Mannatech Incorporated (MTEX) investor relations material

Executive summary

• Net sales for Q1 2026 were $24.9 million, down 6.2% year-over-year and $1.6 million from Q1 2025; constant dollar sales fell 8.1%.

• Net income was $1.0 million ($0.49 per diluted share), reversing a net loss of $1.5 million ($0.80 per share) in Q1 2025.

• Gross profit margin improved to 75.7% from 74.3% year-over-year.

• Cash and cash equivalents increased to $7.0 million as of March 31, 2026, up 13.4% from year-end 2025.

• Active associate and preferred customer positions declined to 111,000 from 129,000 year-over-year.

Financial highlights

• Gross profit was $18.9 million, down from $19.7 million in Q1 2025.

• Selling and administrative expenses decreased by $0.7 million (7.3%) to $9.3 million, or 37.3% of net sales.

• Operating expenses decreased 7.4% to $19.0 million, reflecting cost reductions in office, legal, consulting, marketing, and payroll.

• Loss from operations narrowed to $0.2 million from $0.8 million year-over-year.

• Working capital was $1.7 million at quarter-end, slightly down from $1.8 million at December 31, 2025.

Outlook and guidance

• Management implemented cost reduction, margin improvement, and revenue stabilization initiatives to address liquidity and operational challenges.

• No discretionary capital projects are planned for 2026; focus is on cash preservation and operational efficiency.

• The company is evaluating options to regain compliance with Nasdaq listing requirements after receiving a deficiency notice.

• Management notes that changes in trade policies and tariffs could impact cost structure and profitability, with mitigation efforts potentially limited by operational and supply chain constraints.

• Forward-looking statements caution about risks including associate retention, competition, litigation, regulatory changes, and international expansion.