Nature’s Sunshine delivered a positive third quarter, with the market responding favorably to the company's strong operational execution and meaningful revenue gains. Management attributed the quarter’s growth to strategic investments in digital capabilities, robust performance across North America, Asia Pacific, and Europe, and improved customer engagement. CFO Shane Jones highlighted a surge in new digital customers and significant progress in the subscription auto ship program as key contributors, noting, “the number of new digital customers making a purchase in Q3 more than doubled versus prior year.”
Is now the time to buy NATR? Find out in our full research report (it’s free for active Edge members).
Nature's Sunshine (NATR) Q3 CY2025 Highlights:
- Revenue: $128.3 million vs analyst estimates of $120.3 million (12% year-on-year growth, 6.7% beat)
- Adjusted EPS: $0.36 vs analyst estimates of $0.16 (significant beat)
- Adjusted EBITDA: $15.19 million vs analyst estimates of $10.49 million (11.8% margin, 44.8% beat)
- The company lifted its revenue guidance for the full year to $478 million at the midpoint from $467.5 million, a 2.2% increase
- EBITDA guidance for the full year is $48 million at the midpoint, above analyst estimates of $43.8 million
- Operating Margin: 7%, up from 4.6% in the same quarter last year
- Market Capitalization: $362 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Nature's Sunshine’s Q3 Earnings Call
- Brian Holland (D.A. Davidson) asked about the specific digital channels driving growth and how investment decisions are made. CFO Shane Jones cited strong performance across Amazon, DTC, and social commerce, with ongoing spend guided by customer acquisition cost and return on ad spend.
- Brian Holland (D.A. Davidson) inquired about the success factors behind the turnaround in China and whether macro conditions were stabilizing. Jones explained that the introduction of the subscription auto ship program was the primary driver, with macro conditions stable but not improving.
- Unknown Analyst (Canaccord Genuity) questioned whether the step change in growth was due to a specific factor or overall execution. Jones responded that it was the cumulative effect of multi-year transformation efforts, robust digital growth, and some timing-related sales acceleration in Asia Pacific.
- Unknown Analyst (Canaccord Genuity) asked if the new Power Line product launch was global or regional. Jones clarified that it would roll out in phases, starting in the U.S. and expanding to other markets, including the Baltics.
- Unknown Analyst (Canaccord Genuity) sought clarity on the sustainability of higher SG&A levels. Jones said SG&A would remain elevated as long as digital advertising returns were strong but remains adaptable to changing opportunities.
Catalysts in Upcoming Quarters
Over the next few quarters, the StockStory team will be closely monitoring (1) the pace of digital channel and subscription auto ship adoption, (2) the effectiveness of targeted product launches and field activations in driving regional growth, and (3) the ability to maintain margin improvements amid tariffs and fluctuating SG&A. Execution on these fronts will be key to sustaining momentum and managing variability in Asia Pacific and other regions.
Nature's Sunshine currently trades at $20.66, up from $13.73 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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