Natural Health Trends Reports First Quarter 2025 Financial Results

    Sales decreased 2% year-over-year during the first quarter of 2025, attributable to promotional calendar differences
    Generated cash flows from operations of $484,000 during the first quarter of 2025
    Declared a quarterly cash dividend of $0.20 per share
       

LOS ANGELES, April 30, 2025 (GLOBE NEWSWIRE) -- 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 under the NHT Global brand, today announced its financial results for the quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights

  • Revenue of $10.7 million decreased 2% compared to $11.0 million in the first quarter of 2024. 
  • Operating loss was $345,000 compared to $365,000 in the first quarter of 2024.
  • Net income was $122,000, or $0.01 per diluted share, compared to $188,000, or $0.02 per diluted share, in the first quarter of 2024.
  • The number of Active Members1 was down 2% to 30,180 at March 31, 2025 compared to 30,870 at December 31, 2024, and decreased 5% compared to 31,620 at March 31, 2024.
1   Natural Health Trends defines Active Members as those that have placed at least one product order with the Company during the preceding twelve-month period.
     

Management Commentary

"The 2% year-over-year revenue decrease was attributable to the timing of our incentive and promotional calendar between the two periods. However, we managed to sequentially increase orders taken by 9% over the fourth quarter of 2024, demonstrating sustained strong interest for our products and the value we provide to our customers,” commented Chris Sharng, President of Natural Health Trends Corp.

Mr. Sharng continued, “While the ever-evolving trade war is difficult to gauge, with the support of our product partners, we are actively working to align manufacturing closer to our key markets, shorten supply chains, and simplify logistics to weather the uncertainty and improve our long-term efficiency. Above all, our commitment to our members remains steadfast, and we will continue to deliver exceptional service and high-quality products to improve both their personal and financial well-being now and into the future."

Balance Sheet and Cash Flow

  • Net cash provided by operating activities was $484,000 in the first three months of 2025 compared to $549,000 in the first three months of 2024.
  • Total cash, cash equivalents and marketable securities were $41.9 million at March 31, 2025, down from $43.9 million at December 31, 2024.
  • On April 28, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 on each share of common stock outstanding. The dividend will be payable on May 23, 2025 to stockholders of record as of May 13, 2025.

First Quarter 2025 Financial Results Conference Call

Management will host a conference call to discuss the first quarter 2025 financial results today, Wednesday, April 30, 2025 at 11:30 a.m. Eastern Time. The conference call details are as follows:

Date: Wednesday, April 30, 2025
Time: 11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time
Dial-in: 1-877-407-0789 (Domestic)
1-201-689-8562 (International)
Conference ID: 13752084
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1710105&tp_key=bcf30b6d42
   

For those unable to participate during the live broadcast, a replay of the call will also be available from 2:30 p.m. Eastern Time on April 30, 2025 through 11:59 p.m. Eastern Time on May 14, 2025 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13752084.

About Natural Health Trends Corp.

Natural Health Trends Corp. (NASDAQ: NHTC) is an international direct-selling and e-commerce company operating through its subsidiaries throughout Asia, the Americas, and Europe. The Company markets premium quality personal care products under the NHT Global brand. Additional information can be found on the Company’s website at www.naturalhealthtrendscorp.com.

Forward-Looking Statements

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Forward-looking statements in this press release do not constitute guarantees of future performance. Such forward-looking statements are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from those anticipated. Such risks and uncertainties include the risks and uncertainties detailed under the caption “Risk Factors” in Natural Health Trends Corp.’s Annual Report on Form 10-K filed on February 21, 2025 with the Securities and Exchange Commission (SEC), as well as in subsequent reports filed this year with the SEC. The Company assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

CONTACT:

Scott Davidson
Senior Vice President and Chief Financial Officer
Natural Health Trends Corp.
Tel (U.S.): 310-541-0888
investor.relations@nhtglobal.com

 
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
             
    March 31, 2025     December 31, 2024  
    (Unaudited)          
ASSETS                
Current assets:                
Cash and cash equivalents   $ 21,688     $ 13,533  
Marketable securities     20,210       30,407  
Inventories     2,815       3,272  
Other current assets     4,093       3,771  
Total current assets     48,806       50,983  
Property and equipment, net     176       190  
Operating lease right-of-use assets     2,353       2,498  
Restricted cash     34       34  
Deferred tax asset     385       382  
Other assets     1,425       1,272  
Total assets   $ 53,179     $ 55,359  
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current liabilities:                
Accounts payable   $ 968     $ 895  
Income taxes payable     4,915       4,908  
Accrued commissions     1,826       2,021  
Other accrued expenses     1,180       1,425  
Deferred revenue     6,921       6,428  
Amounts held in eWallets     3,296       3,286  
Operating lease liabilities     1,115       1,127  
Other current liabilities     522       709  
Total current liabilities     20,743       20,799  
Deferred tax liability     173       174  
Operating lease liabilities     1,381       1,514  
Total liabilities     22,297       22,487  
Stockholders’ equity:                
Preferred stock            
Common stock     13       13  
Additional paid-in capital     84,935       84,901  
Accumulated deficit     (28,525 )     (26,344 )
Accumulated other comprehensive loss     (1,144 )     (1,301 )
Treasury stock, at cost     (24,397 )     (24,397 )
Total stockholders’ equity     30,882       32,872  
Total liabilities and stockholders’ equity   $ 53,179     $ 55,359  
                 


 
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
       
    Three Months Ended March 31,  
    2025     2024  
Net sales   $ 10,737     $ 10,951  
Cost of sales     2,832       2,912  
Gross profit     7,905       8,039  
Operating expenses:                
Commissions expense     4,488       4,486  
Selling, general and administrative expenses     3,762       3,918  
Total operating expenses     8,250       8,404  
Loss from operations     (345 )     (365 )
Other income, net     465       563  
Income before income taxes     120       198  
Income tax provision (benefit)     (2 )     10  
Net income   $ 122     $ 188  
Net income per common share:                
Basic   $ 0.01     $ 0.02  
Diluted   $ 0.01     $ 0.02  
Weighted average common shares outstanding:                
Basic     11,486       11,456  
Diluted     11,491       11,474  
                 


 
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
       
    Three Months Ended March 31,  
    2025     2024  
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income   $ 122     $ 188  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     30       35  
Net accretion of marketable securities     (113 )      
Share-based compensation     34       37  
Noncash lease expense     275       272  
Deferred income taxes     (2 )     (32 )
Changes in assets and liabilities:                
Inventories     465       (640 )
Other current assets     182       189  
Other assets     (154 )     (101 )
Accounts payable     73       (239 )
Income taxes payable     7       42  
Accrued commissions     (214 )     212  
Other accrued expenses     (259 )     191  
Deferred revenue     501       1,029  
Amounts held in eWallets     12       (208 )
Operating lease liabilities     (281 )     (284 )
Other current liabilities     (194 )     (142 )
Net cash provided by operating activities     484       549  
CASH FLOWS FROM INVESTING ACTIVITIES:                
Purchases of property and equipment     (16 )     (11 )
Purchases of marketable securities     (17,378 )     (28,514 )
Proceeds from maturities of marketable securities     27,365        
Net cash provided by (used in) investing activities     9,971       (28,525 )
CASH FLOWS FROM FINANCING ACTIVITIES:                
Dividends paid     (2,303 )     (2,303 )
Net cash used in financing activities     (2,303 )     (2,303 )
Effect of exchange rates on cash, cash equivalents and restricted cash     3       (76 )
Net increase (decrease) in cash, cash equivalents and restricted cash     8,155       (30,355 )
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period     13,567       56,217  
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period   $ 21,722     $ 25,862  
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:                
Right-of-use assets obtained in exchange for operating lease liabilities   $ 79     $ 251  
                 

Primary Logo

Source: Natural Health Trends Corp.