• Natural Health Trends Reports First Quarter 2025 Financial Results

    Source: Nasdaq GlobeNewswire / 30 Apr 2025 09:00:00   America/New_York

     – Sales decreased 2% year-over-year during the first quarter of 2025, attributable to promotional calendar differences
     – Generated cash flows from operations of $484,000 during the first quarter of 2025
     – Declared a quarterly cash dividend of $0.20 per share
        

    LOS ANGELES, April 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 March 31, 2025.

    First Quarter 2025 Financial Highlights

    • Revenue of $10.7 million decreased 2% compared to $11.0 million in the first quarter of 2024. 
    • Operating loss was $345,000 compared to $365,000 in the first quarter of 2024.
    • Net income was $122,000, or $0.01 per diluted share, compared to $188,000, or $0.02 per diluted share, in the first quarter of 2024.
    • The number of Active Members1 was down 2% to 30,180 at March 31, 2025 compared to 30,870 at December 31, 2024, and decreased 5% compared to 31,620 at March 31, 2024.
    1 Natural Health Trends defines Active Members as those that have placed at least one product order with the Company during the preceding twelve-month period.
       

    Management Commentary

    "The 2% year-over-year revenue decrease was attributable to the timing of our incentive and promotional calendar between the two periods. However, we managed to sequentially increase orders taken by 9% over the fourth quarter of 2024, demonstrating sustained strong interest for our products and the value we provide to our customers,” commented Chris Sharng, President of Natural Health Trends Corp.

    Mr. Sharng continued, “While the ever-evolving trade war is difficult to gauge, with the support of our product partners, we are actively working to align manufacturing closer to our key markets, shorten supply chains, and simplify logistics to weather the uncertainty and improve our long-term efficiency. Above all, our commitment to our members remains steadfast, and we will continue to deliver exceptional service and high-quality products to improve both their personal and financial well-being now and into the future."

    Balance Sheet and Cash Flow

    • Net cash provided by operating activities was $484,000 in the first three months of 2025 compared to $549,000 in the first three months of 2024.
    • Total cash, cash equivalents and marketable securities were $41.9 million at March 31, 2025, down from $43.9 million at December 31, 2024.
    • On April 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 May 23, 2025 to stockholders of record as of May 13, 2025.

    First Quarter 2025 Financial Results Conference Call

    Management will host a conference call to discuss the first quarter 2025 financial results today, Wednesday, April 30, 2025 at 11:30 a.m. Eastern Time. The conference call details are as follows:

    Date:Wednesday, April 30, 2025
    Time:11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time
    Dial-in:1-877-407-0789 (Domestic)
    1-201-689-8562 (International)
    Conference ID:13752084
    Webcast:https://viavid.webcasts.com/starthere.jsp?ei=1710105&tp_key=bcf30b6d42
      

    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 April 30, 2025 through 11:59 p.m. Eastern Time on May 14, 2025 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13752084.

    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.

    CONTACT:

    Scott Davidson
    Senior Vice President and Chief Financial Officer
    Natural Health Trends Corp.
    Tel (U.S.): 310-541-0888
    investor.relations@nhtglobal.com

     
    NATURAL HEALTH TRENDS CORP.
    CONSOLIDATED BALANCE SHEETS
    (In thousands, except share data)
           
      March 31, 2025  December 31, 2024 
      (Unaudited)     
    ASSETS        
    Current assets:        
    Cash and cash equivalents $21,688  $13,533 
    Marketable securities  20,210   30,407 
    Inventories  2,815   3,272 
    Other current assets  4,093   3,771 
    Total current assets  48,806   50,983 
    Property and equipment, net  176   190 
    Operating lease right-of-use assets  2,353   2,498 
    Restricted cash  34   34 
    Deferred tax asset  385   382 
    Other assets  1,425   1,272 
    Total assets $53,179  $55,359 
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Current liabilities:        
    Accounts payable $968  $895 
    Income taxes payable  4,915   4,908 
    Accrued commissions  1,826   2,021 
    Other accrued expenses  1,180   1,425 
    Deferred revenue  6,921   6,428 
    Amounts held in eWallets  3,296   3,286 
    Operating lease liabilities  1,115   1,127 
    Other current liabilities  522   709 
    Total current liabilities  20,743   20,799 
    Deferred tax liability  173   174 
    Operating lease liabilities  1,381   1,514 
    Total liabilities  22,297   22,487 
    Stockholders’ equity:        
    Preferred stock  —   — 
    Common stock  13   13 
    Additional paid-in capital  84,935   84,901 
    Accumulated deficit  (28,525)  (26,344)
    Accumulated other comprehensive loss  (1,144)  (1,301)
    Treasury stock, at cost  (24,397)  (24,397)
    Total stockholders’ equity  30,882   32,872 
    Total liabilities and stockholders’ equity $53,179  $55,359 
             


     
    NATURAL HEALTH TRENDS CORP.
    CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
    (In thousands, except per share data)
        
      Three Months Ended March 31, 
      2025  2024 
    Net sales $10,737  $10,951 
    Cost of sales  2,832   2,912 
    Gross profit  7,905   8,039 
    Operating expenses:        
    Commissions expense  4,488   4,486 
    Selling, general and administrative expenses  3,762   3,918 
    Total operating expenses  8,250   8,404 
    Loss from operations  (345)  (365)
    Other income, net  465   563 
    Income before income taxes  120   198 
    Income tax provision (benefit)  (2)  10 
    Net income $122  $188 
    Net income per common share:        
    Basic $0.01  $0.02 
    Diluted $0.01  $0.02 
    Weighted average common shares outstanding:        
    Basic  11,486   11,456 
    Diluted  11,491   11,474 
             


     
    NATURAL HEALTH TRENDS CORP.
    CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
    (In thousands)
        
      Three Months Ended March 31, 
      2025  2024 
    CASH FLOWS FROM OPERATING ACTIVITIES:        
    Net income $122  $188 
    Adjustments to reconcile net income to net cash provided by operating activities:        
    Depreciation and amortization  30   35 
    Net accretion of marketable securities  (113)  — 
    Share-based compensation  34   37 
    Noncash lease expense  275   272 
    Deferred income taxes  (2)  (32)
    Changes in assets and liabilities:        
    Inventories  465   (640)
    Other current assets  182   189 
    Other assets  (154)  (101)
    Accounts payable  73   (239)
    Income taxes payable  7   42 
    Accrued commissions  (214)  212 
    Other accrued expenses  (259)  191 
    Deferred revenue  501   1,029 
    Amounts held in eWallets  12   (208)
    Operating lease liabilities  (281)  (284)
    Other current liabilities  (194)  (142)
    Net cash provided by operating activities  484   549 
    CASH FLOWS FROM INVESTING ACTIVITIES:        
    Purchases of property and equipment  (16)  (11)
    Purchases of marketable securities  (17,378)  (28,514)
    Proceeds from maturities of marketable securities  27,365   — 
    Net cash provided by (used in) investing activities  9,971   (28,525)
    CASH FLOWS FROM FINANCING ACTIVITIES:        
    Dividends paid  (2,303)  (2,303)
    Net cash used in financing activities  (2,303)  (2,303)
    Effect of exchange rates on cash, cash equivalents and restricted cash  3   (76)
    Net increase (decrease) in cash, cash equivalents and restricted cash  8,155   (30,355)
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period  13,567   56,217 
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $21,722  $25,862 
    SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:        
    Right-of-use assets obtained in exchange for operating lease liabilities $79  $251 
             

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