USANA Posts Mixed 2025 Results with Revenue Growth but Earnings Pressure; 2026 Outlook Critical for Turnaround

What happened

USANA Health Sciences reported fourth quarter and full-year 2025 results, showing net sales growth to $925.3 million for the year but a sharp decline in net earnings to $10.8 million from $42.0 million in 2024, with a Q4 net loss of $1.8 million. Adjusted EBITDA for Q4 improved slightly to $27.3 million from $25.5 million, indicating modest operational progress despite ongoing challenges in the direct-selling segment. DeepValue's report highlights persistent issues such as declining active customers and compressed margins, which these results partially reflect, even as the newer Hiya brand contributes to top-line growth. The fiscal 2026 outlook, briefly mentioned in the release, will be key to assessing whether management's cost realignment and compensation plan changes can stabilize the customer base and improve profitability. Overall, the mixed performance underscores a fragile turnaround narrative, requiring investors to await clearer evidence of sustainable margin recovery above 10%.

Implication

The 2025 results reinforce USANA's depressed valuation multiples, but without a clear path to higher margins, the stock's upside remains constrained by ongoing earnings pressure. Persistent declines in direct-selling active customers, as detailed in DeepValue, threaten future revenue and could lead to further earnings downgrades if not arrested soon. Hiya's growth offers a potential bright spot, but its loss-making status and high SG&A costs continue to dilute overall profitability, raising questions about its long-term contribution. Management's execution on cost-cutting and field force engagement will be closely watched in upcoming quarters, with any setbacks likely to exacerbate share price volatility. Therefore, a disciplined 'wait-and-see' stance is warranted until there is demonstrable progress toward EBITDA margins sustainably exceeding 10% and stabilizing customer trends.

Thesis delta

The recent financials do not alter the core 'WAIT' thesis, as they confirm ongoing earnings weakness and customer declines despite revenue growth, aligning with DeepValue's cautious outlook. However, the slight improvement in adjusted EBITDA offers a tentative signal that cost management efforts may be gaining traction, but investors should await the detailed 2026 guidance and subsequent quarterly data to confirm a durable margin recovery.