USANA Health Sciences, Inc. (USNA) Q1 2026 Earnings Call Transcript – Image for illustrative purposes only (Image credits: Unsplash)
USANA Health Sciences released its fiscal first quarter 2026 results on May 5, showing net sales that held steady year-over-year amid a strategic shift toward an omnichannel health and wellness model. The nutritional products company beat Wall Street expectations for both earnings and revenue, fueled by growth in newer subsidiaries and recovery in key markets like China. Executives expressed confidence in the company’s transformation during the May 6 earnings call, pointing to early signs of stabilization in its core business.[1][2]
Rise Wellness Delivers Triple-Digit Surge
A standout performer emerged in USANA’s newer ventures, particularly Rise Wellness, which posted net sales of $14 million. That figure marked a 741 percent increase from the prior-year quarter and a 143 percent jump sequentially. The rapid expansion stemmed from the national rollout of Protein Pop Plus at Costco, where weekly reorders confirmed strong initial demand.[1][2]
Executives credited internal manufacturing capabilities and retail partnerships for the momentum. Rise Wellness also expanded into 500 Walmart stores, with plans for further launches across nine major U.S. retailers in the second and third quarters. Such growth offset softer results elsewhere and underscored the potential of USANA’s diversification beyond traditional direct sales.[2]
Core Nutritional supplements, the company’s legacy segment, generated $204 million in sales, down 3 percent year-over-year but up 7 percent from the previous quarter. Active customers totaled 404,000, reflecting a 12 percent annual decline yet a 4 percent sequential gain. Greater China led the recovery with $123 million in sales, up 4 percent year-over-year and 23 percent sequentially, bolstered by Lunar New Year timing and new product initiatives.[1]
Financial Snapshot Reveals Mixed Pressures
Consolidated net sales reached $250 million, matching the first quarter of 2025 after adjusting for a 3 percent favorable foreign exchange impact. Net earnings fell to $7.5 million from $9.4 million a year earlier, while diluted earnings per share dropped 16 percent to $0.41. Adjusted diluted EPS came in at $0.61, surpassing analyst forecasts of $0.44 and marking a 2 percent sequential improvement.[1]
| Metric | Q1 2026 | Q1 2025 | Sequential Q4 2025 |
|---|---|---|---|
| Net Sales | $250M | $250M | +7% |
| Net Earnings | $7.5M | $9.4M | N/A |
| Diluted EPS | $0.41 | $0.49 | N/A |
| Adjusted EPS | $0.61 | $0.73 | +2% |
Hiya Health contributed $32 million in sales, down 13 percent annually but up 7 percent sequentially, with 186,000 active monthly subscribers. The segment faced headwinds from elevated customer acquisition costs tied to Meta platform disruptions. Still, expansions into Canada, the UK, and Target stores positioned it for a stronger second half.[2]
Americas and Europe sales in the core segment dipped 6 percent year-over-year to $35 million. Inventory levels improved, falling 7 percent to $99 million, largely due to Rise Wellness fulfillment. Cash reserves stood at $163 million, supporting ongoing investments without added debt beyond $14 million.[1]
Omnichannel Pivot Shapes Priorities
Chairman and CEO Kevin Guest described the quarter as evidence of USANA’s evolution into a diversified platform. “Our omnichannel platform is intended to provide multiple growth engines, and early progress across our three segments reinforces confidence that our strategy will deliver sustained incremental value over time,” he stated.[1]
Key efforts included an enhanced compensation plan for brand partners to boost retention, over 20 new products in development targeting women’s health, gut health, and active nutrition, and technology upgrades funded through internal efficiencies. China saw relaunches of weight management shakes, while global macro factors like fuel prices showed no material impact.[2]
CFO Doug Hekking highlighted fiscal discipline. The company avoided share repurchases this quarter, preserving $34 million in authorization, and focused spending on growth catalysts. Risks such as regulatory changes, currency fluctuations, and retail dependencies remain, as noted in forward-looking disclosures.[1]
Full-Year Outlook Stays Intact
USANA reaffirmed its fiscal 2026 guidance, projecting consolidated net sales between $925 million and $1 billion. This incorporates a 3 percent currency tailwind and accounts for one fewer operating week than last year’s 53-week fiscal period. Adjusted diluted EPS guidance holds at $1.95 to $2.29, with omnichannel brands expected to comprise over 20 percent of total sales, up from 16 percent in 2025.[1]
- Rise Wellness and Hiya set to accelerate, potentially offsetting core declines.
- Sequential customer growth in China signals stabilization.
- Technology and product pipelines position USANA for margin expansion.
Segment forecasts include Core Nutritional at $720 million to $765 million, Hiya at $140 million to $155 million, and Rise Wellness at $65 million to $80 million. Executives anticipate these drivers will build on first-quarter momentum, even as year-over-year core challenges persist.[2]
Investors and stakeholders will watch how retail expansions and product innovations translate into sustained profitability. USANA’s balance sheet provides flexibility to navigate uncertainties, reinforcing a measured path forward in a competitive wellness landscape.