FAQ: Stonegate Capital Partners' Q3 2025 Coverage Update on NU Skin Enterprises Inc.
TL;DR
Nu Skin's disciplined spending and high EPS performance despite revenue challenges provides investors with a valuation advantage at 7.8x forward P/E versus 17.0x comps.
Nu Skin reported $364.2M revenue and $0.34 EPS, with Rhyz contributing $51.6M while maintaining 70.5% gross margin and reducing selling expenses to 35.8% company-wide.
Nu Skin's Prysm iO platform uses 20M scans to deliver personalized wellness insights, helping families make better health decisions through intelligent nutrition recommendations.
Nu Skin is launching its AI-powered Prysm iO wellness platform in 2026, leveraging 20 million scans to create personalized nutrition plans for consumers.
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NU Skin reported revenue of $364.2M, adjusted net income of $17.1M, and adjusted EPS of $0.34, which were at the low end of revenue guidance and high end of EPS guidance compared to Stonegate's estimates of $374.2M, $14.7M, and $0.30 respectively.
NU Skin is launching the Prysm iO intelligent wellness platform with a limited preview in late Q4 2025, broader leader availability in first half 2026, and full consumer launch in second half 2026, while also beginning pre-market activities in India in Q4 2025 ahead of a formal market launch in second half 2026.
NU Skin ended the quarter with 31,150 sales leaders, 130,096 paid affiliates, and 746,256 customers, representing year-over-year declines of 19%, 13%, and 10% respectively, though management cited positive sequential trends in several regions including double-digit growth in Latin America.
The Prysm iO is an AI-enabled intelligent wellness platform that leverages a database of approximately 20 million scans to deliver personalized insights and subscription recommendations designed to increase lifetime value in NU Skin's nutrition portfolio.
Stonegate values NU Skin using a forward Price to Adjusted EPS of 7.8x compared to comparable companies at 17.0x, with a valuation range of $11.37 to $17.05 and a midpoint of $14.21 based on a P/E range of 8.0x to 12.0x.
For Q4 2025, NU Skin guides revenue of $365M to $400M and EPS of $0.25 to $0.35, with full-year 2025 revenue projected at $1.48B to $1.51B and adjusted EPS of $1.25 to $1.35 excluding the Mavely gain and other charges.
The company ended Q3 with $251.7M in cash and a net cash level of $22.7M, with management focused on further net-cash expansion to support the Prysm iO preview, India pre-opening, and ongoing product and digital investments.
Management highlighted double-digit growth in Latin America and sequential improvement across several reporting segments, including sequential growth in Southeast Asia/Pacific, despite overall challenging macroeconomic conditions.
Rhyz delivered $51.6M of revenue, consisting of $47.6M from Manufacturing and $4.0M from Rhyz Other, while the core Nu Skin business maintained a 70.5% gross margin with disciplined spending reducing selling expense to 35.8% company-wide.
Curated from Reportable
