NUS

This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent our current expectations and beliefs. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws and include, but are not limited to, statements of management’s expectations regarding our performance, growth, initiatives, strategies, products, ingredients, product introductions and offerings, product portfolio optimization, restructuring and exit activities, acquisitions, the integration and performance of acquired companies, divestitures, opportunities and risks; statements of management’s expectations, plans and beliefs regarding global economic conditions and our markets (including India), sales force, sales compensation plan and customer base; statements regarding government policies and regulations relating to our industry, including government policies and regulations in or related to the United States and Mainland China; statements regarding tariffs and trade policies; statements regarding the outcome of litigation, audits, investigations, and other legal or regulatory matters; statements of projections and expectations regarding future sales, expenses, operating results, taxes, duties, capital expenditures, sources and uses of cash, foreign-currency fluctuations or devaluations, repatriation of undistributed earnings, and other financial items; statements regarding the payment of future dividends and stock repurchases; accounting estimates and assumptions; statements of belief; and statements of assumptions underlying any of the foregoing. In some cases, you can identify these statements by forward-looking words such as “believe,” “expect,” “enable,” “project,” “anticipate,” “determine,” “estimate,” “intend,” “plan,” “goal,” “objective,” “targets,” “become,” “likely,” “will,” “would,” “could,” “may,” “might,” the negative of these words and other similar words. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. We caution and advise readers that these statements are based on assumptions that may not be realized and involve important risks and uncertainties that could cause actual results to differ materially from the expectations and beliefs contained herein. For a summary of these risks, see the risk factors included in our Annual Report on Form 10-K for the 2025 fiscal year and in any of our subsequent Securities and Exchange Commission filings, including this Quarterly Report. The following Management’s Discussion and Analysis should be read in conjunction with our consolidated financial statements and related notes and Management’s Discussion and Analysis included in our Annual Report on Form 10-K for the 2025 fiscal year, and our other reports filed with the Securities and Exchange Commission through the date of this Quarterly Report. Overview Revenue for the three-month period ended June 30, 2026 decreased 17.1% to $320.1 million, compared to $386.1 million in the prior-year period, and revenue for the six-month period ended June 30, 2026 decreased 14.6% to $640.7 million, compared to $750.6 million in the prior-year period. Our revenue in the second quarter of 2026 was negatively impacted by 1.0% from foreign-currency fluctuations. Our Customers, Paid Affiliates and Sales Leaders declined 14%, 8% and 9%, respectively, on a year-over-year basis. The declines for the three- and six-month periods ended June 30, 2026 were largely driven by the continued macroeconomic challenges we have been facing in our markets, which have negatively impacted consumer spending and customer acquisition. Our priorities for 2026 focus on business model optimization, driven by the continued rollout of enhancements to our sales performance plan, the continued launch of our Prysm iO intelligent wellness platform and business expansion into India. Our early learnings from the Prysm iO have resulted in a shift in the strategy from a device placement focus to an assessment model that is more conducive to in-person engagement. In addition, from our preview in India we have identified the need to simplify the model in advance of our full market opening, which is now slated for the first half of 2027. Earnings per share for the second quarter of 2026 decreased to $(5.14), compared to $0.43 in the prior-year period. Earnings per share for the first six months of 2026 decreased to $(5.12), compared to $2.59 in the prior-year period. Our second quarter 2026 earnings per share were negatively impacted by an impairment charge of $78.9 million and a $167.5 million valuation allowance associated with our U.S. deferred tax assets, as well as the decline in revenue. Our earnings per share for the first six months of 2026 were negatively impacted by the second quarter impairment charge, second quarter valuation allowance, charges associated with our first quarter of 2026 wind down of our separate BeautyBio business and decline in revenue. Our 2025 earnings per share benefited from the January 2025 sale of our Mavely business, which generated a pre-tax gain of approximately $176.2 million, partially offset by the associated taxes, an intangible asset group impairment of $25.1 million in our Rhyz Other segment and a non-cash loss on equity investment of $28.1 million. 20 Table of Contents Segment Results We report our business in nine segments to reflect our current management approach. These segments consist of our seven geographic Nu Skin segments—Americas, Mainland China, Southeast Asia/Pacific, Japan, Europe & Africa, South Korea and Hong Kong/Taiwan—and our two Rhyz segments—Manufacturing and Rhyz Other. The Nu Skin Other category includes miscellaneous corporate revenue and related adjustments. The following table sets forth revenue for the three- and six-month periods ended June 30, 2026 and 2025 for each of our reportable segments (U.S. dollars in thousands): Three Months Ended Constant- Six Months Ended Constant- June 30, Currency June 30, Currency 2026 2025 Change Change(1) 2026 2025 Change Change(1) Nu Skin Americas $ 59,763 $ 72,946 (18.1 )% (15.8 )% $ 117,581 $ 142,004 (17.2 )% (14.2 )% Mainland China 45,956 53,224 (13.7 )% (18.7 )% 91,104 100,999 (9.8 )% (14.6 )% Southeast Asia/Pacific 43,257 50,834 (14.9 )% (16.3 )% 88,731 103,006 (13.9 )% (16.5 )% Japan 38,143 44,550 (14.4 )% (5.5 )% 77,882 87,315 (10.8 )% (4.9 )% Europe & Africa 32,317 37,328 (13.4 )% (15.2 )% 63,535 70,349 (9.7 )% (15.0 )% Hong Kong/Taiwan 26,074 27,527 (5.3 )% (3.6 )% 53,531 55,974 (4.4 )% (4.8 )% South Korea 25,620 34,068 (24.8 )% (19.0 )% 50,949 66,583 (23.5 )% (20.2 )% Nu Skin Other 79 427 (81.5 )% (81.5 )% (155 ) 956 (116.2 )% (116.2 )% Total Nu Skin 271,209 320,904 (15.5 )% (14.2 )% 543,158 627,186 (13.4 )% (13.4 )% Rhyz Manufacturing 46,369 60,400 (23.2 )% (23.2 )% 91,294 115,690 (21.1 )% (21.1 )% Rhyz Other 2,534 4,834 (47.6 )% (47.6 )% 6,268 7,752 (19.1 )% (19.1 )% Total Rhyz 48,903 65,234 (25.0 )% (25.0 )% 97,562 123,442 (21.0 )% (21.0 )% Total $ 320,112 $ 386,138 (17.1 )% (16.1 )% $ 640,720 $ 750,628 (14.6 )% (14.6 )% (1) Constant-currency revenue change is a non-GAAP financial measure. See “Non-GAAP Financial Measures,” below. The tables below set forth summarized financial information for each of our reportable segments for the three- and six-month periods ended June 30, 2026 and 2025 (U.S. dollars in thousands). Segment contribution excludes certain intercompany charges, specifically royalties, license fees, transfer pricing and other miscellaneous items. We use segment contribution to measure the portion of profitability that the segment managers have the ability to control for their respective segments. For additional information regarding our segments and the calculation of segment contribution, see Note 11 to the consolidated financial statements contained in this report. Three Months Ended June 30, 2026 Nu Skin Rhyz Mainland Southeast Europe & Hong Kong/ South Rhyz Total Americas China Asia/Pacific Japan Africa Taiwan Korea Manufacturing Other Segments Revenue $ 59,763 $ 45,956 $ 43,257 $ 38,143 $ 32,317 $ 26,074 $ 25,620 $ 46,369 $ 2,534 $ 320,033 Cost of sales 15,037 8,283 10,518 7,832 7,784 4,255 5,441 40,873 478 100,501 Other segment items 33,582 26,335 25,080 19,385 19,944 13,949 12,695 6,073 2,503 159,546 Segment contribution $ 11,144 $ 11,338 $ 7,659 $ 10,926 $ 4,589 $ 7,870 $ 7,484 $ (577 ) $ (447 ) $ 59,986 Segment contribution as a percentage of revenue 18.6 % 24.7 % 17.7 % 28.6 % 14.2 % 30.2 % 29.2 % (1.2 )% (17.6 )% 18.7 % 21 Table of Contents Three Months Ended June 30, 2025 Nu Skin Rhyz Mainland Southeast Europe & Hong Kong/ South Rhyz Total Americas China Asia/Pacific Japan Africa Taiwan Korea Manufacturing Other Segments Revenue $ 72,946 $ 53,224 $ 50,834 $ 44,550 $ 37,328 $ 27,527 $ 34,068 $ 60,400 $ 4,834 $ 385,711 Cost of sales 18,401 9,800 12,025 9,035 9,531 4,662 7,058 46,963 1,085 118,560 Other segment items 37,729 28,967 26,587 23,562 21,877 14,536 16,934 9,737 3,886 183,815 Segment contribution $ 16,816 $ 14,457 $ 12,222 $ 11,953 $ 5,920 $ 8,329 $ 10,076 $ 3,700 $ (137 ) $ 83,336 Segment contribution as a percentage of revenue 23.1 % 27.2 % 24.0 % 26.8 % 15.9 % 30.3 % 29.6 % 6.1 % (2.8 )% 21.6 % Six Months Ended June 30, 2026 Nu Skin Rhyz Mainland Southeast Europe & Hong Kong/ South Rhyz Total Americas China Asia/Pacific Japan Africa Taiwan Korea Manufacturing Other Segments Revenue $ 117,581 $ 91,104 $ 88,730 $ 77,882 $ 63,535 $ 53,531 $ 50,948 $ 91,293 $ 6,268 $ 640,872 Cost of sales 29,263 16,288 21,702 16,415 15,791 8,574 10,927 79,762 4,832 203,554 Other segment items 66,173 53,655 50,066 39,178 39,404 28,439 25,255 12,190 9,591 323,951 Segment contribution $ 22,145 $ 21,161 $ 16,962 $ 22,289 $ 8,340 $ 16,518 $ 14,766 $ (659 ) $ (8,155 ) $ 113,367 Segment contribution as a percentage of revenue 18.8 % 23.2 % 19.1 % 28.6 % 13.1 % 30.9 % 29.0 % (0.7 )% (130.1 )% 17.7 % Six Months Ended June 30, 2025 Nu Skin Rhyz Mainland Southeast Europe & Hong Kong/ South Rhyz Total Americas China Asia/Pacific Japan Africa Taiwan Korea Manufacturing Other Segments Revenue $ 142,004 $ 100,999 $ 103,006 $ 87,315 $ 70,349 $ 55,974 $ 66,583 $ 115,690 $ 7,752 $ 749,672 Cost of sales 36,167 18,788 25,024 17,789 17,905 9,714 13,499 91,938 2,374 233,198 Other segment items 73,274 57,202 53,610 45,719 41,862 28,241 32,256 18,273 7,895 358,332 Segment contribution $ 32,563 $ 25,009 $ 24,372 $ 23,807 $ 10,582 $ 18,019 $ 20,828 $ 5,479 $ (2,517 ) $ 158,142 Segment contribution as a percentage of revenue 22.9 % 24.8 % 23.7 % 27.3 % 15.0 % 32.2 % 31.3 % 4.7 % (32.5 )% 21.1 % 22 Table of Contents The following table provides information concerning the number of Customers, Paid Affiliates and Sales Leaders in our core Nu Skin business for the three-month periods ended June 30, 2026 and 2025. ● “Customers” are persons who have purchased directly from the Company during the three months ended as of the date indicated. Our Customer numbers include members of our sales force who made such a purchase, including Paid Affiliates and those who qualify as Sales Leaders, but they do not include consumers who purchase directly from members of our sales force. ● “Paid Affiliates” are any Brand Affiliates, as well as members of our sales force in Mainland China, who earned sales compensation during the three-month period. In all of our markets besides Mainland China, we refer to members of our independent sales force as “Brand Affiliates” because their primary role is to promote our brand and products through their personal social networks. ● “Sales Leaders” are the three-month average of our monthly Brand Affiliates, as well as sales employees and independent marketers in Mainland China, who achieved certain qualification requirements as of the end of each month of the quarter. Three Months Ended June 30, Change 2026 2025 Customers Americas 183,757 240,477 (24 )% Mainland China 103,891 117,325 (11 )% Southeast Asia/Pacific 69,354 72,814 (5 )% Japan 100,849 105,961 (5 )% Europe & Africa 111,332 126,146 (12 )% Hong Kong/Taiwan 36,549 41,371 (12 )% South Korea 54,305 67,313 (19 )% Total Customers 660,037 771,407 (14 )% Paid Affiliates Americas 27,337 28,827 (5 )% Mainland China 18,736 19,399 (3 )% Southeast Asia/Pacific 17,677 21,092 (16 )% Japan 19,018 19,605 (3 )% Europe & Africa 13,307 15,320 (13 )% Hong Kong/Taiwan 9,390 9,570 (2 )% South Korea 14,826 16,986 (13 )% Total Paid Affiliates 120,291 130,799 (8 )% Sales Leaders Americas 5,041 5,971 (16 )% Mainland China 5,899 5,790 2 % Southeast Asia/Pacific 3,631 4,126 (12 )% Japan 5,782 5,882 (2 )% Europe & Africa 2,216 2,695 (18 )% Hong Kong/Taiwan 1,858 2,063 (10 )% South Korea 2,571 3,066 (16 )% Total Sales Leaders 26,998 29,593 (9 )% Following is a narrative discussion of our results in each segment, which supplements the tables above. Americas. The results in our Americas segment reflect a continued decline in our North America markets. For the second quarter of 2026, our Latin America markets’ revenue contracted on a reported currency basis, with growth for the first half of 2026. As our Sales Leaders prioritized Prysm iO and associated wellness products during the first half of 2026, we experienced switching costs as many of our Sales Leaders began adapting to a greater focus on wellness products than previously. During the second quarter of 2026, we released enhancements to our sales compensation plan, with a higher focus on aligning incentives around Sales Leader development and retention. In addition, our reported revenue reflects negative impacts from unfavorable foreign currency fluctuations of 2.3% and 3.0% for the second quarter and first half of 2026, respectively. 23 Table of Contents The year-over-year decrease in segment contribution for the second quarter and first half of 2026 primarily reflects the overall decline in revenue, as well as a 3.1 and 3.3 percentage-point increase for the second quarter and first half of 2026, respectively, in selling expenses from additional incentives aimed at assisting the transition associated with the sales compensation plan enhancements. Mainland China. Our Mainland China market continued to be challenged during the second quarter and first half of 2026, with ongoing macroeconomic factors, the associated decrease in consumer spending and a continued shift of market consumer awareness and demand to online product marketplaces. In addition, our reported revenue reflects a benefit from favorable foreign currency fluctuations of 5.0% and 4.8% for the second quarter and first half of 2026, respectively. During the second quarter of 2026, we released enhancements to the business model, as well as additional incentives for our sales force, which we believe helped drive a 2% increase in Sales Leaders as well as a slowing of the decline of Paid Affiliates for the second quarter of 2026. The decrease in segment contribution for the second quarter and first half of 2026 primarily reflects the decline in revenue and associated fixed cost pressures on general and administrative expenses. Southeast Asia/Pacific. The decline in revenue, Customers, Paid Affiliates and Sales Leaders for the second quarter and first half of 2026 is primarily attributable to slowing momentum from the general macroeconomic factors in the markets. In addition, our reported revenue reflects a benefit from favorable foreign currency fluctuations of 1.4% and 2.6% for the second quarter and first half of 2026, respectively. The year-over-year decrease in segment contribution for the second quarter and first half of 2026 primarily reflects the decline in revenue as well as an increase in selling expenses and general and administrative cost associated with our pre-market activities in India in preparation for the full market opening in the first half of 2027. Japan. The reduction in revenue, Customers, Paid Affiliates and Sales Leaders is partially attributable to consumer inflationary pressures which depressed spending. In addition, our reported revenue reflects negative impacts from unfavorable foreign currency fluctuations of 8.8% and 5.9% for the second quarter and first half of 2026. The year-over-year decrease in segment contribution is primarily attributable to the decreased revenue. Europe & Africa. The reduction in revenue, Customers, Paid Affiliates and Sales Leaders reflects continued softness in these markets, as well as the macroeconomic factors that have led to a decline in the purchasing power of our customers. In addition, our reported revenue reflects a benefit from favorable foreign currency fluctuations of 1.8% and 5.3% for the second quarter and first half of 2026, respectively. The year-over-year decline in segment contribution for the second quarter of 2026 primarily reflects the decline in revenue, partially offset by a 1.4 percentage point increase in gross margin from a favorable product mix. The decline in segment contribution for the first half of 2026 is primarily from the decline in revenue. Hong Kong/Taiwan. The declines in our Hong Kong/Taiwan segment for the second quarter and first half of 2026 are attributable to macroeconomic issues, which are resulting in less purchasing power for our consumers. Our Taiwan market has shown indicators of stabilization with local currency growth for the second quarter and first half of 2026. The decrease in segment contribution for the second quarter of 2026 is primarily attributable to the decline in revenue. The decrease in segment contribution for the first half of 2026 is primarily from the decline in revenue as well as a 1.5 percentage-point increase in selling expenses associated with our recent compensation plan enhancements, as well as the decline in revenue paired with the fixed nature of general and administrative expenses, partially offset by a 1.3 percentage point improvement in gross margin from less product write-offs and product promotions. South Korea. Our South Korea market was challenged by difficult macroeconomic trends, including inflationary pressures, political instability, and our associated price increases which negatively impacted our revenue, Customers, Paid Affiliates and Sales Leaders for the second quarter and first half of 2026. In addition, in the first quarter of 2026, we lowered our commission to remain in compliance with the local law. Our reported revenue reflects negative impacts from unfavorable foreign currency fluctuations of 5.8% and 3.3% for the second quarter and first half of 2026, respectively. The year-over-year decline in segment contribution for the second quarter and first half of 2026 primarily reflects the decline in revenue. 24 Table of Contents Manufacturing. Our Manufacturing segment revenue decreased 23.2% and 21.1% for the second quarter and first half of 2026, respectively. The decrease is partially due to a challenging comparison with a strong first half of 2025, as well as customer order delays related to the tariff and associated economic uncertainty. The decrease in segment contribution is primarily due to the decline in revenue, as well as fixed cost pressure within cost of goods sold. Rhyz Other. The decrease in revenue for the second quarter and first half of 2026 is primarily from our decision to wind down our separate BeautyBio business. In addition, for the second quarter of 2026, our LifeDNA, Inc. (“LifeDNA”) entity, a DNA assessment and recommendation technology company, was challenged by elevated customer acquisition cost. During the three months ended March 31, 2026, we acquired the remaining 30% equity interest in LifeDNA, for cash consideration of $6.5 million. The carrying amount of noncontrolling interest, which was previously included in other liabilities on the consolidated balance sheet, was reduced by $4.1 million, with the difference of $2.4 million recorded in additional paid-in capital. Following this transaction, LifeDNA became a wholly owned subsidiary. Due to the noncontrolling interest’s immaterial balance, we have not historically separately disclosed the noncontrolling interest balance or activity. The decrease in segment contribution for the second quarter and first half of 2026 is primarily due to our decision to wind down our separate BeautyBio business and the associated $3.1 million inventory charge, $1.8 million of intangible impairment and $1.0 million in other associated costs recorded in the first quarter of 2026, as well as elevated customer acquisition cost for LifeDNA. Consolidated Results Revenue Revenue for the three-month period ended June 30, 2026 decreased 17.1% to $320.1 million, compared to $386.1 million in the prior-year period. Revenue for the six-month period ended June 30, 2026 decreased 14.6% to $640.7 million compared to $750.6 million in the prior-year period. Our revenue in the second quarter of 2026 was negatively impacted by 1.0%, from foreign-currency fluctuations. For a discussion and analysis of these decreases in revenue, see “Overview” and “Segment Results,” above. Gross profit Gross profit as a percentage of revenue was 68.2% for the second quarter of 2026, compared to 68.8% for the prior-year period, and 67.5% for the first six months of 2026, compared to 68.3% for the prior-year period. Gross profit as a percentage of revenue for our Nu Skin business increased 0.2 percentage points to 77.7% for the second quarter of 2026 and increased 0.2 percentage points to 77.3% for the first six months of 2026. Selling expenses Selling expenses as a percentage of revenue increased to 33.7% for the second quarter of 2026, compared to 33.2% for the prior-year period, and increased to 34.0% for the first six months of 2026, compared to 32.9% for the prior-year period. Core Nu Skin selling expenses as a percentage of revenue decreased 0.2 percentage points to 39.8% for the second quarter of 2026 and increased 0.8 percentage points to 40.1% for the first six months of 2026. Selling expenses for our core Nu Skin business are driven by the specific performance of our individual Sales Leaders. Given the size of our sales force and the various components of our compensation and incentive programs, selling expenses as a percentage of revenue typically fluctuate plus or minus approximately 100 basis points from period to period. In the third quarter of 2026, we are holding our global Nu Skin LIVE! event in Japan. As a result of the global LIVE! event, we are anticipating an approximate incremental $5.0 million in selling expenses for the third quarter of 2026. General and administrative expenses General and administrative expenses decreased to $90.8 million in the second quarter of 2026, compared to $106.7 million in the prior-year period, and decreased to $189.4 million in the first six months of 2026, compared to $219.9 million in the prior-year period. The $15.9 million decline for the second quarter is primarily from a $8.6 million contraction in labor expenses primarily from lower incentive compensation from a decline in performance and a $2.5 million decline in software and related contracts from continued cost management. The $30.5 million decline for the first half of 2026 is primarily from a $14.3 million reduction in labor expense and a $7.9 million decline in software and related contracts. General and administrative expenses as a percentage of revenue increased to 28.4% for the second quarter of 2026, from 27.6% for the prior-year period, and increased to 29.6% for the first six months of 2026, from 29.3% for the prior-year period. In the third quarter of 2026, we anticipate beginning to implement a re-alignment of our organizational resources. As a result of these changes, we are anticipating an approximate incremental $5.0 million in transition cost in the third quarter of 2026, primarily consisting of cash severance charges. 25 Table of Contents Impairment expenses Intangibles and fixed asset impairment. During the three months ended March 31, 2025, we decided to make a strategic shift in how we operate the BeautyBio asset group. These strategic changes included exiting certain sales channels, which reduced the forecasted revenues for BeautyBio. We concluded these actions were an interim impairment triggering event that required us to perform an interim impairment analysis on our BeautyBio asset group. We assessed the recoverability of the related asset group comparing the carrying value to the undiscounted cash flows expected to be generated. The recoverability test indicated the asset group was impaired. We concluded that the carrying value of the asset group exceeded the estimated fair value, which resulted in an impairment charge of $25.1 million in our Rhyz Other segment during the three months ended March 31, 2025. During the three months ended March 31, 2026, we decided to wind down our separate BeautyBio business. As part of this exit, we incurred an impairment charge of $1.8 million. Goodwill. During the three months ended June 30, 2026, we determined that the continued decline in our stock price and corresponding market capitalization as well as the decline in our manufacturing reporting unit’s forecast were triggering events that required us to perform a quantitative impairment analysis. When we performed an impairment test during the second quarter of 2026, we concluded the estimated fair value of the manufacturing reporting unit was less than the carrying value of equity as of June 30, 2026. As a result, we recorded a non-cash goodwill impairment charge of $78.9 million in the second quarter of 2026. Interest expense Interest expense increased to $3.3 million in the second quarter of 2026, compared to $2.5 million in the prior-year period. Interest expense for the first six months of 2026 increased to $7.6 million compared to $5.8 million for the prior-year period. The increase is primarily due to our interest rate swap arrangements that we entered into in 2020 maturing on July 31, 2025, at which time our effective interest rate increased. Gain on sale of business In January 2025, we completed the sale of our Mavely entity for $230 million in cash and shares of the purchaser’s common stock, subject to certain adjustments as set forth in the purchase agreement, including post-closing determination of net working capital and other elements of purchase price. Following the completion of certain payments to other equity holders in Mavely and the payment of certain transaction expenses, we received $193.7 million of cash and equity interest with an estimated fair value of $6.1 million. Following the finalization of net working capital, we received additional cash payments of $2.7 million and $1.7 million in the second and third quarter of 2025, respectively. In the first quarter of 2025, we recorded a pre-tax gain on disposition of $176.2 million. Other income (expense), net Other income (expense), net was $(0.5) million for the second quarter of 2026 compared to $(0.8) million for the prior-year period, and $2.3 million for the first six months of 2026 compared to $(29.2) million for the prior-year period. In the first quarter of 2025, we recorded a $28.1 million unrealized loss on investment. See Note 8 to the consolidated financial statements contained in this report for more information on the unrealized equity investment and the associated loss. Provision for income taxes Provision for income taxes for the three- and six-month periods ended June 30, 2026 was $186.6 million and $187.4 million, respectively, compared to $6.3 million and $33.4 million for the prior-year periods. The effective tax rates for the three- and six-month periods ended June 30, 2026 were (295.4)% and (309.3)% of pre-tax income, respectively, compared to 23.0% and 20.6% in the prior-year periods. The change in the effective tax rate in the second quarter of 2026 is primarily due to the valuation allowance established on our U.S. deferred tax assets. 26 Table of Contents During the second quarter of 2026, we established a $167.5 million valuation allowance against its U.S. deferred tax assets as it was determined to be more likely than not that these assets will not be realized. This determination was made based on weighing all available evidence, positive and negative, including cumulative losses recognized in the U.S. entity over the past three years. These cumulative losses were mainly due to the impairment of goodwill and other intangibles assets. Therefore, we recorded a full valuation allowance against these U.S. deferred tax assets as of June 30, 2026. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We completed the initial assessment of the OBBBA corporate tax provisions as they relate to our financial statements in the third quarter of 2025. The enactment of the OBBBA did not have a material impact to our income tax benefit for the three months ended June 30, 2026. We will continue to evaluate the impacts of OBBBA and do not expect the OBBBA to have a material impact to our total tax provision. Net income (loss) As a result of the foregoing factors, net income for the second quarter of 2026 was $(249.8) million compared to $21.1 million in the prior-year period. Net income for the first six months of 2026 was $(248.0) million, compared to $128.6 million for the first six months of 2025. Liquidity and Capital Resources Historically, our principal uses of cash have included operating expenses (particularly selling expenses) and working capital (principally inventory purchases), as well as capital expenditures, stock repurchases, dividends, and debt repayment. We have at times incurred long-term debt, or drawn on our revolving line of credit, to fund strategic transactions, stock repurchases, capital investments and short-term operating needs. We typically generate positive cash flow from operations due to favorable margins and have generally relied on cash from operations to fund operating activities. In the first six months of 2026, we generated $6.7 million in cash from operations, compared to $36.2 million in the prior-year period. The decrease in cash flow from operations primarily reflects incremental inventory purchases. Cash and cash equivalents, including current investments, as of June 30, 2026 and December 31, 2025 were $191.4 million and $239.8 million, respectively, with the decrease being primarily driven by $19.4 million of capital expenditures, $10.0 million in net debt payments, $6.5 million for the purchase of noncontrolling interest in LifeDNA, $5.8 million of dividend payments and $5.0 million in share repurchases. Working capital. As of June 30, 2026, working capital was $251.8 million, compared to $284.0 million as of December 31, 2025. Our decrease in working capital is primarily attributable to changes in our cash balance as explained above. Capital expenditures. Capital expenditures for the six months ended June 30, 2026 were $19.4 million. We expect that our capital expenditures in 2026 will be primarily related to: ● Rhyz plant expansion to increase capacity and capabilities; ● purchases and expenditures for computer systems and equipment, software, and application development; and ● the expansion and upgrade of facilities in our various markets. We estimate that capital expenditures for the uses listed above will total approximately $40–60 million for 2026. 2022 Credit Agreement. On June 14, 2022, we entered into an Amended and Restated 2022 Credit Agreement (the “2022 Credit Agreement”) with various financial institutions as lenders and Bank of America, N.A., as administrative agent. The 2022 Credit Agreement provided for a $400.0 million term loan facility and a $500.0 million revolving credit facility, each with a term of five years. We used the proceeds of the term loan and the draw on the revolving facility to pay off the 2018 Credit Agreement. The interest rate applicable to the facilities was subject to adjustments based on our consolidated leverage ratio. The term loan facility amortized in quarterly installments in amounts resulting in an annual amortization of 2.5% during the first year and 5.0% during the subsequent years after the closing date of the 2022 Credit Agreement, with the remainder payable at final maturity. As of December 31, 2025, we had $0.0 million of outstanding borrowings under our revolving credit facility, and $225.0 million on our term loan facility. The carrying value of the debt also reflected debt issuance costs of $0.8 million as of December 31, 2025, related to the 2022 Credit Agreement. The 2022 Credit Agreement required us to maintain a consolidated leverage ratio not exceeding 2.75 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00. As of December 31, 2025, we were in compliance with all debt covenants under the 2022 Credit Agreement. 27 Table of Contents Credit Agreement. On March 27, 2026, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with several financial institutions as lenders and Bank of America, N.A., as administrative agent, which amended and restated the 2022 Credit Agreement. The Credit Agreement provides for a $175.0 million term loan facility and a $75.0 million revolving credit facility, each with a term of five years. Both facilities bear interest at the SOFR, plus a margin based on the Company’s consolidated leverage ratio. Commitment fees payable under the Credit Agreement are also based on the consolidated leverage ratio as defined in the Credit Agreement and range from 0.175% to 0.30% on the unused portion of the total lender commitments then in effect. The term loan facility will amortize in equal quarterly installments in amounts resulting in an annual amortization of $20.0 million per annum, with the remainder payable at final maturity. The Credit Agreement is guaranteed by certain of the Company’s domestic subsidiaries and collateralized by assets of such subsidiaries, including a pledge of 65% of the capital stock of certain foreign subsidiaries. As of June 30, 2026, we had $45.0 million of outstanding borrowings under our revolving credit facility, and $170.0 million on our term loan facility. The carrying value of the debt also reflected debt issuance costs of $1.3 million as of June 30, 2026, related to the Credit Agreement. The Credit Agreement requires the Company to maintain a consolidated leverage ratio not exceeding 2.25 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00. The Credit Agreement also includes other covenants, including covenants that, subject to certain exceptions, restrict the ability of the Company and its subsidiaries (i) to create, incur, assume or permit to exist any liens, (ii) to incur additional indebtedness, (iii) to make investments and acquisitions, (iv) to enter into mergers, consolidations or similar transactions, (v) to make certain dispositions of assets, (vi) to make dividends, distributions and prepayments of certain indebtedness, (vii) to change the nature of the Company’s business, (viii) to enter into certain transactions with affiliates, (ix) to enter into certain burdensome agreements, (x) to make certain amendments to certain agreements and organizational documents and (xi) to make certain accounting changes. As of June 30, 2026, the Company was in compliance with all covenants under the Credit Agreement. Derivative Instruments. During the third quarter of 2025, we had four interest rate swaps mature, with a total notional principal amount of $200 million. We entered into these interest rate swap arrangements during the third quarter of 2020 to hedge the variable cash flows associated with our variable-rate debt under the Credit Agreement. Stock repurchase plan. In 2018, our board of directors approved a stock repurchase plan authorizing us to repurchase up to $500.0 million of our outstanding shares of Class A common stock on the open market or in private transactions. During the second quarter of 2026, we repurchased no shares of our Class A common stock under the plan. As of June 30, 2026, $137.3 million was available for repurchases under the plan. Our stock repurchases are used primarily to offset dilution from our equity incentive plans and for strategic initiatives. Dividends. In February 2026, our board of directors declared quarterly cash dividends of $0.06 per share. This quarterly cash dividend of $2.9 million was paid on March 11, 2026 to stockholders of record on February 27, 2026. In May 2026, our board of directors declared quarterly cash dividends of $0.06 per share. This quarterly cash dividend of $2.9 million was paid on June 10, 2026 to stockholders of record on May 29, 2026. In August 2026, our board of directors declared a quarterly cash dividend of $0.06 per share to be paid on September 9, 2026 to stockholders of record on August 28, 2026. Currently, we anticipate that our board of directors will continue to declare quarterly cash dividends and that the cash flows from operations will be sufficient to fund our future dividend payments. However, the continued declaration of dividends is subject to the discretion of our board of directors and will depend upon various factors, including our net earnings, financial condition, cash requirements, future prospects and other relevant factors. Cash from foreign subsidiaries. As of June 30, 2026 and December 31, 2025, we held $191.4 million and $239.8 million, respectively, in cash and cash equivalents, including current investments. These amounts include $150.2 million and $170.7 million as of June 30, 2026 and December 31, 2025, respectively, held in our operations outside of the U.S. Substantially all of our non-U.S. cash and cash equivalents are readily convertible into U.S. dollars or other currencies, subject to procedural or other requirements in certain markets, as well as an indefinite-reinvestment designation, as described below. We typically fund the cash requirements of our operations in the U.S. through intercompany dividends, intercompany loans and intercompany charges for products, use of intangible property, and corporate services. However, some markets impose government-approval or other requirements for the repatriation of dividends. For example, in Mainland China, we are unable to repatriate cash from current operations in the form of dividends until we file the necessary statutory financial statements for the relevant period. As of June 30, 2026, we had $41.5 million in cash denominated in Chinese RMB. We also have experienced delays in repatriating cash from Argentina. As of June 30, 2026 and December 31, 2025, we had $31.1 million and $23.9 million, respectively, in intercompany receivables with our Argentina subsidiary. We also have intercompany loan arrangements in some of our markets, including Mainland China, that allow us to access available cash, subject to certain limits in Mainland China and other jurisdictions. We also have drawn on our revolving line of credit to address cash needs until we can repatriate cash from Mainland China or other markets, and we may continue to do so. Except for $60.0 million of earnings in Mainland China that we designated as indefinitely reinvested during the second quarter of 2018, we currently plan to repatriate undistributed earnings from our non-U.S. operations as necessary, considering the cash needs of our non-U.S. operations and the cash needs of our U.S. operations for dividends, stock repurchases, capital investments, debt repayment and strategic transactions. Repatriation of non-U.S. earnings is subject to withholding taxes in certain foreign jurisdictions. Accordingly, we have accrued the necessary withholding taxes related to the non-U.S. earnings. 28 Table of Contents We currently believe that existing cash balances, future cash flows from operations and existing lines of credit will be adequate to fund our cash needs on both a short- and long-term basis. The majority of our historical expenses have been variable in nature, and as such, a potential reduction in the level of revenue would reduce our cash flow needs. In the event that our current cash balances, future cash flow from operations and current lines of credit are not sufficient to meet our obligations or strategic needs, we would consider raising additional funds in the debt or equity markets or restructuring our current debt obligations. Additionally, we would consider realigning our strategic plans, including a reduction in capital spending, stock repurchases or dividend payments. Contingent Liabilities Please refer to Note 12 to the consolidated financial statements contained in this Quarterly Report for information regarding our contingent liabilities. Critical Accounting Policies and Estimates There were no significant changes in our critical accounting policies or estimates during the second quarter of 2026. Seasonality and Cyclicality In addition to general economic factors, we are impacted by seasonal factors and trends such as major cultural events and vacation patterns. For example, most Asian markets celebrate their respective local New Year in the first quarter, which generally has a negative impact on that quarter. We believe that direct selling is also generally negatively impacted during the third quarter, when many individuals, including our sales force, traditionally take vacations. Prior to making a product generally available for purchase in a market, we often do one or more introductory offerings of the product, such as a preview of the product to our Sales Leaders or other product introduction or promotion. These offerings sometimes generate significant activity and a high level of purchasing, which can result in a higher-than-normal increase in revenue, Sales Leaders, Paid Affiliates and/or Customers during the quarter and can skew year-over-year and sequential comparisons. Non-GAAP Financial Measures Constant-currency revenue change is a non-GAAP financial measure that removes the impact of fluctuations in foreign-currency exchange rates, thereby facilitating period-to-period comparisons of the Company’s performance. It is calculated by translating the current period’s revenue at the same average exchange rates in effect during the applicable prior-year period and then comparing that amount to the prior-year period’s revenue. We believe that constant-currency revenue change is useful to investors, lenders and analysts because such information enables them to gauge the impact of foreign-currency fluctuations on our revenue from period to period. Available Information Our website address is www.nuskin.com. We make available, free of charge on our Investor Relations website, ir.nuskin.com, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission. We also use our Investor Relations website, ir.nuskin.com, as a channel of distribution of additional Company information that may be deemed material. Accordingly, investors should monitor this channel, in addition to following our press releases, Securities and Exchange Commission filings and public conference calls and webcasts. The contents of our website shall not be deemed to be incorporated herein by reference. 29 Table of Contents