Natural Health Trends Reports Fourth Quarter and Full Year 2025 Financial Results

– Net sales decreased 10% year over year, but increased 3% sequentially
– Restructuring initiatives to achieve $1.5 million annualized savings substantially complete
– Declared a quarterly cash dividend of $0.10 per share

Los Angeles, CA – Natural Health Trends Corp. (NASDAQ: NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, today announced its financial results for the fourth quarter and full year ended December 31, 2025.

Fourth Quarter 2025 Financial Highlights

	•	Revenue of $9.7 million increased 3% compared to $9.5 million in the third quarter of 2025 and declined 10% compared to $10.8 million in the fourth quarter of 2024.
	•	Operating loss was $635,000 compared to $495,000 and $421,000 in the third quarter of 2025 and fourth quarter of 2024, respectively. Excluding restructuring-related charges of $283,000 recognized during the fourth quarter, operating loss would have been $352,000 during the quarter.
	•	Net loss was $588,000, or $0.05 per diluted share, compared to net loss of $431,000, or $0.04 per diluted share, and net income of $176,000, or $0.02 per diluted share, in the third quarter of 2025 and fourth quarter of 2024, respectively. Despite the loss before income taxes, tax expense of $175,000 was recognized in the fourth quarter due to an increase in foreign tax expense.
	•	The number of Active Members1 were 26,650 at December 31, 2025 compared to 28,030 at September 30, 2025 and 30,870 at December 31, 2024.
	1	Natural Health Trends defines Active Members as those that have placed at least one product order with the Company during the preceding twelve-month period.

Full Year 2025 Financial Highlights

	•	Revenue of $39.8 million decreased 7% compared to $43.0 million in 2024.
	•	Operating loss was $1.8 million, compared to $1.3 million in 2024.
	•	Net loss was $882,000, or $0.08 per diluted share, compared to net income of $572,000, or $0.05 per diluted share, in 2024.

Management Commentary

“In the fourth quarter we managed to achieve a 3% sequential increase in revenue despite the difficult macroeconomic environment and continued pressure on consumer sentiment. We have substantially completed the major restructuring initiatives announced last quarter and expect to realize most of the associated $1.5 million annualized cost savings in the coming year. We also relocated about 40% of our total product sourcing base from America to East Asia, much closer to our main markets, to reduce tariff uncertainty and streamline logistics,”

said Chris Sharng, President of Natural Health Trends Corp.

Mr. Sharng continued, “Looking ahead, 2026 marks our 25th Anniversary, a significant milestone for the Company. We have prepared an exciting program, including a big celebration in Hong Kong where we anticipate 1,500 attendees from around the world, signature products and incentives to leverage these moments effectively, and we are focused on making this anniversary a catalyst for renewed momentum.”

Balance Sheet and Cash Flow

	•	Net cash used in operating activities was $959,000 in the fourth quarter of 2025, compared net cash provided by operating activities of $88,000 in the fourth quarter of 2024. Net cash used in operating activities was $6.0 million in 2025, compared to $3.4 million in 2024. Before tax installment payments, the liability of which arises from the 2017 U.S. Tax Cuts and Jobs Act (the “Tax Act”), cash used in operating activities was $943,000 in 2025, versus cash provided by operations of $602,000 a year ago. The Tax Act liability is now fully paid.
	•	Total cash, cash equivalents and marketable securities were $28.9 million as of December 31, 2025, down from $32.0 million as of September 30, 2025.
	•	On February 2, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.10 on each share of common stock outstanding. The dividend will be payable on February 27, 2026 to stockholders of record as of February 17, 2026.

The Company expects to issue its 2025 audited financial results in late February with its Annual Report on Form 10-K to be filed with the United States Securities and Exchange Commission. These financial results are preliminary and the accompanying financial statements have not been audited or have not yet been reviewed by the Company’s independent accountants. Significant updates and revisions may be required before the release of the Company’s 2025 audited financial results.

About Natural Health Trends Corp.

Natural Health Trends Corp. (NASDAQ: NHTC) is an international direct-selling and e-commerce company operating through its subsidiaries throughout Asia, the Americas, and Europe. The Company markets premium quality personal care products under the NHT Global brand. Additional information can be found on the Company’s website at www.naturalhealthtrendscorp.com.

SOURCE:  Natural Health Trends