Third Quarter 2026
Filed Nov 3, 2026USANA Health Sciences Reports Third Quarter 2026 Results Hiya Active Monthly Subscribers Increase 18% Sequentially; Core Nutritional Operating Margin Expands; Company Generates $36 Million in Year-to-Date Free Cash Flow
Consolidated net sales declined 4% year over year and Adjusted EBITDA declined 13%, while Hiya returned to year-over-year sales growth and increased active monthly subscribers 18% sequentially. Core Nutritional sales and active customers declined, Rise Wellness sales fell 45%, and fiscal 2026 outlook was reduced for several measures.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales (Q3 2026 consolidated performance)GAAP | $206M | -8% | -4% |
| Net sales (condensed consolidated statements of operations)GAAP | $205.9M | – | (3.6 %) |
| Cost of salesGAAP | 48,717 | – | – |
| Gross profitGAAP | 157,168 | – | – |
| Consolidated gross marginGAAP | 76.3% | – | – |
| Brand Partner incentivesGAAP | 71,890 | – | – |
| Selling, general and administrativeGAAP | 86,726 | – | – |
| Total operating expensesGAAP | 158,616 | – | – |
| (Loss) earnings from operationsGAAP | (1,448) | – | – |
| Net (loss) earningsGAAP | (6,890) | – | – |
| Net loss attributable to USANAGAAP | −$5.6M | – | – |
| Diluted EPSGAAP | $(0.30) | – | – |
| Adjusted diluted EPSnon-GAAP | $(0.11) | – | – |
| Adjusted EBITDA attributable to USANAnon-GAAP | $12.1M | -44% | -13% |
| Net cash provided by (used in) operating activities, quarter endedGAAP | $11.96M | – | – |
| Free cash flow, quarter endednon-GAAP | $8.44M | – | – |
| Net cash provided by operating activities, nine months endedGAAP | $45.04M | – | – |
| Free cash flow, nine months endednon-GAAP | $35.72M | – | – |
| Cash and cash equivalentsGAAP | $178.9M | – | – |
| Line of creditGAAP | — | – | – |
| Total inventoriesGAAP | $93.31M | – | a decrease of approximately $14 million, or 13%, compared to balances at year-end 2025 |
| Core Nutritional Active Customersother | 356,000 | -7% | -8% |
| Hiya Active Monthly Subscribersother | 195,500 | +18% | +1% |
| Core Nutritional operating marginGAAP | 4.1% | – | – |
| Hiya operating marginGAAP | (20.1)% | – | – |
| Rise operating marginGAAP | (56.4)% | – | – |
| Consolidated operating marginGAAP | (0.7)% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Core NutritionalActive Customers were 356,000, down 8% year over year and 7% sequentially. Core Nutritional operating margin was 4.1%, compared with 1.2%. | $171M | -11% | -3% |
| Asia Pacific RegionActive Customers were 283,000, down 8% year over year and 8% sequentially. | $138M | -12% | -1% |
| Greater ChinaActive Customers were 192,000, down 9% year over year and 11% sequentially. | $94M | -18% | +1% |
| North AsiaActive Customers were 30,000, down 19% year over year and 6% sequentially. | $14M | +3% | -20% |
| Southeast Asia PacificActive Customers were 61,000, Flat year over year and up 3% sequentially. | $30M | +4% | +2% |
| Americas and Europe RegionActive Customers were 73,000, down 9% year over year and 5% sequentially. | $33M | -5% | -11% |
| Hiya HealthActive Monthly Subscribers were 195,500, up 1% year over year and 18% sequentially. The Company increased marketing spend as customer acquisition began responding positively. | $32M | +12% | +2% |
| Rise WellnessProtein Pop Balance launched nationally at Target and online in September, and Target sales grew strongly from the second quarter. | $4M | +7% | -45% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal Year 2026 outlook
- RevenueApproaching $900 million
- NoteCore Nutritional business net sales: $740 million
- NoteHiya net sales: $130 million
- NoteRise Wellness net sales: $30 million
- NoteNet (loss) earnings: $(16) million
- NoteDiluted EPS: $(0.90)
- NoteAdjusted diluted EPS: $0.55
- NoteAdjusted EBITDA: $77 million
- NoteCore Nutritional business net sales reflects an expected favorable currency exchange rate impact of approximately $20 million, or 2% of net sales and one less week of operations compared to fiscal year 2025, which was a 53-week year.
Capital returns
- The Company did not repurchase any shares during the quarter.
- The Company has approximately $34 million remaining under the current share repurchase authorization as of the end of the third quarter.
What drove it
- Hiya added approximately 29,500 net active monthly subscribers sequentially.
- Hiya customer acquisition costs declined noticeably from the first half of the year.
- Hiya net sales through Target and Amazon more than doubled from the second quarter.
- Core Nutritional expanded its operating margin from a year ago on a leaner cost structure despite lower net sales.
- Core Nutritional active customers in Southeast Asia Pacific grew 3% sequentially.
- The Company increased marketing spend at Hiya to build on improving customer-acquisition traction.
- Protein Pop Balance launched nationally at Target and online in September.
Concerns
- Consolidated net sales declined 4% year over year and 8% sequentially.
- Core Nutritional net sales declined 3% year over year and active customers declined 8%.
- Rise Wellness net sales declined 45% year over year.
- Hiya investment in customer acquisition pressured margins, and Hiya operating margin was (20.1)%, compared with (2.1)%.
- Consolidated operating margin was (0.7)%, compared with 0.6%.
- Fiscal 2026 outlook was reduced to Core Nutritional business net sales of $740 million from $750 million, Rise Wellness net sales of $30 million from $35 million, consolidated net sales approaching $900 million from $910 million, net (loss) earnings of $(16) million from $(11) million, diluted EPS of $(0.90) from $(0.61), adjusted diluted EPS of $0.55 from $0.76, and Adjusted EBITDA of $77 million from $80.5 million.
What to watch
- Whether Hiya delivers the expected continued sequential progress in net sales and Adjusted EBITDA during the fourth quarter.
- Whether Hiya subscriber additions, lower customer acquisition costs, and expanding Target and Amazon sales translate into improved margins.
- Whether Core Nutritional initiatives rebuild active customers and net sales.
- Whether Rise Wellness converts its Target retail progress into consistent, profitable growth.
- The planned introduction of Core Nutritional product innovation in 2027.
Balance sheet and cash flow
- The Company ended the quarter with $179 million in cash and cash equivalents and zero debt.
- Cash and cash equivalents were $ 178,915 as of October 3, 2026, compared with $ 158,380 as of January 3, 2026.
- Total inventories were $93,311 as of October 3, 2026, compared with $107,407 as of January 3, 2026.
- The Company generated $8 million of free cash flow in the quarter and $36 million year-to-date.
- Net cash provided by operating activities was $ 11,965 for the quarter ended October 3, 2026 and $ 45,043 for the nine months ended October 3, 2026.
- Purchases of property and equipment were $(3,522) for the quarter ended October 3, 2026 and $(9,322) for the nine months ended October 3, 2026.
Analysis
USANA reported a mixed third quarter. Consolidated net sales were $206 million, down 4% year over year and 8% sequentially. The company reported a net loss attributable to USANA of $(5.6) million, compared with $(6.5) million, while Adjusted EBITDA attributable to USANA declined 13% year over year and 44% sequentially to $12.1 million. Consolidated gross margin was 76.3%, compared with 77.2%, and consolidated operating margin was (0.7)%, compared with 0.6%.
Core Nutritional remained the central drag on sales, with revenue of $171 million, down 3% year over year and 11% sequentially. Active Customers fell 8% year over year to 356,000 and declined 7% sequentially. Asia Pacific sales declined 1%, with Greater China up 1% but North Asia down 20%. Southeast Asia Pacific was the regional exception, with sales up 2% year over year and Active Customers up 3% sequentially. Core Nutritional operating margin improved to 4.1% from 1.2%, reflecting the leaner cost structure cited by management.
Hiya returned to growth, with net sales of $32 million, up 2% year over year and 12% sequentially. Active Monthly Subscribers increased 18% sequentially to 195,500, supported by increased marketing investment, approximately 29,500 net subscriber additions, lower customer acquisition costs from the first half, and more than doubled sales through Target and Amazon from the second quarter. The investment weighed on profitability, as Hiya operating margin was (20.1)% versus (2.1)% a year earlier. Rise Wellness sales were $4 million, down 45% year over year despite 7% sequential growth and the September national Target and online launch of Protein Pop Balance.
Cash generation and liquidity improved. The company generated $8 million of quarterly free cash flow and $36 million year-to-date, ended with $179 million in cash and cash equivalents and zero debt, and reduced total inventories to $93,311 from $107,407 at year-end 2025. It did not repurchase shares during the quarter and had approximately $34 million remaining under its authorization. The company reduced fiscal 2026 expectations for Core Nutritional, Rise Wellness, consolidated net sales, net loss, diluted EPS, adjusted diluted EPS, and Adjusted EBITDA, while raising Hiya net sales guidance to $130 million from $125 million. Management said the lower outlook reflects lower Rise expectations and the deliberate Hiya investment, partially offset by stronger Core Nutritional profitability.
Management, verbatim
As we continue our transformation to an omnichannel health and wellness company, our third quarter results were mixed, with meaningful improvement in some areas and results that fell short of our expectations in others.
Kevin Guest, Chairman and Chief Executive Officer
At Hiya, our investment in customer acquisition is producing encouraging early returns. Notably, Hiya added approximately 29,500 net active monthly subscribers sequentially, customer acquisition costs declined noticeably from the first half of the year and net sales through Target and Amazon more than doubled from the second quarter.
Kevin Guest, Chairman and Chief Executive Officer
We are updating our fiscal 2026 outlook to consolidated net sales approaching $900 million and Adjusted EBITDA of $77 million. Compared with our prior outlook, as corrected, the change reflects lower expectations for Rise Wellness and our deliberate decision to invest resources at Hiya to drive increased active monthly subscribers, partially offset by stronger profitability in Core Nutritional.
Doug Hekking, Chief Financial Officer
Not in the filing
stated, not guessed- Prior-quarter values for consolidated gross margin, operating expenses, operating income, net income, and EPS were not reported.
- Fiscal 2026 guidance for gross margin, operating expenses, and tax rate was not reported.
- A prior earnings release outlook document was not provided for formal actual-versus-prior-guidance comparisons.
- Dividend information was not reported.
- Segment operating income amounts were not reported.
- A current-quarter GAAP debt total beyond the statement of zero debt and the balance-sheet line of credit of — was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.