USANA Health Sciences (USNA) Q2 2026 earnings summary

Executive summary

• Transformation to a diversified omni-channel health and wellness company is progressing, with a focus on science, innovation, and consumer loyalty, though Q2 2026 net sales declined 5.3% year-over-year to $223.3 million.

• Net loss attributable to shareholders was $21.4 million, including a $29.1 million non-cash goodwill impairment charge related to Hiya, compared to net earnings of $9.7 million in Q2 2025.

• Core Nutritional business remains stable and is gaining momentum in Mainland China, but active customers declined 8.1% year-over-year to 384,000.

• Hiya and Rise Wellness brands faced near-term challenges from digital marketing headwinds and operational issues, but continue to expand in retail and international markets.

• Leadership expresses strong confidence in long-term growth potential and omni-channel transformation.

Financial highlights

• Q2 2026 net sales: $223.3 million (down 5.3% year-over-year); net loss: $21.4 million; diluted EPS: $(1.16); adjusted diluted EPS: $(0.07); adjusted EBITDA: $27.8 million.

• Gross profit margin was 78.3% for the quarter; Core Nutritional margin: 81.1%.

• Hiya segment recorded a $29.1 million non-cash goodwill impairment.

• Cash and cash equivalents at quarter-end were $169 million, with zero debt; generated $20 million in free cash flow.

• Brand Partner incentives: 37.4% of net sales; SG&A expenses: 36.9% of net sales; effective tax rate elevated with $9.1 million tax expense on pre-tax loss.

Outlook and guidance

• Fiscal 2026 consolidated net sales outlook updated to $910 million, down from $925 million to $1.0 billion; net loss for the year now expected at $(11) million, revised from prior guidance of $20–$27 million in net earnings.

• Adjusted EBITDA guidance lowered to $87 million from $101–$109 million.

• Hiya and Rise Wellness full-year sales outlook reduced due to ongoing challenges; core nutritional outlook remains in line with expectations.

• Elevated tax rate expected to persist through the year due to ongoing pressures in venture companies.

• Liquidity is considered sufficient for foreseeable operating and capital needs.