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NHTC
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Natural Health Trends Reports Second Quarter 2025 Financial Results

1. NHTC's revenue fell 6% to $9.8 million this quarter. 2. Operating loss increased to $333,000 compared to last year. 3. Active membership declined to 29,260 from over 31,000 last year. 4. The company fully settled its Tax Cuts and Jobs Act liability. 5. A quarterly dividend of $0.20 per share was declared.

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Why Bearish?

NHTC's revenue and active member count are declining, indicating potential ongoing business issues. Historical downturns similarly impacted share prices, especially amidst reduced consumer confidence.

How important is it?

The article discusses significant financial and operational changes which directly affect investor sentiment and stock performance.

Why Short Term?

Immediate revenue decline and operational losses might affect stock prices quickly. The short-term negative sentiment may persist until strategic improvements are evident.

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AMZNCOSTHBI
July 30, 2025 09:00 ET  | Source: Natural Health Trends Corp.  –Sales decreased 6% due to retaliatory tariff threats –U.S. Tax Cuts and Jobs Act liability fully settled during the second quarter of 2025 –Declared a quarterly cash dividend of $0.20 per share LOS ANGELES, July 30, 2025 (GLOBE NEWSWIRE) -- 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 quarter ended June 30, 2025. Second Quarter 2025 Financial Highlights Revenue of $9.8 million decreased 6% compared to $10.5 million in the second quarter of 2024. Operating loss was $333,000 compared to $238,000 in the second quarter of 2024.Net income was $15,000, or breakeven per diluted share, compared to $173,000, or $0.02 per diluted share, in the second quarter of 2024.The number of Active Members1 was 29,260 at June 30, 2025 compared to 30,870 at December 31, 2024 and 31,110 at June 30, 2024.  1Natural Health Trends defines Active Members as those that have placed at least one product order with the Company during the preceding twelve-month period. Year-to-Date 2025 Financial Highlights Revenue of $20.6 million decreased 4% compared to $21.4 million in the first six months of 2024. Operating loss was $678,000 compared to $603,000 in the first six months of 2024. Net income was $137,000, or $0.01 per diluted share, compared to $361,000, or $0.03 per diluted share, in the first six months of 2024.  Management Commentary “Our second quarter sales reflected the heightened economic uncertainty caused by evolving trade tensions, which we expect will continue to heavily weigh on consumer sentiment in our biggest market,” commented Chris Sharng, President of Natural Health Trends Corp. Mr. Sharng continued, “To mitigate tariff-related risks, we are realigning our supply chain by transitioning production to trusted manufacturing partners in Asia, bringing operations closer to our core markets and enhancing long-term resilience.” Balance Sheet and Cash Flow Net cash used in operating activities was $5.2 million in the first six months of 2025 compared to $3.0 million in the first six months of 2024. Before tax installment payments, the liability of which arose from the 2017 U.S. Tax Cuts and Jobs Act (the "Tax Act"), cash used in operating activities was $97,000 in the first six months of 2025 compared to cash provided by operating activities of $950,000 in the first six months of 2024. The Tax Act liability is now fully paid.Total cash, cash equivalents and marketable securities were $34.2 million at June 30, 2025, down from $43.9 million at December 31, 2024.On July 28, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 on each share of common stock outstanding. The dividend will be payable on August 22, 2025 to stockholders of record as of August 12, 2025. Second Quarter 2025 Financial Results Conference Call Management will host a conference call to discuss the second quarter 2025 financial results today, Wednesday, July 30, 2025 at 11:30 a.m. Eastern Time. The conference call details are as follows: Date:Wednesday, July 30, 2025Time:11:30 a.m. Eastern Time / 8:30 a.m. Pacific TimeDial-in:1-877-407-0789 (Domestic)1-201-689-8562 (International)Conference ID:13754794Webcast:https://viavid.webcasts.com/starthere.jsp?ei=1726889&tp_key=778e0e5b56 For those unable to participate during the live broadcast, a replay of the call will also be available from 2:30 p.m. Eastern Time on July 30, 2025 through 11:59 p.m. Eastern Time on August 13, 2025 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13754794. 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. 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. 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 February 21, 2025 with the Securities and Exchange Commission (SEC), as well as in subsequent reports filed this year with the SEC. The Company assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein. NATURAL HEALTH TRENDS CORP.CONSOLIDATED BALANCE SHEETS(In thousands, except share data)   June 30, 2025  December 31, 2024   (Unaudited)     ASSETS        Current assets:        Cash and cash equivalents $10,534  $13,533 Marketable securities  23,711   30,407 Inventories  2,769   3,272 Other current assets  3,845   3,771 Total current assets  40,859   50,983 Property and equipment, net  154   190 Operating lease right-of-use assets  2,108   2,498 Restricted cash  37   34 Deferred tax asset  387   382 Other assets  1,617   1,272 Total assets $45,162  $55,359 LIABILITIES AND STOCKHOLDERS’ EQUITY        Current liabilities:        Accounts payable $962  $895 Income taxes payable  7   4,908 Accrued commissions  1,866   2,021 Other accrued expenses  1,337   1,425 Deferred revenue  6,078   6,428 Amounts held in eWallets  3,089   3,286 Operating lease liabilities  1,060   1,127 Other current liabilities  549   709 Total current liabilities  14,948   20,799 Deferred tax liability  172   174 Operating lease liabilities  1,186   1,514 Total liabilities  16,306   22,487 Stockholders’ equity:        Preferred stock  —   — Common stock  13   13 Additional paid-in capital  84,969   84,901 Accumulated deficit  (30,813)  (26,344)Accumulated other comprehensive loss  (916)  (1,301)Treasury stock, at cost  (24,397)  (24,397)Total stockholders’ equity  28,856   32,872 Total liabilities and stockholders’ equity $45,162  $55,359  NATURAL HEALTH TRENDS CORP.CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)(In thousands, except per share data)   Three Months Ended June 30,  Six Months Ended June 30,   2025  2024  2025  2024 Net sales $9,813  $10,475  $20,550  $21,426 Cost of sales  2,558   2,699   5,390   5,611 Gross profit  7,255   7,776   15,160   15,815 Operating expenses:                Commissions expense  4,012   4,203   8,500   8,689 Selling, general and administrative expenses  3,576   3,811   7,338   7,729 Total operating expenses  7,588   8,014   15,838   16,418 Loss from operations  (333)  (238)  (678)  (603)Other income, net  348   519   813   1,082 Income before income taxes  15   281   135   479 Income tax provision (benefit)  —   108   (2)  118 Net income $15  $173  $137  $361 Net income per common share:                Basic $0.00  $0.02  $0.01  $0.03 Diluted $0.00  $0.02  $0.01  $0.03 Weighted average common shares outstanding:                Basic  11,493   11,464   11,489   11,460 Diluted  11,497   11,483   11,496   11,481  NATURAL HEALTH TRENDS CORP.CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)(In thousands)   Six Months Ended June 30,   2025  2024 CASH FLOWS FROM OPERATING ACTIVITIES:        Net income $137  $361 Adjustments to reconcile net income to net cash used in operating activities:        Depreciation and amortization  59   69 Net accretion of marketable securities  (214)  (215)Share-based compensation  68   75 Noncash lease expense  573   545 Deferred income taxes  (3)  16 Changes in assets and liabilities:        Inventories  525   6 Other current assets  402   (294)Other assets  (334)  (101)Accounts payable  65   (335)Income taxes payable  (4,901)  (3,817)Accrued commissions  (194)  106 Other accrued expenses  (110)  136 Deferred revenue  (311)  1,432 Amounts held in eWallets  (170)  (339)Operating lease liabilities  (561)  (560)Other current liabilities  (182)  (104)Net cash used in operating activities  (5,151)  (3,019)CASH FLOWS FROM INVESTING ACTIVITIES:        Purchases of property and equipment  (20)  (30)Purchases of marketable securities  (27,552)  (36,164)Proceeds from maturities of marketable securities  34,215   3,307 Net cash provided by (used in) investing activities  6,643   (32,887)CASH FLOWS FROM FINANCING ACTIVITIES:        Dividends paid  (4,606)  (4,606)Net cash used in financing activities  (4,606)  (4,606)Effect of exchange rates on cash, cash equivalents and restricted cash  118   (92)Net decrease in cash, cash equivalents and restricted cash  (2,996)  (40,604)CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period  13,567   56,217 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $10,571  $15,613 SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:        Right-of-use assets obtained in exchange for operating lease liabilities $112  $196  CONTACT: Scott DavidsonSenior Vice President and Chief Financial OfficerNatural Health Trends Corp.Tel (U.S.): 310-541-0888investor.relations@nhtglobal.com

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