8-K: USANA Exceeds 2025 Sales Guidance, Eyes Growth in New Segments

USANA Health Sciences announced preliminary fiscal year 2025 net sales of $925 million, surpassing its guidance, and issued an initial fiscal year 2026 net sales outlook of $925 million to $1.0 billion, driven by growth in Hiya and Rise Wellness despite a projected decline in its core nutritional business.

Summary

• Preliminary fiscal year 2025 consolidated net sales reached approximately $925 million, exceeding the most recently issued guidance of approximately $920 million.
• The initial fiscal year 2026 net sales outlook is projected to be in the range of $925 million to $1.0 billion.
• The core nutritional business (USANA) is expected to see net sales of $720 million to $765 million in fiscal 2026, a decline from approximately $777 million in fiscal 2025.
• Hiya net sales are projected to grow to $140 million to $155 million in fiscal 2026, up from approximately $132 million in fiscal 2025.
• Rise Wellness net sales are anticipated to experience significant accelerated growth, reaching $65 million to $80 million in fiscal 2026, compared to approximately $16 million in fiscal 2025.
• Fiscal year 2026 is a 52-week year, one week less of net sales compared to fiscal year 2025, which primarily impacts the core nutritional business.
• Rise Wellness expects accelerated growth in fiscal 2026, with operating margins at breakeven due to strategic investments to drive future growth.
• Meaningful investments are being made at both Rise Wellness and Hiya in inventory, capital expenditures, and other working capital needs to support the early growth stages of these businesses.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive. While the company exceeded its 2025 sales guidance and projects significant growth in its acquired brands (Hiya and Rise Wellness), the core nutritional business is expected to decline, and the overall 2026 guidance is flat to slightly up from the preliminary 2025 results. Investments in new businesses will also keep their margins at breakeven, indicating a period of transition and investment rather than immediate broad-based profit growth.

Positives

• Preliminary fiscal year 2025 consolidated net sales of approximately $925 million exceeded the company's most recently issued guidance of approximately $920 million.
• Hiya is projected to grow its net sales from approximately $132 million in fiscal 2025 to a range of $140 million to $155 million in fiscal 2026.
• Rise Wellness is expected to experience significant accelerated growth, with net sales projected to increase from approximately $16 million in fiscal 2025 to a range of $65 million to $80 million in fiscal 2026.
• The company is making meaningful investments in inventory, capital expenditures, and working capital to support the early growth stages of Hiya and Rise Wellness.

Negatives

• The core nutritional business (USANA) is projected to experience a decline in net sales, from approximately $777 million in fiscal 2025 to a range of $720 million to $765 million in fiscal 2026.
• Fiscal year 2026 is a 52-week year, one week less of net sales compared to fiscal year 2025, which negatively impacts the core nutritional business.
• Operating margins in the Rise Wellness business are expected to be at breakeven in fiscal 2026 due to investments in strategic activities to drive future growth.

Risks

• Risks relating to global economic conditions generally, including continued inflationary pressure around the world and negative impact on operating costs, consumer demand, and consumer behavior.
• The ability of Hiya and Rise Wellness to drive brand awareness, customer acquisition, and sales channel expansion.
• The reliance of the direct selling business upon the network of independent Brand Partners.
• Risk that the Brand Partner compensation plan, or changes made to it, will not produce desired results, benefit the business, or could harm the business.
• Risk associated with the launch of new products or reformulated existing products.
• Risks related to governmental regulation of products, manufacturing, and direct selling business model in the United States, China, and other key markets.
• Potential negative effects of deteriorating foreign and/or trade relations between or among the United States, China, and other key markets, including potential adverse impact from tariffs, trade policies, or other international disputes.
• Potential negative effects from geopolitical relations and conflicts around the world, including the Russia-Ukraine conflict and the conflict in Israel.
• Compliance with data privacy and security laws and regulations in markets around the world.
• Potential negative effects of material breaches of information technology systems.
• Material failures of information technology systems.
• Adverse publicity risks globally.
• Risks associated with early stage operations in India and future international expansion and operations.
• Uncertainty relating to the fluctuation in U.S. and other international currencies.
• The potential for a resurgence of COVID-19, or another pandemic, in any of the markets in the future and any related impact on consumer health, domestic and world economies, including any negative impact on discretionary spending, consumer demand, and consumer behavior.
• The diversion of the attention of the management teams of USANA, Hiya, and Rise Wellness from ongoing business operations.
• The ability to retain key personnel of USANA, Hiya, and Rise Wellness.
• The ability to realize the benefits of the Hiya acquisition, including efficiencies and cost synergies.
• The ability to successfully integrate Hiya's business with USANA's business, at all or in a timely manner.
• The amount of the costs, fees, expenses, and charges related to the acquisition.

Future Outlook

The company anticipates fiscal year 2026 consolidated net sales to be in the range of $925 million to $1.0 billion. This outlook reflects a projected decline in the core nutritional business, offset by significant growth in Hiya and accelerated growth in Rise Wellness. Strategic investments in inventory, capital expenditures, and working capital are planned for Hiya and Rise Wellness to support their early growth stages, with Rise Wellness operating margins expected to be at breakeven in fiscal 2026.

Management Comments

• Doug Hekking, CFO, and Walter Noot, COO, will discuss USANA's strategy, including the Company's initial fiscal year 2026 sales outlook, at the 28th Annual ICR Conference.
• Rise Wellness (comprising two brands – Rise Bar and Protein Pop) experienced meaningful year-over-year net sales growth in 2025 and expects accelerated growth during fiscal 2026.
• Operating margins in this business [Rise Wellness] are expected to be at breakeven in fiscal 2026 as it invests in strategic activities to drive future growth.
• The Company is making meaningful investments at both Rise Wellness and Hiya in inventory, capital expenditures and other working capital needs to support the early growth stages of these businesses.

Industry Context

This announcement highlights a strategic shift within the health and wellness sector, where established direct-selling companies like USANA are diversifying their portfolios through acquisitions and investments in high-growth, clean-label brands like Hiya (children's health) and Rise Wellness (functional foods). While the core direct-selling nutritional business faces headwinds, potentially due to market saturation or changing consumer preferences, the focus on newer, digitally-native brands reflects an industry trend towards specialized, consumer-packaged goods (CPG) segments with strong growth potential, even if it means initial breakeven margins due to investment.

Stakeholder Impact

• Shareholders: Potential for increased long-term value from growth in Hiya and Rise Wellness, but short-term pressure from core business decline and investment-driven breakeven margins in new segments. Exceeding 2025 guidance is a positive.
• Brand Partners: The core nutritional business, which relies on Brand Partners, is projected to decline, potentially impacting their sales and commissions.
• Employees: Continued investment in Hiya and Rise Wellness suggests growth opportunities in those segments, potentially leading to new roles or expanded teams.
• Customers: Expansion of product offerings through Hiya (children's health) and Rise Wellness (clean-label health products) provides more choices.

Next Steps

• Presentation at the 28th Annual ICR Conference on January 12, 2026, by Doug Hekking (CFO) and Walter Noot (COO).
• Live audio webcast of the ICR Conference presentation available on USANA's website.
• Replay of the ICR Conference presentation available on the same day.
• Fourth quarter and fiscal year 2025 earnings release scheduled after the close of market on Tuesday, February 17, 2026.
• Management Commentary document to be posted on the company's website shortly after the earnings release.
• Conference call to discuss the earnings announcement with analysts and institutional investors on Wednesday, February 18, 2026, at 11:00 AM ET.

Key Dates

Recommendation

The company exceeded its 2025 sales guidance, which is a positive signal. However, the core nutritional business is projected to decline in 2026, indicating underlying challenges. While the acquired brands, Hiya and Rise Wellness, show strong growth potential, they require significant investment and are expected to operate at breakeven in 2026, delaying their contribution to overall profitability. The mixed outlook, with growth in new segments offsetting declines in the core, suggests a transitional period. Investors should hold to observe the execution of the diversification strategy and the ability to stabilize the core business while integrating and scaling the new acquisitions.

Keywords

USANA Health Sciences, USNA, Nutritional Supplements, Direct Selling, Health and Wellness, Financial Outlook, Sales Guidance, Hiya Health, Rise Wellness, Preliminary Results, Fiscal Year 2025, Fiscal Year 2026, Earnings, ICR Conference