USANA's Pivot: New Brands Drive Sales Amid Core Business Decline

SALT LAKE CITY, UT – February 17, 2026 – USANA Health Sciences, Inc. (NYSE: USNA) finds itself at a critical crossroads, reporting financial results that paint a vivid picture of a company undergoing a fundamental transformation. While full-year 2025 net sales grew a healthy 8% to $925.3 million, the figure masks a deepening divide between its booming new omnichannel brands and its struggling legacy direct-selling business, which saw sales shrink by 8%.

The strategic pivot was further underscored by a challenging fourth quarter that saw the company post a GAAP net loss of $1.8 million, or $-0.10 per diluted share. The loss was driven by significant one-time charges related to corporate restructuring and asset impairments, highlighting the turbulent financial undercurrents of its ambitious reinvention.

A Tale of Two Businesses

The Salt Lake City-based health and wellness company is navigating two starkly different realities. On one side, its core nutritional business, built on a global network of independent Brand Partners, is facing significant headwinds. For the full fiscal year 2025, net sales in this segment declined 8%, a trend reflecting what the company calls a “challenging environment for customer acquisition in key markets.”

The number of active customers in this core segment fell 15% year-over-year, from 454,000 at the end of fiscal 2024 to 387,000 by the end of 2025. The Asia Pacific region, traditionally a stronghold for USANA, saw a 10% year-over-year sales decline in the fourth quarter, with active customer counts in the region dropping 15%.

“We began to see signs of stabilization in active customer counts in our core nutritional business as net sales in this segment increased modestly sequentially,” said Kevin Guest, Chairman and Chief Executive Officer, pointing to sequential growth in key markets like mainland China, the United States, and Canada as a potential silver lining.

On the other side of the ledger are USANA’s newer, fast-growing omnichannel brands, Hiya and Rise Wellness. These brands, which operate through direct-to-consumer subscription and retail channels, represented 16% of consolidated net sales in 2025—a dramatic leap from just 1% in 2024. This growth was the primary driver behind the company’s overall 8% increase in annual revenue.

“We continued to execute our diversification strategy towards an omnichannel model,” Guest stated. “That strategy is designed to support growth beyond our core nutritional business as well as to restructure and modernize our business for today’s evolving marketplace.”

The High Cost of Transformation

USANA’s fourth-quarter results laid bare the financial costs associated with its strategic shift. The reported net loss of $1.8 million starkly contrasts with the $4.5 million in net earnings from the same period a year prior. According to Chief Financial Officer Doug Hekking, the results were impacted by two notable items.

The company recorded a non-cash impairment charge of $7.0 million against goodwill and intangibles, a move Hekking attributed to “a sustained decline in our share price and resulting market capitalization.” Additionally, USANA incurred a $6.5 million charge for its previously announced cost realignment initiatives, which involved “primarily aligning headcount with sales levels.” These charges, totaling $13.5 million, not only pushed the company into a loss but also increased its effective income tax rate for the quarter.

Excluding these one-time charges and other non-GAAP adjustments, the company reported an adjusted diluted EPS of $0.60 for the quarter. While this non-GAAP figure offers a view of underlying operational performance, the significant GAAP loss highlights the substantial expenses and write-downs required to reshape the company for future growth.

Betting on an Omnichannel Future

The clear engines for USANA's future growth are Hiya Health Products, a children's wellness brand, and Rise Wellness, which produces protein-based snacks. In fiscal 2025, Hiya, a direct-to-consumer subscription business, reported 181,700 active monthly subscribers and contributed $30 million in net sales in the fourth quarter alone.

Rise Wellness, meanwhile, saw its sales triple in 2025, albeit from a small base. Its expansion into key retail outlets, including the launch of its Protein Pop snack at a large club retailer, has generated significant momentum. Guest noted that sales from these non-core businesses are expected to grow from 16% of consolidated net sales in 2025 to over 20% in fiscal 2026.

This strategic bet aligns with powerful consumer trends. The global market for functional foods and snacks is expanding rapidly as health-conscious consumers seek convenient, nutrient-dense options. USANA is positioning itself to capture a larger share of this market, moving beyond its traditional direct-selling channels to meet consumers where they are, whether online or in retail stores.

The Road Ahead: Modernization and Growth

Looking to fiscal 2026, USANA projects consolidated net sales between $925 million and $1.0 billion, representing flat to 8% growth. The outlook anticipates continued, albeit slowing, decline in the core nutritional business of 0-5%. However, the company forecasts strong growth from its omnichannel segment, with Hiya net sales projected to increase by 6% to 17% and Rise Wellness expected to accelerate its growth trajectory.

To support this transition, USANA is making significant investments. Inventory levels rose 48% year-over-year to $107 million, largely to support the rapid growth of Rise Wellness and to facilitate the strategic shift of bringing Hiya production in-house. This move is expected to generate cost savings in the latter half of 2026.

The company is also focused on technology initiatives to modernize its core systems and improve the customer experience. “Our focus is on deploying the most effective technologies and partnering with industry-leading providers to create real value for customers and a durable advantage for our business,” Guest explained.

Despite the costs of this transformation, the company maintains a strong balance sheet with $158 million in cash and only $14 million in debt. This financial flexibility, combined with an active share repurchase program that saw $28 million invested in buybacks in 2025, signals management's confidence as it navigates the complex task of steering its legacy business toward stability while aggressively fueling its new engines of growth.