Q2 2026 USANA Health Sciences Inc Earnings Call Transcript
Key Points
- Usana Health Sciences Inc (USNA)'s core nutritional business is performing in line with expectations, with Mainland China showing signs of renewed strength and sales growth.
- The company maintains a strong balance sheet, ending the quarter with $169 million in cash, zero debt, and generating $20 million in free cash flow.
- Usana Health Sciences Inc (USNA) launched Glow, its first skin health supplement, extending its science leadership into cellular-level formulations and attracting new consumers.
- Hiya's brand presence at Target remains strong, with early footprints in Canada and the UK trending positively, and the team is seeing traction on Amazon.
- Rise Wellness has built real distribution and shelf presence across major retail channels, with over 4,000 retail doors expected by year-end, and is launching an additional protein product in Q3.
- Usana Health Sciences Inc (USNA) is investing in technology and innovation to modernize the brand partner and customer experience, which is expected to drive long-term growth.
- Usana Health Sciences Inc (USNA) recorded a non-cash goodwill impairment charge of $29 million related to the Hiya reporting unit due to lower-than-expected performance and updated valuation assumptions.
- Hiya's direct consumer business is facing a tougher and more expensive digital marketing environment, particularly with Meta's algorithm changes, which has impacted subscriber growth.
- Rise Wellness experienced a packaging issue that disrupted its commercial plan during the quarter, leading to lower full-year net sales expectations.
- Usana Health Sciences Inc (USNA) lowered its full-year 2026 outlook due to the challenging digital marketing environment for Hiya and lower net sales from Rise Wellness.
- North Asia, particularly Korea, saw a 20% decline in revenue, attributed to a leadership transition and slowing market conditions.
- The company expects an elevated tax rate for the remainder of the year due to a misalignment between where revenue is generated and where costs are incurred.
Greetings and welcome to the Isana Health Sciences second quarter 2026 earnings.
( Operators Instructions )
As a reminder, this conference is being recorded.
I'd now like to turn the conference over to your host.
And Masuda, Director of Investor relations, please go ahead.
Thank you and good morning, everyone, we appreciate you joining us to review our second quarter results.
Today's conference call is being broadcast live via webcast and can be accessed directly from our website at .ya.com.
Shortly following the call, a replay will be available on our website.
As a reminder, during the course of this conference call, management will make forward-looking statements regarding future events or the future financial performance of our company.
Those statements involve risks and that could cause actual results to differ in forward-looking statements.
Examples of these statements include those regarding our
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