1 billion and $7.7 million, respectively. These measures compare favorably with $981 million and $3.1 million, respectively, in 4Q 2023. EXPI ended 2024 with strong momentum; its top ten US agents closed over $100 million of transaction volume in December 2024 alone.

EXPI’s transaction volume in 4Q 2024 increased 17% to $45.3 billion from $38.7 billion in 4Q 2023. This performance is especially impressive given that US existing home sales in 2024 fell to their lowest level since 1995. Agents and brokers on EXPI’s platform totaled 82,980 as of December 31, 2024, down 5% from December 31, 2023, due primarily to the exit of unproductive agents.

A leading provider of financial services in the US and Canada and by far the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) Primerica, Inc., together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities and fixed indexed annuities and also offers segregated funds. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense and motor vehicle-related matters; ID theft defense services; auto and homeowners’ insurance; home automation solutions; and insurance products, including supplemental and accidental death and disability insurance. It distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.

In March, the stock price declined by 1.9% vs February 2025 but is up 4.8% for the first quarter of 225. PRI has appreciated 159.7% since March 1, 2020, the best long-term performance for any DSCI member. The first quarter results will be posted on May 5, 2025, and we will cover those results once they are made public. There is additional information at the end of this report.

Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. So, it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Impressively, Primerica has grown EPS by 22% per year, compounded, in the last three years. If the company can sustain that sort of growth, we’d expect shareholders to come away satisfied.

It’s often helpful to look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company’s growth. Our analysis has highlighted that Primerica’s revenue from operations did not account for all their revenue in the previous 12 months, so our analysis of its margins might not accurately reflect the underlying business. While we note Primerica achieved similar EBIT margins to last year, revenue grew by a solid 12% to US$3.2b. That’s a real positive.

When comparing PRI’s return vs. the industry, PRI exceeded the US insurance industry which returned 19.4% over the past year. In addition, PRI exceeded the US Market which returned 4.8% over the past year. Debt vs. equity ratio is considered high at 57.2%. However, PRI’s debt is well covered by operating cash flow (43.4%) and interest coverage are well covered by EBIT (11.7x coverage).

PRI’s interest payments on its debt are well covered by EBIT (11.7x coverage). In 4Q 2024, PRI repurchased $44.4 million of its shares, completing the Board of Directors’ authorization to buy back $425 million of stock in 2024. In mid-November, PRI’s Board authorized $450 million of share repurchases from mid-November 2024 through December 31, 2025. PRI’s Board also authorized a 16% increase in its quarterly dividend to $1.04 (a $4.16 annual rate). The higher dividend rate was paid on March 14, 2025 to stockholders of record on February 21, 2025.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) Nature’s Sunshine Products, Inc., a natural health and wellness company, manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America and internationally. The company provides general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy and vision; immune products; cardiovascular products; and digestive products. It also offers personal care products, including oils and lotions, aloe vera gel, herbal shampoo, herbal skin treatment, toothpaste and skin cleanser products, as well as weight management products. The company provides its products under the Nature’s Sunshine Products and Synergy WorldWide brands directly to customers and to a sales force of independent consultants. Nature’s Sunshine Products, Inc. was founded in 1972 and is headquartered in Lehi, Utah.

In March, the stock price declined by 13.9% vs. February 2025. For the first quarter, the stock declined by 14.4%. Over the 61 months the DSCI has been calculated, NATR has gained 61.6%, the fourth best appreciation for any direct selling index stock over this period. The first quarter results will be posted on May 5, 2025.

Earlier this year, analysts provided financial guidance for full year 2025. For the period, the company expects net sales to range between $445 million to $470 million. The most recent guidance from analyst are forecasting 2025 revenues to be US $460M, approximately in line with the last 12 months. Per-share earnings are expected to surge 84% to US$0.77. Yet prior to the latest earnings, the analysts had been anticipating revenues of US $457.3M and earnings per share (EPS) of US $0.81 in 2025. So, it looks like there’s been a small decline in overall sentiment after the recent results—there’s been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts. Statutory earnings per share fell badly short of expectations, coming in at US $0.40, some 38% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US $454M.

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that Nature’s Sunshine Products’s revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, noting that products fail to spark excitement with consumers, as seen in its flat sales over the last three years. Smaller revenue base of $454.4 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy. Earnings per share fell by 31.3% annually over the last three years while its revenue was flat, showing each sale was less profitable.

Nature’s Sunshine Products is forecast to grow earnings and revenue by 34.8% and 2.2% per annum respectively. EPS is expected to grow by 34.9% per annum. Return on equity is forecast to be 10.4% in 3 years. Earnings vs. savings rate’s forecast earnings growth (34.8% per year) is above the savings rate (2.8%). Earnings vs. the market earnings (34.8% per year) are forecast to grow faster than the US market (13.5% per year). In addition, NATR’s earnings are expected to grow significantly over the next 3 years.

LifeVantage Corporation (NASDAQ: LFVN) LifeVantage Corporation engages in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management and skin and hair care products. It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids, and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, supports cognitive functions, and support normal sleep patterns; LifeVantage Daily Wellness, a dietary supplement designed to strengthen immune health; LifeVantage Rise AM & Reset PM System that provides the body with the right nutrients; LifeVantage D3+, a dietary supplement that provides vitamin D3, vitamin K2, magnesium, calcium and other trace minerals to support a balanced immune system, strong bones and cardiovascular health; PhysIQ Fat Burn to support weight management; PhysIQ Prebiotic is a dietary supplement designed to support the good bacteria in the gut and a healthy microbiome; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix. The company also provides anti-aging skincare products, including liquid collagen, facial cleansers, eye cream, moisturizing cream, sunscreen, perfecting lotions, hand creams as well as hair care products, such as invigorating shampoos, nourishing conditioners and scalp serums under the TrueScience brand name. It sells its products through its website and network of independent consultants in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore and the Philippines. The company also launched Evolve Compensation Plan and other LV360 initiatives into the Philippines, Taiwan, Hong Kong and Singapore. The company is based in Lehi, Utah.

Their stock declined in March by 15.1% vs. February 2025. For the first quarter, the stock price has declined 16.8%, ending a three-month skein of outsized monthly gains (+20.7% in January, +20.3% in December, and +19.2% in November). LFVN’s decline in February flipped its YTD performance to a slight loss, minus 2.1%. Since the March 1, 2020 establishment of the DSCI, LFVN has gained 22.4%. It is worth noting that share price is 228% higher than it was three years ago. During the three years of share price growth, LifeVantage saw its earnings per share (EPS) drop 7.4% per year which is likely impacting the current results.

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So, for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, LifeVantage’s TSR for the last 3 years was 271%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

It’s good to see that LifeVantage has rewarded shareholders with a total shareholder return of 150% in the last twelve months. Of course, that includes the dividend. That’s better than the annualized return of 14% over half a decade, implying that the company is doing better recently. In the best-case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important.

LifeVantage is extending its groundbreaking MindBody GLP-1 System™ to international markets. This expansion comes after a 49% year-over-year increase in fiscal Q2 revenue ending December 31, 2024, in the US, largely driven by the system’s success and clinical data on that formula reinforcing its effectiveness in supporting GLP-1 production.

The MB System™, as the product is known internationally, launched on March 15 for both LifeVantage Consultants and Customers in Japan. On the same date, it became available exclusively to Consultants in Australia, New Zealand, Europe, the UK, Mexico and Thailand. Customers in these regions gain access starting April 25.

The MB System™ is designed to naturally activate the body’s own GLP-1 production, providing a range of long-term health benefits that expand to weight management and beyond. “Consumers worldwide are seeking sustainable health solutions that go beyond short-term, unsustainable weight management,” said Steve Fife, President and CEO of LifeVantage. “The MB System™ works harmoniously with the body, empowering individuals to naturally enhance their metabolic health in alignment with their lifestyle and wellness objectives.”

Interest in GLP-1 and metabolic health is rising worldwide. The global GLP-1 pharmaceutical market alone was valued at $53.46 billion in 2024 and is projected to grow at a CAGR of 17.5% from 2025 to 2030, reaching approximately $156.71 billion by 2030.

LFVN’s forecast earnings growth (34.1% per year) is above the savings rate (2.8%). Their earnings (34.1%) are forecast to grow faster than the US market (13.5% per year). Earnings are expected to grow significantly over the next 3 years. LFVN’s revenue (11.3% per year) is forecast to grow faster than the US market (8.3% per year).

Oliveda International, Inc. (OTC: OLVI) Founded in 2003, OLVI has more than 20 years of experience in: 1) the management and organic certification of mountain olive trees; 2) the extraction of international award-winning extra virgin olive oils; 3) the extraction of hydroxytyrosol, a substance which has several beneficial effects such as antioxidant, anti-inflammatory, anticancer, and as a protector of skin and eyes; and 4) the production and distribution of cosmetic and holistic waterless products related to the olive tree.

Oliveda International, Inc. and its subsidiary, Olive Tree People Inc., as well as the European companies, Olive Tree People Europe AG and Oliveda Deutschland GmbH, as well as Olive Tree Farmers SL, were founded by the German real estate investor Thomas Lommel and have more than 20 years of experience in management and organic certification growing mountain olive trees, in the extraction of first-class, internationally award-winning extra virgin olive oils; the extraction of hydroxytyrosol; and in the production and distribution of cosmetic and holistic waterless products related to the olive tree. Lommel is the inventor of the Olive Tree Therapy as well as the inventor of olive matcha, which is based on the ground olive leaf. Also unique is the coffee replacement product developed by Lommel, which is based on olive leaf and hydroxytyrosol. In addition, Lommel is successfully active in the rapidly growing mindfulness industry with the olive tree sound bath meditation he developed and the frequencies of his olive trees, which he makes available worldwide.

In addition to the registered beauty brands, Oliveda and LA Dope, as well as Re:connected to Nature, The Intuition of Nature, and Olive Mush, to name just a few, Lommel is the region’s largest conservationist and protector of over 30,000 100-year-old mountain olive trees, and—with his Thomas Lommel Foundation—he brings the water that he does not use into his waterless beauty products to the people of Africa by building water wells on site.

In addition to online sales and a Europe-wide branch network of thousands of retail stores, Oliveda Deutschland GmbH operates its own flagship stores in Berlin and Düsseldorf.

Comparing March 2025 to February 2025, the stock price declined by 2.4%. For the first quarter, the stock declined by 52.4%, the second worst performing large cap direct selling stock during the month. Over the first two months of 2025, OLVI has declined 53.5%.

Oliveda International, Inc. announced that after a sensational second year in the United States with sales of over $104.5 million, Olive Tree People continued to grow by over 400% in the first quarter of 2025.

Founder Thomas Lommel: “We expect many new highlights in 2025, such as the opening of our unique Olive Tree People Experience stores; the expansion into Canada and Europe; and the presentations of our Olive Rose brand with many other products such as blushes, contour concealers, etc. at New York Fashion Week in September 2025.

The company noted that they plan to launch additional Oliveda products, as well as the presentations of a completely new pet brand at the end of 2025. “In order to sustainably serve this growth, we already acquired additional land with 1,580 150-year-old mountain olive trees in the first quarter of 2025. These, like all our other 31,000-plus mountain olive trees, will now be eco-certified so that they can then be put into production. We will continue to intensify our waterless beauty education because we believe that every one of the approximately 169 million women in the US and beyond deserve to learn the difference between waterless beauty and conventional beauty.”

The Beachbody Company, Inc. (NYSE: BODI) The Beachbody Company, Inc. operates as a fitness and nutrition company in the United States and internationally. The company operates Beachbody on Demand, a streaming service through subscription that provides fitness programs, including P90X, Insanity and 21 Day Fix brands and offers nutrition programs, through subscription to Beachbody On Demand Interactive, such as Portion Fix and 2B Mindset brands. It also provides nutritional products, such as Shakeology, a nutrition shake; Beachbody Performance supplements comprising pre-workout energize, hydrate, post-workout recovery, and protein supplement recharge products; BEACHBAR, a low-sugar snack bar; Belle Vitale, a hormone health solution for women to address symptoms of hormone imbalance; and connected fitness products. The Beachbody Company, Inc. was founded in 1998 and is headquartered in El Segundo, California.

Their stock price declined by 4.8% vs. February 2025. For the first quarter, the stock price increased by 21.8%. “2024 was a pivotal year at BODi, as we continued to build upon our strategy to transform the Company. Our turnaround plan successfully streamlined our digital platform, lowering our break-even point and enhancing our liquidity position,” said Carl Daikeler, BODi’s Co-Founder and Chief Executive Officer. “We generated higher margin revenue streams and achieved positive operating cash flows while successfully rearchitecting the company from a Multi-Level Marketing network to a single level affiliate model. As we move into 2025, we have laid the foundation to execute the next phase of our turnaround which will maximize our market opportunities and continue to generate positive operating cash flow through our multi-channel strategy and new innovative products.”

Here are some key points from their fourth quarter results, the first reporting since moving to an affiliate model. Total revenue was $86.4 million compared to $119.0 million in the prior year period and was at the high end of the guidance range. Digital revenue was $50.4 million compared to $64.0 million in the prior year period and digital subscriptions totaled 1.07 million in the fourth quarter. Nutrition and Other revenue was $34.8 million compared to $51.8 million in the prior year period and nutritional subscriptions totaled 0.09 million in the fourth quarter. Connected Fitness revenue was $1.2 million compared to $3.2 million in the prior year period and approximately 2,700 bikes were delivered in the fourth quarter. Total operating expenses were $93.8 million, which included a $20.0 million impairment of goodwill, compared to $134.3 million in the prior year period, which included a $43.1 million impairment of goodwill and intangible assets. Operating loss decreased by $27.5 million to $32.9 million compared to an operating loss of $60.4 million in the prior year period. Net loss was $34.6 million, which included a $20.0 million impairment of goodwill, compared to a net loss of $65.0 million in the prior year period, which included a $43.1 million impairment of goodwill and intangible assets. Adjusted EBITDA1 was $8.7 million compared to $2.8 million in the prior year period.

BODI is the first public company to move away from a network marketing model to an affiliate model. As expect from private companies who have made a similar change, revenue declined significantly. In the coming months, we could see additional declines in revenue. Currently unprofitable and not forecast to become profitable over the next three years. Beachbody’s shift to an affiliate model and retail expansion broadens market reach and unlocks new revenue opportunities through direct-to-consumer channels. New product launches under recognized brands and innovative partnerships aim to bolster sales, enhance retention and capture health and wellness trends. Transition from MLM to omnichannel has led to revenue decline, challenges in scaling new sales channels and potential volatility in financial projections.

Beachbody’s transition from a multilevel marketing platform to a single-level affiliate model is expected to broaden their market reach, allowing the company to tap into new distribution opportunities. This shift is likely to impact revenue growth positively as they can leverage more direct-to-consumer channels and retail distribution that were previously inaccessible. The introduction of new products under well-known brand names like P90X and Insanity expands the product portfolio and is expected to drive increased sales. These products, available in major retailers and through direct channels, should significantly enhance revenue over time.

The company’s expansion into retail platforms such as Amazon and Walmart.com and the introduction of a subscription model like Subscribe & Save aim to boost long-term customer retention and revenue. This retail expansion can broaden Beachbody’s market reach and potentially stabilize and grow revenue streams. The launch of new programs and marketing strategies, such as the women’s hormone health program Belle Vitale and expanding sales channels, are designed to attract new customers and affiliates. These initiatives are expected to bolster brand visibility and revenue growth as they tap into significant health and wellness trends. Beachbody’s focus on leveraging partnerships, like those offering their products via HSA/FSA accounts and telehealth services, is likely to provide new customer engagement platforms, potentially enhancing cash flow and earnings by accessing an untapped segment of consumers interested in health and wellness expenditures.

Below are two charts that summarize the large cap direct selling companies.

Small Cap

Below are two charts on the small companies.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 4.7 days as of February 28, 2025. Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Drops Slightly in February but Outperforms the DJIA for the Second Consecutive Month

The Direct Selling Capital Advisors Direct Selling Index (DSCI) inched 0.1% lower in February, but it outperformed the Dow Jones Industrial Average (DJIA) for the second straight month. The DJIA fell 1.6% in February. Over the first two months of 2025, the DSCI has gained 5.8%, nearly double the DJIA’s 3.0% increase.

Large cap direct selling stocks generally outperformed their smaller cap peers in February. Four large cap DSCI components gained during the month, paced by a 52% jump in the stock price of Herbalife Nutrition, Inc. (NYSE: HLF), while the share prices of six large cap DSCI members fell. By comparison, one small cap direct selling stock with a market value of more than $2 million increased, while three decreased.

From a longer-term perspective, the DSCI has gained an aggregate 39.2% since its March 1, 2020 inception. The DJIA has outperformed the direct selling index over this period. Since March 1, 2020, the DJIA has appreciated 72.5%.

In February 2025, fear seemed to supplant greed as the dominant factor in the US stock and bond markets. Indeed, NASDAQ: TLT, the widely traded ETF that focuses on long-term Treasury bonds, soared 5.3% last month, while the DJIA and the broader S&P 500 Index declined 1.6% and 1.4%, respectively. This represents the largest monthly return differential in favor of long-term Treasuries since March 2020 when investors were beginning to understand details about the COVID-19 virus.

What happened? President Trump’s near daily announcements regarding potential tariffs on Mexico, Canada, China and the European Union, among others, has created significant policy uncertainty and weighed on investor sentiment. In addition, recent key economic releases, including retail sales, services PMI (a measure of business activity in the sector), and The Conference Board’s widely followed Consumer Confidence Index^, have fallen short of analysts’ expectations. Finally, the previously bullet-proof Magnificent Seven stocks have fallen out of favor this year; indeed, six of the seven high-profile, fast-growing stocks have underperformed the S&P 500 over the first nine weeks of 2025. In the interim, the stock market has struggled to find a leadership group to replace this core group of stocks.

Looking Forward

Direct selling stocks have largely finished reporting their 4Q 2024 and full-year 2024 financials, so DSCI stocks will be most heavily affected by the tone of the overall stock market. Clearly, February and the first week of March have demonstrated the stock market has transitioned to a more volatile phase than its more consistent (positive) tenor of the last two years, but several factors remain in place that are supportive of continued economic growth and solid potential returns for stock market investors.

First, despite the recent tepid economic statistics, the US economy still seems poised for about 2% GDP growth in 2025—even if the Trump Administration implements aggressive, rapidly changing and fairly broad-based tariffs. Second, job growth in the US remains robust; payrolls have increased on average 210,000 per month over the last four months.

Third, analysts and economists expect earnings for the S&P 500 to increase more than 10% in 2025 after rising about 18% in 4Q 2024. Finally, declines in the prices of many widely held stocks have prompted many investors to turn bearish, a time-tested contrarian indicator. According to the American Association of Individual Investors, 61% of investors expect the stock market to decline over the next six months, the highest proportion since September 2022. September 2022 marked the approximate bottom of a sharp stock market decline which began in November 2021. Since September 2022, the S&P 500 has jumped about 50%.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI declined slightly in February, but it outperformed the DJIA during the month. The DSCI lost 0.1% in February, a much smaller loss than the DJIA’s 1.6% decrease in the month. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 39.2% since that date versus a 72.5% appreciation for the DJIA over the same period.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) inched 0.8% higher in February, bringing its YTD gain to 1.5%. Since the March 1, 2020 inception of the DSCI, BWMX has appreciated 20.5%.

On February 27, BWMX reported 4Q 2024 consolidated net revenue of $3.8 billion pesos, up 11.1% from 3.4 billion pesos in the year-ago period. The stronger sales were driven by innovation, improved incentives, and a revamped catalog. On the other hand, the company’s adjusted EBITDA fell 5.8% in 4Q 2024 to 772 million pesos from 820 million pesos in 4Q 2023. The decline is mostly attributable to a 17.3% reduction in Jafra Mexico’s 4Q 2024 EBITDA; significant synergies and cost optimization benefits were recognized in the division’s 4Q 2023 results. BWMX’s 4Q 2024 adjusted EPS was 11.70 pesos versus 10.59 pesos in 4Q 2023.

In 2025, BWMX management expect to post net revenue of 14.9-15.3 billion pesos, up from 14.101 billion pesos in the full year 2024, and 2.9-3.0 billion pesos of EBITDA compared with 2.775 billion pesos in 2024. This translates into year-over-year increases in each metric of between 6% and 9% in 2025.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) jumped 20.9% in February, making it the second best performing DSCI component during the month. Year to date, NUS has increased 14.9%. Nevertheless, NUS has fallen 66.4% since the direct selling index was established in March 2020. In comparison, the direct selling stock index and the Dow Jones Industrial Average have gained 39.2% and 72.5%, respectively, over this five-year period.

On February 13, 2025, NUS reported 4Q 2024 revenue and EPS from continuing operations of $445.6 million and $0.38 versus $488.6 million and $0.37, respectively, in the year-ago period. Importantly, revenue at the company’s fast-growing Rhyz subsidiary reached $83.1 million in 4Q 2024, up 27.7% from 4Q 2023. NUS’ overall 4Q 2024 revenue exceeded the guidance management issued in early November 2024, as the company has now essentially completed its restructuring plan.

In 2025, NUS anticipates improving business trends and a return to year-over-year growth in several of its markets, but it also expects continued economic challenges and poor consumer sentiment, particularly in Greater China and South Korea. Management projects full-year 2025 revenue and ongoing EPS of $1.48-$1.62 billion and $0.90-$1.30, respectively. Full-year 2024 revenue and EPS from ongoing operations totaled $1.73 billion and $0.84, respectively.

In early January 2025, NUS’ Rhyz subsidiary sold its Mavely affiliate marketing technology platform to Later for approximately $250 million in cash and a minority equity stake in the combined Later/Mavely business. About $33 million of this consideration will be paid to other equity holders in the Mavely business. Later is a portfolio company of Summit Partners. Mavely is expected to continue to provide certain technology and social commerce capabilities to support NUS’ marketing business.

Herbalife Nutrition, Inc. (NYSE: HLF) soared a DSCI-best 52% in February, emphatically breaking a two-month streak of double digit percentage monthly declines (negative 18.4% in January 2025 and negative 13.9% in December 2024). Over the first two months of 2025, HLF has appreciated 24.1%. Conversely, HLF is down 74.4% since the establishment of the DSCI on March 1, 2020, the second worst long-term performance for any large-cap DSCI component which has traded continuously since index inception.

On February 19, 2025, HLF reported 4Q 2024 sales of $1.21 billion, down 0.6% from $1.22 billion in 4Q 2023. On a constant currency basis, the company’s revenue increased 2.7% in the quarter. Even more constructive, HLF’s 4Q 2024 adjusted EBITDA reached $150.0 million, up from $108.0 million in the year-ago period, which translated into an adjusted EBITDA margin of 12.4% in 4Q 2024, up 340 basis points from 4Q 2023. In 4Q 2024, the number of new distributors joining HLF worldwide increased 22%, marking the company’s third consecutive quarter of year-over-year growth.

Also on February 19, HLF management issued guidance for full-year 2025 results. The company expects 2025 revenue to range from 3% below 2024 revenue of $4.99 billion to 3% above this figure. Furthermore, HLF’s 2025 adjusted EBITDA should be $600-$640 million compared with $634.8 million in 2024, and its 2025 capital expenditures should range from $100 to $130 million compared with $122.0 million in 2024.

On May 1, 2025, Stephan Gratziani will succeed Michael Johnson as HLF’s CEO. At that time, Mr. Johnson will transition to the role of HLF’s Executive Chairman.

Medifast, Inc. (NYSE: MED) shares declined 8.5% in February, bringing its loss for the first two months of 2025 to 18.5%. MED is the worst performing DSCI large cap member on a long-term basis; since the March 1, 2020 establishment of the DSCI, the stock has declined 81.9%.

On February 18, MED reported 4Q 2024 revenue of $119.0 million, down 37.7% from $191.0 million in 4Q 2023. The company’s adjusted diluted EPS fell even more sharply to $0.10 in 4Q 2024 from $1.09 in the year ago period. The number of active earning OPTAVIA coaches decreased to 27,100 in 4Q 2024 from 41,100 in 4Q 2023. MED expects its 1Q 2025 revenue and adjusted diluted EPS will be in the $100-$120 million and a loss of $0.50 to break-even ranges, respectively.

MED is realigning its business to respond to the evolving dynamics in the weight loss industry and to transform its business model to meet the soaring demand for GLP-1 medications. Indeed, up to 20 million people in the US could be using GLP-1 treatments by 2030 according to some projections. MED offers comprehensive support for GLP-1 medication users, including access to clinicians through LifeMD, as well as programs and products to help maintain muscle and minimize side effects. One such product designed for people on GLP-1 medications is OPTAVIA ASCEND, a line of high-protein, fiber-rich mini meals, as well as a daily nutrient pack. MED announced OPTAVIA ASCEND on January 7, 2025.

In February, shares of USANA Health Sciences, Inc. (NYSE: USNA) lost 9.1%. This performance pushed USANA’s YTD decline to 17.6%. Since the creation of the DSCI on March 1, 2020, USANA shares have lost 55.2% compared with gains of 39.2% and 72.5% for the direct selling index and the DJIA, respectively.

On February 25, USANA reported 4Q 2024 revenue and adjusted diluted EPS of $214 million and $0.64, both down from $221 million and $0.87, respectively, in the year ago period. USANA’s 4Q 2024 results exceeded its internal forecasts, highlighted by 7% sequential net sales growth. Positive momentum in the company’s Americas & Europe region generated year-over-year and sequential sales growth, while performance in its Asia Pacific region declined slightly and was in line with expectations.

USANA projects 2025 revenue and adjusted diluted EPS of $920 million to $1.0 billion and $2.35-$3.00, respectively. The company’s 2024 revenue totaled $855 million, and its 2024 adjusted diluted EPS was $2.59.

USANA’s 2025 revenue guidance includes $145-$160 million from recently acquired Hiya Health Products, LLC, a leading direct-to-consumer provider of high-quality children’s health and wellness products. On December 23, 2024, USANA closed its acquisition of a 78.8% controlling ownership stake in Hiya. The $205 million cash transaction is expected to be immediately accretive to USANA’s 2025 adjusted EBITDA. As of September 30, 2024, Hiya had more than 200,000 customers. For the twelve months ended September 30, 2024, Hiya generated net sales of $103 million, net income of $19 million, and adjusted EBITDA of $22 million. Hiya’s revenue for 2024 was about $112.5 million.

eXp World Holdings, Inc. (NASDAQ: EXPI) dropped 11.2% in February, adding to its 12.2% YTD loss. More constructively, EXPI shares have appreciated an aggregate 111.5% over the five years the DSCI has been computed, the second-best long-term mark for any DSCI member.

On February 20, EXPI, the fastest growing real estate brokerage in the world, reported 4Q 2024 revenue and adjusted EBITDA of $1.1 billion and $7.7 million, respectively. These measures compare favorably with $981 million and $3.1 million, respectively, in 4Q 2023. EXPI ended 2024 with strong momentum; its top ten U.S. agents closed over $100 million of transaction volume in December 2024 alone.

EXPI’s transaction volume in 4Q 2024 increased 17% to $45.3 billion from $38.7 billion in 4Q 2023. This performance is especially impressive given that US existing home sales in 2024 fell to their lowest level since 1995. Agents and brokers on EXPI’s platform totaled 82,980 as of December 31, 2024, down 5% from December 31, 2023, due primarily to the exit of unproductive agents.

A leading provider of financial services in the US and Canada, and by far the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) inched 0.1% lower in February, slightly reducing its 6.8% YTD gain. PRI has appreciated 164.7% since March 1, 2020, the best long-term performance for any DSCI member.

On February 11, PRI reported 4Q 2024 adjusted operating revenue of $788.1 million, up 12% from $706.2 million in the year-ago period. The company’s adjusted operating EPS grew at an even faster pace (+14%), reaching $4.98 in 4Q 2024 versus $4.35 in 4Q 2023. Financial results were notably strong in 4Q 2024 driven by steady premium revenue growth due to the cumulative impact of new policy sales in recent periods which added to PRI’s large block of in-force life insurance policies. This growth, combined with higher Investment and Savings Products sales and rising client asset values, further boosted PRI’s overall performance in the quarter.

In 4Q 2024, PRI repurchased $44.4 million of its shares, completing the Board of Directors’ authorization to buy back $425 million of stock in 2024. In mid-November, PRI’s Board authorized $450 million of share repurchases from mid-November 2024 through December 31, 2025.

PRI’s Board also authorized a 16% increase in its quarterly dividend to $1.04 (a $4.16 annual rate). The higher dividend rate will be paid on March 14, 2025 to stockholders of record on February 21, 2025

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) increased 4.7% in February, which brought its YTD performance to nearly flat (negative 0.6%). Over the 60 months the DSCI has been calculated, NATR has gained 87.6%, the third best appreciation for any direct selling index stock over this period.

In early November, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 3Q 2024 net sales of $114.6 million, up 3% from $111.2 million in the year ago period. Adjusted EBITDA in 3Q 2024 totaled $10.7 million, about 5% higher than $10.3 million in 3Q 2023. NATR’s impressive results in 3Q 2024 were driven by robust customer growth in Japan and Taiwan, continued progress in South Korea and customer activation in Central Europe.

Factoring in its solid results in 3Q 2024, NATR reset its full year 2024 net sales and adjusted EBITDA guidance slightly higher to $443-$448 million and $40-$42 million from previous ranges of $436-$445 million and $39-$42 million, respectively. NATR plans to report its 4Q 2024 financial results after the stock market closes on March 11th.

LifeVantage Corporation (NASDAQ: LFVN) dropped 18.9% in February, ending a three-month skein of outsized monthly gains (+20.7% in January, +20.3% in December and +19.2% in November). LFVN’s decline in February flipped its YTD performance to a slight loss, minus 2.1%. Since the March 1, 2020 establishment of the DSCI, LFVN has gained 44.2%.

On February 5, 2025, LFVN reported 2Q FY 2025 (quarter ended December 31, 2024) revenue, adjusted EBITDA, and adjusted EPS of $67.8 million, $6.5 million and $0.22, each of which markedly increased from $51.6 million, $3.1 million, and $0.10, respectively, in the year ago period. Strong demand for LFVN’s MindBody GLP-1 System (see below) and impressive growth in active accounts drove the robust 2Q FY 2025 results. Notably, active accounts were up 25% in the quarter compared with 1Q FY 2025 levels as the number of enrollments surged to the highest level in five years.

In turn, LFVN boosted its revenue, adjusted EBITDA, and adjusted EPS guidance ranges for FY 2025 (twelve months ending June 30, 2025) to $235-$245 million, $21-$24 million and $0.72-$0.88, respectively. The company’s previous guidance ranges were $200-$210 million, $18-$21 million, and $0.70-$0.80, respectively. LFVN’s FY 2024 revenue totaled $200.2 million; its FY 2024 adjusted EBITDA was $17.0 million; and its FY 2024 adjusted EPS was $0.59.

In early October 2024, LFVN released groundbreaking human clinical trial results from its MindBody GLP-1 System. Participants realized a 140% average increase in GLP-1 levels in the body, leading to an average weight loss of nine pounds in eight weeks and up to 25 pounds in twelve weeks. The 12-week, 60-participant clinical trial began in June 2024.

Oliveda International, Inc. (OTC: OLVI), the fourth largest market cap stock in the DSCI, fell 15.5% in February, making it the second worst performing large cap direct selling stock during the month. Over the first two months of 2025, OLVI has declined 53.5%.

Founded in 2003, OLVI has more than 20 years of experience in: 1) the management and organic certification of mountain olive trees; 2) the extraction of international award-winning extra virgin olive oils; 3) the extraction of hydroxytyrosol, a substance which has several beneficial effects such as antioxidant, anti-inflammatory, anticancer, and as a protector of skin and eyes; and 4) the production and distribution of cosmetic and holistic waterless products related to the olive tree.

OLVI’s 3Q 2024 revenue was $27.7 million, up nearly 1,500% from $1.8 million in 3Q 2023. Its net loss in 3Q 2024 was $38.5 million, or a loss of $0.06 per share, compared with net income of $1.8 million in the year ago period. Over the first nine months of 2024, OLVI generated positive operating cash flow of $10.3 million versus a slight loss over the first nine months of 2023.

OLVI’s Olive Tree People Inc. subsidiary sales increased by remarkable 1,650% and ~1,700+% rates in 4Q 2024 and the full year 2024, respectively, faster than celebrity brands such as JLO Beauty by Jennifer Lopez, and underscoring OLVI’s position as the world’s fastest growing waterless beauty company. Olive Tree People, Inc. sales totaled $104.5 million in 2024. The subsidiary’s daily sales exceeded the $2 million mark for the first time in September 2024. On November 22, Olive Tree’s daily sales were more than $3.7 million.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking set underperformed the large cap DSCI group in February. Of the small caps with a market cap of more than $2 million, one rose during the month, and three declined.

The Beachbody Company, Inc. (NYSE: BODI), a leading fitness and nutrition company, rose 6.2% in February, the best mark of any DSCI small cap member. This performance brought its YTD appreciation to 28.0%, the largest YTD gain for any DSCI component. In 3Q 2024, BODI reported revenue and adjusted EBITDA of $102.2 million and $10.1 million versus $128.3 million and negative $5.8 million, respectively, in the year ago period.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 5.4 days in mid-February 2025, up from 5.3 days at the end of January 2025 and 5.0 days in mid-January 2025. The biggest absolute increase in DTC in mid-February 2025 from the end of January 2025 for a DSCI component was LFVN’s increase to 6.6 days from 3.2 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index was unchanged in February from January. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks in both months was about 96%. Conversely, the percentage of stocks which analysts recommended selling in each month was around 4%.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

 

Direct Selling Index Increases 5.4% in January 2025, its 11^th Gain in the Last 13 Months

The Direct Selling Capital Advisors Direct Selling Index (DSCI) increased 5.4% in January, marking its eleventh gain in the last 13 months. The Dow Jones Industrial Average (DJIA) also rose in January, but by a smaller amount, +4.7%.

Despite the DSCI’s increase in January, more large cap direct selling stocks fell during the month (three) than increased (seven). Primerica, Inc.’s (NYSE: PRI) 6.9% gain was the main fuel for the index’s 5.4% pop in the month. PRI is by far the largest direct selling stock by market capitalization. One large cap direct selling stock rose by more than 10% in January, while three fell by more than that percentage. Two small cap direct selling stocks with a market value of at least $2 million increased in January, and two fell.

From a longer-term perspective, the DSCI has gained an aggregate 39.4% since its March 1, 2020 inception. The DJIA has outperformed the direct selling index over this period. Since March 1, 2020, the DJIA has appreciated 75.3%.

In January 2025, the DJIA posted its second biggest monthly percentage gain in the last 13 months, trailing only its 7.3% November 2024 increase over this period. Investors reacted enthusiastically to three key pieces of financial data during the month. First, the Commerce Department’s release in late January that 4Q 2024 GDP grew at a 2.3% annualized rate reinforced investor confidence in the U.S. economy. Constructively, 4Q 2024 consumer spending increased at an even faster 4.2% annualized rate.

Second, a Bureau of Labor Statistics (BLS) report released earlier in the month that core CPI inflation moderated slightly in December 2024 likewise quelled inflation fears, and finally, the 4Q 2024 earnings season started strongly. Apple, Microsoft, Meta and most of the major banks reported solid results.

Another positive: investors were able to set aside (at least temporarily) concerns about rising interest rates that had pressured the stock market in the first two weeks of 2025. The yield on the benchmark US 10-year bond touched a 14-month high of 4.8% on January 13, but reversed lower after the CPI report was released. The yield on the 10-year US Treasury closed January 2025 at 4.57%. It has since moved even lower, falling to 4.42% on February 5, 2025.

Looking Forward

Direct selling stocks are beginning to announce their 4Q 2024 and full-year 2024 financials, so DSCI stocks will be quite sensitive to the individual results and forward guidance that management teams issue. Of course, the direct selling stocks will also be affected by the tone of the overall stock market.

The overriding question for the broad stock market in 2025 is whether the major stock indices can continue to perform well after back-to-back 20+% gains in 2023 and 2024. Historically high valuations (a ~22x forward year P/E multiple on the S&P 500) and uncertainties about the economic impacts of the broad tariff and tough deportation policies President Trump may impose are points of concern, while the expected robust and accelerating growth in overall S&P 500 earnings in 2025 and the likely constructive medium-term effects of President Trump’s promised deregulation policies, are the principal positive counterpoints. The stock market fell, but only by a modest amount, on February 3^rd after President Trump announced sweeping tariffs against Mexico, Canada and China. However, later that day he put a decision on potential tariffs on Mexican and Canadian products on hold for 30 days after consulting with the leaders of America’s two biggest trading partners.

The most important factor of all these is likely accelerating earnings in 4Q 2024 and 2025. According to FactSet, 4Q 2024 earnings for the S&P 500 are expected to increase 12% in the just completed quarter, which would represent the fastest year-over-year quarterly growth rate in three years. While the stock market will doubtless be more volatile in 2025 than in 2024, it is difficult to foresee a notable market downturn against a backdrop of sharply rising earnings.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI rose in January, and it outperformed the DJIA during the month. The DSCI gained 5.4% in January, outpacing the DJIA’s 4.7% increase in the month. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 39.4% since that date versus a 75.3% appreciation for the DJIA over the same period.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) inched 0.7% higher in January. Since the March 1, 2020 inception of the DSCI, BWMX has appreciated 19.6%.

In late October 2024, BWMX reported 3Q 2024 consolidated net revenue of 3.33 billion pesos, up 6.6% from 3.12 billion pesos in the year-ago period. BWMX’s adjusted EBITDA increased even more sharply in the quarter, reaching 592 million pesos, about 11.7% higher than the 529 million pesos in 3Q 2023. The company’s impressive quarter reflects the resilience of its core operations despite challenges which included exchange rate fluctuations and cost pressures such as freight costs.

BWMX projects that its 2024 revenue will be 13.8 to 14.4 billion pesos, up from 13.0 billion pesos in 2023, and its 2024 EBITDA will increase to about 2.9 billion pesos versus 2.72 billion pesos in 2023.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) fell 4.9% in January, adding to its 72.2% decline since the direct selling index was established in March 2020. In comparison, the direct selling stock index and the Dow Jones Industrial Average have gained 39.4% and 75.3%, respectively, over this nearly five-year period.

On January 13, 2025, NUS announced that its 4Q 2024 preliminary revenue will be at the high end of the $410 to $445 million revenue guidance the company provided on November 7, 2024. The company plans to release its 4Q 2024 financial results after the market closes on February 13, 2025.

In early January 2025, NUS’ Rhyz subsidiary sold its Mavely affiliate marketing technology platform to Later for approximately $250 million in cash and a minority equity stake in the combined Later/Mavely business. About $33 million of this consideration will be paid to other equity holders in the Mavely business. Later is a portfolio company of Summit Partners. Mavely is expected to continue to provide certain technology and social commerce capabilities to support NUS’ marketing business.

In November 2024, NUS reported 3Q 2024 revenue and adjusted EPS of $430.1 million and $0.17, both of which were down from $498.8 million and $0.56, respectively, in the year ago period. NUS continued to face macroeconomic pressure in 3Q 2024. Constructively, NUS’ Rhyz sales increased 20.9% in 3Q 2024 to $73.1 million versus 3Q 2023. Rhyz’s 3Q 2024 sales totaled about 17% of NUS’ overall sales in the quarter. In addition, NUS’ cost efficiency program saved the company $15 million in G&A expense in 3Q 2024.

Herbalife Nutrition, Inc. (NYSE: HLF) dropped 18.4% in January, its second consecutive double digit percentage monthly decline (minus 13.9% in December 2024). HLF is down 83.1% since the establishment of the DSCI on March 1, 2020, the worst long-term performance for any large-cap DSCI component which has traded continuously since index inception.

In late October, HLF reported 3Q 2024 sales of $1.24 billion, down 3.2% from $1.28 billion in 3Q 2023. More constructively, net sales in the quarter were nearly flat year-over-year on a constant currency basis, and HLF’s gross margin rose to 78.3% in 3Q 2024 from 76.3% in 3Q 2023 due to more favorable pricing and lower input costs. HLF’s 3Q 2024 adjusted EBITDA reached $166.5 million, up from $163.3 million in the year-ago period. In 3Q 2024, the number of new distributors joining HLF worldwide increased 14% year-over-year, representing the second consecutive quarter of year-over-year improvement.

HLF increased its full year 2024 adjusted EBITDA guidance to $590 to $620 million. In addition, HLF narrowed its estimate for full-year 2024 revenue growth to a range of negative 2.0% to negative 1.0% from the negative 3.5% to positive 1.5% range it issued in late July 2024. HLF plans to release its 4Q 2024 and full year 2024 financial results after the stock market closes on February 19, 2025.

Medifast, Inc. (NYSE: MED) shares declined 10.9% in January. MED is the second worst performing DSCI large cap member on a long-term basis; since the March 1, 2020 establishment of the DSCI, the stock has declined 80.2%.

In early November, MED reported 3Q 2024 revenue of $140.2 million, down 40% from $235.9 million in 3Q 2023. The company’s adjusted diluted EPS fell even more sharply to $0.35 in 3Q 2024 from $2.12 in the year ago period. The number of active earning OPTAVIA coaches decreased to 30,000 in 3Q 2024 from 47,100 in 3Q 2023. MED expects its 4Q 2024 revenue and adjusted diluted EPS will be $100-$120 million and a loss of $0.10 to a loss of $0.65, respectively. The company plans to release its 4Q 2024 financial results after the stock market closes on February 18, 2025.

MED is realigning its business to respond to the evolving dynamics in the weight loss industry and to transform its business model to meet the soaring demand for GLP-1 medications. Indeed, up to 20 million people in the US could be using GLP-1 treatments by 2030 according to some projections. MED offers comprehensive support for GLP-1 medication users, including access to clinicians through LifeMD, as well as programs and products to help maintain muscle and minimize side effects. One such product designed for people on GLP-1 medications is OPTAVIA ASCEND, a line of high-protein, fiber-rich mini meals, as well as a daily nutrient pack. MED announced OPTAVIA ASCEND on January 7, 2025.

In January, shares of USANA Health Sciences, Inc. (NYSE: USNA) lost 9.3%. Since the creation of the DSCI on March 1, 2020, USANA shares have lost 50.7% compared with gains of 39.4% and 75.3% for the direct selling index and the DJIA, respectively.

In late October, USANA reported 3Q 2024 revenue and diluted EPS of $200 million and $0.56, both down from $213 million and $0.59, respectively, in the year ago period. USANA’s 3Q 2024 operating results reflected ongoing top line headwinds across many of the company’s markets. Nevertheless, USANA generated $47 million of free cash flow over the first three quarters of 2024.

In its 3Q 2024 earnings report, USANA refined its forecast for 2024. It now expects revenue of $850 million, down slightly from its previous guidance range of $850 to $880 million. Also, management believes its 2024 EPS should be around $2.45. The company announce its 4Q 2024 financial results after the stock market closes on February 25, 2025.

On December 23, 2024, USANA closed its acquisition of a 78.8% controlling ownership stake in Hiya Health Products, LLC, a leading direct-to-consumer provider of high-quality children’s health and wellness products. The $205 million cash transaction is expected to be immediately accretive to USANA’s 2025 adjusted EBITDA. As of September 30, 2024, Hiya had more than 200,000 customers. For the twelve months ended September 30, 2024, Hiya generated net sales of $103 million, net income of $19 million, and adjusted EBITDA of $22 million.

On January 22, 2025, USANA announced Dr. Kathryn Armstrong, Ph.D., will assume the role of it chief scientific officer. She previously worked for Amway, BISSELL Homecare, Inc., and Whirlpool.

eXp World Holdings, Inc. (NASDAQ: EXPI) slipped 1.1% in January. EXPI shares have appreciated an aggregate 138.1% over the 59 months the DSCI has been computed, the second best long-term mark for any DSCI member.

In early November, EXPI, the fastest growing real estate brokerage in the world, reported 3Q 2024 revenue and adjusted EBITDA of $1.23 billion and $23.9 million, respectively. These measures compare favorably with $1.21 billion and $20.8 million, respectively, in 3Q 2023. EXPI increased its margins and profitability in 3Q 2024 despite a continued challenging market.

EXPI’s transaction volume in 3Q 2024 increased 5% to $50.8 billion from $48.4 billion in 3Q 2023. This performance is especially impressive given that US existing home sales in 2024 fell to their lowest level since 1995. Agents and brokers on EXPI’s platform totaled 85,249 as of September 30, 2024, down 4% from December 31, 2023, due primarily to the exit of unproductive agents.

A leading provider of financial services in the US and Canada, and by far the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) jumped 6.9% in January, the second-best gain for any large cap DSCI component. PRI has appreciated 164.9% since March 1, 2020, the best long-term performance for any DSCI member.

In early November 2024, PRI reported 3Q 2024 adjusted operating revenue of $770.1 million, up 10% from $699.8 million in the year-ago period. The company’s adjusted operating EPS grew at a much faster pace (+31%), reaching $5.72 in 3Q 2024 versus $4.38 in 3Q 2023. Results in PRI’s Term Life segment benefitted from continued strong sales and stable margins. The company’s Investment and Savings Products unit were boosted by favorable equity market conditions in 3Q 2024 which fueled sales growth and higher client asset values. PRI plan to release its 4Q 2024 financial results after the stock market closes on February 11.

In mid-November, PRI’s Board authorized $450 million of share repurchases from mid-November 2024 through December 31, 2025. Over the first three quarters of 2024, the company repurchased $381 million of its own stock, including $129 million in 3Q 2024.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) lost 5.1% in January. Over the 59 months the DSCI has been calculated, NATR has gained 79.1%, the third best appreciation for any direct selling index stock over this period.

In early November, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 3Q 2024 net sales of $114.6 million, up 3% from $111.2 million in the year ago period. Adjusted EBITDA in 3Q 2024 totaled $10.7 million, about 5% higher than $10.3 million in 3Q 2023. NATR’s impressive results in 3Q 2024 were driven by robust customer growth in Japan and Taiwan, continued progress in South Korea, and customer activation in Central Europe.

Factoring in its solid results in 3Q 2024, NATR reset its full year 2024 net sales and adjusted EBITDA guidance slightly higher to $443-448 million and $40-42 million from previous ranges of $436-445 million and $39-42 million, respectively.

LifeVantage Corporation (NASDAQ: LFVN) soared 20.7% in January, marking its third consecutive month of outsized gains (+20.3% in December and +19.2% in November). Since the March 1, 2020 establishment of the DSCI, LFVN has gained 77.7%.

On February 5, 2025, LFVN reported 2Q FY 2025 (quarter ended December 31, 2024) revenue, adjusted EBITDA, and adjusted EPS of $67.8 million, $6.5 million, and $0.22, each of which dramatically increased from $51.6 million, $3.1 million, and $0.10, respectively, in the year ago period. Strong demand for LFVN’s MindBody GLP-1 System (see below) and impressive growth in active accounts drove the robust 2Q FY 2025 results. Notably, active accounts were up 25% in the quarter from 1Q FY 2025 levels, as the number of enrollments surged to the highest level in five years.

In turn, LFVN boosted its revenue, adjusted EBITDA, and adjusted EPS guidance ranges for FY 2025 (twelve months ending June 30, 2025) to $235-245 million, $21-24 million, and $0.72-0.88, respectively. The company’s previous guidance ranges were $200-210 million, $18-21 million, and $0.70-0.80, respectively. LFVN’s FY 2024 revenue totaled $200.2 million; its FY 2024 adjusted EBITDA was $17.0 million; and its FY 2024 adjusted EPS was $0.59.

In early October 2024, LFVN released groundbreaking human clinical trial results from its MindBody GLP-1 System. Participants realized a 140% average increase in GLP-1 levels in the body, leading to an average weight loss of nine pounds in eight weeks and up to 25 pounds in twelve weeks. The 12-week, 60-participant clinical trial began in early June.

Oliveda International, Inc. (OTC: OLVI), the third largest market cap stock in the DSCI, fell 45.0% in January, making it the worst performing DSCI component last month.

OLVI has more than 20 years of experience in: 1) the management and organic certification of mountain olive trees; 2) the extraction of international award-winning extra virgin olive oils; 3) the extraction of hydroxytyrosol, a substance which has several beneficial effects such as antioxidant, anti-inflammatory, anticancer, and as a protector of skin and eyes; and 4) the production and distribution of cosmetic and holistic waterless products related to the olive tree.

OLVI’s 3Q 2024 revenue was $27.7 million, up nearly 1,500% from $1.8 million in 3Q 2023. Its net loss in 3Q 2024 was $38.5 million, or a loss of $0.06 per share, compared with net income of $1.8 million in the year ago period. Over the first nine months of 2024, OLVI generated positive operating cash flow of $10.3 million versus a slight loss over the first nine months of 2023.

OLVI’s Olive Tree People Inc. subsidiary sales increased a remarkable 1,650+% in 4Q 2024, underscoring its position as the world’s fastest growing waterless beauty company. Olive Tree People, Inc. sales exceeded the $2 million daily sales mark for the first time in September 2024. On November 22, Olive Tree’s daily sales were more than $3.7 million.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking set performed about in line with the large cap DSCI group in January. Of the small caps with a market cap of more than $2 million, two rose during the month, and the same number declined.

The Beachbody Company, Inc. (NYSE: BODI), a leading fitness and nutrition company, rose 20.5% in January, the second best mark of any DSCI member with a market capitalization of more than $2 million. In 3Q 2024, BODI reported revenue and adjusted EBITDA of $102.2 million and $10.1 million versus $128.3 million and negative $5.8 million, respectively, in the year ago period.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 5.0 days in mid-January 2025, down from 5.3 days at year-end 2024, and level with 5.0 days in mid-December 2024. The biggest absolute reduction in DTC in mid-January 2025 from the end of December 2024 for a DSCI component was EXPI’s decrease to 19.9 days from 21.8 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index was unchanged in January 2025 from December 2024. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks in both months was about 96%. Conversely, the percentage of stocks which analysts recommended selling in each month was around 4%.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Fell 9.7% in December, Marking Just its Second Monthly Decline of 2024

The Direct Selling Capital Advisors Direct Selling Index (DSCI) dropped 9.7% in December. The decline broke a four-month winning streak and represented only the second down month for the index in 2024. The Dow Jones Industrial Average (DJIA) fell last month as well, but by a smaller 5.3%, so it outperformed the DSCI in December. The DSCI gained 6.8% over the full-year 2024 versus the DJIA’s 12.9% gain.

Most large and small cap direct selling stocks declined in December. During the month, only one large cap rose (LifeVantage Corporation by 20.3%), while nine fell, five by double digit percentage points. Similarly, only one small cap with a market cap of more than $2 million gained, while three declined.

From a longer-term perspective, the DSCI has gained an aggregate 35.2% since its March 1, 2020 inception. The DJIA has outperformed the direct selling index over this period. Since March 1, 2020, the DJIA has appreciated 67.4%.

The Fed slightly increased its 2025 inflation forecast and pointed to just two rate cuts in 2025 when it announced its widely expected 25 basis point reduction in overnight interest rates on December 18th. That news in aggregate might be considered a little disappointing, but investors acted (for at least a short time) like it was the proverbial bell that many wish would have been rung at the top of the market. The three major indices dropped about 3% that day, and the DJIA finished 2024 at about that level.

The stock market faces at least three major challenges/concerns. First, after reeling off two consecutive 20+% years in 2023 and 2024, the S&P 500 cannot be considered cheap: it trades at about 22x forward-year earnings. Second, the broad tariffs proposed by President-elect Trump could reignite inflation in goods, a category which has actually been deflating for months. This of course could threaten whether even the Fed’s two projected rate cuts will be implemented in 2025. Inflation in services has been the key element of a sticky level of overall inflation in 2024. Third, bullish investors have shown worrisome signs of exhaustion. More stocks in the S&P 500 declined than advanced for 14 consecutive trading days through December 19th, a remarkably long streak.

Looking Forward

Direct selling stocks have announced their 3Q 2024 operating results and they will not begin to report their 4Q 2024 and full-year 2024 financials until late January. Consequently, the performance of DSCI stocks will likely be dictated by the performance of the overall stock market until then.

The stock market’s high valuation noted above, by itself, generally does not end bull markets. Most of the time, such ebullient periods draw to a close because inflation increases, which in turn causes interest rates to move higher. Neither condition can be considered to be in place today: the inflation rate is flat to trending slightly downward after CPI growth fell sharply through much of 2023 and the first half of 2024, though reaching the Fed’s 2% annual inflation target is by no means a sure bet. In addition, the ten-year Treasury yield of about 4.6%, while up from the Goldilocks days of 2021 (~1.5% yields) and up around 100 basis points just since mid-September, is still historically low.

Two other constructive factors include: 1) Bull markets tend to last a long time, 46 months on average, per JP Morgan, and the current bull market has been running for only about 27 months. Moreover, the median aggregate return during bull markets is about 110%, about twice the gain of the S&P 500 since the lows of October 2022.

2) Bullish market observers reiterate almost daily that innovation led by the rise in use of AI is driving profit growth in US businesses and that AI and automation represent the fourth industrial revolution, which will dramatically improve the way people live and work. While it seems easy to theorize such soaring rhetoric overstates AI’s potential, the new technology’s effect could well be enormous. IDC, the widely followed technology market intelligence firm, expects AI to increase the world’s aggregate economic output through 2030 by $20 trillion. To put that figure into perspective, the world’s 2024 GDP was around $104 trillion, per Trading Economics.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI fell in December, and it underperformed the DJIA during the month. The DSCI lost 9.7% in December, while the DJIA dropped 5.3%. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 35.2% since that date versus a 67.4% appreciation for the DJIA over the same period.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) fell 11.4% in November, adding to its full year 2024 loss of 19.8%. More positively, since the March 1, 2020 DSCI inception, BWMX is up 18.7%.

In late October, BWMX reported 3Q 2024 consolidated net revenue of 3.33 billion pesos, up 6.6% from 3.12 billion pesos in the year-ago period. BWMX’s adjusted EBITDA increased even more sharply in the quarter, reaching 592 million pesos, about 11.7% higher than the 529 million pesos in 3Q 2023. The company’s impressive quarter reflects the resilience of its core operations despite challenges which included exchange rate fluctuations and cost pressures, such as freight costs.

BWMX projects that its 2024 revenue will be 13.8 to 14.4 billion pesos, up from 13.0 billion pesos in 2023, and its 2024 EBITDA will increase to about 2.9 billion pesos versus 2.721 billion pesos in 2023.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) dropped 5.6% in December. In 2024, NUS fell 64.5%, the second worst mark last year for any large cap direct selling stock. Since the March 2020 establishment of the DSCI, NUS has declined 70.8%. In comparison, the direct selling stock index and the Dow Jones Industrial Average have gained 35.2% and 67.4%, respectively, over this 58-month period.

On January 3, 2025, NU’s Rhyz subsidiary sold its Mavely affiliate marketing technology platform to Later for approximately $250 million in cash and a minority equity stake in the combined Later/Mavely business. About $33 million of this consideration will be paid to other equity holders in the Mavely business. Later is a portfolio company of Summit Partners. Mavely is expected to continue to provide certain technology and social commerce capabilities to support NUS’ marketing business.

In early November 2024, NUS reported 3Q 2024 revenue and adjusted EPS of $430.1 million and $0.17, both of which were down from $498.8 million and $0.56, respectively, in the year-ago period. NUS continued to face macroeconomic pressure in 3Q 2024. NUS’s immediate focus is to strengthen its core business with a revised business model intended especially to improve channel activation and customer growth in North America and South Korea.

Constructively, Rhyz sales increased 20.9% in 3Q 2024 to $73.1 million versus 3Q 2023. Rhyz’s 3Q 2024 sales totaled about 17% of NUS’ overall sales in the quarter. In addition, NUS’ cost efficiency program saved the company $15 million in G&A expense in 3Q 2024, and the company is on track to reach $45 to $65 million of G&A savings in 2024.

Given ongoing pressures in its core business, NUS reduced its revenue and non-GAAP EPS guidance ranges for full-year 2024 to $1.70-$1.73 billion and $0.65-$0.75, respectively. The comparable figures for full-year 2023 were $1.97 billion and $1.85, respectively.

Herbalife Nutrition, Inc. (NYSE: HLF) dropped 13.9% in December, bringing its 2024 loss to 56.2%. HLF is down 79.3% since the establishment of the DSCI on March 1, 2020, the worst long-term performance for any large-cap DSCI component which has traded continuously since index inception.

In late October, HLF reported 3Q 2024 sales of $1.24 billion, down 3.2% from $1.28 billion in 3Q 2023. More constructively, net sales in the quarter were nearly flat year-over-year on a constant currency basis, and HLF’s gross margin rose to 78.3% in 3Q 2024 from 76.3% in 3Q 2023 due to more favorable pricing and lower input costs. HLF’s 3Q 2024 adjusted EBITDA reached $166.5 million, up from $163.3 million in the year-ago period.

In 3Q 2024, the number of new distributors joining HLF worldwide increased 14% year-over-year, representing the second consecutive quarter of year-over-year improvement. In addition, CFO John DeSimone reaffirmed HLF’s plans to reduce total debt by $1 billion over the next four to five years.

HLF increased its full-year 2024 adjusted EBITDA guidance to $590 to $620 million. In addition, HLF narrowed its estimate of full-year 2024 revenue growth to a range of negative 2.0% to negative 1.0% from the negative 3.5% to positive 1.5% range it issued in late July 2024. HLF plans to release its 4Q 2024 and full-year 2024 financial results after the stock market closes on February 19, 2025.

Medifast, Inc. (NYSE: MED) shares dropped 10.4% in December, adding to its 73.8% loss in 2024, the worst mark for any large cap DSCI component. MED is the second worst performing DSCI large cap member on a long-term basis; since the March 1, 2020 establishment of the DSCI, the stock has declined 77.8%.

In early November, MED reported 3Q 2024 revenue of $140.2 million, down 40% from $235.9 million in 3Q 2023. The company’s

adjusted diluted EPS fell even more sharply to $0.35 in 3Q 2024 from $2.12 in the year-ago period. The number of active earning OPTAVIA coaches decreased to 30,000 in 3Q 2024 from 47,100 in 3Q 2023. MED expects its 4Q 2024 revenue and adjusted diluted EPS will be $100-$120 million and a loss of $0.10 to a loss of $0.65, respectively.

MED is realigning its business to respond to the evolving dynamics in the weight loss industry, and to transform its business model to meet the soaring demand for GLP-1 medications. Indeed, up to 20 million people in the U.S. could be using GLP-1 treatments by 2030, according to some projections. MED offers comprehensive support for GLP-1 medication users, including access to clinicians through LifeMD, as well as programs and products to help maintain muscle and minimize side effects.

In December, shares of USANA Health Sciences, Inc. (NYSE: USNA) lost 6.9%. In the full year 2024, USANA fell 33.0%. Since the creation of the DSCI on March 1, 2020, USANA shares have lost 45.7% compared with gains of 35.2% and 67.4% for the direct selling index and the DJIA, respectively.

In late October, USANA reported 3Q 2024 revenue and diluted EPS of $200 million and $0.56, both down from $213 million and $0.59, respectively, in the year ago period. USANA’s 3Q 2024 operating results reflected ongoing top line headwinds across many of the company’s markets. USANA’s sales force continued to face challenges in attracting new customers as consumer sentiment remained cautious, including in the company’s largest market, China. Nevertheless, USANA has generated $47 million of free cash flow over the first three quarters of 2024.

In its 3Q 2024 earnings report, USANA refined its forecast for 2024. It now expects revenue of $850 million, down slightly from its previous guidance range of $850 to $880 million. Also, management believes its 2024 EPS should be $2.45; USANA had guided to 2024 EPS of $2.40 to $2.55 in its 2Q 2024 earnings release.

On December 23, 2024, USANA closed its acquisition of a 78.8% controlling ownership stake in Hiya Health Products, LLC, a leading direct-to-consumer provider of high-quality children’s health and wellness products. The $205 million cash transaction is expected to be immediately accretive to USANA’s 2025 adjusted EBITDA. As of September 30, 2024, Hiya had more than 200,000 customers. For the twelve months ended September 30, 2024, Hiya generated net sales of $103 million, net income of $19 million, and adjusted EBITDA of $22 million

eXp World Holdings, Inc. (NASDAQ: EXPI) fell 16.9% in December, the worst monthly performance of any large cap DSCI component. In 2024, EXPI lost 25.8%. EXPI shares have appreciated an aggregate 140.8% over the 58 months the DSCI has been computed, the second best long-term mark for any DSCI member.

In early November, EXPI, the fastest growing real estate brokerage in the world, reported 3Q 2024 revenue and adjusted EBITDA of $1.23 billion and $23.9 million, respectively. These measures compared favorably with $1.21 billion and $20.8 million, respectively, in 3Q 2023. EXPI increased its margins and profitability in 3Q 2024 despite a continued challenging market.

EXPI’s transaction volume in 3Q 2024 increased 5% to $50.8 billion from $48.4 billion in 3Q 2023. Agents and brokers on the company’s platform totaled 85,249 as of September 30, 2024, down 4% from December 31, 2023, due primarily to the exit of unproductive agents.

A leading provider of financial services in the US and Canada, and by far the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) dropped 10.3% in December. In the full year 2024, PRI gained 31.9%, the second-best annual return for any large cap DSCI component. PRI has appreciated 147.7% since March 1, 2020, the best long-term performance for any DSCI member.

In early November, PRI reported 3Q 2024 adjusted operating revenue of $770.1 million, up 10% from $699.8 million in the year-ago period. The company’s adjusted operating EPS grew at a much faster pace (+31%), reaching $5.72 in 3Q 2024 versus $4.38 in 3Q 2023. Results in PRI’s Term Life segment benefitted from continued strong sales and stable margins. The company’s Investment and Savings Products unit were boosted by favorable equity market conditions in 3Q 2024 which fueled sales growth and higher client asset values.

In mid-November, PRI’s Board authorized $450 million of share repurchases from mid-November 2024 through December 31, 2025. Over the first three quarters of 2024, the company repurchased $381 million of its own stock, including $129 million in 3Q 2024.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) lost 9.7% in December, which brought its 2024 loss to 15.2%. Over the 58 months the DSCI has been calculated, NATR has gained 88.8%, the third best appreciation for any direct selling index stock over this period.

In early November, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 3Q 2024 net sales of $114.6 million, up 3% from $111.2 million in the year-ago period. Adjusted EBITDA in 3Q 2024 totaled $10.7 million, about 5% higher than $10.3 million in 3Q 2023. NATR’s impressive results in 3Q 2024 were driven by robust customer growth in Japan and Taiwan, continued progress in South Korea, and customer activation in Central Europe.

Factoring in its solid results in 3Q 2024, NATR reset its full-year 2024 net sales and adjusted EBITDA guidance slightly higher to $443-$448 million and $40-$42 million from previous ranges of $436-$445 million and $39-$42 million, respectively.

LifeVantage Corporation (NASDAQ: LFVN) jumped 20.3% in December, marking its second consecutive month of outsized gains (+19.2% in November). This performance pushed LFVN’s 2024 gain

to 192.2%, by far the biggest increase for any direct selling stock. Since the March 1, 2020 establishment of the DSCI, LFVN has gained 47.2%.

In early October, LFVN released groundbreaking human clinical trial results from its MindBody GLP-1 System. Participants realized a 140% average increase in GLP-1 levels in the body, leading to an average weight loss of nine pounds in eight weeks and up to 25 pounds in twelve weeks. The 12-week, 60-participant clinical trial began in early June.

In late October, LFVN reported revenue of $47.2 million in 1Q FY 2025 (quarter ended September 30, 2024), down 8.1% from $51.4 million in the year-ago period. LFVN’s adjusted EBITDA was $4.4 million in 1Q FY 2025, up from $4.0 million in 1Q FY 2024. LFVN continues to focus on optimizing its cost structure while being strategic with its investments in growth and innovation.

LFVN maintained its revenue and adjusted EBITDA guidance ranges for FY 2025 (twelve months ending June 30, 2025) of $200-$210 million and $18-$21 million, respectively. The company’s FY 2024 revenue totaled $200.2 million, and its FY 2024 adjusted EBITDA was $17.0 million.

Oliveda International, Inc. (OTC: OLVI), the third largest market cap stock in the DSCI, dropped 5.3% in December, making it the second best performing large cap DSCI component last month.

OLVI has more than 20 years of experience in: 1) the management and organic certification of mountain olive trees; 2) the extraction of international award-winning extra virgin olive oils; 3) the extraction of hydroxytyrosol, a substance which has several beneficial effects such as antioxidant, anti-inflammatory, anticancer, and as a protector of skin and eyes; and 4) the production of and distribution of cosmetic and holistic waterless products related to the olive tree.

OLVI’s 3Q 2024 revenue was $27.7 million, up nearly 1,500% from $1.8 million in 3Q 2023. Its net loss in 3Q 2024 was $38.5 million, or a loss of $0.06 per share, compared with net income of $1.8 million in the year-ago period. Over the first nine months of 2024, OLVI generated positive operating cash flow of $10.3 million versus a slight loss over the first nine months of 2023.

OLVI’s Olive Tree People Inc. subsidiary exceed the $2 million daily sales mark for the first time in September 2024. On November 22, Olive Tree’s daily sales exceeded $3.7 million.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking set performed about in line with the large cap DSCI group in December. Of the small caps with a market cap of more than $2 million, one rose during the month, and three fell.

Mannatech, Incorporated (NASDAQ: MTEX), a global health and wellness company, was the best performer of any DSCI member in December (+58.0%). This follows MTEX’s strong November performance when it gained 8.7%, the largest increase in that month for any DSCI small cap member with a market value of at least $1 million. For the full year 2024, MTEX stock soared 65.8%. In mid-November, MTEX reported 3Q 2024 revenue and EPS of $31.7 million and a $0.17 loss versus $32.6 million and positive $0.01, respectively, in the year-ago period.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 5.0 days in mid-December, the fewest number of days since mid-April, and down from 5.3 days at both the end of November and in mid-November. The biggest absolute reduction in DTC in mid-December from the end of November for a DSCI component was EXPI’s decrease to 20.9 days from 23.4 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index rose significantly in December from November. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks in December was about 96%, up from 92% in November. Conversely, the percentage of stocks which analysts recommended selling was around 4% in December and 8% in November.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Soared 6.7% in November; Index Has Posted Monthly Gains in 12 of the Last 13 Months

In November, the Direct Selling Capital Advisors Direct Selling Index (DSCI) jumped 6.7%. This marked the index’s fourth successive monthly gain and the index’s twelfth increase in the last thirteen months. Nevertheless, the DSCI slightly underperformed the Dow Jones Industrial Average (DJIA) in November as the DJIA added 7.5% during the month. The DSCI and DJIA have increased by similar percentages over the first eleven months of 2024: +18.3% and +19.2%, respectively.

Large cap direct selling stocks as a group markedly outperformed their smaller cap peers in November. During the month, eight large cap members rose, three by more than 10%, while only two declined, including one by double digit percentage points. On the other hand, three small cap members rose during November, and the same number declined. Only one small cap with a market cap of more than $5 million moved by double digit percentage points in November, a 10.3% decline by Educational Development Corporation.

From a longer-term perspective, the DSCI has gained an aggregate 49.7% since its March 1, 2020 inception. The DJIA has outperformed the direct selling index over this period. Since March 1, 2020, the DJIA has appreciated 76.7%.

The DJIA’s 7.5% increase in November was by far the benchmark index’s best monthly gain of 2024. The market soared on President-elect Trump’s election win in a broad rally as investors embraced the business-friendly incoming Administration and were relieved that a prolonged battle over the election result was avoided. The DJIA subsequently retraced some of its election rally gains before recommencing its rally on November 18^th, an upturn which has continued into early December. Indeed, all major stock market indices are currently at or near all-time highs. The market’s brief decline in mid-November seemed to stem from uncertainty about the details and the potential impact of President-elect Trump’s tariff plans, as well as fears that Department of Health and Human Services-nominee RFK Jr. could negatively impact the healthcare sector.

The best performing sectors in November were small caps, consumer discretionary stocks, banks, and industrial. The strong performance of the these first two categories augurs well for direct selling stocks.

Looking Forward

Direct selling stocks have announced their 3Q 2024 operating results and they will not begin to report their 4Q 2024 and full-year 2024 financials until late January. Consequently, the performance of DSCI stocks will likely be dictated by the performance of the overall stock market until then. This linkage could be constructive as investors seem less focused on stock market valuation parameters which are well above historical averages and are more centered on the robust economy. Indeed, the current key economic barometers of GDP growth (2.8% year-over-year in 3Q 2024), low unemployment (a 4.1% rate), and acceptably low inflation (3.3% core year-over-year CPI growth in October) would individually be considered constructive. They are even more powerful since they are present in unison.

Another positive factor which is infrequently discussed by equity investors is the extraordinarily tight spreads in the corporate bond market. More specifically, the spreads on both investment grade and junk bonds are at their tightest levels in at least ten years. It would be highly unusual for stocks to correct when bond investors see little near- and medium-term risk in the overall economy.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI rose in November, though it slightly underperformed the DJIA during the month. The DSCI gained 6.7% in November, about 80 basis points less than the 7.5% increase for the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 49.7% since that date versus a 76.7% appreciation of the DJIA over the same period.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) dropped 0.6% in November, bringing its YTD loss to 9.5%. More constructively, since the March 1, 2020 DSCI inception, BWMX is up 34.0%.

In late October, BWMX reported 3Q 2024 consolidated net revenue of 3.33 billion pesos, up 6.6% from 3.12 billion pesos in the year-ago period. BWMX’s adjusted EBITDA increased even more sharply in the quarter, reaching 592 million pesos, about 11.7% higher than the 529 million pesos in 3Q 2023. The company’s impressive quarter reflects the resilience of its core operations despite challenges which included exchange rate fluctuations and cost pressures, such as freight costs.

BWMX continues to project that 1) its 2024 revenue will be 13.8 to 14.4 billion pesos, up from 13.0 billion pesos in 2023; and 2) its 2024 EBITDA will increase to 2.9-3.1 billion pesos versus 2.721 billion pesos last year, though the company now believes its 2024 EBITDA will likely come in at the lower end of this range.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) jumped 17.9% in November, ending a two-month streak when it declined by double digit percentage points in each month (-16.0% in October and -17.5% in September). Nevertheless, on a YTD basis, NUS is still down 62.4%, the second worst mark for any large cap direct selling stock. Since the March 2020 establishment of the DSCI, NUS has lost 69.1%. In comparison, the direct selling stock index and the Dow Jones Industrial Average have gained 49.7% and 76.7%, respectively, over this 57-month period.

On November 7, NUS reported 3Q 2024 revenue and adjusted EPS of $430.1 million and $0.17, both of which were down from $498.8 million and $0.56, respectively, in the year-ago period. NUS continued to face macroeconomic pressure in 3Q 2024. NUS’s immediate focus is to strengthen its core business with a revised business model intended especially to improve channel activation and customer growth in North America and South Korea.

Constructively, the company’s Rhyz sales increased 20.9% in 3Q 2024 to $73.1 million versus 3Q 2023. Rhyz’s 2Q 2024 sales totaled about 17% of NUS’s overall sales in the quarter. In addition, NUS’s cost efficiency program saved the company $15 million in G&A expense in 3Q 2024, and the company is on track to reach $45 to $65 million of G&A savings in 2024.

Given ongoing pressures in its core business, NUS reduced its revenue and non-GAAP EPS guidance ranges for full year 2024 to $1.70-$1.73 billion and $0.65-$0.75 from $1.73-$1.81 billion and $0.75-$0.95, respectively. The comparable figures for full year 2023 were $1.97 billion and $1.85, respectively.

Herbalife Nutrition, Inc. (NYSE: HLF) increased 2.9% in November. This gain cut its YTD loss to 49.1%. HLF is down 76.0% since the establishment of the DSCI on March 1, 2020, the worst performance for any large-cap DSCI component which has traded continuously since index inception.

In late October, HLF reported 3Q 2024 sales of $1.24 billion, down 3.2% from $1.28 billion in 3Q 2023. More constructively, net sales in the quarter were nearly flat year-over-year on a constant currency basis, and HLF’s gross margin rose to 78.3% in 3Q 2024 from 76.3% in 3Q 2023 due to more favorable pricing and lower input costs. HLF’s 3Q 2024 adjusted EBITDA reached $166.5 million, up from $163.3 million in the year-ago period.

In 3Q 2024, the number of new distributors joining HLF worldwide increased 14% year-over-year, representing the second consecutive quarter of year-over-year improvement. In addition, CFO John DeSimone reaffirmed HLF’s plans to reduce total debt by $1 billion over the next four to five years. This initiative will be the primary use of the company’s free cash flow through the balance of the decade.

HLF increased its full-year 2024 adjusted EBITDA guidance to $590 to $620 million, up from $560 to $600 million. In addition, HLF narrowed its estimate of full-year 2024 revenue growth to a range of negative 2.0% to negative 1.0% from the negative 3.5% to positive 1.5% range it issued in late July.

Medifast, Inc. (NYSE: MED) shares jumped 7.0% in November, cutting its YTD loss to 70.7%, the worst mark of any large cap DSCI component. MED is the second worst performing DSCI large cap member on a long-term basis; since the March 1, 2020 establishment of the DSCI, the stock has declined 75.3%.

In early November, MED reported 3Q 2024 revenue of $140.2 million, down 40% from $235.9 million in 3Q 2023. The company’s adjusted diluted EPS fell even more sharply to $0.35 in 3Q 2024 from $2.12 in the year-ago period. The number of active earning OPTAVIA coaches decreased to 30,000 in 3Q 2024 from 47,100 in 3Q 2023. MED expects its 4Q 2024 revenue and adjusted diluted EPS will be $100-$120 million and a loss of $0.10 to a loss of $0.65, respectively.

MED is realigning its business to respond to the evolving dynamics in the weight loss industry, and to transform its business model to meet the soaring demand for GLP-1 medications. Indeed, up to 20 million people in the US could be using GLP-1 treatments by 2030, according to some projections. MED offers comprehensive support for GLP-1 medication users, including access to clinicians through LifeMD, as well as programs and products to help maintain muscle and minimize side effects.

In November, shares of USANA Health Sciences, Inc. (NYSE: USNA) added 4.3%, slicing its YTD loss to 28.1%. Since the creation of the DSCI on March 1, 2020, USANA shares have lost 41.7% compared with gains of 49.7% and 76.7% for the direct selling index and the DJIA, respectively.

In late October, USANA reported 3Q 2024 and diluted EPS of $200 million and $0.56, both down from $213 million and $0.59, respectively, in the year ago period. USANA’s 3Q 2024 operating results reflected ongoing top line headwinds across many of the company’s markets. USANA’s sales force continued to face challenges in attracting new customers as consumer sentiment remained cautious, including in the company’s largest market, China. Nevertheless, USANA has generated $47 million of free cash flow over the first three quarters of 2024.

In its 3Q 2024 earnings report, USANA refined its forecast for 2024. It now expects revenue of $850 million, down slightly from its previous guidance range of $850 to $880 million. Also, management believes its 2024 EPS should be $2.45; USANA had guided to 2024 EPS of $2.40 to $2.55 in its 2Q 2024 earnings release.

eXp World Holdings, Inc. (NASDAQ: EXPI) increased 4.0% in November, though it has declined 10.8% YTD. EXPI shares have appreciated an aggregate 189.7% over the 57 months the DSCI has been computed, the best long-term mark for any DSCI member.

On November 7, EXPI, the fastest growing real estate brokerage in the world, reported 3Q 2024 revenue and adjusted EBITDA of $1.23 billion and $23.9 million, respectively. These measures compared favorably with $1.21 billion and $20.8 million, respectively, in 3Q 2023. EXPI increased its margins and profitability in 3Q 2024 despite a continued challenging market.

EXPI’s transaction volume in 3Q 2024 increased 5% to $50.8 billion from $48.4 billion in 3Q 2023. Agents and brokers on the company’s platform totaled 85,249 as of September 30, 2024, down 4% from December 31, 2023, due primarily to the exit of unproductive agents.

A leading provider of financial services in the US and Canada, and by far the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) jumped 9.4% in November. Year to date, PRI has gained 47.1%, the second-best return for any large cap DSCI component. PRI has appreciated 176.3% since March 1, 2020, the second best long-term performance for any DSCI member.

In early November, PRI reported 3Q 2024 adjusted operating revenue of $770.1 million, up 10% from $699.8 million in the year-ago period. The company’s adjusted operating EPS grew at a much faster pace (+31%), reaching $5.72 in 3Q 2024 versus $4.38 in 3Q 2023. Results in PRI’s Term Life segment benefitted from continued strong sales and stable margins. The company’s Investment and Savings Products unit was boosted by favorable equity market conditions in 3Q 2024 which fueled sales growth and higher client asset values.

On November 14, PRI’s Board authorized $450 million of share repurchases from mid-November 2024 through December 31, 2025. Over the first three quarters of 2024, the company repurchased $381 million of its own stock, including $129 million in 3Q 2024.

In August 2024, PRI increased its quarterly dividend to $0.90 per share ($3.60 annualized) from $0.75 per share ($3.00 annualized). The next $0.90 dividend payable date is December 12^th. Since 2018, PRI had announced an increase in its dividend once a year in February, so this accelerated dividend increase action by PRI’s Board represents a significant vote of confidence in the company’s prospects.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) soared 28.3% in November, the sharpest monthly gain for any large cap DSCI component. This outsized move cut NATR’s YTD loss to 6.1%. Over the 57 months the DSCI has been calculated, NATR has gained 109.1%, the third best mark for any direct selling index stock over that period.

On November 7, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 3Q 2024 net sales of $114.6 million, up 3% from $111.2 million in the year-ago period. Adjusted EBITDA in 3Q 2024 totaled $10.7 million, about 5% higher than $10.3 million in 3Q 2023. NATR’s impressive results in 3Q 2024 were driven by robust customer growth in Japan and Taiwan, continued progress in South Korea, and customer activation in Central Europe.

Factoring in its solid results in 3Q 2024, NATR reset its full-year 2024 net sales and adjusted EBITDA guidance to $443-$448 million and $40-$42 million from its previous ranges of $436-$445 million and $39-$42 million, respectively.

LifeVantage Corporation (NASDAQ: LFVN) shot 19.2% higher in November, the second best mark for any DSCI big cap member. This performance in turn pushed LFVN’s YTD gain to 142.8%, by far the biggest increase for any direct selling stock. Since the March 1, 2020 establishment of the DSCI, LFVN has gained 22.3%.

In early October, LFVN released groundbreaking human clinical trial results from its MindBody GLP-1 System. Participants realized a 140% average increase in GLP-1 levels in the body, leading to an average weight loss of nine pounds in eight weeks and up to 25 pounds in twelve weeks. The 12-week, 60-participant clinical trial began in early June.

In late October, LFVN reported revenue of $47.2 million in 1Q FY 2025 (quarter ended September 30, 2024), down 8.1% from $51.4 million in the year-ago period. LFVN’s adjusted EBITDA was $4.4 million in 1Q FY 2025, up from $4.0 million in 1Q FY 2024. LFVN continues to focus on optimizing its cost structure while being strategic with its investments in growth and innovation.

LFVN maintained its revenue and adjusted EBITDA guidance ranges for FY 2025 (twelve months ending June 30, 2025) of $200-$210 million and $18-$21 million, respectively. The company’s FY 2024 revenue totaled $200.2 million, and its FY 2024 adjusted EBITDA was $17.0 million.

Oliveda International, Inc. (OTC: OLVI), the third largest market cap stock in the DSCI, dropped 31.2% in November, the sharpest decline for a large cap DSCI component last month.

OLVI has more than 20 years of experience in: 1) the management and organic certification of mountain olive trees; 2) the extraction of international award-winning extra virgin olive oils; 3) the extraction of hydroxytyrosol, a substance which has several beneficial effects such as antioxidant, anti-inflammatory, anticancer and as a protector of skin and eyes; and 4) the production of and distribution of cosmetic and holistic waterless products related to the olive tree.

OLVI’s 3Q 2024 revenue was $27.7 million, up nearly 1,500% from $1.8 million in 3Q 2023. Its net loss in 3Q 2024 was $38.5 million, or a loss of $0.06 per share, compared with net income of $1.8 million in the year-ago period. Over the first nine months of 2024, OLVI generated positive operating cash flow of $10.3 million versus a slight loss over the first nine months of 2023.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking set underperformed the large cap DSCI group in November. Three small caps rose during the month, and three fell.

Mannatech, Incorporated (NASDAQ: MTEX), a global health and wellness company, posted the best performance in November (+8.7%) of any DSCI small cap member with a market value of at least $1 million. This appreciation flipped MTEX stock from a small YTD loss through October to a 4.9% gain over the first eleven months of 2024. On November 12, MTEX reported 3Q 2024 revenue and EPS of $31.7 million and a $0.17 loss versus $32.6 million and positive $0.01, respectively, in the year-ago period.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 5.3 days in mid-November, the fewest number of days since the end of June and down markedly from 6.7 days at the end of October and 7.0 days in mid-October. The biggest absolute reduction in DTC in mid-November from the end of October for a DSCI component was HLF’s decrease to 5.1 days from 6.6 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index rose significantly in November from October. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks in November was about 96%, up from 87% in October. Conversely, the percentage of stocks which analysts recommended selling was around 4% in November and 13% in October.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Popped 3.2% in October; Index Markedly Outperformed DJIA During the Month

In October, the Direct Selling Capital Advisors Direct Selling Index (DSCI) rose 3.2%, its third consecutive monthly gain and the index’s eleventh increase in the last twelve months. The DSCI notably outperformed the Dow Jones Industrials Average (DJIA) in October, as the DJIA lost 1.3% during the month. The divergent movements of the DSCI and DJIA during October left each index up by the same amount, 10.8%, over the first ten months of 2024.

Large cap direct selling stocks as a group performed about in line with their smaller cap peers in October. Four large cap members rose, while five declined, one by more than 10%. On the other hand, four small cap members rose during the month and three declined. Only one small cap with a market cap of more than $5 million moved by double digit percentage points in October (a 12.8% decline by Educational Development Corporation).

From a longer-term perspective, the DSCI has gained an aggregate 40.3% since its March 1, 2020 inception. The DJIA has outperformed the direct selling index over this period. Since March 1, 2020, the DJIA has increased 64.4%.

Stocks fell in the last two trading days of October, tipping the major indices from small gains in the month to modest losses. Nevertheless, investors remain attentive to the continued expansion of corporate earnings, particularly among the biggest tech stocks and easier monetary policy. Indeed, US GDP grew at an impressive 2.8% annual rate in 3Q 2024, which followed solid 3.0% growth in 2Q 2024. These results point to an economy in far better shape than a “soft landing,” which seemed to be the best case aspiration just a few months ago.

Furthermore, the market has been willing to look past some disappointing data (such as the hot September 2024 core inflation reading in the CPI report released on October 10th) that could have dampened sentiment during less enthusiastic times and instead focus on more stock-friendly statistics like improving retail sales and jobless claims. Two new and perhaps relatively surprising factors likewise supported stocks: the promise of a Chinese stimulus program and falling crude oil prices. The latter may be counterintuitive given the ongoing hostilities in the Middle East. Crude oil is feeling the effects of weak refinery demand in China and lower than expected fuel consumption in that country due at least partly to the heavy degree of vehicle electrification there.

Looking Forward

President-elect Trump’s sweeping victory on November 5^th and the resounding stock market response to his win on November 6^th will greatly impact direct selling stocks over the short and perhaps medium terms. Indeed, the major stock market indices staged their biggest rallies in two years on the day after the election. Industry groups such as banks and technology companies that are thought to benefit from reduced government regulation performed especially well on November 6^th.

The stock market cannot be considered cheap versus historical averages—it trades at about 22x forward earnings. Nevertheless, given the market’s seemingly unstoppable momentum, investor enthusiasm could drive many industry groups, including direct selling stocks, higher for some time.

A concern though is a sharp spike in long-term bond yields since the election. Many investors believe the expected tariff and tax policies of the incoming Administration could cause inflation to increase and the Federal budget deficit to further widen. If yields were to continue to move higher that could put an effective ceiling on stock market performance.

Notwithstanding the potential inflation risk noted above, if the Fed can reach its goal of bringing CPI inflation down to a normalized 2% annual rate, this could suggest stocks may post well above average returns for a third consecutive year in 2025. Indeed, Bloomberg analyzed market data from 1929 through 2023 and concluded that during years the inflation gauge averaged 2% to 3%, the S&P 500 gained an average of 16%.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI rose in October and markedly outperformed the DJIA during the month. The DSCI gained 3.2% in October, about 450 basis points ahead of the 1.3% decrease for the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 40.3% since that date versus the 64.4% appreciation of the DJIA over the same period.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) inched up 0.2% in October, trimming its YTD loss to 8.9%. Since the March 1, 2020 DSCI inception, BWMX is up 34.8%.

On October 24, BWMX reported 3Q 2024 consolidated net revenue of 3.33 billion pesos, up 6.6% from 3.12 billion pesos in the year-ago period. BWMX’s adjusted EBITDA increased even more sharply in the quarter, reaching 592 million pesos, about 11.7% higher than the 529 million pesos in 3Q 2023. The company’s impressive quarter reflects the resilience of its core operations despite challenges which included exchange rate fluctuations and cost pressures, such as freight costs. The growth highlights operational efficiencies achieved over the last year, strategic growth initiatives underway across all business units, and BWMX’s diversified portfolio of product categories.

BWMX continues to project that 1) its 2024 revenue will be 13.8 to 14.4 billion pesos, up from 13.0 billion pesos in 2023; and 2) its 2024 EBITDA will increase to 2.9-3.1 billion pesos versus 2.721 billion pesos last year. The company notes that full-year 2024 EBITDA will likely come in at the lower end of the 2.9-3.1 billion range,

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) dropped 16.0% in October, making it the worst performing large cap DSCI component for a second consecutive month. (NUS fell 17.5% in September). YTD, NUS is down 68.1%, the second worst mark for any large cap direct selling stock. Since the March 2020 establishment of the DSCI, NUS has lost 73.8%. In comparison, the direct selling stock index and the Dow Jones Industrial Average have gained 40.3% and 64.4%, respectively, over this 56-month period.

In early August, NUS reported 2Q 2024 revenue and adjusted EPS of $439.1 million and $0.21, both of which were down from $500.3 million and $0.54, respectively, in the year-ago period. NUS’ core Nu Skin business continues to be affected by a difficult global macroeconomic environment, particularly in China. More constructively, the company’s Rhyz sales increased 32% in 2Q 2024 versus 2Q 2023 led by strong performances in its Mavely affiliate platform and manufacturing companies. Rhyz’s 2Q 2024 sales totaled about $68 million, or more than 15% of NUS’ overall sales in the quarter.

Due principally to foreign exchange headwinds, NUS reduced its revenue and non-GAAP EPS guidance ranges for full year 2024 to $1.73-$1.81 billion and $0.75-$0.95, respectively. The comparable figures for full year 2023 were $1.97 billion and $1.85, respectively. NUS plans to release its 3Q 2024 earnings after the stock market closes on November 7^th.

Herbalife Nutrition, Inc. (NYSE: HLF) was the best performing large cap DSCI member in October, as it jumped 5.0% during the month. This gain cut its YTD loss to 50.5%. HLF is down 76.7% since the establishment of the DSCI on March 1, 2020. This represents the second worst performance for any large-cap DSCI component which has traded continuously since index inception.

On October 30, HLF reported 3Q 2024 sales of $1.24 billion, down 3.2% from $1.28 billion in 3Q 2023. More constructively, net sales in the quarter were nearly flat year-over-year on a constant currency basis, and HLF’s gross margin rose to 78.3% in 3Q 2024 from 76.3% in 3Q 2023 due to more favorable pricing and lower input costs. HLF’s 3Q 2024 adjusted EBITDA reached $166.5 million, up from $163.3 million in the year-ago period. Furthermore, the company’s 3Q 2024 adjusted EBITDA margin was 13.4%, up from 12.7% in 3Q 2023.

In 3Q 2024, the number of new distributors joining HLF worldwide increased 14% year-over-year, representing the second consecutive quarter of year-over-year improvement. In addition, CFO John DeSimone reaffirmed HLF’s plans to reduce total debt by $1 billion over the next four to five years. This initiative will be the primary use of the company’s free cash flow through the balance of the decade.

As of June 30, HLF completed substantially all actions related to its organizational restructuring plan. The plan should ultimately deliver annual savings of at least $80 million beginning in 2025, with at least $50 million expected to be achieved in 2024. At least $30 million of this amount was realized during the first three quarters of 2024. HLF expects to incur total program pretax expenses of at least $70 million in 2024, primarily related to severance expenses.

HLF increased its full-year 2024 adjusted EBITDA guidance to $590 to $620 million, up from $560 to $600 million. In addition, HLF narrowed its estimate of full-year 2024 revenue growth to a range of negative 2.0% to negative 1.0% from the negative 3.5% to positive 1.5% range it issued in late July.

Medifast, Inc. (NYSE: MED) shares declined 4.0% in October, adding to its YTD loss of 72.7%, the worst mark of any large cap DSCI component. MED is likewise the worst performing DSCI large cap member on a long-term basis; since the March 1, 2020 establishment of the DSCI, MED has declined 76.9%.

On November 4, MED reported 3Q 2024 revenue of $140.2 million, down 40% from $235.9 million in 3Q 2024. The company’s adjusted diluted EPS fell even more sharply to $0.35 in 3Q 2024 from $2.12 in the year-ago period. The number of active earning OPTAVIA coaches decreased to 30,000 in 3Q 2024 from 47,100 in 3Q 2023. Furthermore, the average revenue per active earning OPTAVIA coach was $4,672 in 3Q 2024, down from $5,008 in the year-ago period. MED expects its 4Q 2024 revenue and adjusted diluted EPS will be $100-$120 million and a loss of $0.10 to a loss of $0.65, respectively.

MED is realigning its business to respond to the evolving dynamics in the weight loss industry, and to transform its business model to meet the soaring demand for GLP-1 medications. Indeed, up to 20 million people in the US could be using GLP-1 treatments by 2030, according to some projections. MED offers comprehensive support for GLP-1 medication users, including access to clinicians through LifeMD, as well as programs and products to help maintain muscle and minimize side effects.

In October, shares of USANA Health Sciences, Inc. (NYSE: USNA) lost 2.6%, bringing its YTD loss to 31.1%. Since the creation of the DSCI on March 1, 2020, USANA shares have lost 44.1% compared with gains of 40.3% and 64.4% for the direct selling index and the DJIA, respectively.

On October 22, USANA reported 3Q 2024 and diluted EPS of $200 million and $0.56, both down from $213 million and $0.59, respectively, in the year ago period. USANA’s 3Q 2024 operating results reflected continued top line headwinds across many of the company’s markets. USANA’s sales force continued to face challenges in attracting new customers as consumer sentiment remained cautious, including in the company’s largest market, China. Nevertheless, USANA has generated $47 million of free cash flow over the first three quarters of 2024. In addition, the company’s balance sheet is pristine; it has $365 million of cash and no debt.

In its earnings report, USANA refined its forecast for 2024. It now expects revenue of $850 million, down slightly from its previous guidance range of $850 to $880 million. Also, management believes its 2024 EPS should be $2.45; USANA had guided to 2024 EPS of $2.40 to $2.55 in its 2Q 2024 earnings release.

eXp World Holdings, Inc. (NASDAQ: EXPI) dropped 5.5% in October, ending a three-month streak, during which the stock increased or decreased by at least 18% (+19.8% in September, -18.1% in August, and +27.3% in July). Year to date, EXPI has declined 14.2%. EXPI shares have appreciated an aggregate 178.7% over the 56 months the DSCI has been computed, the best long-term mark of any DSCI member.

In late July, EXPI, the fastest growing real estate brokerage in the world, reported 2Q 2024 revenue and adjusted EBITDA of $1.295 billion and $32.8 million, respectively. These measures compared favorably with $1.23 billion and $26.8 million, respectively, in 2Q 2023. Notably, EXPI’s 2Q 2024 international revenue increased 69% versus 2Q 2023. The increased productivity of EXPI’s agents, together with improved business efficiencies, allowed 2Q 2024 adjusted EBITDA to rise 22%. EXPI plans to release its 3Q 2024 earnings after the stock market closes on November 7^th.

EXPI’s transaction volume in 2Q 2024 increased 7% to $51.9 billion from $48.5 billion in 2Q 2023. Agents and brokers on the company’s platform totaled 87,111 as of June 30, 2024, down 1% from June 30, 2023, due primarily to the exit of unproductive agents.

A leading provider of financial services in the US and Canada, and by far the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) gained 4.4% in October. Year to date, PRI has gained 34.5%, the second best return for any large cap DSCI component. PRI has increased 152.7% since March 1, 2020, the second best long-term performance for any DSCI component.

On November 6, PRI reported 3Q 2024 adjusted operating revenue of $770.1 million, up 10% from $699.8 million in the year-ago period. The company’s adjusted operating EPS grew at a much faster pace (+31%), reaching $5.72 in 3Q 2024 versus $4.38 in 3Q 2023. Results in PRI’s Term Life segment benefitted from continued strong sales and stable margins. The company’s Investment and Savings Products unit were boosted by favorable equity market conditions in 3Q 2024 which fueled sales growth and higher client asset values. PRI repurchased 511,000 shares of its stock in 3Q 2024 for $128.8 million.

In August, PRI increased its quarterly dividend to $0.90 per share ($3.60 annualized) from $0.75 per share ($3.00 annualized). The next $0.90 dividend payable date is December 12^th. Since 2018, PRI had announced an increase in its dividend once a year in February, so this accelerated dividend increase action by PRI’s Board represents a significant vote of confidence in the company’s prospects.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) fell 7.0% in October, bringing its YTD loss to 26.8%. Over the 56 months the DSCI has been calculated, NATR has gained 63.0%, the fourth best mark for any direct selling index stock over that period.

In early August, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 2Q 2024 net sales of $110.6 million, down 5% from $116.5 million in the year-ago period. Adjusted EBITDA in 2Q 2024 totaled $10.4 million, down 8% from $11.3 million in 2Q 2023. In 2Q 2024, NATR was affected by macroeconomic headwinds in China and slowing consumer spending in the US.

Given the softness in NATR’s Asia segment, the company reset its full-year 2024 net sales and adjusted EBITDA guidance to $436-$445 million and $39-$42 million from its previous ranges of $455-$480 million and $42-$48 million, respectively. Net sales and adjusted EBITDA in 2023 totaled $445.3 million and $40.4 million, respectively. NATR will release its 3Q 2024 earnings after the stock market closes on November 7^th.

LifeVantage Corporation (NASDAQ: LFVN) rose 1.2% in October, adding to its 103.7% YTD gain, by far the strongest performance of any direct selling stock. Since the March 1, 2020 establishment of the DSCI, LFVN has gained 2.6%.

In September, LFVN announced promising results of an in vitro study that investigated the combined effects of its upcoming two-product system on enhancing the body’s activating GLP-1 production. The study revealed not only a significant increase in GLP-1 production, but also a synergistic activation of the key genes responsible for its synthesis and regulation within the body.

On October 11, LFVN released groundbreaking human clinical trial results from its MindBody GLP-1 System. Participants realized a 140% average increase in GLP-1 levels in the body, leading to an average weight loss of nine pounds in eight weeks and up to 25 pounds in twelve weeks. The 12-week, 60-participant clinical trial began in early June.

On October 29, LFVN reported revenue of $47.2 million in 1Q FY 2025 (quarter ended September 30, 2024), down 8.1% from $51.4 million in the year-ago period. LFVN’s adjusted EBITDA was $4.4 million in 1Q FY 2025, up from $4.0 million in 1Q FY 2024. LFVN continues to focus on optimizing its cost structure while being strategic with its investments in growth and innovation.

LFVN maintained its revenue and adjusted EBITDA guidance ranges for FY 2025 (twelve months ending June 30, 2025) of $200-$210 million and $18-$21 million, respectively. The company’s FY 2024 revenue totaled $200.2 million, and its FY 2024 adjusted EBITDA was $17.0 million.

Oliveda International, Inc. (OTC: OLVI) has more than 20 years of experience in: 1) the management and organic certification of mountain olive trees; 2) the extraction of international award-winning extra virgin olive oils; 3) the extraction of hydroxytyrosol, a substance which has several beneficial effects such as antioxidant, anti-inflammatory, anticancer and as a protector of skin and eyes; and 4) the production of and distribution of cosmetic and holistic waterless products related to the olive tree. OLIV is the second largest market cap stock in the DSCI.

OLIV’s 3Q 2024 revenue was $27.7 million, up nearly 1,500% from $1.8 million in 3Q 2023. Its net loss in 3Q 2024 was $38.5, or a loss of $0.06 per share, compared with net income of $1.8 million in the year-ago period. Over the first nine months of 2024, OLIV generated positive operating cash flow of $10.3 million versus a slight loss over the first nine months of 2023.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking set performed about in line with the large cap DSCI group in October. Four small caps rose during the month, and three fell.

The Beachbody Company, Inc. (NYSE: BODI), a leading fitness and nutrition company, posted the best performance (+6.8%) of any DSCI member with a market value of at least $1 million in October. This appreciation cut BODI’s YTD loss to 26.3%. In August, BODI reported 2Q 2024 revenue and adjusted EBITDA of $110.2 million and $4.9 million versus $134.9 million and a loss of $4.8 million, respectively, in the year-ago period.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 7.0 days in mid-October, up from 5.9 days at the end of September and 6.1 days in mid-September. The biggest absolute rise in DTC in mid-October from the end of September for a DSCI component was EXPI’s increase to 23.6 days from 20.6 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index fell in October from September. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks in October was about 87%, down from 90% in September. Conversely, the percentage of stocks which analysts recommended selling was around 13% in October and 10% in September.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Increases 0.5% in September; Index Has Posted Gains in Ten of the Last Eleven Months

In September, the Direct Selling Capital Advisors Direct Selling Index (DSCI) inched 0.5% higher, its second consecutive small monthly gain (+0.6% in August) and the index’s tenth increase in the last eleven months. The DSCI underperformed the Dow Jones Industrials Average (DJIA) in September, as the DJIA gained 1.8% during the month. Over the first three quarters of 2024, the DSCI rose 7.4%, while the DJIA increased 12.3%.

Large cap directly selling stocks as a group outperformed their smaller cap peers in September. Four large cap members rose, two by double digit percentage points, including a 51.8% gain in LifeVantage Corporation (NASDAQ: LFVN), while five declined. By comparison, two small caps rose during the month and four fell. One small cap component gained by more than 10% in September, while all four small cap decliners lost more than 10% during the month.

From a longer-term perspective, the DSCI has gained an aggregate 35.9% since its March 1, 2020 inception. The DJIA has outperformed the direct selling index over this period. Since March 1, 2020, the DJIA has increased 66.6%.

The Fed’s September 18^th decision to implement a supersized 50-basis point rate cut sparked a stock market rally that continued through the end of September. The jump in all major indices to or near all-time highs brought S&P 500 year-to-date gains to about 20%. Investors chose to interpret the central bank’s unusual decision as a timely, proactive move rather than one that was necessary to stabilize a cooling labor market.

The stock market had dipped sharply at the start of both August and September based on fears of an unwind of the yen carry trade and a too-rapidly slowing economy, respectively. The market’s constructive reaction to the Fed’s announcement seems to signal that investors may generally remain optimistic at least through election day. Furthermore, the historically poor stock market month of September is now over, which at least psychologically supports bullish investors.

Looking Forward

The direct selling stocks will begin reporting their 3Q 2024 results in late October. When these earnings results begin to be announced, the content of the individual company releases will be the key factor in stock performance, but for most of October the direction of the overall stock market will likely be the driver for DSCI member stocks.

Clearly, the stock market cannot be considered especially cheap: it trades at nearly 22x forward-year earnings. Nevertheless, a “glass half full” investor mindset, coupled with the market’s tendency to perform well after a Fed precautionary rate cut as opposed to a “needed” policy rate reduction when the economy is in recession, suggests the stock market could continue to move higher over the short to intermediate term. Another potential positive for stocks is the Chinese government’s late September decision to launch its biggest monetary stimulus measures since the COVID-19 pandemic.

A concern with this positive stance is that an uncomfortably high number of market participants are bullish. Indeed, a cnbc.com survey conducted in late September found that 97% of all family offices expect positive returns over the next twelve months, and almost half anticipate double digit gains. The head of Citi Private Bank notes “this is the most optimistic outlook we’ve seen.” Despite the optimistic view being by far the majority’s opinion, the Fed’s decision to begin cutting rates at a time when profits at U.S. companies are accelerating—a very unusual and powerful combination—could mean that the majority is right.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI rose in September but underperformed the DJIA during the month. The DSCI gained 0.5% in September, about 130 basis points behind the 1.8% increase for the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 35.9% since that date versus the 66.6% appreciation of the DJIA over the same period.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) lost 6.6% in September, bringing its YTD loss to 9.0%. Since the March 1, 2020 DSCI inception, BWMX is up 34.6%.

In late July, BWMX reported 2Q 2024 consolidated net revenue of 3.39 billion pesos, up 5.3% from 3.22 billion pesos in 2Q 2023. Sales at all three of BWMX’s segments rose in the quarter. On the other hand, the company’s 2Q 2024 EBITDA of 656.1 million pesos was 8.5% lower than in the year-ago period.

BWMX expects robust results in the second half of 2024. Consequently, the company reiterated the full-year 2024 net revenue and EBITDA guidance it issued at the beginning of 2024. More specifically, BWMX projects its 2024 revenue will range from 13.8 to 14.4 billion pesos, up from 13.0 billion pesos in 2023. Similarly, the company expects its 2024 EBITDA will increase to 2.9-3.1 billion pesos versus 2.721 billion pesos last year.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) declined 17.5% in September, making it the worst performing large cap DSCI component during the month. YTD, NUS is down 62.0%, the second worst mark for any large cap direct selling stock. Since the March 2020 establishment of the DSCI, NUS has lost 68.8%. In comparison, the direct selling stock index and the Dow Jones Industrial Average have gained 35.9% and 66.6%, respectively, over this 55-month period.

In early August, NUS reported 2Q 2024 revenue and adjusted EPS of $439.1 million and $0.21, both of which were down from $500.3 million and $0.54, respectively, in the year-ago period. NUS’ core Nu Skin business continues to be affected by a difficult global macroeconomic environment, particularly in China. More constructively, the company’s Rhyz sales increased 32% in 2Q 2024 versus 2Q 2023 led by strong performances in its Mavely affiliate platform and manufacturing companies. Rhyz’s 2Q 2024 sales totaled about $68 million, or more than 15% of NUS’ overall sales in the quarter.

Due principally to foreign exchange headwinds, NUS reduced its revenue and non-GAAP EPS guidance ranges for full year 2024 to $1.73-$1.81 billion and $0.75-$0.95, respectively. The comparable figures for full year 2023 were $1.97 billion and $1.85, respectively. The company projects 3Q 2024 sales of $430-$465 million and adjusted EPS of $0.15-$0.25.

As part of a quarterly rebalance, the S&P Dow Jones Indices removed NUS from the S&P SmallCap 600 Index effective September 23, 2024.

Herbalife Nutrition, Inc. (NYSE: HLF) fell 11.9% in September, marking its second consecutive double digit monthly percentage decline (-33.6% in August). Over the first three quarters of 2024, HLF lost 52.9% of its value. In addition, the stock is down 77.8% since the establishment of the DSCI on March 1, 2020. This represents the worst performance for any large-cap DSCI component which has traded continuously since index inception.

In late July, HLF reported 2Q 2024 sales of $1.28 billion, down 2.5% from $1.31 billion in 2Q 2023. Notably, foreign exchange headwinds caused sales to decline 2.7%, so absent this effect, revenue would have risen slightly. HLF’s adjusted EBITDA reached $180.0 million in 2Q 2024, up from $169.6 million in the year-ago period. Furthermore, the company’s 2Q 2024 adjusted EBITDA margin was 14.1%, up from 12.9% in 2Q 2023.

According to HLF’s CFO John DeSimone on the company’s 2Q 2024 earnings conference, HLF plans to pay off $1 billion in debt over the next four to five years. This initiative will be the primary use of the company’s free cash flow through the balance of the decade.

HLF implemented further actions related to its organizational restructuring plan in 2Q 2024. The plan should ultimately deliver annual savings of at least $80 million. At least $10 million of this amount was realized during 2Q 2024. HLF expects to incur total program pretax expenses of at least $70 million, primarily related to severance expenses.

HLF slightly increased its full-year 2024 adjusted EBITDA guidance to $560 to $600 million, up from $550 to $590 million. On the other hand, HLF downgraded its estimate of full-year revenue growth to a range of negative 3.5% to positive 1.5% from the 0% to positive 5% range it issued in early May. The company plans to announce its 3Q 2024 financial results after the stock market close on October 30.

Medifast, Inc. (NYSE: MED) shares jumped 4.6% in September. This gain cut its loss over the first nine months of 2024 to 71.5%; nonetheless, MED is still the worst performing DSCI large cap member on a YTD basis. Since the March 1, 2020 establishment of the DSCI, MED has declined 75.9%.

In early August, MED reported 2Q 2024 revenue of $168.6 million, down 43% from $296.2 million in 2Q 2023. The company’s adjusted diluted EPS fell even more sharply to $0.92 in 2Q 2024 from $2.77 in the year-ago period. The number of active earning OPTAVIA coaches decreased to 33,900 in 2Q 2024 from 53,100 in 2Q 2023. In addition, the average revenue per active earning OPTAVIA coach was $4,972 in 2Q 2024, down from $5,578 in the year-ago period. MED expects its 3Q 2024 revenue and adjusted diluted EPS will be $125-$145 million and a loss of $0.05 to a loss of $0.70, respectively.

MED is realigning its business to respond to the evolving dynamics in the weight loss industry, and to transform its business model to meet the soaring demand for GLP-1 medications. Indeed, up to 20 million people in the US could be using GLP-1 treatments by 2030, according to some projections. MED incurred $4.6 million of marketing expenses in 2Q 2024 to increase brand awareness of its holistic approach to medical weight loss, and to attract new customers.

In September, shares of USANA Health Sciences, Inc. (NYSE: USNA) lost 7.1%, taking its YTD loss to 29.3%. Since the creation of the DSCI on March 1, 2020, USANA shares have lost 42.6% compared with gains of 35.9% and 66.6% for the direct selling index and the DJIA, respectively.

In late July, USANA reported 2Q 2024 revenue and diluted EPS of $213 million and $0.54, both down from $238 million and $0.89, respectively, in the year ago period. Ongoing macroeconomic pressures in several of the company’s key markets continue to impact consumer spending. The strengthening US dollar also hurt 2Q 2024 revenue and earnings. As an offset, USANA plans to offer a more robust promotional calendar over the balance of 2024. The company guided to full year 2024 revenue and diluted EPS of $850-$880 million and $2.40-$2.55, respectively.

In late August, HR Asia, a leading publication in the human resources industry, named USANA Philippines one of the best companies for which to work in the Philippines. USANA has received this recognition for three consecutive years.

eXp World Holdings, Inc. (NASDAQ: EXPI) soared 19.8% in September, continuing its volatile trading pattern over the last few months (-18.1% in August and +27.3% in July). Year to date, EXPI has declined 9.2%. EXPI shares have appreciated an aggregate 194.8% over the 55 months the DSCI has been computed, the best long-term mark of any DSCI member.

In late July, EXPI, the fastest growing real estate brokerage in the world, reported 2Q 2024 revenue and adjusted EBITDA of $1.295 billion and $32.8 million, respectively. These measures compared favorably with $1.23 billion and $26.8 million, respectively, in 2Q 2023. Notably, EXPI’s 2Q 2024 international revenue increased 69% versus 2Q 2023. The increased productivity of EXPI’s agents, together with improved business efficiencies, allowed 2Q 2024 adjusted EBITDA to rise 22%. Furthermore, EXPI’s G&A expense in 2Q 2024 declined 6% compared with the year-ago period primarily due to cost containment initiatives. Increased legal expenses offset some of these cost reductions.

EXPI’s transaction volume in the just-completed quarter increased 7% to $51.9 billion from $48.5 billion in 2Q 2023. Agents and brokers on the company’s platform totaled 87,111 as of June 30, 2024, down 1% from June 30, 2023, due primarily to the exit of unproductive agents.

A leading provider of financial services in the US and Canada, and by far the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) eked out a 0.7% gain in September. Year to date, PRI has gained 28.9%, the second best return for any large cap DSCI component. PRI has increased 142.0% since March 1, 2020, the second best long-term performance for any DSCI component.

On August 7, PRI reported 2Q 2024 revenue of $803.4 million, up 17% from $688.4 million in the year-ago period. The company’s adjusted operating EPS grew at an even faster pace (+18%), reaching $4.71 in 2Q 2024 versus $3.99 in 2Q 2023. PRI’s impressive results in the June 2024 quarter were driven by strong sales of investment products and rising client asset values, as well as steady premium growth and the predictable margins in the Term Life business. Investment income benefitted from higher yielding investments and growth in PRI’s invested asset portfolio.

Also on August 7, PRI increased its quarterly dividend to $0.90 per share ($3.60 annualized) from $0.75 per share ($3.00 annualized). The $0.90 dividend was paid to shareholders on September 12. Since 2018, PRI had announced an increase in its dividend once a year in February, so this accelerated dividend increase action by PRI’s Board represents a significant vote of confidence in the company’s prospects.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) edged 1.3% lower in September, bringing its YTD loss to 21.2%. Over the 55 months the DSCI has been calculated, NATR has gained 75.4%, the fourth best mark for any direct selling index stock over that period.

In early August, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 2Q 2024 net sales of $110.6 million, down 5% from $116.5 million in the year-ago period. Adjusted EBITDA in 2Q 2024 totaled $10.4 million, down 8% from $11.3 million in 2Q 2023. In 2Q 2024, NATR was affected by macroeconomic headwinds in China and slowing consumer spending in the US.

Given the softness in NATR’s Asia segment, the company reset its full-year 2024 net sales and adjusted EBITDA guidance to $436-$445 million and $39-$42 million from its previous ranges of $455-$480 million and $42-$48 million, respectively. Net sales and adjusted EBITDA in 2023 totaled $445.3 million and $40.4 million, respectively.

On September 16, NATR appointed Kevin Fuller as its Global Chief Marketing Officer effective September 23^rd. Mr. Fuller had been President and Chief Marketing Officer at Helo Health. Prior to that, he led Nu Skin Enterprises, Inc.’s (NUS) marketing organization.

LifeVantage Corporation (NASDAQ: LFVN) exploded 51.8% higher in September, by far the best performance of any direct selling

stock. This gain pushed LFVN’s increase over the first three quarters of 2024 to 101.3% and flipped LFVN’s performance since the March 1, 2020 establishment of the DSCI to a slight positive (+1.4%).

On September 10, LFVN announced promising results of an in vitro study that investigated the combined effects of its upcoming two-product system on enhancing the body’s activating GLP-1 production. The study revealed not only a significant increase in GLP-1 production, but also a synergistic activation of the key genes responsible for its synthesis and regulation within the body.

In addition, LFVN announced on September 26 that it had completed a randomized, 12-week, 60-participant clinical trial that assessed the impact of its two-product system on weight management, food cravings and overall well-being. LFVN will release the trial results on October 11-12 in Kansas City where the company’s two-product system will be revealed.

In late August, LFVN reported revenue of $48.9 million in 4Q FY 2024 (the quarter ended June 30, 2024), down 9.8% from $54.2 million in the year ago period. LFVN’s adjusted EBITDA was $4.8 million in 4Q FY 2024, flat versus 4Q FY 2023. LFVN’s focus on operational excellence allowed the company to post flat adjusted EBITDA despite top line headwinds stemming from challenging macroeconomic conditions.

LFVN introduced revenue and adjusted EBITDA guidance ranges for FY 2025 (twelve months ending June 30, 2025) of $200-$210 million and $18-$21 million, respectively. The company’s FY 2024 revenue totaled $200.2 million, and its FY 2024 adjusted EBITDA was $17.0 million.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking set underperformed the large cap DSCI group in September. Two small caps rose during the month, four fell, and one was unchanged.

Educational Development Corporation (NASDAQ: EDUC), a publishing company specializing in books and educational products for children, posted the best performance (+15.3%) of any small cap DSCI member in September. This appreciation increased EDUC’s YTD gain to 101.7%, the best mark for any direct selling stock. In July, EDUC reported 1Q FY 2025 (quarter ended May 31, 2024) revenue and diluted EPS of $10.0 million and a loss of $0.15 versus $14.5 million and a loss of $0.11, respectively, in the year ago period.

Short Interest Data & Analysis

The following chart is an aggregate index of “Days to Cover” among the entire tracking set. Days to Cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 6.1 days in mid-September, down slightly from 6.2 days at the end of August and up slightly from 5.9 days in mid-August. The biggest absolute decrease in DTC in mid-September from the end of August for a DSCI component was EDUC’s decline to 0.3 days from 1.8 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “Buy to Cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index rose slightly in September from August. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks in September was about 90%, up from 89% in August. Conversely, the percentage of stocks which analysts recommended selling was around 10% in September and 11% in August.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Rises 0.6% in August But Underperforms the DJIA During the Month

In August, the Direct Selling Capital Advisors Direct Selling Index (DSCI) managed a meager 0.6% gain; the index has now posted a monthly increase in nine of the last ten months. However, the DSCI underperformed the Dow Jones Industrials Average (DJIA) in August. The DJIA gained 1.8% during the month. Over the first eight months of 2024, the DSCI rose 6.9%, while the DJIA increased 10.3%.

Large cap direct selling stocks as a group performed about in line with their smaller cap peers in August. Only one large cap member rose, while eight fell, five by double digit percentage points. Similarly, just one small cap component posted a monthly gain, five declined, and one was unchanged. Despite these results, the market capitalization weighted DSCI posted a positive month in August because Primerica, Inc. (NYSE: PRI), by far the largest weight in the index, jumped 4.6%.

From a longer-term perspective, the DSCI has gained an aggregate 35.2% since its March 1, 2020 inception. The DJIA has outperformed the direct selling index over this period. Since March 1, 2020, the DJIA has increased 63.6%.

The stock market staged an impressive rally off the flash crash on August 5^th. The DJIA and NASDAQ have popped 8% and 13%, respectively, since the lows of that day. Stock market-friendly CPI, PPI, retail sales, and jobless claims released in mid-August were constructive data points for stocks during the month. More importantly, this data appears consistent with: 1) an economy poised for a soft landing; and 2) a Fed that will begin a rate cutting program in September 2024. Indeed, Chairman Powell said in a highly anticipated speech on August 23^rd that “the time has come for policy to adjust.” Rate cuts seem very likely to incentivize activity in key industries like homebuilders and automobile manufacturers.

Looking Forward

The direct selling stocks have mainly completed reporting their 2Q 2024 results, so the performance of DSCI components this month will probably be dictated by the general direction of the stock market. Based on stock market history, such reliance in the short term may not be the most ideal situation, as returns in the month of September have on average been the lowest of the calendar year. Indeed, the S&P 500 Index has declined between 4% and 9% during the last four Septembers.

Nevertheless, several factors suggest September 2024 could be a positive month. First, S&P 500 earnings were robust in 2Q 2024, rising 13% year-over-year, the best mark since 4Q 2021. Furthermore, earnings in 3Q 2024 and 4Q 2024 are likewise expected to increase — up about 6% and 14%, respectively, versus the year-ago periods.

Second, the key tenet of a bear case for stocks is a fear the economy will slow far more decisively than it would in a “soft landing.” However, S&P 500 company managements are not sensing an impending sharp slowdown, at least based on an analysis of trends in earnings call transcripts over the last ten quarters, per J.P. Morgan Asset Management. If anything, fears about an economic slowdown and job cuts are in aggregate lower now than they were six months ago.

Finally, the number of stocks which are performing well continues to broaden — a marked departure from the tenor of the stock market earlier in 2024 when only mega-cap technology stocks seemed to move higher. Indeed, more than two-thirds of S&P 500 stocks rose in August.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI rose in August but underperformed the DJIA during the month. The DSCI gained 0.6% in August, about 120 basis points behind the 1.8% increase for the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 35.2% since that date versus the 63.6% appreciation of the DJIA over the same period.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) dropped 9.5% in August. This decline flipped BWMX’s YTD performance to a loss of 2.7% from a gain of 7.6% through July 2024. Nevertheless, BWMX’s performance over the first eight months of 2024 made it the third best performing large cap DSCI member over that period. Since the March 1, 2020 DSCI inception, BWMX is up 44.1%.

In late July, BWMX reported 2Q 2024 consolidated net revenue of 3.39 billion pesos, up 5.3% from 3.22 billion pesos in 2Q 2023. Sales at all three of BWMX’s segments rose in the quarter. On the other hand, the company’s 2Q 2024 EBITDA of 656.1 million pesos was 8.5% lower than in the year-ago period.

BWMX expects robust results in the second half of 2024. Consequently, the company reiterated the full-year 2024 net revenue and EBITDA guidance it issued at the beginning of 2024. More specifically, BWMX projects its 2024 revenue will range from 13.8 to 14.4 billion pesos, up from 13.0 billion pesos in 2023. Similarly, the company expects its 2024 EBITDA will increase to 2.9-3.1 billion pesos versus 2.721 billion pesos last year.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) fell 20.4% in August, bringing its YTD decline to 54.0%, the second worst mark of any large cap DSCI component. Since the March 2020 establishment of the DSCI, NUS has lost 62.1%. In comparison, the direct selling stock index and the Dow Jones Industrial Average have gained 35.2% and 63.6%, respectively, over this 4 ½-year period.

On August 8, NUS reported 2Q 2024 revenue and adjusted EPS of $439.1 million and $0.21, both of which were down from $500.3 million and $0.54, respectively, in the year-ago period. NUS’ core Nu Skin business continued to be affected by a difficult global macroeconomic environment. More constructively, the company’s Rhyz sales increased 32% in 2Q 2024 versus 2Q 2023 led by strong performances in its Mavely affiliate platform and manufacturing companies.

Due principally to foreign exchange headwinds, NUS reduced its revenue and non-GAAP EPS guidance ranges for the full year 2024 to $1.73-$1.81 billion and $0.75-$0.95 from the prior $1.73-$1.87 billion and $0.95-$1.35, respectively. The comparable figures for full year 2023 were $1.97 billion and $1.85, respectively. The company projects 3Q 2024 sales of $430-$465 million and adjusted EPS of $0.15-$0.25.

Herbalife Nutrition, Inc. (NYSE: HLF) dropped 33.6% in August, the worst mark of any DSCI component. HLF’s August performance ended a three-month stretch during which the stock was one of the best performing large cap members in each month. YTD, HLF has lost 46.5% of its value. In addition, the stock is down 74.8% since the establishment of the DSCI on March 1, 2020. This represents the second worst performance for any large-cap DSCI component which has traded continuously since index inception.

In late July, HLF reported 2Q 2024 sales of $1.28 billion, down 2.5% from $1.31 billion in 2Q 2023. Notably, foreign exchange headwinds caused sales to decline 2.7%, so absent this effect, revenue would have risen slightly. HLF’s adjusted EBITDA reached $180.0 million in 2Q 2024, up from $169.6 million in the year-ago period.

HLF implemented further actions related to its organizational restructuring plan in 2Q 2024. The plan should ultimately deliver annual savings of at least $80 million. At least $10 million of this amount was realized during 2Q 2024. HLF expects to incur total program pretax expenses of at least $70 million, primarily related to severance expenses.

HLF slightly increased its full-year 2024 adjusted EBITDA guidance to $560 to $600 million, up from $550 to $590 million. On the other hand, HLF downgraded its estimate of full-year revenue growth to a range of negative 3.5% to positive 1.5% from the 0% to positive 5% range it issued in early May.

Medifast, Inc. (NYSE: MED) shares fell 16.6% in August, adding to its YTD loss of 72.8%, the weakest performance of any DSCI member. Since the March 1, 2020 establishment of the DSCI, MED has declined 77.0%.

In early August, MED reported 2Q 2024 revenue of $168.6 million, down 43% from $296.2 million in 2Q 2023. The company’s adjusted diluted EPS fell even more sharply to $0.92 in 2Q 2024 from $2.77 in the year-ago period. The number of active earning OPTAVIA coaches decreased to 33,900 in 2Q 2024 from 53,100 in 2Q 2023. In addition, the average revenue per active earning OPTAVIA coach was $4,972 in 2Q 2024, down from $5,578 in the year-ago period. MED expects its 3Q 2024 revenue and adjusted diluted EPS will be $125-$145 million and a loss of $0.05 to a loss of $0.70, respectively.

MED is realigning its business to respond to the evolving dynamics in the weight loss industry and to transform its business model to meet the growing demand for GLP-1 medications. The company incurred $4.6 million of marketing expenses in 2Q 2024 to increase brand awareness of its holistic approach to medical weight loss, and to attract new customers.

In August, shares of USANA Health Sciences, Inc. (NYSE: USNA) dropped 8.5%, bringing its YTD loss to 23.8%. Since the creation of the DSCI on March 1, 2020, USANA shares have lost 38.2% compared with gains of 35.2% and 63.6% for the direct selling index and the DJIA, respectively.

In late July, USANA reported 2Q 2024 revenue and diluted EPS of $213 million and $0.54, both down from $238 million and $0.89, respectively, in the year-ago period. Ongoing macroeconomic pressures in several of the company’s key markets continue to impact consumer spending. The strengthening U.S. dollar also hurt 2Q 2024 revenue and earnings. As an offset, USANA plans to offer a more robust promotional calendar over the balance of 2024. The company guided to full year 2024 revenue and diluted EPS of $850-$880 million and $2.40-$2.55, respectively.

In late August, HR Asia, a leading publication in human resources industry, named USANA Philippines one of the best companies for which to work in the Philippines. USANA has received this recognition for three consecutive years.

eXp World Holdings, Inc. (NASDAQ: EXPI), decreased 18.1% in August, reversing much of its 27.3% gain in July. YTD, EXPI has declined 24.2%. Still, EXPI shares have appreciated an aggregate 146.0% over the 4 ½ years the DSCI has been computed, the best long-term mark of any DSCI member.

In late July, EXPI, the fastest growing real estate brokerage in the world, reported 2Q 2024 revenue and adjusted EBITDA of $1.295 billion and $32.8 million, respectively. These measures compared favorably with $1.23 billion and $26.8 million, respectively, in 2Q 2023. The increased productivity of EXPI’s agents, together with improved business efficiencies, allowed 2Q 2024 adjusted EBITDA to rise 22%.

EXPI’s transaction volume in the just-completed quarter increased 7% to $51.9 billion from $48.5 billion in 2Q 2023. Agents and brokers on the company’s platform totaled 87,111 as of June 30, 2024, down 1% from June 30, 2023, due primarily to the exit of unproductive agents.

A leading provider of financial services in the U.S. and Canada, and by far the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) jumped 4.6%, the best mark of direct selling stock. Year to date, PRI has gained 27.9%, the second best return for any large cap DSCI component. PRI has increased 140.3% since March 1, 2020, the second best long-term performance for any DSCI component.

On August 7, PRI reported 2Q 2024 revenue of $803.4 million, up 17% from $688.4 million in the year-ago period. The company’s adjusted operating EPS grew at an even faster pace (+18%), reaching $4.71 in 2Q 2024 versus $3.99 in 2Q 2023. PRI’s impressive results in the June 2024 quarter were driven by strong sales of investment products and rising client asset values, as well as steady premium growth and the predictable margins in the Term Life business. Investment income benefited from higher yielding investments and growth in PRI’s invested asset portfolio. In 2Q 2024, PRI repurchased 629,400 of its shares for $142.7 million.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) fell 19.3% in August, bringing its YTD loss to 20.2%. Over the 54 months the DSCI has been calculated, NATR has gained 77.7%, the fourth best mark of any direct selling index stock over that period.

On August 8, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 2Q 2024 net sales of $110.6 million, down 5% from $116.5 million in the year-ago period. Adjusted EBITDA in 2Q 2024 totaled $10.4 million, down 8% from $11.3 million in 2Q 2023. In 2Q 2024, NATR was affected by macroeconomic headwinds in China and slowing consumer spending in the U.S.

Given the softness in NATR’s Asia segment, the company reset its full-year 2024 net sales and adjusted EBITDA guidance to $436-$445 million and $39-$42 million from its previous ranges of $455-$480 million and $42-$48 million, respectively. Net sales and adjusted EBITDA in 2023 totaled $445.3 million and $40.4 million, respectively.

LifeVantage Corporation (NASDAQ: LFVN) dipped 2.7% in August. Nonetheless, LFVN’s YTD gain is 32.7%, the strongest return for any large cap DSCI member. Since the March 1, 2020 establishment of the DSCI, LFVN has declined 33.2%.

On August 28, LFVN reported revenue of $48.9 million in 4Q FY 2024 (the quarter ended June 30, 2024), down 9.8% from $54.2 million in the year-ago period. LFVN’s adjusted EBITDA was $4.8 million in 4Q FY 2024, flat versus 4Q FY 2023. LFVN’s focus on operational excellence allowed the company to post flat adjusted EBITDA despite top-line headwinds stemming from challenging macroeconomic conditions.

LFVN introduced revenue and adjusted EBITDA guidance ranges for FY 2025 (twelve months ending June 30, 2025) of $200-$210 million and $18-$21 million, respectively. The company’s FY 2024 revenue totaled $200.2 million, and its FY 2024 adjusted EBITDA was $17.0 million.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking set performed approximately in line with the large cap DSCI group in August. One small cap rose during the month, five fell, and one was unchanged.

Mannatech, Incorporated (NASDAQ: MTEX), a global health and wellness company, posted the best performance (+2.9%) of any small cap DSCI member in August. This appreciation cut MTEX’s YTD loss to 6.8%. On August 13, MTEX reported 2Q 2024 revenue and EPS of $27.7 million and a loss of $0.33 versus $32.6 million and a loss of $0.59, respectively, in the year-ago period.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 5.9 days in mid-August, up from 5.5 days at the end of July and 5.6 days in mid-July. The biggest absolute jump in DTC in mid-August from the end of July for a DSCI component was Tupperware Brand Corporation’s (NYSE: TUP) increase to 8.5 days from 3.3 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index rose slightly in August from July. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks in August was about 91%, up from 90% in July. Conversely, the percentage of stocks which analysts recommended selling was around 9% in August and 10% in July.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Jumps 6.3% in July, Outperforming the DJIA for the Second Straight Month. DSCI Has Posted Gains in Eight of the Last Nine Months.

In July, the Direct Selling Capital Advisors Direct Selling Index (DSCI) posted its eighth monthly gain in the last nine. The index rose 6.3% during the month, outperforming the Dow Jones Industrials Average (DJIA) which added 4.4% in July. Over the first seven months of 2024, the DSCI increased 6.2%, while the DJIA gained 8.4%.

Large cap direct selling stocks as a group dramatically outperformed their smaller cap peers in July. Eight of the nine large components rose during the month, while only three of the seven small cap members posted gains. Furthermore, four large cap DSCI components increased by more than 10% in July, and the one large cap stock which declined (USANA Health Sciences, Inc.) fell by only 1.4%. In contrast, just one small cap member gained by double-digit percentage points during the month, and two fell by more than 10%.

From a longer-term perspective, the DSCI has gained an aggregate 34.4% since its March 1, 2020 inception. The DJIA has outperformed the direct selling index over this period. Since March 1, 2020, the DJIA has increased 60.7%.

The stock market’s solid performance in July was based on some unusual building blocks. Most notably, small caps, a long-neglected group, drove the rally during the month, while the mega-cap tech stocks which had powered market gains over the first six months of 2024 stumbled. More specifically, the S&P SmallCap 600 Index gained 10.7% in July, while the Communications Services and Information Technology sectors of the S&P 500 fell 4.2% and 2.1%, respectively.

The triggering event for the small cap rally during the month seems to have been the July 11^th Bureau of Labor Statistics announcement that CPI inflation declined 0.1% in June 2024 from May 2024. In turn, many investors became more confident that the Fed may cut interest rates in September. And since small cap companies are more likely to carry floating rate debt than large companies, they would be primary beneficiaries of such a decision by the central bank.

Some of the dollars which rotated from mega-cap stocks into the shares of smaller companies clearly were invested in the shares of DSCI components. As noted previously, nearly every direct selling stock with a market cap of $100 million or more posted a gain during July. The group has not enjoyed such across-the-board increases for many months.

Looking Forward

The direct selling stocks have mainly completed reporting their 2Q 2024 results, so the performance of DSCA index components this month will probably be dictated by the general direction of the stock market. So far in August, this linkage has proved problematic, as a disappointing July jobs report (released August 2^nd) sparked fears of a U.S. recession. In turn, investors decided to sell virtually all stocks — particularly mega-cap tech stocks and shares linked to AI, the strongest investment theme of 1H 2024 — and to ask questions later. Over the three trading days from August 1 through August 5, the DJIA fell 5.2%, its worst three-day loss since June 2022. (Constructively, the DJIA rallied on August 6th, cutting into those losses.)

Over the medium term, a still-plausible scenario is that a soft economic landing, accompanied by falling inflation, can be achieved. The Fed’s cutting interest rates, potentially multiple times over the next few months, is likely a necessary part of this storyline. Taken together, all this could suggest that the recent outperformance of small caps—and therefore direct selling stocks—could prove more of a permanent move than a gap higher that will be retraced in short order. Small caps also rallied in late 2023, but that move was cut short when early 2024 inflation levels proved higher than expected, short circuiting the near-term chances of a Fed rate cut then. Today, inflationary measures have shown improvement for several months, and the Fed seems almost certain to decrease rates soon.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million.The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI rose in July and outperformed the DJIA during the month. The DSCI gained 6.3% in July, nearly two full percentage points ahead of the 4.4% increase for the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 34.4% since that date versus the 60.7% appreciation of the DJIA over the same period.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) added 2.7% in July, bringing its YTD gain to 7.6%. BWMX’s performance over the first seven months of 2024 made it the third best performing large cap DSCI member over that period. Since the March 1, 2020 DSCI inception, BWMX is up 59.3%.

On July 25, BWMX reported 2Q 2024 consolidated net revenue of 3.39 billion pesos, up 5.3% from 3.22 billion pesos in 2Q 2023. Sales at all three of BWMX’s segments rose in the quarter. On the other hand, the company’s 2Q 2024 EBITDA of 656.1 million pesos was 8.5% lower than in the year-ago period as what is considered a temporary gross margin contraction in 2Q 2024 at Betterware Mexico adversely impacted results.

BWMX expects robust results in the second half of 2024. Consequently, the company reiterated the full-year 2024 net revenue and EBITDA guidance it issued at the beginning of 2024. More specifically, BWMX projects its 2024 revenue will range from 13.8 to 14.4 billion pesos, up from 13.0 billion pesos in 2023. Similarly, the company expects its 2024 EBITDA will increase to 2.9-3.1 billion pesos versus 2.721 billion pesos last year.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) rose 6.5% in July. Nevertheless, NUS is down 42.2% YTD, the second worst mark of any large cap DSCI component. Since the March 2020 establishment of the DSCI, NUS has lost 52.4%. In comparison, the direct selling stock index and the Dow Jones Industrial Average have gained 34.4% and 60.7%, respectively, over this 53-month period.

In early May, NUS reported 1Q 2024 revenue and adjusted EPS of $417.3 million and $0.09, both of which were down from $481.5 million and $0.37, respectively, in the year ago period. Gross margin slipped to 70.5% in 1Q 2024 versus 72.3% in 1Q 2023. NUS’ Rhyz business grew nearly 60% in the quarter versus 1Q 2023, but the company’s Nu Skin core business retreated as the weak macroeconomic environment impacted affiliate and customer growth around the globe. NUS plans to report its 2Q 2024 financial results after the stock market closes on August 8.

For the full-year 2024, NUS projects revenue and non-GAAP EPS of $1.73-$1.87 billion and $0.95-$1.35, respectively. The comparable figures for full year 2023 were $1.97 billion and $1.85, respectively.

Herbalife Nutrition, Inc. (NYSE: HLF) jumped 18.2% in July, marking the third successive month in which HLF was one of the top performing large cap DSCI components. Nevertheless, HLF still lost 19.5% of its value over the first seven months of 2024. Furthermore, the stock is down 62.1% since the establishment of the DSCI on March 1, 2020. This represents the second worst performance for any large-cap DSCI component which has traded continuously since index inception.

On July 30, HLF reported 2Q 2024 sales of $1.28 billion, down 2.5% from $1.31 billion in 2Q 2023. Notably, foreign exchange headwinds caused sales to decline 2.7%, so absent this effect, revenue would have risen slightly. HLF’s adjusted EBITDA reached $180.0 million in 2Q 2024, up from $169.6 million in the year-ago period.

Even more important, HLF’s adjusted EBITDA was its highest figure in seven quarters. A key factor in this improvement: the number of new distributors joining HLF on a worldwide basis increased 12% on a year-over-year basis in 2Q 2024, ending twelve consecutive quarters of year-over-year declines.

HLF implemented further actions related to its organizational restructuring plan in 2Q 2024. The plan should deliver annual savings of at least $80 million beginning in 2025, with $50 million expected to be achieved in 2024. At least $10 million of this amount was realized during 2Q 2024. HLF expects to incur total program pretax expenses of at least $70 million, primarily related to severance expenses.

With the constructive 2Q 2024 results, HLF slightly increased its full-year 2024 adjusted EBITDA guidance to $560 to $600 million, up from $550 to $590 million. On the other hand, HLF downgraded its estimate of full-year revenue growth to a range of negative 3.5% to positive 1.5% from the 0% to positive 5% range it issued on May 1, 2024.

Medifast, Inc. (NYSE: MED) shares inched 0.5% higher in July, slightly cutting its YTD loss to 67.4%, the weakest performance of any DSCI member. Since the March 1, 2020 establishment of the DSCI, MED has declined 72.4%.

On August 5, MED reported 2Q 2024 revenue of $168.6 million, down 43% from $296.2 million in 2Q 2023. The company’s adjusted diluted EPS fell more sharply to $0.92 in 2Q 2024 from $2.77 in the year-ago period. The number of active earning OPTAVIA coaches decreased to 33,900 in 2Q 2024 from 53,100 in 2Q 2023. In addition, the average revenue per active earning OPTAVIA coach was $4,972 in 2Q 2024, down from $5,578 in the year-ago period, driven by continued pressure on customer acquisition. MED expects its 3Q 2024 revenue and adjusted diluted EPS will be $125-$145 million and a loss of $0.05 to a loss of $0.70, respectively.

MED is realigning its business to respond to the evolving dynamics of the weight loss industry and to transform its business model. In May, MED launched the first phase of its multimillion dollar national marketing campaign. The campaign will highlight the GLP-1 Lifestyle Program, a holistic approach to medical weight loss tailored to support the needs of those utilizing GLP-1 medications.

In July, shares of USANA Health Sciences, Inc. (NYSE: USNA) lost 1.4%, which brought USANA’s YTD loss to 16.8%. Since the creation of the DSCI on March 1, 2020, USANA shares have lost 32.5% compared with gains of 34.4% and 60.7% for the direct selling index and the DJIA, respectively.

On July 23, USANA reported 2Q 2024 revenue and diluted EPS of $213 million and $0.54, both down from $238 million and $0.89, respectively, in the year-ago period. Ongoing macroeconomic pressures in several of the company’s key markets continue to impact consumer spending. The strengthening U.S. dollar also hurt 2Q 2024 revenue and earnings. As an offset, USANA plans to offer a more robust promotional calendar over the balance of 2024. Due to the weaker-than-expected 2Q 2024 results, the company reduced its 2024 revenue and diluted EPS forecasts to $850-$880 million and $2.40-$2.55 from prior projections of $850-$920 million and $2.40-$3.00, respectively.

eXp World Holdings, Inc. (NASDAQ: EXPI), the DSCI’s second largest component, soared 27.3% in July, cutting its YTD loss to 7.5%. EXPI shares have appreciated an aggregate 200.4% over the 53 months the DSCI has been computed, the best long-term mark of any DSCI member.

On July 31, EXPI, the fastest growing real estate brokerage in the world, reported 2Q 2024 revenue and adjusted EBITDA of $1.295 billion and $32.8 million, respectively. These measures compared favorably with $1.23 billion and $26.8 million, respectively, in 2Q 2023. The increased productivity of EXPI’s agents translated into higher revenue, offsetting declines in the U.S. real estate market. This, together with improved business efficiencies, allowed 2Q 2024 adjusted EBITDA to rise 22%.

EXPI’s transaction volume in the just-completed quarter increased 7% from 2Q 2023 to $51.9 billion. Agents and brokers on the company’s platform totaled 87,111 as of June 30, 2024, down 1% from June 30, 2023, due primarily to the exit of unproductive agents.

A leading provider of financial services in the U.S. and Canada, and the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) increased 6.4% in July. Year to date, PRI has gained 22.4%, the second best return for any large cap DSCI component. PRI has increased 129.8% since March 1, 2020, the third best long-term performance for any direct selling stock.

In early May, PRI reported 1Q 2024 revenue of $742.8 million, up 8% from $690.0 million in the year-ago period. The company’s adjusted operating EPS grew at an even faster pace, reaching $3.91 in 1Q 2024 versus $3.57 in 1Q 2023. PRI’s impressive results in the March 2024 quarter reflected the stability of its large in-force block of term life insurance, higher investment product sales, appreciation of client asset values, and the positive impact of higher interest rates on net investment income. PRI plans to release its 2Q 2024 results after the stock market closes on August 7.

On July 16, PRI announced it plans to exit its senior health business by relinquishing ownership of e-TeleQuote Insurance, Inc. The subsidiary, which PRI acquired in July 2021, does not have a clear path toward profitability within an acceptable timeframe in the increasingly challenging senior health distribution market.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) jumped 13.5% in July, trimming its YTD loss to 1.0%. Over the 53 months the DSCI has been calculated, NATR has gained 120.3%, the fourth best mark of any direct selling index stock over that period.

In early May, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 1Q 2024 net sales of $111.0 million, up 2% from $108.6 million in the year-ago period. Adjusted EBITDA in 1Q 2024 totaled $9.2 million, up slightly from $9.1 million in 1Q 2023. NATR’s North American business grew 5% in 1Q 2024, helped by strong digital sales. On the other hand, inflationary pressures and volatile foreign exchange rates negatively impacted ingredient costs and therefore gross margins. NATR plans to announce 2Q 2024 results after the stock market closes on August 8.

NATR expects its full-year 2024 net sales and adjusted EBITDA to range from $455 to $480 million and $42 to $48 million, respectively. Net sales and adjusted EBITDA in 2023 totaled $445.3 million and $40.4 million, respectively.

LifeVantage Corporation (NASDAQ: LFVN) soared 27.4% in July, the best mark of any DSCI member. This gain boosted LFVN’s YTD gain to 36.3%, the strongest return for any large cap DSCI member. Since the March 1, 2020 establishment of the DSCI, LFVN has declined 31.3%.

In early May, LFVN reported revenue of $48.2 million in 3Q FY 2024 (the quarter ended March 31, 2024), down 10.2% from $53.7 million in the year-ago period. On the other hand, LFVN’s adjusted EBITDA increased in 3Q FY 2024, reaching $5.1 million compared with $3.3 million in 3Q FY 2023. The operating environment remains challenging, impacting LFVN’s revenue, but productivity gains and improving revenue trends per Consultant allowed the company’s adjusted EBITDA to increase in the quarter.

LFVN reduced its revenue guidance for FY 2024 (twelve months ended June 30, 2024) to $202 to $205 million from the prior $207 to $213 million. The company still expects its FY 2024 adjusted EBITDA to range from $16 to $18 million.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking set underperformed the large cap DSCI group in July. Three small caps rose during the month, three fell, and one was unchanged.

Educational Development Corporation (NASDAQ: EDUC), a publishing company specializing in books for children, posted the best performance (+11.9%) of any small cap DSCI member in July. This appreciation added to EDUC’s DSCI-best YTD gain of 78.4%. In early July, EDUC reported 1Q FY 2025 (quarter ended May 31, 2024) revenue and EPS of $10.0 million and a loss of $0.15 compared with $14.5 million and a loss of 11 cents, respectively, in 1Q FY 2024.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart, short interest in DSCI stocks was 5.6 days in mid-July, up from 5.3 days at the end of June and 5.5 days in mid-June. The biggest absolute jump in DTC in mid-July from the end of June for a DSCI component was NATR’s increase to 2.4 days from 1.5 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index fell in July from June. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks in July was about 89%, down from 91% in June. Conversely, the percentage of stocks which analysts recommended selling was around 11% in July and 9% in June.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Rises 2.1% in June, Outperforming the DJIA on the Month. DSCI Has Posted Gains in Seven of the Last Eight Months.

The Direct Selling Capital Advisors Direct Selling Index (DSCI) rose 2.1% in June. The index, which has posted gains in seven of the last eight months, outperformed the 1.1% increase registered by the Dow Jones Industrials Average (DJIA) in June. Over the first half of 2024, the DSCI inched down 0.1%, while the DJIA gained 3.8%.

Helped by a 4.7% monthly gain by the DSCI’s largest cap stock, Primerica, Inc. (NYSE: PRI), large cap direct selling stocks as a group outperformed their smaller cap peers for the second consecutive month in June. Three of the nine large components rose during the month, while only one of the seven small cap members posted a gain. Many of the direct selling stocks which declined during the month dropped quite sharply. Four large cap and three small cap components fell by more than 10%. Conversely, no DSCI stock recorded a double digit percentage point increase in June.

From a longer-term perspective, the DSCI has gained an aggregate 26.5% since its March 1, 2020 inception. The DJIA has outperformed the direct selling index over this period. Since March 1, 2020, the DJIA has increased 54.0%.

In June, the stock market has continued to build on the (essentially uninterrupted) rally that commenced in early May. The S&P 500 Index increased 4.8% in June on top of a similar-size gain in May. Tamer than expected May CPI and PPI inflation readings, as well as a Fed policy statement and Chairman Jerome Powell’s tone during his press conference (on June 12th) that pointed to an economic soft landing, have buoyed investor sentiment.

The Fed’s tone, these constructive inflation readings, plus other mainly benign economic releases (moderating retail sales and gently rising jobless claims) have likewise positively affected the bond market. Ten-year Treasury yields dropped from 4.69% at the end of April to 4.34% at the end of June.

Looking Forward

The direct selling stocks will not begin reporting their 2Q 2024 results until late July, so the performance of DSCA index components this month will probably be dictated by the general direction of the stock market. Assuming consumers stay employed and inflation continues to cool, both the economy and the stock market seem likely to continue to gain. The linkage is probably the reason investors are willing to accept delayed (and potentially fewer) Fed rate cuts versus faster and broader expectations just a handful of months ago.

Historically, July has been a very good month for the stock market. Indeed, it has been the best calendar month of the year for stocks. According to Dow Jones Market Data, the S&P 500 Index has gained 1.7% on average in July since 1928. Furthermore, e-trade data shows that the stock market has posted gains in nine of the last ten Julys.

A concern is the narrowing of the stock market rally as the largest tech stocks are again outperforming virtually all other stock groups. However, such a leadership position seems deserved as big-cap tech as a group is posting impressive earnings results, and investors are realizing these stocks are less economically sensitive than they were just a few years ago.

NVIDIA Corporation, probably the most important US stock, and other high-performing, high-valuation leaders like Chipotle Mexican Grill, Inc., have given back some of their outsized 2024 gains over the last two weeks, but that action feels more like conventional profit-taking than the early stages of a correction.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI rose in June and outperformed the DJIA during the month. The DSCI gained 2.1% in June, about one full percentage point ahead of the 1.1% increase for the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 26.5% since that date versus the 54.0% appreciation of the DJIA over the same period.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) fell 12.3% in June, reducing its YTD gain to 4.8%. Nevertheless, BWMX’s performance over the first half of 2024 made it the third best performing large cap DSCI member over that period. Since the March 1, 2020 DSCI inception, BWMX is up 55.1%.

In late April, BWMX reported 1Q 2024 consolidated net revenue and EBITDA of 3.60 billion pesos and 755.4 million pesos, up 10.4% and 15.4% from 3.26 billion pesos and 654.6 million pesos, respectively, in 1Q 2023. Growth in BWMX’s Betterware and Jafra brands in Mexico boosted both sales and cash flow in 1Q 2024. Furthermore, EBITDA increased markedly in 1Q 2024 despite a temporary increase in Betterware Mexico’s distribution costs.

Betterware de Mexico transferred its stock listing to the NYSE from the NASDAQ on June 7, 2024. Its symbol, BWMX, remained the same. BWMX believes the NYSE platform, which combines world-class technology with human insight, will create long-term value for its shareholders.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) dropped a DSCI-worst 21.0% in June. This performance brought NUS’s YTD loss to 45.7%, the second worst mark of any large cap DSCI component. Since the March 2020 establishment of the DSCI, NUS is down 55.3%. In comparison, the direct selling stock index and the Dow Jones Industrial Average have gained 26.5% and 54.0%, respectively, over this 52-month period.

In early May, NUS reported 1Q 2024 revenue and adjusted EPS of $417.3 million and $0.09, down from $481.5 million and $0.37, respectively, in the year ago period. Gross margin slipped to 70.5% in 1Q 2024 versus 72.3% in 1Q 2023. NUS’ Rhyz business grew nearly 60% in the quarter versus 1Q 2023, but the company’s Nu Skin core business retreated as the weak macroeconomic environment impacted affiliate and customer growth around the globe.

For the full-year 2024, NUS maintained its sales and non-GAAP EPS forecasts of $1.73-$1.87 billion and $0.95-$1.35, respectively. The comparable figures for full year 2023 are $1.97 billion and $1.85, respectively.

Herbalife Nutrition, Inc. (NYSE: HLF) added 0.9% in June. This marked the second successive month in which HLF was one of the top two performing large cap DSCI components. However, HLF still lost 31.9% of its value over the first half of 2024. Furthermore, the stock is down 67.9% since the establishment of the DSCI on March 1, 2020. This represents the second worst performance for any large-cap DSCI component which has traded continuously since index inception.

In early May, HLF reported 1Q 2024 sales of $1.26 billion, up slightly from $1.25 billion in the year-ago period. The company’s adjusted diluted EPS declined to $0.49 in the just-completed quarter from $0.54 in 1Q 2023. HLF’s 1Q 2024 gross profit margin rose to an impressive 77.5% in 1Q 2024 from 76.2% in 1Q 2023.

In late March, HLF announced a new organizational restructuring plan. It should deliver annual savings of at least $80 million beginning in 2025, with $40 million expected to be achieved in 2024. HLF expects to incur total program pretax expenses of at least $60 million, primarily related to severance expenses.

In late June, HLF appointed e-commerce and media technology executive Perkins Miller to its board of directors. Mr. Miller is the CEO of Fandom, the world’s largest fan platform where fans immerse themselves in imagined worlds across entertainment and gaming.

HLF expects that its 2024 net sales will increase 0% to 5% from $5.062 billion in 2023, and its 2024 adjusted EBITDA will reach $550 to $590 million versus $570.6 million in 2023. The company plans to release its 2Q 2024 financial results after the stock market closes on July 31.

Medifast, Inc. (NYSE: MED) shares dropped 15.2% in June, bringing its YTD loss to 67.5%, the weakest performance of any DSCI member. Since the March 1, 2020 establishment of the DSCI, MED has declined 72.5%.

In late April, MED reported 1Q 2024 revenue of $174.7 million, down 50% from $349.0 million in 1Q 2023. The company’s adjusted diluted EPS fell even more sharply to $0.66 in 1Q 2024 from $3.67 in the year-ago period. The number of active earning OPTAVIA coaches decreased to 37,800 in 1Q 2024 from 58,700 in 1Q 2023. In addition, the average revenue per active earning OPTAVIA coach was $4,623 in 1Q 2024, down from $5,945 in the year-ago period, driven by continued pressure on customer acquisition. MED expects its 2Q 2024 revenue and adjusted diluted EPS will be $150-$170 million and $0.05-$0.40, respectively.

MED is realigning its business to respond to the evolving dynamics of the weight loss industry and to transform its business model. In May, MED launched the first phase of its multimillion-dollar national marketing campaign. The campaign will highlight the GLP-1 Lifestyle Program, a holistic approach to medical weight loss tailored to support the needs of those utilizing GLP-1 medications.

In June, US News and World Report recognized MED as one of the nation’s “Best Companies to Work For” in 2024-2025. This recognition marks MED’s second consecutive year of inclusion on the list.

In June, shares of USANA Health Sciences, Inc. (NYSE: USNA) fell 5.0%, which brought USANA’s YTD loss to 15.6%. Since the creation of the DSCI on March 1, 2020, USANA shares have lost 31.6% compared with gains of 26.5% and 54.0% for the direct selling index and the DJIA, respectively.

In late April, USANA reported 1Q 2024 revenue and diluted EPS of $228 million and $0.86, both down from $248 million and $0.95, respectively, in the year-ago period. USANA posted solid results in China in 1Q 2024 due to a successful sales initiative, but the company’s performance in other markets did not meet management’s expectations. USANA is working to accelerate its business in these markets over the remainder of 2024. Despite a slower-than-expected 1Q 2024, USANA reiterated its full-year 2024 revenue and diluted EPS guidance ranges of $850-$920 million and $2.40-$3.00, respectively.

In June, USANA was approved to join the Direct Selling Association of the Philippines, that country’s national trade association of the companies engaged in the business of direct selling and network marketing. USANA first established a presence in the Philippine market fifteen years ago.

eXp World Holdings, Inc. (NASDAQ: EXPI), the DSCI’s second largest component, inched 0.6% higher in June, cutting its YTD loss to 27.3%. EXPI shares have appreciated an aggregate 136.0% over the 52 months the DSCI has been computed, the best long-term mark of any DSCI member.

In early May, EXPI, the fastest growing real estate brokerage in the world, reported 1Q 2024 revenue and adjusted EBITDA of $943 million and $11.0 million versus $848 million and $14.6 million, respectively, in 1Q 2023. The real estate market remained challenging in 1Q 2024, but increased agent productivity, a rise in average home sales prices, and increased international production allowed EXPI’s revenue to rise in 1Q 2024. Higher operating costs negatively impacted the company’s EBITDA in 1Q 2024.

EXPI’s transaction volume in the just-completed quarter increased 12% to $37.2 billion versus 1Q 2023. Agents and brokers on the company’s platform totaled 85,780 as of March 31, 2024, down 2% from March 31, 2023 due primarily to the exit of unproductive agents.

A leading provider of financial services in the US and Canada, and the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) increased 4.7% in June, the best mark of any direct selling index member. Year to date, PRI has gained 15.0%, the best return for any large cap DSCI component. Even more important, PRI has increased 115.9% since March 1, 2020, the third best long-term performance for any direct selling stock.

In early May, PRI reported 1Q 2024 revenue of $742.8 million, up 8% from $690.0 million in the year-ago period. The company’s adjusted operating EPS grew at an even faster pace, reaching $3.91 in 1Q 2024 versus $3.57 in 1Q 2023. PRI’s impressive results in the just-completed quarter reflected the stability of its large in-force block of term life insurance, higher investment product sales, appreciation of client asset values, and the positive impact of higher interest rates on net investment income. PRI repurchased about 466,000 of its own shares in 1Q 2024 for $109 million.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) fell 1.6% in June, bringing its 1H 2024 loss to 12.8%. More constructively, over the 52 months the DSCI has been calculated, NATR has gained 94.1%, the fourth best mark of any direct selling index stock over that period.

In early May, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 1Q 2024 net sales of $111.0 million, up 2% from $108.6 million in the year-ago period. Adjusted EBITDA in 1Q 2024 totaled $9.2 million, up slightly from $9.1 million in 1Q 2023. NATR’s North American business grew 5% in 1Q 2024, helped by strong digital sales. On the other hand, inflationary pressures and volatile foreign exchange rates negatively impacted ingredient costs and therefore gross margins.

NATR continues to expect its full-year 2024 net sales and adjusted EBITDA to range from $455 to $480 million and $42 to $48 million, respectively. Net sales and adjusted EBITDA in 2023 totaled $445.3 million and $40.4 million, respectively.

LifeVantage Corporation (NASDAQ: LFVN) dropped 15.6% in June. This loss trimmed its YTD gain to 7.0%. Since the March 1, 2020 establishment of the DSCI, LFVN has declined 46.1%.

In early May, LFVN reported revenue of $48.2 million in 3Q FY 2024 (the quarter ended March 31, 2024), down 10.2% from $53.7 million in the year-ago period. On the other hand, LFVN’s adjusted EBITDA increased in 3Q FY 2024, reaching $5.1 million compared with $3.3 million in 3Q FY 2023. The operating environment remains challenging, impacting LFVN’s revenue, but productivity gains and improving revenue trends per Consultant allowed the company’s adjusted EBITDA to increase in the quarter.

LFVN reduced its revenue guidance for the full year FY 2024 (twelve months ended June 30, 2024) to $202 to $205 million from the prior $207 to $213 million. The company still expects its FY 2024 adjusted EBITDA to range from $16 to $18 million.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking set underperformed the large cap DSCI group in June. Only one small cap rose during the month; five fell; and one was unchanged.

Natural Health Trends Corp. (NASDAQ: NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness, and “quality of life” products, posted the best performance (+2.7%) of any small cap DSCI member in June. This increase added to its impressive YTD gain of 21.2%. In early May, NHTC reported 1Q 2024 revenue and EPS of $11.0 million and $0.02 versus $11.9 million and $0.02, respectively, in 1Q 2023.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart above, short interest in DSCI stocks was 5.5 days in mid-June, up from 5.3 days at both the end of May and in mid-May. The biggest absolute jump in DTC in mid-June from the end of May for a DSCI component was EXPI’s increase to 19.3 days from 17.6 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index rose slightly in June from May. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks in June was about 91%, up from 90% in May. Conversely, the percentage of stocks which analysts recommended selling was around 9% in June and 10% in May.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Jumps 6.7% in May, Approximately Tripling the 2.3% Gain for the DJIA. DSCI Still Trails the DJIA on a YTD Basis, But the Gap Narrowed in May.

The Direct Selling Capital Advisors Direct Selling Index (DSCI) rose 6.7% in May, its sixth gain in the last seven months. This increase represented a marked outperformance versus the Dow Jones Industrials Average (DJIA), which added 2.3% during May. Over the first five months of 2024, the DSCI fell 2.1%, while the DJIA gained 2.6%.

After April 2024 marked the end of a long streak of large cap DSCI member outperformance versus their smaller cap peers, large cap direct selling stocks as a group reasserted themselves in May. Five of the eight large caps rose in the month, four by more than 10%, while three declined, one by double digit percentage points. Conversely, only three of the eight small cap members gained in May; four lost ground and one was unchanged. Two small caps increased and two fell during the month by more than 10%.

From a longer-term perspective, the DSCI has gained an aggregate 23.9% since its March 1, 2020 inception. The DJIA has outperformed the direct selling index over this period. Since March 1, 2020, the DJIA has increased 52.3%.

After stumbling in April on fears that inflation pressures could be persistent enough that the Federal Reserve may be unable to cut interest rates for some time, the stock market roared back in May (and in the first week of June). As noted above, the DJIA added 2.3% in May. The other major headline indices gained even more: the S&P 500 and the NASDAQ rose 4.8% and 6.9%, respectively, during the month.

The stock market was buoyed, in sequence, in May by: 1) Fed Chairman Powell’s May 1 press conference in which he emphasized that another rate cut this cycle is unlikely and that he expects inflation to continue to come down; 2) a Goldilocks-type April jobs report which included slowing wage increases; and 3) a slight moderation in both consumer and wholesale April inflation readings. In turn, two-year and ten-year Treasury yields each declined about 20 basis points in May.

Another factor which seemed to lift stocks in May was a record quantity of stock buyback announcements. According to Birinyi Associates, a total of 154 companies reported plans to buy back just over $200 billion of their shares during the month. Buybacks have played a major role in the stock market’s strong performance over the first five months of the year. Companies in the S&P 500 Index repurchased $202 billion of their shares in 1Q 2024, the highest mark since $207 billion of repurchases in 3Q 2022.

Looking Forward

The direct selling stocks will not begin reporting their 2Q 2024 results until late July, so the performance of DSCA index components in June will likely be driven by the general direction of the stock market until then. Over the week ended June 7, the headline figures in the May employment report (released June 7), including hourly wage growth, were hotter than expected. On the other hand, ISM manufacturing data for May (released June 3) came in weaker than anticipated. Such macro data releases, together with consumer and wholesale inflation readings, seem likely to continue to be significant market-moving events for some time. The employment and inflation data will likely be key to the interest rate policy statement the Fed releases at the conclusion of its next rate-setting meeting on June 12.

The most likely outcome of all this seems to be a continuation of choppy stock market conditions. Notably, questions about the implications of the upcoming US presidential election and the longer-term direction of Treasury yields and consumer spending may not be resolved for months.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI rose in May and outperformed the DJIA during the month. The DSCI gained 6.7% in May, about triple the 2.3% increase for the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 23.9% since that date versus the 52.3% appreciation of the DJIA over the same period.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) inched 1.0% lower in May, cutting its YTD gain to 19.5%. Nevertheless, BWMX’s performance over the first five months of 2024 made it the best performing large cap DSCI member over that period. Since the March 1, 2020 DSCI inception, BWMX is up 76.9%.

In late April, BWMX reported 1Q 2024 consolidated net revenue and EBITDA of 3.60 billion pesos and 755.4 million pesos, up 10.4% and 15.4% from 3.26 billion pesos and 654.6 million pesos, respectively, in 1Q 2023. Growth in BMWX’s Betterware and Jafra brands in Mexico boosted both sales and cash flow in 1Q 2024. Furthermore, EBITDA increased markedly in 1Q 2024 despite a temporary increase in Betterware Mexico’s distribution costs. BWMX projects full year 2024 net revenue of 13.8-14.4 billion pesos, up from 13.01 billion pesos in 2023. Similarly, the company’s EBITDA is expected to grow in 2024, reaching 2.9-3.1 billion pesos compared with 2.72 billion pesos in 2023.

Betterware de Mexico transferred its stock listing to the NYSE from the NASDAQ on June 7, 2024. Its symbol, BWMX, remains the same. BWMX believes the NYSE platform, which combines world-class technology with human insight, will create long-term value for its shareholders.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) rose 13.5% in May, slicing its YTD loss to 31.3%. Since the March 2020 establishment of the DSCI, NUS is down 43.4%. In comparison, the direct selling stock index and the Dow Jones Industrial Average have gained 23.9% and 52.3%, respectively, over this 4 ¼-year period.

On May 8, NUS reported 1Q 2024 revenue and adjusted EPS of $417.3 million and $0.09, down from $481.5 million and $0.37, respectively, in the year ago period. Gross margin slipped to 70.5% in 1Q 2024 versus 72.3% in 1Q 2023. NUS’ Rhyz business grew nearly 60% in the quarter versus 1Q 2023, but the company’s Nu Skin core business retreated as the weak macroeconomic environment impacted affiliate and customer growth around the globe.

For the full-year 2024, NUS maintained its sales and non-GAAP EPS forecasts of $1.73-$1.87 billion and $0.95-$1.35, respectively. The comparable figures for full year 2023 are $1.97 billion and $1.85, respectively.

Herbalife Nutrition, Inc. (NYSE: HLF) popped 19.1% in May, making it the sharpest gaining large cap DSCI component during the month and continuing its volatile recent trading pattern. HLF gained 15.7% in March and fell 13.9% in April before its jump in May. Year to date, HLF has lost 32.5% of its value. Furthermore, the stock is down 68.2% since the establishment of the DSCI 4 ¼ years ago. This represents the worst performance for any large-cap DSCI component which has traded continuously since index inception.

In early May, HLF reported 1Q 2024 sales of $1.26 billion, up slightly from $1.25 billion in the year-ago period. The company’s adjusted diluted EPS declined to $0.49 in the just-completed quarter from $0.54 in 1Q 2023. HLF’s 1Q 2024 gross profit margin rose to a very impressive 77.5% in 1Q 2024 from 76.2% in 1Q 2023.

In late March, HLF announced a new organizational restructuring plan. It should deliver annual savings of at least $80 million beginning in 2025, with $40 million expected to be achieved in 2024. HLF expects to incur total program pretax expenses of at least $60 million, primarily related to severance expenses.

HLF expects that its 2024 net sales will increase 0% to 5% from $5.062 billion in 2023 and its 2024 adjusted EBITDA will reach $550 to $590 million versus $570.6 million in 2023.

Medifast, Inc. (NYSE: MED) shares declined 6.5% in May, bringing its YTD loss to 61.7%, the weakest performance of any DSCI member. Since the March 1, 2020 establishment of the DSCI, MED has declined 67.6%.

In late April, MED reported 1Q 2024 revenue of $174.7 million, down 50% from $349.0 million in 1Q 2023. The company’s adjusted diluted EPS fell even more sharply to $0.66 in 1Q 2024 from $3.67 in the year-ago period. The number of active earning OPTAVIA coaches decreased to 37,800 in 1Q 2024 from 58,700 in 1Q 2023. In addition, the average revenue per active earning OPTAVIA coach was $4,623 in 1Q 2024, down from $5,945 in the year-ago period, driven by continued pressure on customer acquisition.

MED is realigning its business to respond to the evolving dynamics of the weight loss industry and to transform its business model. On May 20, MED launched the first phase of its multimillion-dollar national marketing campaign. The campaign will highlight the GLP-1 Lifestyle Program, a holistic approach to medical weight loss tailored to support the needs of those utilizing GLP-1 medications.

MED expects its 2Q 2024 revenue and adjusted diluted EPS will be $150-$170 million and $0.05-$0.40, respectively.

In May, shares of USANA Health Sciences, Inc. (NYSE: USNA) rose 14.6%, the second best mark of any large cap DSCI component. USANA’s gain in May reduced its YTD loss to 11.2%. Since the creation of the DSCI on March 1, 2020, USANA shares have lost 28.0% compared with gains of 23.9% and 52.3% for the direct selling index and the DJIA, respectively.

In late April, USANA reported 1Q 2024 revenue and diluted EPS of $228 million and $0.86, both down from $248 million and $0.95, respectively, in the year-ago period. USANA posted solid results in China in 1Q 2024 due to a successful sales initiative, but the company’s performance in other markets did not meet management’s expectations. USANA is working to accelerate its business in these markets over the remainder of 2024. Despite the slower-than-expected 1Q 2024, USANA reiterated its full-year 2024 revenue and diluted EPS guidance ranges of $850-$920 million and $2.40-$3.00, respectively.

eXp World Holdings, Inc. (NASDAQ: EXPI), the DSCI’s second largest component, jumped 12.6% in May, cutting its YTD loss to 27.8%. EXPI shares have appreciated an aggregate 134.5% over the 51 months the DSCI has been computed, the best long-term mark of any DSCI member.

In early May, EXPI, the fastest growing real estate brokerage in the world, reported 1Q 2024 revenue and adjusted EBITDA of $943 million and $11.0 million versus $848 million and $14.6 million, respectively, in 1Q 2023. The real estate market remained challenging in 1Q 2024, but increased agent productivity, a rise in average home sales prices, and increased international production allowed EXPI’s revenue to rise in 1Q 2024. Higher operating costs negatively impacted the company’s EBITDA in 1Q 2024.

EXPI’s transaction volume in the just-completed quarter increased 12% to $37.2 billion versus 1Q 2023. Agents and brokers on the company’s platform totaled 85,780 as of March 31, 2024, down 2% from March 31, 2023 due primarily to the exit of unproductive agents.

A leading provider of financial services in the US and Canada, and the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) increased 6.6% in May, partially reversing a 16.2% decline in April. Year to date, PRI has gained 9.8%. Even more importantly, PRI has increased 106.2% since March 1, 2020, the third best long-term performance for any DSCI component.

On May 6, PRI reported 1Q 2024 revenue of $742.8 million, up 8% from $690.0 million in the year-ago period. The company’s adjusted operating EPS grew at an even faster pace, reaching $3.91 in 1Q 2024 versus $3.57 in 1Q 2023. PRI’s impressive results in the just-completed quarter reflected the stability of its large in-force block of term life insurance, higher investment product sales, appreciation of client asset values, and the positive impact of higher interest rates on net investment income. PRI repurchased about 466,000 of its own shares in 1Q 2024 for $109 million.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) dropped 21.2% in May, making it the worst performing direct selling index large cap member during the month. With the noticeable drop in May, NATR went from being the best performing large cap DSCI component through the first four months of 2024 (+12.5% through April 2024) to an 11.4% loss for the five months ended May 31, 2024. More constructively, over the 51 months the DSCI has been calculated, NATR has gained 97.3%, the fourth best mark of any direct selling index stock over that period.

On May 7, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 1Q 2024 net sales of $111.0 million, up 2% from $108.6 million in the year-ago period. Adjusted EBITDA in 1Q 2024 totaled $9.2 million, up slightly from $9.1 million in 1Q 2023. NATR’s North American business grew 5% in 1Q 2024, helped by strong digital sales. On the other hand, inflationary pressures and volatile foreign exchange rates negatively impacted ingredient costs and therefore gross margins.

NATR continues to expect its full-year 2024 net sales and adjusted EBITDA to range from $455 to $480 million and $42 to $48 million, respectively. Net sales and adjusted EBITDA in 2023 totaled $445.3 million and $40.4 million, respectively.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking set underperformed the large cap DSCI group in May. Three small caps rose during the month, four fell, and one was unchanged.

Tupperware Brands Corporation (NYSE: TUP), the designer and manufacturer of iconic storage products, posted the best performance (+64.2%) of any DSCI component in May. Nevertheless, TUP is still down 13.0% YTD. Following the engagement of its new auditor, KPMG LLC, in January 2024, TUP has filed 10-Q reports for each of the first three quarters of 2023. Furthermore, TUP announced in April 2024 that it is working to complete the preparation and filing of its 2023 10-K for the year ended December 30, 2023.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart above, short interest in DSCI stocks was 5.3 days in mid-May, flat versus 5.3 days at the end of April, and up from 5.0 days in mid-April. The biggest absolute jump in DTC in mid-May from the end of April for a DSCI component was HLF’s increase to 7.1 days from 5.9 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index was about flat for a third consecutive month in May. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks in March, April and May was about 90% in each month. Conversely, the percentage of stocks which analysts recommended selling was around 10% in each of the last three months.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Drops 15.6% in April, Ending a Streak of Five Consecutive Monthly Gains. The DSCI Flips from Outperforming the DJIA in 1Q 2024 to Underperforming over the First Four Months of 2024.

The Direct Selling Capital Advisors Direct Selling Index (DSCI) dropped 15.6% in April, abruptly ending a five-month winning streak. The Dow Jones Industrials Average (DJIA) also fell during the month, but its 5.0% decline was much less severe. Over the first four months of 2024, the DSCI is down 8.2%, while the DJIA eked out a 0.3% gain.

In a departure from a pattern that has held for most of the last twelve months, the large cap segment of the DSCI markedly underperformed the small cap group in April. All eight large caps fell during the month, six by more than 10%. Conversely, five of the eight small caps posted gains in April, two declined, and one was unchanged. One small cap component fell by double digit percentage points during the month.

From a longer-term perspective, the DSCI has gained an aggregate 16.1% since its March 1, 2020 inception. The DJIA has outperformed the direct selling index over this period. Since March 1, 2020, the DJIA has increased 48.8%.

Rising geopolitical tensions in the Middle East and consumer and wholesale inflation readings that stay stubbornly high, proved to be hurdles the stock market had difficultly surmounting in April. All market indices struggled. Even seemingly impregnable NVIDIA Corporation shares faced concerted selling in April. At one point, the stock was down 15% during the month—though it cut those losses during the last few trading days of April.

Perhaps the chief impediment to bringing inflation down to an acceptable level is the remarkable and durable strength of the economy. For example, retail sales were up a robust 0.7% in March 2024 (4% on a year-over-basis), and the TSA reports that 8% more people boarded airliners in 1Q 2024 versus the year-ago period (206 million passengers in 1Q 2024 compared with 191 million in 1Q 2023).

In turn, bond investors pushed interest rates higher; the ten-year Treasury yield reached 4.69% at the end of April, up nearly 50 basis points since the end of March. There are obvious positive aspects of this data, but the upshot seems to be that any Fed rate cuts will be delayed until later in 2024 (see below).

Looking Forward

The direct selling stocks have mostly completed reporting their 1Q 2024 results, so the trading patterns of the DSCA index components in May will likely be greatly influenced by the general direction of the overall stock market. Constructively, two major events in late April/early May seem to have reinvigorated investor optimism.

First, at his April 30 news conference, Fed Chairman Powell pushed back against stagflation worries. He noted that while the central bank is not yet prepared to cut interest rates, the Fed does not see the need to increase rates given its “sufficiently restrictive” current monetary policy stance.

Second, the April jobs report, which was released on May 3, had a “Goldilocks” feel—not too hot, not too cold. Employers added 175,000 jobs during the month, and monthly wages increased at a fairly measured 0.2% pace in April, down from a 0.3% increase in March. On a year-over-year basis, wages have grown at a 3.9% rate, the slowest increase in two years. Many investors believe this report effectively eliminates the chance of a near-term rate hike and increases the chances of one or more rate cuts by the end of the year.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI fell in April and underperformed the DJIA during the month. The DSCI lost 15.6% in April versus a 5.0% decrease for the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 16.1% since that date, less than the 48.8% appreciation of the DJIA over the same period.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) dropped 15.8% in April; nevertheless, over the first four months of 2024 the stock still gained 20.7%, the best mark of any large cap DSCI member. Since the March 1, 2020 DSCI inception, BWMX is up 78.6%.

On April 25, BWMX reported 1Q 2024 consolidated net revenue and EBITDA of 3.60 billion pesos and 755.4 million pesos, up 10.4% and 15.4% from 3.26 billion pesos and 654.6 million pesos, respectively in 1Q 2023. Growth in BMWX’s Betterware and Jafra brands in Mexico boosted both sales and cash flow in 1Q 2024. Furthermore, EBITDA increased markedly in 1Q 2024 despite a temporary increase in Betterware Mexico’s distribution costs.

BWMX maintained its full-year 2024 guidance ranges. The company projects 2024 net revenue of 13.8-14.4 billion pesos, up from 13.01 billion pesos in 2023. Similarly, the company’s EBITDA is expected to grow in 2024, reaching 2.9-3.1 billion pesos compared with 2.72 billion pesos in 2023.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) lost 15.0% in April, adding to its 39.4% YTD loss. Since the March 2020 establishment of the DSCI, NUS is down 50.2%. In comparison, the direct selling stock index and the Dow Jones Industrial Average have gained 16.1% and 48.8%, respectively, over this 50-month period.

In mid-February, NUS reported 4Q 2023 revenue and adjusted EPS of $488.6 million and $0.37 versus $522.3 million and $0.89, respectively, in 4Q 2022. NUS’s 4Q 2023 results were affected by persistent macroeconomic pressures and disruptions associated with transforming the company’s business. As part of its 4Q 2023 earnings release, NUS slashed its dividend to a $0.24 annualized rate from $1.56.

For the full-year 2024, NUS projects sales and non-GAAP EPS of $1.73-$1.87 billion and $0.95-$1.35, both down from 2023 results of $1.97 billion and $1.85, respectively. The company plans to release its 1Q 2024 financial results after the stock market closes on May 8.

Herbalife Nutrition, Inc. (NYSE: HLF) fell 13.9% in April, reversing its 15.7% gain in March. Year to date, HLF has lost 43.3% of its value. Furthermore, the stock is down 73.3% since the establishment of the DSCI 4+ years ago. This represents the worst performance for any large-cap DSCI component which has traded continuously since index inception.

On May 1, HLF reported 1Q 2024 sales of $1.26 billion, up slightly from $1.25 billion in the year-ago period. This represents HLF’s second consecutive quarter of year-over-year sales growth. The company’s adjusted diluted EPS declined to $0.49 in the just-completed quarter from $0.54 in 1Q 2023. HLF’s 1Q 2024 gross profit margin rose to a very impressive 77.5% in 1Q 2024 from 76.2% in 1Q 2023.

On March 20, HLF announced a new organizational restructuring plan. It should deliver annual savings of at least $80 million beginning in 2025, with $40 million expected to be achieved in 2024. HLF expects to incur total program pretax expenses of at least $60 million, primarily related to severance expenses.

HLF reaffirmed that its 2024 net sales will increase 0% to 5% from $5.062 billion in 2023 and raised its projected 2024 adjusted EBITDA range by $10 million to $550 to $590 million versus $570.6 million in 2023.

Medifast, Inc. (NYSE: MED) shares dropped a DSCI-worst 28.2% in April. This brought its YTD loss to 59.0%, also the weakest performance of any DSCI member. Since the March 1, 2020 establishment of the DSCI, MED has declined 65.4%.

On April 29, MED reported 1Q 2024 revenue of $174.7 million, down 50% from $349.0 million in 1Q 2023. The company’s adjusted diluted EPS fell even more sharply to $0.66 in 1Q 2024 from $3.67 in the year-ago period. The number of active earning OPTAVIA coaches decreased to 37,800 in 1Q 2024 from 58,700 in 1Q 2023. In addition, the average revenue per active earning OPTAVIA coach was $4,623 in 1Q 2024, down from $5,945 in the year-ago period, driven by continued pressure on customer acquisition.

MED is realigning its business to respond to the evolving dynamics of the weight loss industry and to transform its business model. The company expects its 2Q 2024 revenue and adjusted diluted EPS will be $150-$170 million and $0.05-$0.40, respectively.

USANA Health Sciences, Inc. (NYSE: USNA) lost 14.4% in April, bringing its YTD loss to 22.5%. Since the creation of the DSCI on March 1, 2020, USANA shares have lost 37.2% compared with gains of 16.1% and 48.8% for the direct selling index and the DJIA, respectively.

On April 30, USANA reported 1Q 2024 revenue and diluted EPS of $228 million and $0.86, both down from $248 million and $0.95, respectively, in the year-ago period. USANA posted solid results in China in 1Q 2024 due to a successful sales initiative, but the company’s performance in other markets did not meet internal expectations. USANA is working to accelerate its business in these markets over the remainder of 2024. Despite the slower-than-expected 1Q 2024, USANA reiterated its full-year 2024 revenue and diluted EPS guidance ranges of $850-$920 million and $2.40-$3.00, respectively.

eXp World Holdings, Inc. (NASDAQ: EXPI), the DSCI’s second largest component, fell 3.6% in April. Despite the decline, EXPI was the best performing large cap DSCI member during the month, as the direct selling index lost 15.6% in April. YTD, EXPI is down 35.8%. More constructively, EXPI shares have appreciated an aggregate 108.4% over the 50 months the DSCI has been computed.

On May 1, EXPI, the fastest growing real estate brokerage in the world, reported 1Q 2024 revenue and adjusted EBITDA of $943 million and $11.0 million versus $848 million and $14.6 million, respectively, in 1Q 2023. The real estate market remained challenging in 1Q 2024, but increased agent productivity, a rise in average home sales prices, and increased international production allowed EXPI’s revenue to rise in 1Q 2024. Higher operating costs negatively impacted the company’s EBITDA in 1Q 2024.

EXPI’s transaction volume in the just-completed quarter increased 12% to $37.2 billion versus 1Q 2023. Agents and brokers on the company’s platform totaled 85,780 as of March 31, 2024, down 2% from March 31, 2023 due primarily to the exit of unproductive agents.

A leading provider of financial services in the U.S. and Canada, and the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) fell 16.2% in April, slicing its YTD gain to 3.0%. Despite its marked drop in April, PRI has increased 93.4% since March 1, 2020, the fourth best mark of any DSCI component.

On May 6, PRI reported 1Q 2024 revenue of $742.8 million, up 8% from $690.0 million in the year-ago period. The company’s adjusted operating EPS grew at an even faster pace, reaching $3.91 in 1Q 2024 versus $3.57 in 1Q 2023.PRI’s impressive results in the just-completed quarter reflected the stability of its large in-force block of term life insurance, higher investment product sales, appreciation of client asset values, and the positive impact of higher interest rates on net investment income. PRI repurchased about 466,000 of its own shares in 1Q 2024 for $109 million.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) fell 6.4% in April. Over the first four months of 2024, NATR appreciated 12.5%, the best performance of any large cap DSCI member. Furthermore, over the 50 months the DSCI has been calculated, NATR has gained 150.5%, the best mark of any direct selling index stock over that period.

In mid-March, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 4Q 2023 net sales of $108.9 million, up 6% from $102.7 million in the year-ago period. Adjusted EBITDA increased at a faster pace reaching $9.7 million in 4Q 2023, up 21% from $8.0 million in 4Q 2022.

NATR expects its full-year 2024 net sales and adjusted EBITDA to range from $465 to $480 million and $42 to $48 million, respectively. Net sales and adjusted EBITDA in 2023 totaled $445.3 million and $40.4 million, respectively.

NATR plans to release its 1Q 2024 financial results after the stock market closes on May 7.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking outperformed the large cap DSCI group in March. Five small caps rose during the month, two fell, and one was unchanged.

Educational Development Corporation (NASDAQ: EDUC), a publishing company specializing in books and educational products for children, posted both the best April 2024 and YTD stock performance of any DSCI component, gaining 4.3% and 86.2%, respectively, over those periods. In mid-January 2024, EDUC reported 3Q FY 2024 (quarter ended November 30, 2023) revenue and pretax earnings of $16.9 million and $2.7 million versus $30.3 million and just above breakeven, respectively, in 3Q FY 2023. EDUC will report its 4Q FY 2024 results on May 21.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart above, short interest in DSCI stocks was 5.0 days in mid-April, down from 5.4 days at both the end of March and in mid-March. The biggest absolute decrease in DTC to mid-April from the end of March for a DSCI component was PRI’s decline to 2.2 days from 3.0 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index was about flat in April versus March. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks in both months was about 90%. Conversely, the percentage of stocks which analysts recommended selling was around 10% in both March and April.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Increased 2.5% in March, Marking its Fifth Consecutive Monthly Gain. The DSCI Outperformed the DJIA Both in March and the First Quarter of 2024.

The Direct Selling Capital Advisors Direct Selling Index (DSCI) rose for a fifth successive month in March, gaining 2.5%. Furthermore, the index modestly outperformed the Dow Jones Industrials Average (DJIA), which registered a 2.2% increase during the month. Over the first three months of 2024, the DSCI and DJIA gained 8.7% and 5.6%, respectively.

Both large and small cap members of the DSCI performed well in March. Six large caps in the direct selling index rose during the month, while only two fell. Similarly, four small components gained ground in the last month of the first quarter, two fell, and two were unchanged. Consistent with recent trading patterns, the direct selling stocks were quite volatile in March. Nine of the 16 stocks moved by more than 10% during the period: seven rose and two fell by double figure percentage points.

From a longer-term perspective, the DSCI has gained an aggregate 37.6% since its March 1, 2020 inception. However, the DJIA has outperformed the direct selling index over this period. Since March 1, 2020, the DJIA has increased 56.7%.

Federal Reserve Chairman Jerome Powell provided a big assist to what seemed to be a faltering stock market in mid-March with his press conference remarks after the Central Bank’s March 20th rate setting meeting. The Fed kept its key overnight interest rate at 5.25%-5.50%, but its updated “dot plot” still pointed to three 25-basis point (bp) rate cuts in 2024. After the January and February 2024 CPI reports which showed hotter than expected core inflation, many investors had feared the rate-setting body would signal fewer (and later) rate reductions this year.

Instead, Chairman Powell adopted a dovish tone at his press conference with financial journalists on that date. He thinks the January and February data points were merely “bumps” on the path to a 2% inflation goal. (On April 9, the U.S Bureau of Labor Statistics reported that CPI inflation increased more rapidly than expected for a third consecutive month in March; it is not clear if this changes Mr. Powell’s views.). Equally important, he did not cite robust equity markets, a continued strong labor market, or recent data showing housing prices starting to rise again as reasons to defer cutting rates. Indeed, the Fed still expects 75 bp of rate cuts this year after raising its 2024 GDP growth forecast to 2.1% from its December estimate of just 1.4%.

To further reinforce the Fed’s determination to ease monetary policy, Chairman Powell said the Fed will likely soon slow the pace of its balance sheet reduction program (quantitative tightening). The Fed’s current holdings total around $7.5 trillion, down from a peak of $9 trillion in April 2022.

Looking Forward

The direct selling stocks will start reporting their 1Q 2024 results late this month. Until then, the trading patterns of the DSCA index components will likely be greatly influenced by the general direction of the overall stock market. And that likely direction still seems higher—despite declines in the major indices over the first seven trading days of April.

Most importantly, the Fed seems determined to be friendly for stocks. As Mizuho economists wrote in their summary of the Fed meeting, “Policymakers really, really, really want to cut rates, and it is not a matter of if, but how soon.” As a side note, the European Central Bank and the Bank of England also seem poised to cut interest rates. Based on all this, and emphasizing how central a factor Fed policy has become for the US (and global) stock markets, the medium-term outlook for stock market still looks constructive.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI rose in March and outperformed the DJIA during the month. The DSCI gained 2.5% in March versus a 2.2% increase for the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 37.6% since that date, less than the 56.7% appreciation of the DJIA over the same period.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) jumped 15.3% in March. This performance was especially impressive as it came on the heels of a 22.9% gain in February. BWMX boasts the strongest YTD performance (+43.3%) of any large cap DSCI member. Since the March 1, 2020 DSCI inception, BWMX is up 112.1%.

In late February, BWMX reported 4Q 2023 consolidated net revenue and EBITDA of 3.40 billion pesos and 819.5 million pesos, up 5.2% and 36.7% from 3.23 billion pesos and 599.3 million pesos, respectively, in 4Q 2022. The company’s impressive results were supported by growth in both the Betterware and Jafra brands in Mexico. BWMX’s EBITDA margin jumped to 24.1% in 4Q 2023 from 18.5% in 4Q 2022.

BWMX projects full-year 2024 net revenue of 13.8-14.4 billion pesos, up from 13.01 billion pesos in 2023. Similarly, the company’s EBITDA is expected to grow in 2024, reaching 2.9-3.1 billion pesos compared with 2.72 billion pesos in 2023.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) rose 11.7% in March, partially reversing a 33.3% decline in February and cutting its YTD loss to 28.8%. Since the March 2020 establishment of the DSCI, NUS is down 41.4%. In comparison, the direct selling stock index and the Dow Jones Industrial Average have gained 37.6% and 56.7%, respectively, over this period.

In mid-February, NUS reported 4Q 2023 revenue and adjusted EPS of $488.6 million and $0.37 versus $522.3 million and $0.89, respectively, in 4Q 2022. NUS’s 4Q 2023 results were affected by persistent macroeconomic pressures and disruptions associated with transforming the company’s business. As part of its 4Q 2023 earnings release, NUS slashed its quarterly dividend (which was paid March 6) to $0.06 per share ($0.24 annualized) from $0.39, or $1.56 on an annual basis.

For the full-year 2024, NUS projects sales and non-GAAP EPS of $1.73-$1.87 billion and $0.95-$1.35, both down from 2023 results of $1.97 billion and $1.85, respectively. The company plans to release its 1Q 2024 financial results on May 8.

Herbalife Nutrition, Inc. (NYSE: HLF) jumped 15.7% in March. This gain cut HLF’s YTD loss to 34.1%. Nevertheless, the stock is down 68.9% since the establishment of the DSCI 4+ years ago. This represents the worst performance for any large-cap DSCI component which has traded continuously since index inception.

In mid-February, HLF reported 4Q 2023 net sales of $1.22 billion, up slightly from $1.18 billion in the year-ago period. The company’s adjusted diluted EPS declined to $0.28 in the just-completed quarter from $0.53 in 4Q 2022. HLF’s Chairman and CEO Michael Johnson says management continues to maintain “a sharp focus on top-line growth and margin expansion for 2024.” HLF’s Transformation Program, which was initiated in 2021 to strategically optimize the company’s global business processes, delivered about $70 million of cost savings in 2023, about $27 million of which was realized in 4Q 2023. HLF now expects the program to deliver total run-rate savings of at least $115 million in 2024.

On March 20, HLF re-appointed John DeSimone to the position of CFO, succeeding Alex Amezquita, who will remain with the company. Mr. DeSimone had previously been HLF’s CFO over the period 2010-2018.

Also on March 20, HLF said that it is observing sufficient stability in its business to allow the company to introduce sales and adjusted EBITDA guidance for 2024. HLF expects its 2024 net sales to increase 0% to 5% from $5.062 billion in 2023 and projects that its 2024 adjusted EBITDA will range from $540 to $580 million versus $570.6 million in 2023. HLF will report its 1Q 2024 results on May 1.

On April 1, HLF announced plans to offer $700 million of senior secure notes which mature in 2029. The proceeds from the sale will be used partly to repay other indebtedness and partly for general corporate purposes.

Medifast, Inc. (NYSE: MED) shares dropped 5.5% in March, bringing its YTD loss to 43.0%, the weakest 1Q 2024 performance of any DSCI member. Since the March 1, 2020 establishment of the DSCI, MED has declined 51.8%.

In late February, MED reported 4Q 2023 revenue of $191.0 million, down from $337.2 million in 4Q 2022. Similarly, diluted EPS in the fourth quarter fell to $1.09 from $2.41 in the year-ago period. The average revenue per active earning OPTAVIA coach was $4,658 in 4Q 2023, down from $5,538 in the year-ago period, driven by continued pressure on customer acquisition.

MED is realigning its business to respond to the evolving dynamics of the weight loss industry and to transform its business model. The company expects its 1Q 2024 revenue and diluted EPS will be $155-$175 million and $0.25-$0.95, respectively.

SANA Health Sciences, Inc. (NYSE: USNA) inched 0.9% higher in March, cutting its YTD loss to 9.5%. Since the creation of the DSCI on March 1, 2020, USANA shares have lost 26.6% compared with gains of 37.6% and 56.7% for the direct selling index and the DJIA, respectively.

In early February, USANA reported 4Q 2023 revenue and diluted EPS of $221 million and $0.87 versus $228 million and $0.66, respectively, in the year-ago period. USANA’s 4Q 2023 results exceeded management’s expectations as sales strengthened in response to a global incentive offering that was especially effective in China. In 4Q 2023, the number of USANA’s Chinese active customers increased by double-digit percentage points from 3Q 2023.

USANA estimates that full-year 2024 revenue and diluted EPS will be in the ranges of $850-$920 million and $2.40-$3.00, respectively. These figures assume that economic conditions in many of the company’s markets remain challenging this year. USANA will release its 1Q 2024 earnings on April 30.

eXp World Holdings, Inc. (NASDAQ: EXPI), the DSCI’s second largest component, fell 18.5% in March. With this decline, EXPI lost 33.4% of its value in 1Q 2024. More constructively, EXPI shares have appreciated an aggregate 116.1% over the 49 months the DSCI has been computed.

In late February, EXPI, the fastest growing real estate brokerage in the world, reported 4Q 2023 revenue and adjusted EBITDA of $983 million and $0.5 million versus $933 million and $3.6 million, respectively, in 4Q 2022. Despite a difficult real estate market, EXPI gained market share in 4Q 2023 and maintained positive adjusted EBITDA during the period.

EXPI’s transaction volume in the just-completed quarter increased 3% to $38.9 billion versus 4Q 2022. Agents and brokers on the company’s platform totaled 87,515 as of year-end 2023, up 2% from December 31, 2022. In the full-year 2023, EXPI paid its agents a total of $232.6 million in revenue share and equity benefits through its compensation framework.

A leading provider of financial services in the US and Canada, and the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) rose 3.1% in March, adding to its YTD gain of 22.9%. Since March 1, 2020, PRI has increased 130.9%, the second best mark of any DSCI component.

In mid-February, PRI reported 4Q 2023 adjusted operating revenue of $724.3 million, about 6% higher than $684.5 million in the year-ago period. Furthermore, the company’s adjusted operating EPS reached $4.25 in 4Q 2023, a 9% increase from $3.89 in 4Q 2022. PRI’s impressive 4Q 2023 results were boosted by the company’s large and stable block of in-force life insurance policies, higher investment product sales, a growth in the size of its investment portfolio, and an increase in interest rates.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) was the best performing DSCI component in March, rising 17.8%. Over the first three months of 2024, NATR appreciated 20.1%. Furthermore, over the 49 months the DSCI has been calculated, NATR gained 167.5%, making it the best performing direct selling index stock over that period.

On March 12, NATR. which markets and distributes nutritional and personal care products in more than 40 countries, reported 4Q 2023 net sales of $108.9 million, up 6% from $102.7 million in the year-ago period. Adjusted EBITDA increased at a faster pace, reaching $9.7 million in 4Q 2023, up 21% from $8.0 million in 4Q 2022. The positive momentum in NATR’s business continued in 4Q 2023, as sales in North America increased by nearly 13% and net income more than tripled to $9.3 million.

NATR expects its full-year 2024 net sales and adjusted EBITDA to range from $465 to $480 million and $42 to $48 million, respectively. Net sales and adjusted EBITDA in 2023 totaled $445.3 million and $40.4 million, respectively.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking performed about in line with the large cap DSCI group in March. Four small caps rose during the month, two fell, and two were unchanged. Four of the eight small cap stocks moved by double-digit percentage points (three up and one down) in the final month of the first quarter.

Educational Development Corporation (NASDAQ: EDUC), a publishing company specializing in books and educational products for children, posted the best 1Q 2024 stock performance of any DSCI component, gaining 78.4%. In mid-January 2024, EDUC reported 3Q FY 2024 (quarter ended November 30, 2023) revenue and pretax earnings of $16.9 million and $2.7 million versus $30.3 million and just above breakeven, respectively, in 3Q FY 2023.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart above, short interest in DSCI stocks was 5.4 days in mid-March, up from 5.3 days at the end of February and down slightly from 5.5 days in mid-February. The biggest absolute increase in DTC to mid-March from the end of February for a DSCI component was USANA’s increase to 3.3 days from 2.2 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index declined in March from February. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks was about 90% in March and 97% in February. Conversely, the percentage of stocks which analysts recommended selling was 10% and 3% in March and February, respectively.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

 

Direct Selling Index Increased 0.3% in February, Marking Its Fourth Consecutive Monthly Gain. The DSCI Underperformed the DJIA in February but Has Handily Outperformed It over the First Two Months of 2024.

The Direct Selling Capital Advisors Direct Selling Index (DSCI) rose for the fourth successive month in February. The index eked out a 0.3% gain during the month but underperformed the Dow Jones Industrials Average (DJIA), which registered a 2.1% increase in February. Over the first two months of 2024, the DSCI and DJIA have risen 6.1% and 3.3%, respectively.

The large cap members of the DSCI generally outperformed their small cap peers in February. Five of the eight large caps in the direct selling index rose during the month, while only two of the eight smaller cap DSCI stocks registered gains. Interestingly, the direct selling stocks were quite volatile in February. Nine of the 16 stocks moved by more than 10% during the period; three rose and six fell by double figure percentage points.

From a longer-term perspective, the DSCI has gained an aggregate 34.3% since its March 1, 2020 inception. However, the DJIA has outperformed the direct selling index over this period; since March 1, 2020, the DJIA has increased 53.3%.

The stock market’s relentless advance paused in mid-February after a period when all major indices posted gains in 14 of 15 weeks. Hotter than expected January consumer and wholesale inflation readings released during the week of February 12th-16th caused investors to recalibrate their expectations of both the number of Fed rate cuts this year and the timing of these reductions.

However, NVIDIA Corporation’s blockbuster quarterly earnings report which was released on February 21, reinvigorated investor confidence, which in turn has fueled a stock market rally to near all-time highs on all major indices. Some of the highest risk industry groups, including semiconductor manufacturers and homebuilders, continue to lead the stock market’s advance.

Looking Forward

Almost all the direct selling stocks have reported their 4Q 2023 earnings, so their performance in March will be heavily impacted by the performance of the overall stock market. After the market’s remarkable run—the S&P 500 Index is up around 25% since late October 2023. It is possible that a short-term reversal could be just around the corner. Nevertheless, key economic and consumer sentiment trends remain quite favorable, and the stock market seems unlikely to correct significantly until these statistics begin to roll over. More specifically, while still too high at 3.9%, the most recent annual Consumer Price Index (CPI) ex-food and energy has consistently declined after peaking at 5.7% in December 2022. Annual wage growth, 5% in January 2024, remains high; and the February jobless report (non-farm payrolls increased by 275,000 but the unemployment rate rose to 3.9%) had a Goldilocks feel to it. Finally, the Index of Consumer Sentiment computed by the University of Michigan is 79.6, up markedly from 61.3 in November 2023 and a cycle low of 50 in June 2022.

Moreover, recent anecdotal evidence looks supportive for the market. For example, many economically sensitive regional banks reported solid 4Q 2023 earnings results, and a host of companies successfully raised funds via bond and loan issuances in January. Indeed, January 2024 corporate bond issuances of $189 billion represented the largest total ever recorded in the first month of any year, according to Bloomberg News.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI rose in February but underperformed the DJIA during the month. The DSCI gained 0.3% in February versus a 2.1% increase for the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 34.3% since that date, less than the 53.3% appreciation of the DJIA over the same period.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) soared 22.9% in February, making it by far the best performing large cap DSCI component during the month. BWMX likewise boasts the strongest YTD performance (+24.3%) of the large cap DSCI members. Since the March 1, 2020 DSCI inception, BWMX is up 84.0%.

On February 22, BWMX reported 4Q 2023 consolidated net revenue and EBITDA of 3.40 billion pesos and 819.5 million pesos, up 5.2% and 36.7% from 3.23 billion pesos and 599.3 million pesos, respectively, in 4Q 2022. The company’s impressive results were supported by growth in both the Betterware and Jafra brands in Mexico. BWMX’s EBITDA margin jumped to 24.1% in 4Q 2023 from 18.5% in 4Q 2022.

BWMX projects full-year 2024 net revenue of 13.8-14.4 billion pesos, up from 13.01 billion pesos in 2023. Similarly, the company’s EBITDA is expected to grow in 2024, reaching 2.9-3.1 billion pesos compared with 2.72 billion pesos in 2023.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) dropped 33.3% in February, which was the weakest performance of any DSCI component. Year to date, the stock has lost 36.3% of its value. Since the March 2020 establishment of the DSCI, NUS is down 47.5%. In comparison, the direct selling stock index and the Dow Jones Industrial Average gained 34.3% and 53.3%, respectively, over this period.

On February 14, NUS reported 4Q 2023 revenue and adjusted EPS of $488.6 million and $0.37 versus $522.3 million and $0.89, respectively, in 4Q 2022. NUS’s 4Q 2023 results were affected by persistent macroeconomic pressures and disruptions associated with transforming the company’s business. On a granular basis, NUS’s revenue and earnings declined in the just-completed quarter compared with the year-ago period in the company’s Americas, South Korea and Europe & Africa segments.

As part of its 4Q 2023 earnings release, NUS slashed its quarterly dividend (which was paid March 6) to $0.06 per share ($0.24 annualized) from $0.39 (or $1.56 on an annual basis).

For the full-year 2024, NUS projects sales and non-GAAP EPS of $1.73-$1.87 billion and $0.95-$1.35, both down from 2023 results of $1.97 billion and $1.85, respectively.

Herbalife Nutrition, Inc. (NYSE: HLF) fell 27.9% in February, making it was the second worst performing large cap DSCI component during the month. Over the first two months of 2024, HLF has dropped a direct selling index-worst 43.1%. Since the establishment of the DSCI `four years ago, DSCI has lost 73.1% of its value, the weakest result for any large-cap DSCI component which has traded continuously since index inception.

On February 14, HLF reported 4Q 2023 net sales of $1.22 billion, up slightly from $1.18 billion in the year-ago period. The company’s adjusted diluted EPS declined to $0.28 in the just-completed quarter from $0.53 in 4Q 2022. HLF’s Chairman and CEO Michael Johnson says management continues to maintain “a sharp focus on top-line growth and margin expansion for 2024.”

HLF’s Transformation Program, which was initiated in 2021 to strategically optimize the company’s global business processes, delivered about $70 million of cost savings in 2023, about $27 million of which was realized in 4Q 2023. HLF now expects the program to deliver total run-rate savings of at least $115 million in 2024.

Medifast, Inc. (NYSE: MED) shares declined 25.8% in February, bringing its YTD loss to 39.6%. Since the March 1, 2020 establishment of the DSCI, MED has declined 49.0%, the second worst mark of any large cap DSCI component.

On February 20, MED reported 4Q 2023 revenue of $191.0 million, down from $337.2 million in 4Q 2022. Similarly, diluted EPS in the fourth quarter fell to $1.09 from $2.41 in the year-ago period. The average revenue per active earning OPTAVIA coach was $4,658 in 4Q 2023, down from $5,538 in the year-ago period, driven by continued pressure on customer acquisition. MED is realigning its business to respond to the evolving dynamics of the weight loss industry and to transform its business model. The company expects its 1Q 2024 revenue and diluted EPS will be $155-$175 million and $0.25-$0.95, respectively.

In mid-December, MED announced an expansion into the fast-growing medically supported weight loss market through a collaboration with LifeMD Inc. (NASDAQ: LFMD), a leading provider of virtual primary care. The medically supported weight loss market could reach $100 billion by 2030 according to projections by some analysts. MED has committed to make a $20 million investment in LFMD and to purchase $10 million of LFMD’s common stock.

USANA Health Sciences, Inc. (NYSE: USNA) rose 2.6% in February, cutting its YTD loss to 10.3%. Since the creation of the DSCI four years ago, USANA shares have lost 27.3% compared with gains of 34.3% and 53.3% for the direct selling index and the DJIA, respectively.

In early February, USANA reported 4Q 2023 revenue and diluted EPS of $221 million and $0.87 versus $228 million and $0.66, respectively, in the year-ago period. USANA’s 4Q 2023 results exceeded management’s expectations as sales strengthened in response to a global incentive offering that was especially effective in China. In 4Q 2023, the number of USANA’s Chinese active customers increased by double-digit percentage points from 3Q 2023.

USANA estimates that full-year 2024 revenue and diluted EPS will be in the ranges of $850-$920 million and $2.40-$3.00, respectively. These figures assume that economic conditions in many of the company’s markets remain challenging this year.

eXp World Holdings, Inc. (NASDAQ: EXPI), the DSCI’s second largest component and its best performer since its March 2020 establishment, increased 2.4% in February, cutting its loss over the first two months of 2024 to 18.3%. EXPI shares have appreciated an aggregate 165.3% over the 48 months that the DSCI has been computed.

On February 22, EXPI, the fastest growing real estate brokerage in the world, reported 4Q 2023 revenue and adjusted EBITDA of $983 million and $0.5 million versus $933 million and $3.6 million, respectively, in 4Q 2022. Despite a difficult real estate market, EXPI gained market share in 4Q 2023 and maintained positive adjusted EBITDA during the period.

EXPI’s transaction volume in the just-completed quarter increased 3% to $38.9 billion versus 4Q 2022. Agents and brokers on the company’s platform totaled 87,515 as of year-end 2023, up 2% from December 31, 2022.

A leading provider of financial services in the U.S. and Canada, and the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) jumped 4.8% in February. This strong performance added to its 19.3% YTD gain. Since March 1, 2020, PRI has increased 124.0%, a gain which nearly quadruples the 34.3% increase for the direct selling index over the last four years.

On February 13, PRI reported 4Q 2023 adjusted operating revenue of $724.3 million, about 6% higher than $684.5 million in the year-ago period. Furthermore, the company’s adjusted operating EPS reached $4.25 in 4Q 2023, a 9% increase from $$3.89 in 4Q 2022. PRI’s impressive 4Q 2023 results were boosted by the company’s large and stable block of in-force life insurance policies, higher investment product sales, a growth in the size of its investment portfolio and an increase in interest rates.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) rose 1.3% in February, which brought the stock’s YTD increase to 2.0% and its gain since the March 1, 2020 establishment of the direct selling index to 127.0%. Among all DSCI members, NATR trails only EXPI in terms of share price appreciation over the last 48 months.

In November 2023, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 3Q 2023 net sales of $111.2 million, up 6% from $104.5 million in the year-ago period. Adjusted EBITDA increased at a much faster pace, reaching $10.3 million in 3Q 2023, up 50% from $6.8 million in 3Q 2022.

NATR plans to release in 4Q 2023 financial results after the stock market closes on March 12. The company will hold an investor conference call to discuss the results on the same day.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking set generally underperformed the large cap DSCI group in February. Two small caps rose during the month, five fell and one was unchanged. Five of the eight small cap stocks moved by double-digit percentage points (two up and three down) in February.

LifeVantage Corporation (NASDAQ: LFVN), a leading health and wellness company with products designed to activate optimal health processes at the cellular level, rose 31.5% in February, making it the best performing direct selling stock, large or small cap, during the month. On January 30, LFVN reported 2Q FY 2024 (quarter ended December 31, 2023) revenue and adjusted EPS of $51.6 million and positive $0.10 versus $53.7 million and a loss of $0.07, respectively, in the year-ago period.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart above, short interest in DSCI stocks was 5.5 days in mid-February, down from 6.1 days at the end of January and 6.0 days in mid-January. The biggest absolute decrease in DTC from the end of January to mid-February for a DSCI component was HLF’s decrease to 7.2 days from 10.0 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index was unchanged in February versus January. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks was about 97% in both months. Conversely, the percentage of stocks which analysts recommended selling was just 3% in both January and February.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Rose 5.8% in January, Marking its Third Straight Monthly Gain. Led by Primerica, the DSCI Handily Outperformed the DJIA in the First Month of 2024.

The Direct Selling Capital Advisors Direct Selling Index (DSCI) rose for the third consecutive month in January 2024. Furthermore, the index’s 5.8% gain during the month notably exceeded the 1.2% increase recorded by the Dow Jones Industrials Average (DJIA).

The DSCI’s strong January performance was driven almost solely by Primerica, Inc. (NYSE: PRI), by far the DSCI’s largest component. PRI shares jumped 13.8% during January. However, only two other large cap members rose during the month, while five large caps lost ground, four by double-digit percentage points. As a group, small cap DSCI components outperformed their large peers in January. Four small cap members rose, and an equal number fell. Interestingly, six of the eight small caps moved by more than 10% during January, three up and three down.

From a longer-term perspective, the DSCI has gained an aggregate 33.9% since its March 1, 2020 inception. However, the DJIA has outperformed the direct selling index over this period; since March 1, 2020, the DJIA has increased 50.1%.

The US stock market began 2024 in much the same (positive) way that 2023 ended. As noted above, the DJIA rose 1.2% in January, and the S&P 500 and NASDAQ indices posted even larger gains. Investors’ belief in the tremendous growth potential of all things related to artificial intelligence has remained the market’s dominant investment theme. In turn, stock market participants expect business for semi-conductor manufacturers will soar as they produce the chipsets necessary to power cloud computing, the Internet of Things (IOT), and the metaverse.

A particularly interesting aspect of the stock market’s impressive January 2024 YTD performance was investors’ willingness over the last few weeks to accept that the Fed will quite likely implement fewer (and later) interest rate cuts in 2024 versus a consensus of more and earlier cuts than the market expected in December. The expectation of a very easy Fed in 2024, which emerged especially after details of the Fed’s December 13th rate-setting meeting were released, fueled an explosive “Santa Claus” market rally over the last half of December, which continued in a more measured way in January 2024.

Looking Forward

Since a combination of the historic series of Fed rate increases in 2023, geopolitical turmoil (the Israel-Palestine and Russia-Ukraine conflicts), and significant US political uncertainties (especially the upcoming coin flip US presidential election) did not break the economy or the stock market, or slow the labor market in 2023, investors and analysts continue to believe the stock market offers more reward than risk. Furthermore, most recent government economic releases, particularly related to inflation and the labor market, have been constructive and point to an economic soft landing (or even no landing). Consequently, the stock market could continue to perform well in 2024, and direct selling stocks could benefit from the market’s tailwinds this year in much the same way they did in 2023.

Most direct selling stocks will begin releasing their 4Q 2023 earnings this month. (USANA Health Sciences, Inc. [NYSE: USNA] has already announced its 4Q 2023 results; see below). The 4Q 2023 reported figures will of course be important for DSCI members, but the 2024 revenue and earnings guidance ranges that many management teams will put forth will likely be even more impactful.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI rose in January and outperformed the DJIA during the month. The DSCI gained 5.8% in January versus a 1.2% increase for the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 33.9% since that date, less than the 50.1% appreciation of the DJIA over the same period.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) gained 1.1% in January, making it the second best performing large cap DSCI member for the month. In the full year 2023, BWMX soared 117.1%, the best mark of large or small cap direct selling index member. Since the March 1, 2020 DSCI inception, BWMX is up 49.7%.

In late October, BWMX reported 3Q 2023 consolidated net revenue and EBITDA of 3.12 billion pesos and 529.4 million pesos, both down slightly from 3.17 billion pesos and 534.9 million pesos, respectively, in the year-ago period. The company projects full-year 2023 revenue and EBITDA will total 12.5-12.8 billion pesos and 2.4-2.5 billion pesos, respectively. In early January, Andres Campos assumed the CEO role at BWMX. He will report to Chairman Luis Campos.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) dropped 4.4% in January, reversing about a third of the 14.1% gain it posted in December. Since the March 2020 establishment of the DSCI, NUS has lost 21.3% of its value. In contrast, the direct selling stock index and the Dow Jones Industrial Average gained 33.9% and 50.1%, respectively, over this period.

In November, NUS reported 3Q 2023 revenue and adjusted EPS of $498.8 million and $0.56 versus $537.8 million and $0.47, respectively, in 3Q 2022. Continued US dollar strength and macroeconomic challenges in several key markets negatively affected consumer spending and customer acquisition, particularly in NUS’s Mainland China and Americas segments.

NUS plans to release its fourth quarter and full-year 2023 earnings after the stock market closes on February 14th. Management estimates full-year 2023 revenue and adjusted EPS will fall within the ranges of $1.92-$1.96 billion and $1.62-$1.77, respectively.

In late November, NUS opened a new manufacturing facility in Shanghai, China. The plant, which carries a price tag of about $55 million, will increase the company’s production capacity and supply chain responsiveness in China and other Asian markets.

Herbalife Nutrition, Inc. (NYSE: HLF) was the worst performing large cap DSCI component in January. The stock’s 21.0% loss during the month reversed an 18.5% gain in December 2023. Since the establishment of the DSCI nearly four years ago, DSCI has lost 62.8% of its value, the worst result of any large-cap DSCI component which has traded continuously since index inception.

In early November, HLF reported 3Q 2023 net sales of $1.28 billion, down slightly from $1.30 billion in the year-ago period. The company’s adjusted diluted EPS also declined, falling to $0.65 in 3Q 2023 versus $0.91 in 3Q 2022. Nevertheless, HLF management says the company’s momentum is building steadily and that it is on a path to achieve sustainable growth. HLF will release its 4Q 2023 results after the market closes on February 14th.

In early January, Stephan Paulo Gratziani was appointed President of HLF. Mr. Gratziani was previously the company’s Chief Strategy Officer.

Medifast, Inc. (NYSE: MED) shares dropped 18.7% in January. Since the March 1, 2020 establishment of the DSCI, MED has declined 31.2%, the second worst mark of any large cap DSCI member.

In November, MED reported 3Q 2023 revenue of $235.9 million, down from $390.4 million in 3Q 2022. Similarly, diluted EPS in the third quarter fell to $2.12 from $3.27 in the year-ago period. Revenue and earnings in 3Q 2023 were negatively impacted by a decrease in the number of active earning OPTAVIA Coaches and a decline in the productivity per OPTAVIA Coach.

In mid-December, MED announced an expansion into the fast-growing medically supported weight loss market through a collaboration with LifeMD Inc. (NASDAQ: LFMD), a leading provider of virtual primary care. The medically supported weight loss market could reach $100 billion by 2030 according to projections by some analysts. MED has committed to make a $20 million investment in LFMD and to purchase $10 million of LFMD’s common stock.

As part of its December 13^th announcement, MED discontinued payment of its quarterly dividend. Instead, MED intends to invest in initiatives aimed at driving customer acquisition and customer experience to reignite growth.

USANA Health Sciences, Inc. (NYSE: USNA) fell 12.6% in January, ending a two-month winning streak. Since the creation of the DSCI nearly four years ago, USANA shares have lost 29.2% compared with increases of 33.9% and 50.1% for the direct selling index and the DJIA, respectively.

On February 6, USANA reported 4Q 2023 revenue and diluted EPS of $221 million and $0.87 versus $228 million and $0.66, respectively, in the year-ago period. USANA’s 4Q 2023 results exceeded management’s expectations as sales strengthened in response to a global incentive offering that was especially effective in China. In 4Q 2023, the number of USANA’s Chinese active customers increased by double-digit percentage points from 3Q 2023.

USANA introduced full-year 2024 revenue and diluted EPS guidance ranges of $850-$920 million and $2.40-$3.00, respectively. Even the high ends of both ranges are below full year 2023 sales and diluted EPS of $921 million and $3.30, respectively. The company expects economic conditions in many of its markets to be challenging in 2024, just they were in 2023.

eXp World Holdings, Inc. (NASDAQ: EXPI), the DSCI’s second largest component and its best performer since its March 2020 establishment, fell 20.2% in January, reversing much of its 28.2% gain in December. Still, EXPI shares have appreciated an aggregate 159.0% over the 47 months since the DSCI has been computed.

In November, EXPI, the fastest growing real estate brokerage in the world, reported 3Q 2023 revenue and adjusted EBITDA of $1.21 billion and $19.0 million versus $1.24 billion and $12.3 million, respectively, in 3Q 2022. Transaction volume in 3Q 2023 declined 4% versus the year-ago period to $48.5 billion as persistently high mortgage rates kept many buyers sidelined. EXPI will release its 4Q 2023 results after the stock market closes on February 22^nd.

In early November, EXPI announced that CFO Jeff Whiteside stepped down from his position. He remained with the company through November 30. Until EXPI can identify a successor, Chief Accounting Officer Kent Cheng will assume the role of Principal Financial Officer.

A leading provider of financial services in the U.S. and Canada, and the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) soared 13.8% in January, making it by far the best performing large cap DSCI component during the month. Since March 1, 2020,

PRI has gained 113.7%. This long-term gain more than triples the 33.9% increase for the direct selling index over this period.

In November, PRI reported 3Q 2023 adjusted operating revenue of $713.2 million, up 5% from $676.1 million in the year-ago period. In addition, the company’s adjusted diluted operating EPS reached $4.28 in 3Q 2023, a 14% increase from $3.76 in 3Q 2022. PRI’s key business units posted impressive results in 3Q 2023. Profits in its Term Life segment benefitted from the size and stability of predictable margins and strong sales during the quarter. PRI’s Investment and Savings Products group likewise posted positive results as client asset values increased during the period. PRI will release its 4Q 2023 earnings on February 14^th.

In mid-December, PRI announced the promotion of EVP of Finance Tracy Tan to the position of CFO. This move represented a normal succession process at the company as PRI had previously reported that Ms. Tan would succeed Alison Rand as CFO no later than April 1, 2024.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) eked out a 0.7% gain in January. This gain added to the stock’s 124.2% increase since the March 1, 2020 establishment of the direct selling index. Among all DSCI members, NATR trails only EXPI in terms of share price appreciation over the last 47 months.

In November, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 3Q 2023 net sales of $111.2 million, up 6% from $104.5 million in the year-ago period. Adjusted EBITDA increased at a much faster pace reaching $10.3 million in 3Q 2023, up 50% from $6.8 million in 3Q 2022. Orders in NATR’s Asia/Pacific region rose 12% in the quarter on a local currency basis, and NATR’s North American business grew 11% in 3Q 2023 due to the company’s digital investments and improved field activation.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.” 

Small Cap

Our small cap tracking set generally outperformed their large cap DSCI peers in January. Four small caps rose during the month, and the same number fell. Six of the eight small cap stocks moved by double-digit percentage points (three up and three down) during the month.

January marked the second consecutive month during which Educational Development Corporation (NASDAQ: EDUC), a publishing company specializing in books and educational products for children, posted the best stock performance of any DSCI component. EDUC’s 37.9% jump in January followed a 36.5% gain in December. In mid-January 2024, EDUC reported 3Q FY 2024 (quarter ended November 30, 2023) revenue and pretax earnings of $16.9 million and $2.7 million versus $30.3 million and just above breakeven, respectively, in 3Q FY 2023.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart above, short interest in DSCI stocks was 6.0 days in mid-January, up slightly from 5.7 days at the end of December and 5.9 days in mid-December. The biggest absolute increase in DTC from the end of December to mid-January for a DSCI component was HLF’s increase to 8.8 days from 7.7 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index rose in January from December. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks was about 97% in January, up from 90% in December. Conversely, the percentage of stocks which analysts recommended selling was just 3% in January versus 10% in December.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies. 

Direct Selling Index Rose 1.5% in December and 8.9% in the Full-Year 2023, Modestly Underperformed the DJIA Over Both Periods

The Direct Selling Capital Advisors Direct Selling Index (DSCI) rose for the second consecutive month in December. However, the DSCI’s 1.5% gain during the month trailed the 4.8% increase posted by the Dow Jones Industrials. Over the full-year 2023, the direct selling index added 8.9% but that fell shy of the 13.7% annual gain registered by the market index representing 30 of the world’s biggest and most well-known corporations.

The DSCI’s modest 1.5% gain in December masked strong performances by many index members during the month. Indeed, six of the large cap members rose in December, four of them by double digit percentage points, while only two fell, each by less than 2%. Four small cap DSCI components gained ground in December, three declined, and one was unchanged. Two small caps appreciated by more than 10% during the last month of 2023, and one small cap declined by more than 10%.

From a longer-term perspective, the DSCI has gained an aggregate 26.6% since its March 1, 2020 inception. The DJIA has outperformed the direct selling index over this period; since March 1, 2020, the DJIA has increased 48.3%.

The DJIA’s 4.8% jump in December came on the heels of an even larger 8.8% increase in November. Perhaps more important, the breadth of the market’s rally has been impressive: the broader S&P 500 Index closed the year on a nine-week winning streak, its longest such streak since a stretch in 2004, per Dow Jones Market Data.

After benign government data releases over the last few months—including declining inflation readings and a strong GDP report for 3Q 2023—along with the encouraging year-end run-up in the stock market, investors’ baseline assumption for the economy is either a soft landing or no landing whatsoever in 2024. Most forecasters now believe the odds of a marked near-term slowdown in the economy are quite low.

Continued solid consumer spending levels and a healthy job market generally surprised investors and economists throughout 2023. Coming into the year, and even as recently as just a few months ago, many investors questioned whether the Fed could engineer a soft landing in the economy.

Looking Forward

The Fed’s openness to begin reducing overnight interest rates in 2024 is the dominant headline in the investing world today and likely will remain so as it implements perhaps 75 basis points (or more) of rate cuts this year. The most consistently correct investment strategy over the last decade has been to embrace risk during times of easy monetary policy, and that correlation could continue to hold this year, too.

The stock market lost ground during the first trading week of 2024, but bullish strategists cite the possibility this year of a Goldilocks combination of further declines in inflation readings and a rise in corporate profits. Another constructive element for the stock market could be a 2024 rotation out of funds stashed in money market accounts back into stocks, as the interest rate paid on these accounts shrinks.

A wild card in 2024 will likely be investors’ expectations/fears regarding the implications of the presidential election. However, based on historical precedent, the election could provide a tailwind for the market this year. LPL Financial calculates that over the last decade, the S&P 500 Index has risen 7% on average in a presidential election year and even more when an incumbent is running.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI rose in December but underperformed the DJIA during the month. The DSCI added 1.5% in December versus a 4.8% increase for the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 26.6% since that date, less than the 48.3% increase for the DJIA.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) inched 0.7% lower in December, cutting its full-year 2023 gain to a still very impressive 117.1%. This represents the best 2023 investment return of any large or small cap direct selling index member. Since the March 1, 2020 DSCI inception, BWMX is up 48.0%.

In late October, BWMX reported 3Q 2023 consolidated net revenue and EBITDA of 3.12 billion pesos and 529.4 million pesos, both down slightly from 3.17 billion pesos and 534.9 million pesos, respectively, in the year-ago period. Over the first three quarters of 2023, BWMX has increased its profitability margins and improved its cash conversion cycle. The company projects full-year 2023 revenue and EBITDA will total 12.5-12.8 billion pesos and 2.4-2.5 billion pesos, respectively.

On January 4, 2024, Andres Campos assumed the CEO role at BWMX. He will report Chairman Luis Campos.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) jumped 14.1% in December ending a string of four consecutive monthly declines. Despite last month’s gain, NUS lost 53.9% over full-year 2023, the weakest result of any large cap direct selling stock index member. Since the March 2020 establishment of the DSCI, NUS has lost 17.7% of its value. In contrast, the direct selling stock index and the Dow Jones Industrial Average gained 26.6% and 48.3%, respectively, over that period.

In early November, NUS reported 3Q 2023 revenue and adjusted EPS of $498.8 million and $0.56 versus $537.8 million and $0.47, respectively, in 3Q 2022. Continued U.S. dollar strength and macroeconomic challenges in several key markets negatively affected consumer spending and customer acquisition, particularly in NUS’s Mainland China and Americas segments. NUS estimates full-year 2023 revenue and adjusted EPS will fall within the ranges of $1.92-$1.96 billion and $1.62-$1.77, respectively.

In late November, NUS opened a new manufacturing facility in Shanghai, China. The plant, which carries a price tag of about $55 million, will increase the company’s production capacity and supply chain responsiveness in China and other Asian markets.

Herbalife Nutrition, Inc. (NYSE: HLF) soared 18.5% in December, the second biggest increase of any large-cap direct selling stock. HLF’s strong December performance allowed the stock to post a 2.6% gain for the full-year 2023. Last month’s performance reduced HLF’s loss since the March 2020 establishment of the DSCI to 52.8%, but that still constitutes the worst result of any large-cap index component which has traded continuously since index inception.

In early November, HLF reported 3Q 2023 net sales of $1.28 billion, down slightly from $1.30 billion in the year-ago period. The company’s adjusted diluted EPS also declined, falling to $0.65 in 3Q 2023 versus $0.91 in 3Q 2022. HLF management says its momentum is building steadily and that it is on a path to achieve sustainable growth.

HLF has implemented a Transformation Program which is expected to deliver more than $90 million in annual savings. About $60 million of these savings were expected to be realized in 2023, up from a previous $45 million estimate.

On January 2, Stephan Paulo Gratziani was appointed President of HLF. Mr. Gratziani was previously the company’s Chief Strategy Officer.

Medifast, Inc. (NYSE: MED) shares appreciated 1.3% in December, cutting its 2023 loss to 41.7%. Since the March 1, 2020 establishment of the DSCI, MED has declined 15.4%.

In early November, MED reported 3Q 2023 revenue of $235.9 million, down from $390.4 million in 3Q 2022. Similarly, diluted EPS in the third quarter fell to $2.12 from $3.27 in the year-ago period. Revenue and earnings in 3Q 2023 were negatively impacted by a decrease in the number of active earning OPTAVIA Coaches and a decline in the productivity per OPTAVIA Coach.

On December 13, MED announced an expansion into the fast-growing medically supported weight loss market through a collaboration with LifeMD Inc. (NASDAQ: LFMD), a leading provider of virtual primary care. The medically supported weight loss market could reach $100 billion by 2030 according to projections by some analysts. MED has committed to make a $20 million investment in LFMD and to purchase $10 million of LFMD’s common stock.

As part of its December 13^th announcement, MED revealed plans to discontinue payment of its quarterly dividend. Instead, MED intends to invest in initiatives aimed at driving customer acquisition and customer experience to reignite growth.

USANA Health Sciences, Inc. (NYSE: USNA) rose for a second straight month in December. The stock’s 13.8% December gain more than reversed its losses over the first eleven months of 2023; for the full-year 2023 USNA gained 0.8%. However, since the March 2020 inception of the DSCI, USANA shares have lost 18.9% compared

with increases of 26.6% and 48.3% for the direct selling index and the DJIA, respectively.

In late October, USANA reported 3Q 2023 revenue and diluted EPS of $213 million and $0.59, both down from $233 million and $0.78, respectively, in 3Q 2022. USANA’s 3Q 2023 results were constrained by challenging economic conditions across many of USANA’s regions, inflationary pressures, and a lower cadence of promotional activity. The company’s net sales and diluted EPS projections for full-year 2023 are $900-$920 million and $2.80-$3.05, respectively.

eXp World Holdings, Inc. (NASDAQ: EXPI), the DSCI’s second largest component and its best performer since its March 2020 establishment, soared 28.2% in December, emphatically ending a three-month losing streak. EXPI’s December gain brought its YTD increase to 40.1%. EXPI shares have appreciated 224.7% over the 46 months that the DSCI has been computed.

In early November, EXPI, the fastest growing real estate brokerage in the world, reported 3Q 2023 revenue and adjusted EBITDA of $1.21 billion and $19.0 million versus $1.24 billion and $12.3 million, respectively, in 3Q 2022. Transaction volume in 3Q 2023 declined 4% versus the year-ago period to $48.5 billion, as persistently high mortgage rates kept many buyers sidelined. The number of agents on EXPI’s realty platform reached 89,156 as of September 30, 2023.

On November 9, EXPI announced that CFO Jeff Whiteside stepped down from his position. He remained with the company through November 30. Until EXPI can identify a successor, Chief Accounting Officer Kent Cheng will assume the role of Principal Financial Officer.

A leading provider of financial services in the U.S. and Canada, and the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) dropped 1.8% in December, the worst mark of any large cap DSCI component. That decline pared PRI’s full-year 2023 gain slightly to 45.1%. Since the March 2020 establishment of the DSCI, PRI has risen 87.8%. Both the 2023 and 46-month gains markedly surpass the respective 8.9% and 26.6% gains for the direct selling index.

In early November, PRI reported 3Q 2023 adjusted operating revenue of $713.2 million, up 5% from $676.1 million in the year-ago period. In addition, the company’s adjusted diluted operating EPS reached $4.28 in 3Q 2023, a 14% increase from $3.76 in 3Q 2022. PRI’s key business units posted impressive results in 3Q 2023. Profits in its Term Life segment benefitted from the size and stability of predictable margins and strong sales during the quarter. PRI’s Investment and Savings Products group likewise posted positive results as client asset values increased during the period.

On December 18, PRI announced the promotion of EVP of Finance Tracy Tan to the position of CFO effective December 20th. This move represented a normal succession process at the company as PRI had previously reported that Ms. Tan would succeed Alison Rand as CFO no later than April 1, 2024.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) managed a 0.9% gain in December, adding to its impressive full-year 2023 return of 107.8%. This performance represents the second-best mark of any direct selling index stock. NATR similarly boasts the second best long-term performance of any DSCI member, +122.6% since the March 1, 2020 establishment of the index. (EXPI leads with a 224.7% long-term gain.)

In early November, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 3Q 2023 net sales of $111.2 million, up 6% from $104.5 million in the year-ago period. Adjusted EBITDA increased at a much faster pace, reaching $10.3 million in 3Q 2023, up 50% from $6.8 million in 3Q 2022. Orders in NATR’s Asia/Pacific region rose 12% in the quarter on a local currency basis, and NATR’s North American business grew 11% in 3Q 2023 due to the company’s digital investments and improved field activation. In addition, NATR’s gross margin improved 150 basis points in 3Q 2023 versus 3Q 2022.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking set underperformed their large cap DSCI peers in December. Four small caps rose during the month, while three fell. One was unchanged. Three of the eight small cap stocks moved by double-digit percentage points (two up and one down) during the month.

Educational Development Corporation (NASDAQ: EDUC), a publishing company specializing in books and educational products for children, gained 36.5% in December, the best mark of any DSCI component. For the full-year 2023, EDUC fell 63.3%. In mid-October 2023, EDUC reported 2Q FY 2024 (quarter ended August 31, 2023) revenue and pretax earnings of $10.6 million and $1.5 million versus $19.4 million and negative $1.1 million, respectively, in the year-ago period.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart above, short interest in DSCI stocks was 5.9 days in mid-December, down from 6.5 days at the end of November and 6.7 days in mid-November. The biggest absolute decline in DTC from the end of November to mid-December for a DSCI component was EXPI’s decrease to 17.6 days from 19.6 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index was unchanged in December from November. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks was about 90% in both November and December. Conversely, the percentage of stocks which analysts recommended selling in both months remained constant at approximately 10%.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Jumps 5.3% in November, Breaking a Three-Month Downturn; Direct Selling Stocks Have Narrowly Outperformed the DJIA Over First Eleven Months of 2023

The Direct Selling Capital Advisors Direct Selling Index (DSCI) jumped 5.3% in November, breaking a string of three consecutive monthly losses and reversing a percentage drop of similar size in October. The Dow Jones Industrials also rose in November; its 8.8% gain during the month represented outperformance versus the direct selling index. Over the first eleven months of 2023, the DSCI has slightly outpaced the Dow, rising 9.0% versus an 8.5% increase for the broad market index representing 30 of the world’s biggest and most well-known corporations.

Despite the direct selling index’s strong performance in November, results were were not uniform across DSCI’s components. Indeed, only three large cap members rose, while five fell. Similarly, just two of the eight small caps posted gains.

From a longer-term perspective, the DSCI has appreciated an aggregate 24.6% since its March 1, 2020 inception. The DJIA has outperformed the direct selling index over that period; since March 1, 2020, the DJIA has gained 41.5%.

The DJIA’s 8.8% gain in November not only snapped a three-month losing streak for all major stock market indices, but the Dow posted its biggest monthly increase since October 2022. Sharp declines in Treasury yields, particularly 10- and 30-year yields, in November were a key impetus for the impressive performance. Data releases in November continued to point to a slower pace of inflation, which in turn caused many investors to conclude that the Fed’s rate increase cycle has ended and that the central bank may have engineered what several months ago seemed very unlikely—a soft landing for the economy.

Perhaps as important as the sharp monthly gain for the DJIA was the breadth of November’s rally. Whereas a handful of mega-cap tech stocks (the so-called “Magnificent Seven”) accounted for most of the market’s increases earlier this year, a wide range of stocks, including small caps and cyclicals, participated in the upturn in November. For example, about 60% of the stocks in the S&P 500 Index are trading above their 200-day moving averages, a widely cited measure of breadth. These factors seem to bode well for the rally to continue into at least year-end.

Looking Forward

With 3Q 2023 earnings season having concluded for both the direct selling stocks and the overall stock market, macroeconomic news is likely to be the key driver for most stocks in December. Of course, positive seasonal factors could assist the performance of stocks this month as well. According to FactSet, earnings for the S&P 500 increased about 4% in the just-completed quarter, the first year-over-year rise since 3Q 2022.

Given that much of the stock market’s November gains stemmed from investors’ benign interpretation of inflation data, the next release of U.S. CPI information, scheduled for December 12^th, will be closely watched. The next day, the Fed will conclude a two-day rate setting meeting. Almost all Fed watchers expect the central bank to leave rates unchanged on December 13th, but the details of the CPI announcement could factor into whether the Fed may consider rate decreases in 2024—and the potential timing of such cuts.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI rose in November but underperformed the DJIA during the month. The DSCI added 5.3% in November versus an 8.8% increase for the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 24.6% since that date, less than the 41.5% increase for the DJIA.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) jumped 13.5% in November making it the best performing large cap DSCI component during the month. Furthermore, BWMX’s November gain lifted its YTD performance to an impressive 118.7%, the best mark of any large or small cap direct selling index member. Since the March 1, 2020 DSCI inception, BWMX is up 49.1%.

In late October, BWMX reported 3Q 2023 consolidated net revenue and EBITDA of 3.12 billion pesos and 529.4 million pesos, both down slightly from 3.17 billion pesos and 534.9 million pesos, respectively, in the year-ago period. BWMX’s YTD results have come in moderately below its beginning-of-the-year estimates; however, over the first three quarters of 2023, the company has increased its profitability margins and improved its cash conversion cycle. BWMX management now projects full-year 2023 revenue and EBITDA of 12.5-12.8 billion pesos and 2.4-2.5 billion pesos, respectively.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) was the worst performing large cap DSCI member in November. The stock dropped 10.4% during the month, which represented its fourth successive monthly decline of more than 10%. NUS lost 59.6% over the first eleven months of 2023, the weakest result of any large cap direct selling stock index member. Since the March 2020 establishment of the DSCI, NUS has lost 27.9% of its value. In contrast, the direct selling stock index and the Dow Jones Industrial Average gained 24.6% and 41.5%, respectively, over that period.

In early November, NUS reported 3Q 2023 revenue and adjusted EPS of $498.8 million and $0.56 versus $537.8 million and $0.47, respectively, in 3Q 2022. Continued U.S. dollar strength and macroeconomic challenges in several key markets negatively affected consumer spending and customer acquisition, particularly in NUS’s Mainland China and Americas segments. Indeed, the company’s customer count in 3Q 2023 fell to 978,907, down 21% from the year-ago period. NUS projects full-year 2023 revenue and adjusted EPS of $1.92-$1.96 billion and $1.62-$1.77, respectively.

Herbalife Nutrition, Inc. (NYSE: HLF) fell 9.6% in November, the second biggest loss of any large-cap direct selling stock. This decline brought HLF’s YTD loss to 13.4% and its decline since the March 2020 establishment of the DSCI to 60.2%, the worst of any large-cap index member which has traded continuously since index inception.

In early November, HLF reported 3Q 2023 net sales of $1.28 billion, down slightly from $1.30 billion in the year-ago period. The company’s adjusted diluted EPS also declined, falling to $0.65 in 3Q 2023 versus $0.91 in 3Q 2022. HLF management says its momentum is building steadily and that it is on a path to achieve sustainable growth.

HLF has implemented a Transformation Program which is expected to deliver more than $90 million in annual savings. About $60 million of these savings will be realized in 2023, up from its previous $45 million estimate.

Medifast, Inc. (NYSE: MED) shares dropped 4.0% in November, pushing its YTD loss to 42.5%. Since the March 1, 2020 establishment of the DSCI, MED has declined 16.5%. MED’s annual dividend rate is $6.60 per share, making its dividend yield a very attractive 9.7%.

On November 6, MED reported 3Q 2023 revenue of $235.9 million, down from $390.4 million in 3Q 2022. Similarly, diluted EPS in the third quarter fell to $2.12 from $3.27 in the year-ago period. Revenue and earnings in 3Q 2023 were negatively impacted by a decrease in the number of active earning OPTAVIA Coaches and a decline in the productivity per OPTAVIA Coach.

MED management projects that full-year 2023 revenue and diluted EPS will be in the ranges of $1.05 billion to $1.07 billion and $8.65 to $9.55, respectively.

USANA Health Sciences, Inc. (NYSE: USNA) rose 3.8% in November, breaking a two-month losing streak. The November monthly gain cut its YTD loss to 11.2%. Since the March 2020 inception of the DSCI, USANA shares have lost 28.5% compared with increases of 24.6% and 41.5% for the direct selling index and the DJIA, respectively.

In late October, USANA reported 3Q 2023 revenue and diluted EPS of $213 million and $0.59, both down from $233 million and $0.78, respectively, in 3Q 2022. USANA’s 3Q 2023 results were held back by challenging economic conditions across many of USANA’s regions; inflationary pressures; and a lower cadence of promotional activity. The company’s net sales and diluted EPS outlooks for full-year 2023 are now $900-$920 million and $2.80-$3.05, respectively.

eXp World Holdings, Inc. (NASDAQ: EXPI), the DSCI’s second largest component and its best performer since its March 2020 establishment, declined for a third consecutive month in November. The 8.7% drop during the month pared EXPI’s YTD increase to 9.3%. EXPI shares have gained 153.3% over the 45 months that the DSCI has been computed.

In early November, EXPI, the fastest growing real estate brokerage in the world, reported 3Q 2023 revenue and adjusted EBITDA of $1.21 billion and $19.0 million versus $1.24 billion and $12.3 million, respectively, in 3Q 2022. Transaction volume in 3Q 2023 declined 4% versus the year-ago period to $48.5 billion as persistently high

mortgage rates kept many buyers sidelined. The number of agents on EXPI’s realty platform reached 89,156 as of September 30, 2023.

A leading provider of financial services in the US and Canada, and the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) was the second best performing large cap DSCI component in November, increasing 9.6%. That jump boosted PRI’s YTD gain to 47.7%. Since the March 2020 establishment of the DSCI, PRI has risen 91.2%. Both these YTD and 45-month gains markedly surpass the respective 9.0% and 24.6% gains in the direct selling index.

On November 7, PRI reported 3Q 2023 adjusted operating revenue of $713.2 million, up 5% from $676.1 million in the year-ago period. In addition, the company’s adjusted diluted operating EPS reached $4.28 in 3Q 2023, a 14% increase from $3.76 in 3Q 2022. PRI’s key business units posted impressive results in 3Q 2023. Profits in its Term Life segment benefitted from the size and stability of predictable margins and strong sales during the quarter. PRI’s Investment and Savings Products group likewise posted positive results, as client asset values increased during the period.

In 3Q 2023, PRI bought back $106.5 million of its shares. Year to date, $302.5 million of stock has been repurchased. The company expects to buy back about $72.5 million of its shares in 4Q 2023, which would bring its full-year 2023 total to $375 million. On November 16, PRI’s Board announced a $425 million share repurchase target for 2024.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) fell 4.3% in November, ending a three-month streak where it was the best performing DSCI large cap component in each month. Year to date, NATR is up an impressive 105.9%, the second-best mark of any direct selling stock. NATR similarly boasts the second best long-term performance of any DSCI member, +120.6% since the March 1, 2020 establishment of the index. (EXPI leads with a 153.3% long-term gain.)

On November 7, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 3Q 2023 net sales of $111.2 million, up 6% from $104.5 million in the year-ago period. Adjusted EBITDA increased at a much faster pace, reaching $10.3 million in 3Q 2023, up 50% from $6.8 million in 3Q 2022. Orders in NATR’s Asia/Pacific region rose 12% in the quarter on a local currency basis, and NATR’s North American business grew 11% in 3Q 2023 due to the company’s digital investments and improved field activation. In addition, NATR’s gross margin improved 150 basis points in 3Q 2023 versus 3Q 2022.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking set performed in line to slightly worse than their large cap DSCI peers in November. Two small caps rose during the month, while six fell. Four of the eight small cap stocks moved by double-digit percentage points (one up and three down) during the month.

Natural Health Trends Corp. (NASDAQ: NHTC), which markets premium quality personal care, wellness and quality of life products, fell 3.7% in November. Over the first eleven months of 2023, NHTC gained 56.3% (the fourth best mark of any direct selling stock). Since DSCI inception, NHTC has appreciated 77.6% (the third best reading). In early November, NHTC reported 3Q 2023 revenue and EPS of $10.6 million and $0.02 versus $11.7 million and break even, respectively.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart above, short interest in DSCI stocks was 6.7 days in mid-November, down from the 7.0 days reading at the end of October and 6.9 days in mid-October. The biggest absolute decline in DTC from the end of October to mid-November for a DSCI component was LifeVantage Corporation’s (NASDAQ: LFVN) decrease to 0.9 days from 1.7 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index declined in November from October. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks fell to about 90% in November from 97% in October. Conversely, the percentage of stocks which analysts recommended selling last month rose to 10% from just 3% in October.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Falls 5.3% in October, its Third Consecutive Monthly Loss; Nevertheless, Direct Selling Stocks are Still up on the Year

The Direct Selling Capital Advisors Direct Selling Index (DSCI) fell 5.3% in October, marking its third consecutive monthly loss. The Dow Jones Industrials also declined in October, but its 1.4% loss during the month represented outperformance versus the direct selling index. More constructively, the DSCI has outpaced the Dow over the first ten months of 2023, rising 3.6% versus a 0.3% loss for the broad market index representing 30 of the world’s biggest and most well-known corporations.

In October 2023, both large and small cap DSCI components generally had a difficult month. Six of the eight large caps declined in October, four by more than 10%. In addition, three small caps rose during the month, while five lost value. Each of the small cap decliners fell by double digit percentage points.

From a longer-term perspective, the DSCI has appreciated an aggregate 18.4% since its March 1, 2020 inception. The DJIA has outperformed the direct selling index over that period. Since March 1, 2020, the DJIA has gained 30.1%.

The stock market declined for the third straight month in October, and small and micro-cap stocks generally underperformed larger cap stocks. Weakness in the bond market, particularly bonds with longer maturities, played a significant role in the lagging performance of equities. More specifically, ten- and thirty-year U.S. Treasury yields both rose more than 30 basis points in October as investors adapted to the notion that the Federal Reserve would likely maintain higher interest rates for an extended period.

Adding further pressure to the equity markets were heightened geopolitical risks after the October 7th terrorist attack by Hamas against Israel and Israel’s reprisal activities against the terrorist group. Many fear that an Israel ground attack in Palestine could lead to a deeper and broader regional conflict which could potentially cause oil prices to shoot higher.

Looking Forward

A significant number of companies have already reported their third quarter earnings results, including many direct selling stocks. In the broad market, earnings are poised to increase, on average, about 4% from year-ago levels. Those DSCI components which have already reported generally posted declines in both revenue and earnings from 3Q 2022 levels.

The stock market soared in the first few trading days of November as the Fed maintained interest rates at its November 1st rate-setting meeting. More importantly, Fed Chairman Powell’s tone at the post-meeting press conference was more balanced, less hawkish than at the previous meeting in September. This, together with a Goldilocks-type employment report issued on November 3rd, triggered a sharp decline in ten-year U.S. Treasury yields which fueled an impressive rally in stocks.

If investors continue to be optimistic over the balance of November, direct selling stocks could rebound after three consecutive down months. While some individual earnings reports of DSCI members have been disappointing, investors may choose to focus on the 2024 economy which likely will not be encumbered by rising short-term interest rates. Indeed, many forecasters expect the Fed to begin cutting rates by the middle of next year.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI fell in October and underperformed the DJIA during the month. The DSCI declined 5.3% in October versus a 1.4% drop in the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 18.4% since that date, less than the 30.1% increase for the DJIA.

Large Cap

Betterware de Mexico (NASDAQ: BWMX) was the worst performing large cap DSCI component in October, declining 24.1%. Nevertheless, the shares have still gained 92.7% YTD, the second best mark of any large cap direct selling stock. Since the March 1, 2020 DSCI inception, BWMX is up 31.3%.

On October 26, BWMX reported 3Q 2023 consolidated net revenue and EBITDA of 3.12 billion pesos and 529.4 million pesos, both down slightly from 3.17 billion pesos and 534.9 million pesos, respectively, in the year-ago period. BWMX’s YTD results have come in moderately below its beginning-of-the-year estimates; however, over the first three quarters of 2023, the company has increased its profitability margins and improved its cash conversion cycle. After factoring in these trends, BWMX reduced its full-year 2023 net revenue and EBITDA guidance ranges to 12.5-12.8 billion pesos and 2.4-2.5 billion pesos from its previous estimates of 13.2-14.2 billion pesos and 2.6-2.8 billion pesos, respectively.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) fell 10.5% in October, its third successive monthly decline of more than 10%. NUS lost 55.0% over the first ten months of 2023, the worst performance of any large cap direct selling stock index member. Since the March 2020 establishment of the DSCI, NUS has lost 19.5% of its value. In contrast, the direct selling stock index and the Dow Jones Industrial Average gained 18.4% and 30.1%, respectively, over that period.

On November 1, NUS reported 3Q 2023 revenue and adjusted EPS of $498.8 million and $0.56 versus $537.8 million and $0.47, respectively, in 3Q 2022. Continued U.S. dollar strength and macroeconomic challenges in several key markets negatively affected consumer spending and customer acquisition, particularly in NUS’s Mainland China and Americas segments. Indeed, the company’s customer count in 3Q 2023 fell to 978,907, down 21% from the year-ago period. In turn, NUS reduced its full-year 2023 revenue and adjusted EPS guidance ranges to $1.92-$1.96 billion and $1.62-$1.77 from $2.00-$2.08 billion and $2.30-$2.60, respectively.

Herbalife Nutrition, Inc. (NYSE: HLF) rose 1.9% in October, making it the second best performing large cap DSCI member during the month. Even with the solid October performance, HLF has lost 4.2% over the first ten months of 2023. HLF is down 56.0% since the March 2020 establishment of the DSCI, making it the worst performing DSCI large cap stock which has traded continuously since index inception.

On November 1, HLF reported 3Q 2023 net sales of $1.28 billion, down slightly from $1.30 billion in the year-ago period. The company’s adjusted diluted EPS also declined, falling to $0.65 in 3Q 2023 versus $0.91 in 3Q 2022. HLF management says its momentum is building steadily and that it is on a path to achieve sustainable growth. Furthermore, the company believes it realized its third consecutive quarter of improved year-over-year sales trends in 3Q 2023.

HLF has implemented a Transformation Program which is expected to deliver more than $90 million in annual savings. About $60 million of these savings will be realized in 2023, up from its previous $45 million estimate.

Medifast, Inc. (NYSE: MED) shares dropped 7.6% in October, bringing its YTD loss to 40.0%. MED’s decline over the first ten months of 2023 pushed its performance since the March 1, 2020 establishment of the DSCI to a loss of 13.0%. MED’s annual dividend rate is $6.60 per share, making its dividend yield a very attractive 9.4%.

In August, MED reported 2Q 2023 revenue of $296.2 million, down 34.7% from $453.3 million in 2Q 2022. Similarly, diluted EPS in the second quarter fell to $2.77 from $3.42 in the year-ago period. Revenue and earnings in 2Q 2023 were affected by a decrease in the number of active earning OPTAVIA Coaches and the decline in productivity per active earning OPTAVIA Coach.

MED will report its 3Q 2023 results after the stock market closes on November 6. The company’s previously issued 3Q 2023 revenue and diluted EPS guidance ranges are $220 million to $240 million and $0.71 to $1.32, respectively.

USANA Health Sciences, Inc. (NYSE: USNA) fell 22.3% in October, its second consecutive monthly decline. The decline pushed USNA’s YTD performance from a gain of 10.2% through September 30 to a loss of 14.4% through October 31. Since the March 2020 inception of the DSCI, USANA shares have lost 31.1% compared with 18.4% and 30.1% increases for the direct selling index and the DJIA, respectively.

On October 24, USANA reported 3Q 2023 revenue and diluted EPS of $213 million and $0.59, both down from $233 million and $0.78, respectively, in 3Q 2022. USANA’s 3Q 2023 results were held back by challenging economic conditions across many of USANA’s regions, inflationary pressures, and a lower cadence of promotional activity. Consequently, the company revised its net sales and diluted EPS outlooks for full-year 2023 to $900-$920 million and $2.80-$3.05 from $900-$950 million and $2.65-$3.30, respectively.

eXp World Holdings, Inc. (NASDAQ: EXPI), the DSCI’s second largest component and its best performer since its March 2020 establishment, lost 18.3% in October, marking its second successive monthly decline of more than 15% (negative 15.5% in September). The October loss pared EXPI’s YTD increase to a still impressive 19.8%. EXPI shares have gained 177.6% over the 44 months that the DSCI has been computed.

On November 2, EXPI, the fastest growing real estate brokerage in the world, reported 3Q 2023 revenue and adjusted EBITDA of $1.21 billion and $19.0 million versus $1.24 billion and $12.3 million, respectively, in 3Q 2022. Transaction volume in 3Q 2023 declined 4% versus the year-ago period to $48.5 billion, as persistently high mortgage rates kept many buyers sidelined. The number of agents on EXPI’s realty platform reached 89,156 as of September 30, 2023, up about 1% from 88,248 on June 30, 2023.

A leading provider of financial services in the U.S. and Canada, and the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) lost 1.5% in October, cutting its YTD gain to 34.8%. Since the March 2020 establishment of the DSCI, PRI has gained 74.5%. Both these YTD and 44-month gains markedly surpass the respective 3.6% and 18.4% gains in the direct selling index.

In August, PRI reported 2Q 2023 adjusted operating revenue of $689.6 million, up 3% from $671.8 million in the year-ago period. Furthermore, adjusted diluted EPS in 2Q 2023 reached $3.99, an increase from $3.38 in 2Q 2022. PRI will release its 3Q 2023 results on November 8.

In October and for the third consecutive month, Nature’s Sunshine Products, Inc. (NASDAQ: NATR) was the best performing DSCI large cap component. NATR gained 8.0% in October compared with a 3.6% loss in the direct selling index. This performance added to the stock’s YTD gain of 115.1%, the best of any large cap DSCI component. NATR boasts the second best long-term performance of any DSCI member, +130.5% since the March 1, 2020 establishment of the index. (EXPI leads with a 177.6% long-term gain.)

In August, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 2Q 2023 net sales of $116.5 million, up 12% from $104.5 million in the year-ago period. Adjusted EBITDA likewise increased in 2Q 2023 to $11.3 million from $9.0 million in 2Q 2022. NATR projects full-year 2023 net sales and adjusted EBITDA to be $440-$455 million and $34-$38 million, respectively. The company will release its 3Q 2023 results on November 7 after the stock market closes.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking set performed slightly better than the large cap DSCI components in October. Three small caps rose during the month, while five fell. Interestingly, seven of the eight small cap stocks moved by double-digit percentage points (two up and five down) in October.

LifeVantage Corporation (NADAQ: LFVN), a health and wellness company with products designed to activate optimal health processes, rose 16.3% in October. Over the first ten months of 2023, LFVN has gained 101.6%; since DSCI inception, it has lost 37.0%. In late August, LFVN reported 4Q FY23 (quarter ended June 30, 2023) revenue and adjusted EPS of $54.2 million and $0.17 versus $50.9 million and $0.01, respectively, in the year-ago period.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart above, short interest in DSCI stocks was 6.9 days in mid-October, flat versus the reading at the end of September and up slightly from 6.8 days in mid-September. The biggest absolute rise in DTC from the end of September to mid-October for a DSCI component was EXPI’s increase to 20.1 days from 18.4 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index improved in October from September. The proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks rose to about 97% in October from 90% in September. Conversely, the percentage of stocks which analysts recommended selling last month fell to just 3% from 10% in September.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Drops 6.1% in September, its Second Consecutive Monthly Loss; Despite the Decline, Direct Selling Stocks are Up 9.4% Through the First Three Quarters of 2023

The Direct Selling Capital Advisors Direct Selling Index (DSCI) dropped 6.1% in September, its second consecutive monthly decline (negative 8.7% in August). The Dow Jones Industrials also declined in September, but its 3.5% loss during the month represented outperformance versus the direct selling index. More constructively, the DSCI has markedly outpaced the Dow over the first three quarters of 2023, rising 9.4% versus only 1.1% for the broad market index representing 30 of the world’s biggest and most well-known corporations.

In September 2023, both large cap and small cap DSCI components struggled. All nine large caps declined during the month, four by more than 10%. Similarly, six of the seven small direct selling stocks fell in September. Five small caps declined by double digit percentage points.

From a longer-term perspective, the DSCI has appreciated an aggregate 25.1% since its March 1, 2020 inception. The DJIA has outperformed the direct selling index over that period. Since March 1, 2020, the DJIA has gained 31.9%.

The stock market posted its worst monthly result of the year in September. The damages realized in the broader S&P 500 (negative 5%) and NASDAQ Composite (negative 6%) indices were even deeper than in the DJIA. Investors feared that the Fed’s policy of keeping short term interest rates “higher for longer,” coupled with $90+ oil prices (which have translated into $5 per gallon gasoline prices in some regions) and a strengthening US dollar, may cause an economic hard landing. As recently as July, market participants were much more sanguine that the economy could avoid a downturn.

Factoring into this pessimism are certain parallels to conditions which existed in 2000 before the dot.com market bust. Then, as now, the market was led by a small group of highly valued technology stocks, and the Fed was engaged in a tightening cycle.

Looking Forward

DSCI components will begin announcing their 3Q 2023 results in late October, and when those reports are issued, their content and quality will likely be the next key driver for DSCI member stock prices. Until then, the stock market (which has continued to be weak in the first few days of October) will greatly influence direct selling stock valuations.

As noted earlier, some bearish investors are expressing concern about some similarities between today’s stock market and the financial conditions in 2000. However, one significant difference between the present stock market and the 2000 market is a much more conservative valuation. According to consensus estimates, the S&P 500 trades at around 19x and 17x earnings projections for 2023 and 2024, respectively. In 2000, the typical stock traded at around a 25x P/E multiple.

A further argument that the stock market may face less downside risk than many analysts believe are modest high yield and investment grade bond spreads. More specifically, junk bonds and investment grade bonds trade at about 411 and 126 basis point (bp) yield premiums, respectively, to comparable US Treasuries. These premiums are narrower than historic average spreads of around 450 and 150 bp, respectively, and are much smaller than spreads seen during times of economic distress. Phrased differently, high yield and investment grade bond investors seem much less worried about a potential 2024 recession than are stock market participants.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI fell in September and underperformed the DJIA during the month. The DSCI declined 6.1% in September versus a 3.5% drop in the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 25.1% since that date, less than the 31.9% increase for the DJIA.

Large Cap

The shares of Betterware de Mexico (NASDAQ: BWMX) dipped 4.5% in September but still outperformed the DSCI, which lost 6.1% during the month. Despite the modest retrenchment in September, BWMX has over the first nine months of 2023 gained a remarkable 153.7%, by far the best mark of any direct selling stock. Since the March 1, 2020 DSCI inception, BWMX is up 73%.

In late July, BWMX reported 2Q 2023 consolidated net revenue and EBITDA of 3.22 billion pesos and 717.4 million pesos versus 3.24 billion pesos and 615.3 million pesos, respectively, in the year-ago period. Importantly, BWMX’s margins throughout 1H 2023 returned to early 2022 levels. BWMX reiterated full-year 2023 net revenue and EBITDA guidance ranges of 13.2-14.2 billion pesos and 2.6-2.8 billion pesos, respectively.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) fell 11.2% in September which represented its second consecutive monthly decline of more than 10%. Factoring in this performance, NUS lost 49.7% over the first nine months of 2023, the worst performance of any large cap direct selling stock index member. Since the March 2020 establishment of the DSCI, NUS has lost 10.1% of its value. In contrast, the direct selling stock index and the Dow Jones Industrial Average gained 25.1% and 31.9%, respectively, over that period.

In August, NUS reported 2Q 2023 revenue and adjusted EPS of $500.3 million and $0.54, both down from $560.6 million and $0.77, respectively, in 2Q 2022. Macroeconomic issues and associated prices had a dampening effect on consumer spending and customer acquisition. NUS reduced its full-year 2023 revenue and adjusted EPS guidance ranges to $2.00-$2.08 billion and $2.30-$2.60 from $2.03-$2.18 billion and $2.35-$2.75, respectively.

Herbalife Nutrition, Inc. (NYSE: HLF) dipped 6.9% in September. The decline caused its YTD performance to shift from a slight gain at the end of August to a 6% loss as of September 30. HLF has lost 56.8% since the March 2020 establishment of the DSCI, making it the worst performing DSCI large cap stock which has traded continuously since index inception.

In August, HLF reported 2Q 2023 net sales of $1.31 billion, down 5.7% from $1.39 billion in 2Q 2022. The company’s adjusted diluted EPS also declined, falling to $0.74 in 2Q 2023 versus $0.96 in the year-ago period. Despite the lower revenue in the quarter, HLF said 2Q 2023 marked its second consecutive quarter of improved year-over-year sales trends.

HLF has implemented a Transformation Program which is expected to deliver more than $90 million in annual savings. About $45 million of these savings will be realized in 2023.

Medifast, Inc. (NYSE: MED) shares fell 11.3% in September, bringing its YTD loss to 35.1%. MED’s decline over the first nine months of 2023 pushed its performance since the March 1, 2020 establishment of the DSCI to a loss of 5.8%. MED’s annual dividend rate is $6.60 per share, making its dividend yield a very attractive 8.9%.

In August, MED reported 2Q 2023 revenue of $296.2 million, down 34.7% from $453.3 million in 2Q 2022. Similarly, diluted EPS in the second quarter fell to $2.77 from $3.42 in the year-ago period. Revenue and earnings in 2Q 2023 were affected by a decrease in in the number of active earning OPTAVIA Coaches and the decline in productivity per active earning OPTAVIA Coach. For the third quarter of 2023, MED expects to report revenue and diluted EPS of $220 million to $240 million and $0.71 to $1.32, respectively.

USANA Health Sciences, Inc. (NYSE: USNA) dropped 8.8% in September, cutting its YTD gain to 10.2%. Since the March 2020 inception of the DSCI, USANA shares have lost 11.3% compared with 25.1% and 31.9% increases for the direct selling index and the DJIA, respectively.

In July, USANA reported 2Q 2023 revenue and diluted EPS of $238 million and $0.89, both down from $264 million and $1.00, respectively, in 2Q 2022. USANA’s 2Q 2023 results were boosted by sequential improvement in mainland China due in part to a local promotion offered there and continued progress on several key strategic initiatives. The company’s net sales and diluted EPS outlooks for full-year 2023 are $900-$950 million and $2.65-$3.30, respectively.

eXp World Holdings, Inc. (NASDAQ: EXPI), the DSCI’s second largest component and by far its best performer since its March 2020 establishment, lost 15.5% in September. Last month’s loss pares EXPI’s YTD increase to a still very impressive 46.6%. EXPI shares have gained 239.7% over the 43 months that the DSCI has been computed.

In August, EXPI, the fastest growing real estate brokerage in the world, reported 2Q 2023 revenue and adjusted EBITDA of $1.23 billion and $24.7 million, both down from $1.42 billion and $26.9 million, respectively, in 2Q 2022. Transaction volume was lower in 2Q 2023 as persistently high mortgage rates kept many buyers sidelined. The number of agents on EXPI’s realty platform reached 88,248 on June 30, 2023, up about 1% from 87,327 as of March 31, 2023.

A leading provider of financial services in the U.S. and Canada, and the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) lost 3.5% in September, cutting its YTD gain to 36.8%. Since the March 2020 establishment of the DSCI, PRI has gained 77.1%. Both these YTD and 43-month gains markedly surpass the respective 9.4% and 25.1% gains in the direct selling index.

In August, PRI reported 2Q 2023 adjusted operating revenue of $689.6 million, up 3% from $671.8 million in the year-ago period. Furthermore, adjusted diluted EPS in 2Q 2023 reached $3.99, an increase from $3.38 in 2Q 2022. PRI’s improved 2Q 2023 results reflect the benefit of continued, predictable growth in PRI’s Term Life segment. In addition, the company’s Investment and Savings Product unit results benefited from the equity market’s recovery, which in turn positively impacted client asset values.

For the second consecutive month, Nature’s Sunshine Products, Inc. (NASDAQ: NATR) was the best performing DSCI large cap component. NATR lost just 1.4% during September, much narrower than the 6.1% decline in the direct selling index. This performance slightly reduced the stock’s YTD gain to 99.2%, the second highest of any direct selling index member (to BWMX’s 153.7% YTD increase). Similarly, NATR boasts the second best long-term performance of any DSCI member, +113.4% since the March 1, 2020 establishment of the index. (EXPI leads with a 239.7% long-term gain.)

In August, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 2Q 2023 net sales of $116.5 million, up 12% from $104.5 million in the year-ago period. Adjusted EBITDA likewise increased in 2Q 2023 to $11.3 million from $9.0 million in 2Q 2022. Strength in the Asia/Pacific region, further stabilization in Central and Eastern Europe, and a return to growth in North America, were all factors in NATR’s improved results. NATR expects full-year 2023 net sales and adjusted EBITDA to be $440-$455 million and $34-$38 million, respectively.

The Beachbody Company, Inc. (NYSE: BODY), a leading subscription health and wellness company, dropped 27.9% in September. YTD the stock has lost 43.9% of its value.

In August, BODY reported 2Q 2023 revenue of $134.9 million versus $179.1 million in the year-ago period.nThe company’s 2Q 2023 adjusted EBITDA was negative $4.8 million compared with a $1.5 million loss in 2Q 2022. BODY has restructured the financial covenants in its financing agreement and paid down its debt level by $15 million to approximately $35 million, which reduces interest expense and gives the company additional flexibility to execute on its strategies. BODY projects 3Q 2023 revenue and adjusted EBITDA will be $120-$130 million and negative $3 million to negative $8 million, respectively.

Note: For the purposes of this report, Direct Selling Capital considers companies with a market capitalization in excess of $1 billion “Large Cap.”

Small Cap

Our small cap tracking set performed about in line with the large cap DSCI components in September. Only one small cap rose during the month, while six fell. Interestingly, six of the seven small cap stocks moved by double-digit percentage points (one up and five down) in September.

Natural Health Trends Corp. (NASDAQ: NHTC), a marketer of premium quality personal care, wellness and “quality of life” products, declined just 1.9% in September. Over the first three quarters of 2023 and since DSCI inception, NHTC has gained 54.5% and 75.6%, respectively. In early August, NHTC reported 2Q 2023 revenue and operating income of $10.5 million and negative $743,000 versus $13.4 million and positive $215,000, respectively, in the year-ago period.

Short Interest Data & Analysis

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart above, short interest in DSCI stocks was 5.3 days in mid-September, flat versus the readings at both the end of August and mid-August. The 5.3 DTC figure is the lowest reading for the direct selling index since a 4.6-days data point in mid-January 2023. The biggest absolute rise in DTC from the end of August to mid-September for a DSCI component was EXPI’s increase to 18.1 days from 11.6 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

Analyst Sentiment Index

Our Analyst Sentiment Index was unchanged in September from August. During both months, the proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks was about 90%. Conversely, the percentage of stocks which analysts recommend selling in each month was approximately 10%.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.

Direct Selling Index Declines 8.7% in August and Underperforms DJIA During the Month; Nevertheless, DSCI Has Gained 16.6% Over the First Eight Months of 2023.

The Direct Selling Capital Advisors Direct Selling Index (DSCI) fell 8.7% in August, reversing part of the robust gains realized in July and June (+7.6% in each month). The Dow Jones Industrials also declined in August, but its 2.4% loss during the month represented outperformance versus the direct selling index. More constructively, the DSCI has markedly outpaced the Dow over the first eight months of 2023, rising 16.6% versus only 4.8% for the broad market index representing 30 of the world’s biggest and most well-known corporations.

In August 2023, small cap DSCI components generally performed better than their large cap peers. This relative move represented a significant departure from the trend which had prevailed over the first seven months of 2023. More specifically, three small caps rose during August, and an equal number fell. In contrast, just two large cap members appreciated during the month, while seven large direct selling stocks lost ground.

Furthermore, August 2023 represented perhaps the most volatile DSCI stock performance month since we began tracking the index 3 ½ years ago. Seven of the nine large cap components moved up or down by more than 10% in August (two up and five down), and five of the six small cap components experienced double digit percentage price changes (three up and two down) during the month.

From a longer-term perspective, the DSCI has appreciated an aggregate 33.3% since its March 1, 2020 inception. The DJIA has slightly outperformed the direct selling index over that period. Since March 1, 2020, the DJIA has gained 36.7%.

In August 2023, the stock market, as measured by the S&P 500 and NASDAQ 100 indices, posted its first monthly decline since February. Several factors, including Fitch Ratings’ decision early in the month to downgrade the U.S. government’s credit rating to AA+ from AAA, and a general sentiment change that the Fed will likely keep short-term interest rates “higher for longer,” weighed on equity markets in August. Positively, the stock market rallied in the last week of August after enduring a difficult first three weeks of the month.

Looking Forward

With DSCI components’ having reported their 2Q 2023 results in late July and through the first few weeks of August, movements in direct selling stocks in September will likely be primarily influenced by the overall direction of the stock market.

On the surface, this dependence on the movement in broad indices in September may not be the most optimal situation. After all, September has historically been the worst month of the year for the stock market, according to nearly 100 years of Dow Jones Market Data. In addition, some consumers may be forced to start pulling back on purchases as student loan interest began to accrue on September 1, 2023 for the first time in three years. Payments will re-commence beginning in October.

On the other hand, the Fed is expected to leave interest rates unchanged at its next rate-setting meeting on September 20. Also, the U.S. Bureau of Labor Statistics is scheduled to release CPI data for August on September 13. The last several monthly readings have shown cooling inflation, and if this release were to follow that same pattern, investors could potentially gain more confidence that the Fed will leave interest rates unchanged through year-end 2023.

CHARTS & ANALYSIS

Direct Selling Capital Advisors Index

The DSCI is a market capitalization weighted index of all domestic public direct selling companies with a market capitalization of at least $25 million. The index is rebalanced monthly, and no single issue is permitted to represent more than 20% of its total value. In such an event, the excess weighting would be redistributed among the other index components.

The DSCI fell in August and underperformed the DJIA during the month. The DSCI declined 8.7% in August versus a 2.4% drop in the DJIA. DSCI data is tracked back to March 1, 2020. The direct selling index has risen 33.3% since that date, slightly less than the 36.7% increase for the DJIA.

Large Cap

In August, the shares of Betterware de Mexico (NASDAQ: BWMX) continued their extraordinary performance in 2023. BWMX rose 20.4% during the month, bringing its YTD gain to a DSCI-best 165.7%. Since the DSCI inception on March 1, 2020, BWMX is up 81.1%.

In late July, BWMX reported 2Q 2023 consolidated net revenue and EBITDA of 3.22 billion pesos and 717.4 million pesos versus 3.24 billion pesos and 615.3 million pesos, respectively, in the year-ago period. The company grew the number of its distributors by 5% in 2Q 2023 compared with 1Q 2023 and achieved a 4.0% sales increase in the period relative to 1Q 2023. Equally important, BWMX’s margins throughout 1H 2023 returned to early 2022 levels. BWMX reiterated full-year 2023 net revenue and EBITDA guidance ranges of 13.2-14.2 billion pesos and 2.6-2.8 billion pesos, respectively.

BWMX began trading in March 2020 after the company’s merger with SPAC sponsor DD3 Acquisition Corp. BWMX specifically targets the Mexican market; it serves three million households through distributors and associates in approximately 800 communities throughout Mexico.

Nu Skin Enterprises, Inc. (NYSE: NUS) fell 18.7% in August. Factoring in this decline, NUS lost 43.3% over the first eight months of 2023, which represents the worst performance of any large cap direct selling stock index member. Since the March 2020 establishment of the DSCI, NUS has eked out a 1.3% gain, but that still represents marked long-term underperformance versus both the direct selling stock index (+33.3%) and the Dow Jones Industrial Average (+36.7%).

In early August, NUS reported 2Q 2023 revenue and adjusted EPS of $500.3 million and $0.54, both down from $560.6 million and $0.77, respectively, in 2Q 2022. Macroeconomic issues and associated prices had a dampening effect on consumer spending and customer acquisition. NUS reduced its full-year 2023 revenue and adjusted EPS guidance ranges to $2.00-$2.08 billion and $2.30-$2.60 from $2.03-$2.18 billion and $2.35-$2.75, respectively.

Herbalife Nutrition, Inc. (NYSE: HLF) dropped 7.5% in August, ending a two-month string of double digit percentage gains (+22.7% in July and +11.8% in June). Even with the August decline, HLF’s YTD performance through August 31 remained positive (+0.9%). Still, HLF has lost 53.6% since the March 2020 establishment of the DSCI, making it the worst performing DSCI large cap stock which has traded continuously since index inception.

In early August, HLF reported 2Q 2023 net sales of $1.31 billion, down 5.7% from $1.39 billion in 2Q 2022. The company’s adjusted diluted EPS also declined, falling to $0.74 in 2Q 2023 versus $0.96 in the year-ago period. Despite the lower revenue in the quarter, HLF said 2Q 2023 marked its second consecutive quarter of improved year-over-year sales trends.

HLF has implemented a Transformation Program which is expected to deliver more than $90 million in annual savings. About $45 million of these savings will be realized in 2023.

Medifast, Inc. (NYSE: MED) shares lost 17.2% in August, reversing a significant portion of its 10.6% and 17.1% gains in July and June, respectively. YTD, MED is down 26.9%. More constructively, since the March 1, 2020 establishment of the DSCI, MED shares have gained 6.1%. MED’s annual dividend rate is $6.60 per share, making its dividend yield a very attractive 8.1%.

On August 7, MED reported 2Q 2023 revenue of $296.2 million, down 34.7% from $453.3 million in 2Q 2022. Similarly, diluted EPS in the second quarter fell to $2.77 from $3.42 in the year-ago period. Revenue and earnings in 2Q 2023 were affected by a decrease in in the number of active earning OPTAVIA Coaches and the decline in productivity per active earning OPTAVIA Coach.

For the third quarter of 2023, MED expects to report revenue and diluted EPS of $220 million to $240 million and $0.71 to $1.32, respectively.

USANA Health Sciences, Inc. (NYSE: USNA) edged 1.0% lower in August. Year to date, USNA has appreciated 20.8%. Since the March 2020 inception of the DSCI, USANA shares have lost 2.7% compared with 33.3% and 36.7% increases for the direct selling index and the DJIA, respectively.

In late July, USANA reported 2Q 2023 revenue and diluted EPS of $238 million and $0.89, both down from $264 million and $1.00, respectively, in 2Q 2022. USANA’s 2Q 2023 results were boosted by sequential improvement in mainland China, due in part to a local promotion offered there and continued progress on several key strategic initiatives. The company’s net sales and diluted EPS outlooks for full-year 2023 are $900-950 million and $2.65-$3.30, respectively.

eXp World Holdings, Inc. (NASDAQ: EXPI), the DSCI’s second largest component and by far its best performer since its March 2020 establishment, declined 22.9% in August. This drop reversed part of an extraordinary May-June-July period when the stock gained 31.7%, 31.8%, and 23.0%, respectively. August’s loss pares EXPI’s YTD increase to 73.5%. EXPI shares have gained an astounding 302.1% over the 42 months that the DSCI has been computed.

In early August, EXPI, the fastest growing real estate brokerage in the world, reported 2Q 2023 revenue and adjusted EBITDA of $1.23 billion and $24.7 million, both down from $1.42 billion and $26.9 million, respectively, in 2Q 2022. Transaction volume was lower in 2Q 2023 as persistently high mortgage rates kept many buyers sidelined.

The number of agents on EXPI’s realty platform reached 88,248 on June 30, 2023, up about 1% from 87,327 as of March 31, 2023. Furthermore, EXPI’s total agents in South Africa alone reached 1,000 in August 2023, up 74% from 574 in July 2022.

A leading provider of financial services in the U.S. and Canada, and the largest market cap stock in the DSCI, Primerica, Inc. (NYSE: PRI) lost 5.5% in August, cutting its YTD gain to a still very impressive 41.7%. Since the March 2020 establishment of the DSCI, PRI has gained 83.4%. Both these YTD and 42-month gains markedly surpass the respective 16.6% and 33.3% gains in the direct selling index.

On August 7, PRI reported 2Q 2023 adjusted operating revenue of $689.6 million, up 3% from $671.8 million in the year-ago period. Furthermore, adjusted diluted EPS in 2Q 2023 reached $3.99, an increase from $3.38 in 2Q 2022. PRI’s improved 2Q 2023 results reflect the benefit of continued, predictable growth in PRI’s Term Life segment. In addition, the company’s Investment and Savings Product unit results benefited from the equity market’s recovery, which in turn positively impacted client asset values.

PRI repurchased $110.8 million of its common stock in 2Q 2023, which brought its 1H 2023 share repurchases to $196.0 million. PRI expects to buy back about $179 million of its shares in 2H 2023.

Nature’s Sunshine Products, Inc. (NASDAQ: NATR) rose 20.5% in August, the best mark of any large cap DSCI component. In addition, NATR’s impressive August performance brought its YTD gain to 102.0%, the second highest of any direct selling index member (to BWMX’s 165.7% YTD increase). Similarly, NATR boasts the second best performance of any DSCI member, +116.5% since the March 1, 2020 establishment of the index. (EXPI leads with a 302.1% long-term gain.)

On August 9, NATR, which markets and distributes nutritional and personal care products in more than 40 countries, reported 2Q 2023 net sales of $116.5 million, up 12% from $104.5 million in the year-ago period. Adjusted EBITDA likewise increased in 2Q 2023 to $11.3 million from $9.0 million in 2Q 2022. Strength in the Asia/Pacific region, further stabilization in Central and Eastern Europe and a return to growth in North America, were all factors in NATR’s improved results.

NATR expects full-year 2023 net sales and adjusted EBITDA to be $440-$455 million and $34-$38 million, respectively.

The Beachbody Company, Inc. (NYSE: BODY), a leading subscription health and wellness company, fell 11.1% in August. YTD, the stock has lost 22.2% of its value.

On August 8, BODY reported 2Q 2023 revenue of $134.9 million versus $179.1 million in the year-ago period. The company’s 2Q 2023 adjusted EBITDA was negative $4.8 million compared with a $1.5 million loss in 2Q 2022. BODY has restructured the financial covenants in its financing agreement and paid down its debt level by $15 million to approximately $35 million, which reduces interest expense and gives the company additional flexibility to execute on its strategies.

BODY projects 3Q 2023 revenue and adjusted EBITDA to be $120-$130 million and negative $3 million to negative $8 million, respectively.

After rocketing more than 400% higher in July as perhaps the hottest meme stock in the market, Tupperware Brands Corporation (NYSE: TUP) declined a DSCI-worst 41.7% in August. The August drop brought TUP’s YTD loss to 39.9%, and its loss since the March 2020 establishment of the DSCI to 12.6%.

In early August, TUP finalized an agreement with its lenders to restructure its existing debt obligations, improving the company’s overall financial position by amending some credit obligations and extending the maturity of some debt facilities. In particular, the accord entailed the reduction/reallocation of approximately $150 million of cash interest and fees.

To date, TUP has still not filed its 10-K annual report for 2022 nor any 10-Qs in 2023, and it is not clear when it will be able to do so.

Small Cap

Our small cap tracking set generally outperformed the large cap DSCI components in August. Three small caps rose in the month, while the same number fell. Interestingly, five of the six small cap stocks moved by double-digit percentage points (in varying directions) during the month.

LifeVantage Corporation (NASDAQ: LFVN) led all DSCI components in August with a 46.2% gain. Over the first eight months of 2023, LFVN has soared 98.9%. LFVN, a leading health and wellness company with products designed to activate optimal health processes, reported 2Q 2023 revenue and adjusted diluted EPS of $54.2 million and $0.17 versus $50.9 million and $0.01, respectively, in the year-ago period.

Short Interest Data & Analysis Analyst Sentiment Index

The following chart is an aggregate index of “days to cover” among the entire tracking set. Days to cover (DTC) is a measurement determined by dividing the total outstanding short interest by average daily trading volume.

As indicated in the chart above, short interest in DSCI stocks was 5.3 days in mid-August, down slightly from 5.5 days at the end of July and flat versus 5.3 days in mid-July. The mid-August 5.3 DTC figure is the lowest reading for the direct selling index since a 4.6-days data point in mid-January 2023. The biggest absolute decrease in DTC from the end of July to mid-August for a DSCI component was NUS’s fall to 2.1 days from 3.2 days.

Short interest can be a difficult indicator to analyze. On the one hand, an increase in short interest can be a bearish sign in that it indicates an increased view among investors that a stock is likely to decline based on any number of factors, such as a belief that the company’s fundamentals are deteriorating or that it has run too far, too fast. On the other hand, as a stock moves higher, a significant short interest can serve as extra fuel on the fire as investors scramble to “buy to cover” their short positions and mitigate losses.

 

 

Analyst Sentiment Index

Our Analyst Sentiment Index was unchanged in August versus July. During both months, the proportion of sell-side analysts maintaining “buy” and “hold” ratings on industry stocks was about 90%. Conversely, the percentage of stocks which analysts recommend selling in each month was approximately 10%.

Methodology: The DSCA Analyst Sentiment Index is a consensus tracking tool that aggregates and averages the recommendations of all covering analysts across all public direct selling companies.