Mannatech Incorporated (MTEX) investor relations material

Executive summary

• Net sales for Q2 2026 increased 3.8% year-over-year to $26.7 million, with constant dollar sales rising 5.1%; six-month sales declined 1.3% to $51.6 million due to slowing demand in certain regions.

• Net income for Q2 2026 was $1.0 million ($0.53 per diluted share), reversing a net loss of $4.3 million in Q2 2025; six-month net income was $2.0 million versus a $5.8 million loss in the prior year.

• Income from operations was $1.0 million, reversing a $1.4 million loss in Q2 2025.

• Foreign currency gains contributed $1.7 million to six-month results, a $4.9 million improvement over the prior year, but management does not expect this to recur.

• Recruiting of new associates and preferred customers increased 33.3% year-over-year, though total active positions declined to 116,000 from 125,000.

Financial highlights

• Gross profit margin improved to 76.9% in Q2 2026 from 73.6% in Q2 2025, and to 76.3% for the six months from 74.0% year-over-year.

• Selling and administrative expenses decreased 16.7% in Q2 and 12.2% for the six months, now 33.7% of net sales.

• Commissions and incentives rose 9.9% in Q2 and 0.7% for the six months, with commissions as a percentage of net sales increasing to 38.7% in Q2.

• Cash and cash equivalents were $6.0 million at June 30, 2026, with working capital of $2.5 million, up from $1.8 million at year-end.

• Net income margin was 3.8% in Q2 2026, compared to a net loss margin in Q2 2025.

Outlook and guidance

• Management implemented cost reductions, suspended non-essential capital expenditures, and is focused on margin improvement and revenue stabilization.

• Additional actions include converting director compensation to equity, headcount reductions, and evaluating facilities costs.

• The company is prioritizing new associate recruitment and systems remediation to support revenue growth.

• Management notes potential impacts from changes in trade policies and tariffs, with mitigation efforts possibly limited by operational and supply chain constraints.

• Forward-looking statements highlight risks related to associate retention, competition, litigation, regulatory changes, and international expansion.