Nature’s Sunshine’s second quarter was marked by strong digital momentum and successful geographic diversification, with revenue and adjusted profits exceeding Wall Street’s expectations. Management credited the growth to standout performance in Japan, ongoing strength in Central Europe, and a notable acceleration in North America’s digital business. CEO Terrence Moorehead highlighted, “Our Subscribe & Thrive Autoship program continues to pay dividends as we saw strong growth in both customers and orders in the second quarter.” Despite macroeconomic headwinds in parts of Asia and Europe, targeted marketing and digital engagement efforts helped offset regional softness.
Is now the time to buy NATR? Find out in our full research report (it’s free).
Nature's Sunshine (NATR) Q2 CY2025 Highlights:
- Revenue: $114.8 million vs analyst estimates of $112.3 million (3.8% year-on-year growth, 2.2% beat)
- Adjusted EPS: $0.35 vs analyst estimates of $0.16 (significant beat)
- Adjusted EBITDA: $11.27 million vs analyst estimates of $9.84 million (9.8% margin, 14.5% beat)
- The company lifted its revenue guidance for the full year to $467.5 million at the midpoint from $457.5 million, a 2.2% increase
- EBITDA guidance for the full year is $43 million at the midpoint, above analyst estimates of $42.36 million
- Operating Margin: 3.7%, down from 5.1% in the same quarter last year
- Market Capitalization: $287.1 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Nature's Sunshine’s Q2 Earnings Call
- Brian Patrick Holland (D.A. Davidson) asked about the wide EBITDA guidance range and whether digital acceleration or Asia Pacific headwinds would determine the outcome. CFO Shane Jones explained that continued digital growth would push results toward the higher end, while muted Asia trends could limit upside.
- Brian Patrick Holland (D.A. Davidson) questioned increased digital marketing investments and their sustainability. Jones responded that additional spending would be tied to demonstrable returns, and digital initiatives would remain a focus as long as sales momentum continued.
- Brian Patrick Holland (D.A. Davidson) asked about leveraging manufacturing capacity for third-party partnerships or acquisitions. CEO Terrence Moorehead confirmed they are exploring opportunities but noted discussions are in early stages.
- Susan Kay Anderson (Canaccord Genuity) inquired about North America’s core business recovery and what was driving field activation. Moorehead cited new sales support staff, improved basic sales processes, and greater practitioner engagement as key contributors.
- Susan Kay Anderson (Canaccord Genuity) asked about the impact of new product launches and their ability to drive growth. Moorehead explained that while individual products may not shift annual results immediately, they are important for customer acquisition and building recurring business.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will focus on (1) digital sales momentum and its impact on North American growth, (2) the pace of margin improvement as gross margin initiatives and supply chain adjustments take hold, and (3) the performance of new product launches and recurring revenue programs like Autoship in driving customer acquisition. Developments in Asia Pacific, especially in Japan and Taiwan, will also be key indicators for sustained international growth.
Nature's Sunshine currently trades at $16.50, up from $13.90 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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