Stonegate Capital Partners has updated its coverage of NU Skin Enterprises Inc. following the company's fourth-quarter financial results, which revealed revenue of $370.3 million, adjusted net income of $14.5 million, and adjusted earnings per share of $0.29. These figures came in slightly below Stonegate's estimates of $380.2 million in revenue, $15.1 million in adjusted net income, and $0.30 in adjusted EPS, but management noted the results were at the low end of revenue guidance and the high end of EPS guidance. The importance of this performance lies in its demonstration of NU Skin's ability to maintain profitability despite revenue challenges, with the company's core business maintaining a gross margin of 77.6% and benefiting from disciplined spending as selling expenses declined to 40.8% of the core business.
The company's Rhyz segment contributed $48.52 million in revenue, with $42.45 million coming from manufacturing and $6.07 million from other Rhyz operations, highlighting the diversification of NU Skin's business model. Management emphasized several factors contributing to the earnings results, including strategic penetration into India and other emerging markets, overall margin expansion, and a one-time tax benefit during fiscal year 2025. Despite revenue coming in weaker than expected, NU Skin's leadership emphasized continued focus on executing strategic initiatives, with the company advancing the rollout of its Prism iO platform in the first half of 2026 and having an India pre-launch underway with full market opening expected in the second half of 2026.
For the full fiscal year 2026, management provided EPS guidance with a midpoint of $1.00, signaling confidence in the company's strategic direction despite current revenue challenges. The update from Stonegate Capital Partners provides investors with analysis of NU Skin's performance and strategic positioning, noting that while top-line results were below expectations, the company's margin discipline and international expansion efforts, particularly in emerging markets like India, represent important growth drivers. The full research announcement, including downloadable images and additional details, is available through Stonegate's reporting platform at https://www.stonegateinc.com. Investors can access the complete analysis to view the full announcement for more comprehensive coverage of NU Skin's financial position and strategic outlook, which is particularly significant given the company's transition toward new market opportunities and technological platforms that could drive future growth.
The implications of this announcement extend beyond the quarterly numbers to NU Skin's strategic repositioning in competitive global markets. The company's focus on emerging markets like India represents a calculated shift toward higher-growth regions, while the Prism iO platform development indicates investment in digital transformation. Stonegate's analysis suggests that while short-term revenue pressures exist, the company's margin management and strategic initiatives position it for potential recovery and growth. This matters to investors because it demonstrates how a company can navigate challenging market conditions through operational discipline and strategic expansion, with the India market entry and platform development serving as key indicators of future performance potential in the competitive beauty and wellness sector.
