| – | ||
| – | Restructuring program generated approximately | |
| – | Declared a quarterly cash dividend of |
First Quarter 2026 Financial Highlights
- Revenue of
$9.2 million decreased 6% compared to$9.7 million in the fourth quarter of 2025 and declined 14% compared to$10.7 million in the first quarter of 2025. - Operating loss was
$474,000 compared to$635,000 in the fourth quarter of 2025 and$345,000 in the first quarter of 2025. - Net loss was
$154,000 , or$0.02 per diluted share, compared to$588,000 , or$0.05 per diluted share, in the fourth quarter of 2025 and net income of$122,000 , or$0.01 per diluted share, in the first quarter of 2025. - The number of Active Members1 was 26,400 at March 31, 2026 compared to 26,650 at December 31, 2025 and 30,180 at
March 31, 2025 .
1
Management Commentary
“Our business was impacted when trade war rhetoric intensified about a year ago, but we have since stabilized our top line. The operating environment remains challenging amid subdued consumer spending in
Balance Sheet and Cash Flow
- Net cash used in operating activities was
$797,000 in the first quarter of 2026 compared to net cash provided by operations of$484,000 in the first quarter of 2025. - Total cash, cash equivalents and marketable securities were
$21.2 million atMarch 31, 2026 , down from$28.9 million atDecember 31, 2025 due to the repurchase of shares of common stock and dividends paid during the first three months of 2026. - On
April 27, 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 onMay 22, 2026 to stockholders of record as ofMay 12, 2026 .
First Quarter 2026 Financial Results Conference Call
Management will host a conference call to discuss the first quarter 2026 financial results today, Wednesday, April 29, 2026 at 11:30 a.m. Eastern Time. The conference call details are as follows:
| Date: | |
| Time: | |
| Dial-in: | 1-800-330-6730 |
| Participant ID: | 402403 |
For those unable to participate during the live broadcast, a replay of the call will be available on the Company's Investor Relations website at https://ir.naturalhealthtrendscorp.
About
Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Forward-looking statements in this press release do not constitute guarantees of future performance. Forward-looking statements in this press release include statements relating to the anticipated effect of restructuring activities, including expected operational efficiencies and cost savings resulting therefrom, statements regarding technology investments, future growth and profitability, and statements relating to future dividends, the declaration and payment of which will be at the sole discretion of the Company's Board of Directors. Such forward-looking statements are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from those anticipated. Such risks and uncertainties include the risks and uncertainties detailed under the caption “Risk Factors” in Natural Health Trends Corp.’s Annual Report on Form 10-K filed on
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 9,221 | $ | 6,813 | ||||
| Marketable securities | 12,010 | 22,060 | ||||||
| Inventories | 1,971 | 2,047 | ||||||
| Other current assets | 3,334 | 3,274 | ||||||
| Total current assets | 26,536 | 34,194 | ||||||
| Property and equipment, net | 258 | 153 | ||||||
| Operating lease right-of-use assets | 2,892 | 1,869 | ||||||
| Deferred tax asset | 288 | 289 | ||||||
| Other assets | 1,976 | 1,923 | ||||||
| Total assets | $ | 31,950 | $ | 38,428 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,306 | $ | 555 | ||||
| Accrued commissions | 1,670 | 1,958 | ||||||
| Other accrued expenses | 1,234 | 1,438 | ||||||
| Deferred revenue | 5,001 | 5,574 | ||||||
| Amounts held in eWallets | 2,739 | 2,838 | ||||||
| Operating lease liabilities | 958 | 869 | ||||||
| Other current liabilities | 335 | 456 | ||||||
| Total current liabilities | 13,243 | 13,688 | ||||||
| Deferred tax liability | 179 | 180 | ||||||
| Operating lease liabilities | 2,064 | 1,131 | ||||||
| Total liabilities | 15,486 | 14,999 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock | — | — | ||||||
| Common stock | 13 | 13 | ||||||
| Additional paid-in capital | 85,033 | 85,033 | ||||||
| Accumulated deficit | (37,448) | (36,436) | ||||||
| Accumulated other comprehensive loss | (775) | (784) | ||||||
| (30,359) | (24,397) | |||||||
| Total stockholders’ equity | 16,464 | 23,429 | ||||||
| Total liabilities and stockholders’ equity | $ | 31,950 | $ | 38,428 | ||||
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Net sales | $ | 9,206 | $ | 10,737 | ||||
| Cost of sales | 2,303 | 2,832 | ||||||
| Gross profit | 6,903 | 7,905 | ||||||
| Operating expenses: | ||||||||
| Commissions expense | 3,853 | 4,488 | ||||||
| Selling, general and administrative expenses | 3,524 | 3,762 | ||||||
| Total operating expenses | 7,377 | 8,250 | ||||||
| Loss from operations | (474) | (345) | ||||||
| Other income, net | 295 | 465 | ||||||
| Income (loss) before income taxes | (179) | 120 | ||||||
| Income tax benefit | (25) | (2) | ||||||
| Net income (loss) | $ | (154) | $ | 122 | ||||
| Net income (loss) per common share: | ||||||||
| Basic | $ | (0.02) | $ | 0.01 | ||||
| Diluted | $ | (0.02) | $ | 0.01 | ||||
| Weighted average common shares outstanding: | ||||||||
| Basic | 10,143 | 11,486 | ||||||
| Diluted | 10,143 | 11,491 | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income (loss) | $ | (154) | $ | 122 | ||||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 11 | 30 | ||||||
| Net accretion of marketable securities | (29) | (113) | ||||||
| Share-based compensation | — | 34 | ||||||
| Noncash lease expense | 286 | 275 | ||||||
| Deferred income taxes | — | (2) | ||||||
| Changes in assets and liabilities: | ||||||||
| Inventories | 43 | 465 | ||||||
| Other current assets | (57) | 182 | ||||||
| Other assets | (58) | (154) | ||||||
| Accounts payable | 719 | 73 | ||||||
| Accrued commissions | (268) | (214) | ||||||
| Other accrued expenses | (263) | (259) | ||||||
| Deferred revenue | (534) | 501 | ||||||
| Amounts held in eWallets | (80) | 12 | ||||||
| Operating lease liabilities | (294) | (281) | ||||||
| Other current liabilities | (119) | (187) | ||||||
| Net cash used in operating activities | (797) | 484 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property and equipment | (115) | (16) | ||||||
| Purchases of marketable securities | (1,097) | (17,378) | ||||||
| Proceeds from maturities of marketable securities | 11,156 | 27,365 | ||||||
| Net cash provided by (used in) investing activities | 9,944 | 9,971 | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Repurchase of common stock | (5,870) | — | ||||||
| Dividends paid | (858) | (2,303) | ||||||
| Net cash used in financing activities | (6,728) | (2,303) | ||||||
| Effect of exchange rates on cash, cash equivalents and restricted cash | (11) | 3 | ||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 2,408 | 8,155 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 6,820 | 13,567 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ | 9,228 | $ | 21,722 | ||||
| SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
| Right-of-use assets obtained in exchange for operating lease liabilities | $ | 1,339 | $ | 79 | ||||
| Direct costs incurred to repurchase common stock | $ | 92 | $ | — | ||||
CONTACT:
Senior Vice President and Chief Financial Officer
Tel (
investor.relations@nhtglobal.com
