Natural Health Trends Reports Second Quarter 2025 Financial Results

  Sales decreased 6% due to retaliatory tariff threats
  U.S. Tax Cuts and Jobs Act liability fully settled during the second quarter of 2025
  Declared a quarterly cash dividend of $0.20 per share


LOS ANGELES, July 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 June 30, 2025.

Second Quarter 2025 Financial Highlights

  • Revenue of $9.8 million decreased 6% compared to $10.5 million in the second quarter of 2024. 
  • Operating loss was $333,000 compared to $238,000 in the second quarter of 2024.
  • Net income was $15,000, or breakeven per diluted share, compared to $173,000, or $0.02 per diluted share, in the second quarter of 2024.
  • The number of Active Members1 was 29,260 at June 30, 2025 compared to 30,870 at December 31, 2024 and 31,110 at June 30, 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.


Year-to-Date 2025 Financial Highlights

  • Revenue of $20.6 million decreased 4% compared to $21.4 million in the first six months of 2024. 
  • Operating loss was $678,000 compared to $603,000 in the first six months of 2024. 
  • Net income was $137,000, or $0.01 per diluted share, compared to $361,000, or $0.03 per diluted share, in the first six months of 2024. 

Management Commentary

“Our second quarter sales reflected the heightened economic uncertainty caused by evolving trade tensions, which we expect will continue to heavily weigh on consumer sentiment in our biggest market,” commented Chris Sharng, President of Natural Health Trends Corp.

Mr. Sharng continued, “To mitigate tariff-related risks, we are realigning our supply chain by transitioning production to trusted manufacturing partners in Asia, bringing operations closer to our core markets and enhancing long-term resilience.”

Balance Sheet and Cash Flow

  • Net cash used in operating activities was $5.2 million in the first six months of 2025 compared to $3.0 million in the first six months of 2024. Before tax installment payments, the liability of which arose from the 2017 U.S. Tax Cuts and Jobs Act (the "Tax Act"), cash used in operating activities was $97,000 in the first six months of 2025 compared to cash provided by operating activities of $950,000 in the first six months of 2024. The Tax Act liability is now fully paid.
  • Total cash, cash equivalents and marketable securities were $34.2 million at June 30, 2025, down from $43.9 million at December 31, 2024.
  • On July 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 August 22, 2025 to stockholders of record as of August 12, 2025.

Second Quarter 2025 Financial Results Conference Call

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

Date: Wednesday, July 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: 13754794
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1726889&tp_key=778e0e5b56


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 July 30, 2025 through 11:59 p.m. Eastern Time on August 13, 2025 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13754794.

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.

 

NATURAL HEALTH TRENDS CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
 
    June 30, 2025     December 31, 2024  
    (Unaudited)          
ASSETS                
Current assets:                
Cash and cash equivalents   $ 10,534     $ 13,533  
Marketable securities     23,711       30,407  
Inventories     2,769       3,272  
Other current assets     3,845       3,771  
Total current assets     40,859       50,983  
Property and equipment, net     154       190  
Operating lease right-of-use assets     2,108       2,498  
Restricted cash     37       34  
Deferred tax asset     387       382  
Other assets     1,617       1,272  
Total assets   $ 45,162     $ 55,359  
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current liabilities:                
Accounts payable   $ 962     $ 895  
Income taxes payable     7       4,908  
Accrued commissions     1,866       2,021  
Other accrued expenses     1,337       1,425  
Deferred revenue     6,078       6,428  
Amounts held in eWallets     3,089       3,286  
Operating lease liabilities     1,060       1,127  
Other current liabilities     549       709  
Total current liabilities     14,948       20,799  
Deferred tax liability     172       174  
Operating lease liabilities     1,186       1,514  
Total liabilities     16,306       22,487  
Stockholders’ equity:                
Preferred stock            
Common stock     13       13  
Additional paid-in capital     84,969       84,901  
Accumulated deficit     (30,813 )     (26,344 )
Accumulated other comprehensive loss     (916 )     (1,301 )
Treasury stock, at cost     (24,397 )     (24,397 )
Total stockholders’ equity     28,856       32,872  
Total liabilities and stockholders’ equity   $ 45,162     $ 55,359  


NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2025     2024     2025     2024  
Net sales   $ 9,813     $ 10,475     $ 20,550     $ 21,426  
Cost of sales     2,558       2,699       5,390       5,611  
Gross profit     7,255       7,776       15,160       15,815  
Operating expenses:                                
Commissions expense     4,012       4,203       8,500       8,689  
Selling, general and administrative expenses     3,576       3,811       7,338       7,729  
Total operating expenses     7,588       8,014       15,838       16,418  
Loss from operations     (333 )     (238 )     (678 )     (603 )
Other income, net     348       519       813       1,082  
Income before income taxes     15       281       135       479  
Income tax provision (benefit)           108       (2 )     118  
Net income   $ 15     $ 173     $ 137     $ 361  
Net income per common share:                                
Basic   $ 0.00     $ 0.02     $ 0.01     $ 0.03  
Diluted   $ 0.00     $ 0.02     $ 0.01     $ 0.03  
Weighted average common shares outstanding:                                
Basic     11,493       11,464       11,489       11,460  
Diluted     11,497       11,483       11,496       11,481  


NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)

    Six Months Ended June 30,  
    2025     2024  
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income   $ 137     $ 361  
Adjustments to reconcile net income to net cash used in operating activities:                
Depreciation and amortization     59       69  
Net accretion of marketable securities     (214 )     (215 )
Share-based compensation     68       75  
Noncash lease expense     573       545  
Deferred income taxes     (3 )     16  
Changes in assets and liabilities:                
Inventories     525       6  
Other current assets     402       (294 )
Other assets     (334 )     (101 )
Accounts payable     65       (335 )
Income taxes payable     (4,901 )     (3,817 )
Accrued commissions     (194 )     106  
Other accrued expenses     (110 )     136  
Deferred revenue     (311 )     1,432  
Amounts held in eWallets     (170 )     (339 )
Operating lease liabilities     (561 )     (560 )
Other current liabilities     (182 )     (104 )
Net cash used in operating activities     (5,151 )     (3,019 )
CASH FLOWS FROM INVESTING ACTIVITIES:                
Purchases of property and equipment     (20 )     (30 )
Purchases of marketable securities     (27,552 )     (36,164 )
Proceeds from maturities of marketable securities     34,215       3,307  
Net cash provided by (used in) investing activities     6,643       (32,887 )
CASH FLOWS FROM FINANCING ACTIVITIES:                
Dividends paid     (4,606 )     (4,606 )
Net cash used in financing activities     (4,606 )     (4,606 )
Effect of exchange rates on cash, cash equivalents and restricted cash     118       (92 )
Net decrease in cash, cash equivalents and restricted cash     (2,996 )     (40,604 )
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period     13,567       56,217  
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period   $ 10,571     $ 15,613  
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:                
Right-of-use assets obtained in exchange for operating lease liabilities   $ 112     $ 196  


CONTACT:

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


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Source: Natural Health Trends Corp.