Usana Health Sciences Inc (USNA) (Q3 2026) Earnings Call Highlights: Haya Subscriber Growth and ... GuruFocus News Wed, November 4, 2026 at 10:11 PM EST 8 min read USNA -3.63% TGT +6.06% AMZN +5.64% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Net Sales Outlook: Full-year net sales expected approaching $900 million.
Adjusted EBITDA Outlook: Approximately $77 million, down from prior outlook of $80.5 million.
Core Nutrition Net Sales Outlook: Roughly $740 million, within the range provided at the beginning of the year and $10 million below the most recent outlook.
Haya Net Sales Outlook: Raised to $130 million.
Core Nutrition Active Customers: Down 8% year-over-year.
Southeast Asia Pacific Net Sales: Grew 2% year-over-year after declining 13% last quarter; active customers up 3% sequentially.
Haya Active Monthly Subscribers: Grew 18% sequentially, adding about 29,500 net subscribers; net sales returned to year-over-year growth.
Haya Retail (Target and Amazon): Combined net sales more than doubled from the second quarter, albeit from a small base.
Cash from Operations: $45 million year-to-date, up from $26 million last year.
Free Cash Flow: $36 million, more than double last year.
Inventory: Down 13% from the end of the year.
Cash Position: Ended the quarter with $179 million in cash and no debt.
Operating Profitability (Core Nutrition): Improved through lower event and compensation expenses.
Haya Margins: Added digital marketing investment pressured near-term margins.
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For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Usana Health Sciences Inc (NYSE:USNA) improved operating profitability in its core nutrition business through lower event and compensation expenses, providing a stronger foundation for investment.
Southeast Asia Pacific region returned to growth with net sales up 2% year-over-year and active customers up 3% sequentially, driven by leadership changes and successful incentive programs.
Haya's active monthly subscribers grew 18% sequentially, adding about 29,500 net subscribers, and net sales returned to year-over-year growth.
Haya's customer acquisition costs decreased from the first half of the year, allowing intentional investment in digital marketing to drive customer acquisition.
Usana Health Sciences Inc (NYSE:USNA) maintains a debt-free balance sheet with $179 million in cash, providing flexibility to invest in its strategy and drive future growth.
Core nutrition active customers declined 8% year-over-year, with Greater China accounting for most of the sequential decline in net sales and active customers.
RISE Wellness results were unsatisfactory, leading to a lowered outlook again due to lumpy club channel sales and below-expectation club orders.
Usana Health Sciences Inc (NYSE:USNA) lowered its full-year adjusted EBITDA outlook to approximately $77 million from $80.5 million, reflecting softer sales at RISE and increased investment at Haya.
Every region outside of Southeast Asia Pacific declined in constant currency during the third quarter.
The tax rate remains a headwind, partly due to amortization of intangibles from venture companies, with limited near-term opportunities to minimize the impact.
Q: On the core nutrition side, it was good to see some pockets of growth in Southeast Asia Pacific. Are you doing anything meaningfully different there versus the other regions? And as you evolve your brand partner incentive plan, what changes do you expect to achieve, and what's the time frame for improvements in customer count and segment revenue?A: Chief Commercial Officer Brent Neidig said Southeast Asia has been in a rebuild for several quarters, with leadership changes in several markets now producing results. The quarter included a successful incentive program that will be built on in Q4, and there was strong reengagement from top brand partner leaders in Australia, Malaysia, Korea and the Philippines. On the incentive plan, the major evolution launched in July of last year moved money from the back end to the front end to encourage acquisition, which has been successful brand partner declines are less than preferred customer declines. The next phase targets consumer loyalty through slight adjustments to qualification criteria and payout timing, expected to phase in throughout 2027.
Q: With respect to Haya, how do you think about the balance between marketing spending and profitability? And as you scale the core subscription business and add more retail, how should we think about gross and operating margins over the next few years?A: Chief Operating Officer Walter Noot explained that Haya's first order is half price and comes with expensive packaging, so the company invests heavily in new customers who have high, predictable lifetime value that has risen over the past year. When customer acquisition costs fell in September, Haya invested in acquiring roughly 30,000 net new customers, pressuring first-month EBITDA and margins. Margins should rise substantially in Q4 as those customers contribute, with a similar acquisition-heavy pattern likely in Q1 before benefits build through the year. Retail carries much higher margins Target is growing quickly and a club launch is planned for early Q1 which should smooth out the EBITDA inconsistency inherent in the half-price DTC model.
Q: RISE Wellness appears more lumpy than expected. As you diversify retail distribution, how do you think about sales and profitability for the brand, including potential new products next year?A: COO Walter Noot said club stores remain very interested but test on a regional rather than national basis, causing back-and-forth order patterns. Protein Pop launched at Target only last September, and by year-end the brand will be in about 4,100 grocery and retail stores excluding club significant growth built this year that provides a base with better profitability margins. Protein Pop has the number one units-per-store and dollars-per-store among clear protein products in the US. A new product, Protein Pop Balance a prebiotic fiber and lower-protein offering that competes in the soda aisle is the focus for next year, with additional new products also planned.
Q: The tax rate has been a headwind. Is there anything you can do to minimize the tax impact structurally, and how should we think about the tax rate beyond 2026?A: CFO Doug Hekking said the venture companies create a drag, particularly from higher amortization of intangibles, and the company does not get the tax benefit. Management focuses on the absolute tax amount rather than just the rate, and the topic comes up at every board meeting. He sees opportunities to shift some spend closer to consumers in different markets, but any changes must be thoughtful, intentional and additive to the business. Generally, getting traction in the businesses and executing on the venture company plans is the best opportunity.
Q: Can you speak to the pipeline of new products for next year, and as you get more aggressive with digital marketing, how should we think about the impact on costs?A: CEO Kevin Guest said meeting people where they are and delivering relevant communications is key to product launches and growth, and USANA has run test markets in the US with positive results around consumer-driven product offerings. Chief Scientific Officer Dr. Kathryn Armstrong added that the focus is on a holistic go-to-market approach centered on women's and kids initiatives, leveraging both core and extended brands to drive customer loyalty, with launches expected to come to fruition in 2027.
Q: What is driving the improved operating profitability in the core nutritional business, and how sustainable is the lower cost base?A: CEO Kevin Guest said improved operating profitability came from lower event and compensation expenses. Part of that reflects a favorable comparison against last year's quarter, when a compensation plan change did not repeat, but the cost base is in better shape and provides a stronger foundation to invest from. He also highlighted a real improvement in Southeast Asia Pacific, where net sales grew 2% year-over-year after declining 13% last quarter, active customers grew 3% sequentially and field leader engagement increased one region and still early, but the type of improvement the company is working to generate elsewhere.
Q: What drove the improvement at Haya after a difficult year for digital advertising, and what does that mean for the outlook?A: CEO Kevin Guest said the Haya team has been diversifying how it reaches customers beyond a single advertising platform, building creator and affiliate programs and more recently launching TikTok Shop. As customer acquisition costs came down from the first half of the year, the company intentionally invested in digital marketing to drive acquisition. Active monthly subscribers grew 18% sequentially, adding about 29,500 net subscribers, and net sales returned to year-over-year growth. Combined Target and Amazon net sales more than doubled from the second quarter, albeit from a small base, helped by back-to-school seasonality. Reflecting this progress, the company raised Haya's net sales outlook to $130 million.
Q: Where does the core nutrition business still need to improve, and what is the plan to grow active customers?A: CEO Kevin Guest said core nutrition is tracking inside the expected range for the year but is not where the company wants to be, with active customers down 8% year-over-year. Greater China, the largest market, accounted for most of the sequential decline in net sales and active customers, reflecting lighter incentive and promotional activity in Q3, and every region outside Southeast Asia Pacific declined in constant currency. Growing the active customer base remains the top priority, with brand investment, product innovation planned to begin in 2027 and incentive plan refinements all aimed at growth, with benefits expected to build gradually.
Q: What is the updated full-year outlook, and what are the key assumptions behind it?A: CFO Doug Hekking said the company now expects net sales approaching $900 million and adjusted EBITDA of approximately $77 million, versus the prior outlook of $80.5 million. The change reflects softer sales at
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
