Natural Health Trends Reports Second Quarter 2025 Financial Results

–Sales decreased 6% due to retaliatory tariff threats –U.S. Tax Cuts and Jobs Act liability fully settled during the second quarter of 2025 –Declared a quarterly cash dividend of $0.20 per share

LOS ANGELES, July 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 June 30, 2025.

Second Quarter 2025 Financial Highlights

Revenue of $9.8 million decreased 6% compared to $10.5 million in the second quarter of 2024. Operating loss was $333,000 compared to $238,000 in the second quarter of 2024.Net income was $15,000, or breakeven per diluted share, compared to $173,000, or $0.02 per diluted share, in the second quarter of 2024.The number of Active Members1 was 29,260 at June 30, 2025 compared to 30,870 at December 31, 2024 and 31,110 at June 30, 2024.

1Natural Health Trends defines Active Members as those that have placed at least one product order with the Company during the preceding twelve-month period.

Year-to-Date 2025 Financial Highlights

Revenue of $20.6 million decreased 4% compared to $21.4 million in the first six months of 2024. Operating loss was $678,000 compared to $603,000 in the first six months of 2024. Net income was $137,000, or $0.01 per diluted share, compared to $361,000, or $0.03 per diluted share, in the first six months of 2024.

Management Commentary

“Our second quarter sales reflected the heightened economic uncertainty caused by evolving trade tensions, which we expect will continue to heavily weigh on consumer sentiment in our biggest market,” commented Chris Sharng, President of Natural Health Trends Corp.

Mr. Sharng continued, “To mitigate tariff-related risks, we are realigning our supply chain by transitioning production to trusted manufacturing partners in Asia, bringing operations closer to our core markets and enhancing long-term resilience.”

Balance Sheet and Cash Flow

Net cash used in operating activities was $5.2 million in the first six months of 2025 compared to $3.0 million in the first six months of 2024. Before tax installment payments, the liability of which arose from the 2017 U.S. Tax Cuts and Jobs Act (the "Tax Act"), cash used in operating activities was $97,000 in the first six months of 2025 compared to cash provided by operating activities of $950,000 in the first six months of 2024. The Tax Act liability is now fully paid.Total cash, cash equivalents and marketable securities were $34.2 million at June 30, 2025, down from $43.9 million at December 31, 2024.On July 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 August 22, 2025 to stockholders of record as of August 12, 2025.

Second Quarter 2025 Financial Results Conference Call

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

Date:Wednesday, July 30, 2025Time:11:30 a.m. Eastern Time / 8:30 a.m. Pacific TimeDial-in:1-877-407-0789 (Domestic)
1-201-689-8562 (International)Conference ID:13754794Webcast:https://viavid.webcasts.com/starthere.jsp?ei=1726889&tp_key=778e0e5b56

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 July 30, 2025 through 11:59 p.m. Eastern Time on August 13, 2025 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13754794.

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.

NATURAL HEALTH TRENDS CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data) June 30, 2025 December 31, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $10,534 $13,533 Marketable securities 23,711 30,407 Inventories 2,769 3,272 Other current assets 3,845 3,771 Total current assets 40,859 50,983 Property and equipment, net 154 190 Operating lease right-of-use assets 2,108 2,498 Restricted cash 37 34 Deferred tax asset 387 382 Other assets 1,617 1,272 Total assets $45,162 $55,359 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $962 $895 Income taxes payable 7 4,908 Accrued commissions 1,866 2,021 Other accrued expenses 1,337 1,425 Deferred revenue 6,078 6,428 Amounts held in eWallets 3,089 3,286 Operating lease liabilities 1,060 1,127 Other current liabilities 549 709 Total current liabilities 14,948 20,799 Deferred tax liability 172 174 Operating lease liabilities 1,186 1,514 Total liabilities 16,306 22,487 Stockholders’ equity: Preferred stock — — Common stock 13 13 Additional paid-in capital 84,969 84,901 Accumulated deficit (30,813) (26,344)Accumulated other comprehensive loss (916) (1,301)Treasury stock, at cost (24,397) (24,397)Total stockholders’ equity 28,856 32,872 Total liabilities and stockholders’ equity $45,162 $55,359

NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net sales $9,813 $10,475 $20,550 $21,426 Cost of sales 2,558 2,699 5,390 5,611 Gross profit 7,255 7,776 15,160 15,815 Operating expenses: Commissions expense 4,012 4,203 8,500 8,689 Selling, general and administrative expenses 3,576 3,811 7,338 7,729 Total operating expenses 7,588 8,014 15,838 16,418 Loss from operations (333) (238) (678) (603)Other income, net 348 519 813 1,082 Income before income taxes 15 281 135 479 Income tax provision (benefit) — 108 (2) 118 Net income $15 $173 $137 $361 Net income per common share: Basic $0.00 $0.02 $0.01 $0.03 Diluted $0.00 $0.02 $0.01 $0.03 Weighted average common shares outstanding: Basic 11,493 11,464 11,489 11,460 Diluted 11,497 11,483 11,496 11,481

NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)

Six Months Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $137 $361 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 59 69 Net accretion of marketable securities (214) (215)Share-based compensation 68 75 Noncash lease expense 573 545 Deferred income taxes (3) 16 Changes in assets and liabilities: Inventories 525 6 Other current assets 402 (294)Other assets (334) (101)Accounts payable 65 (335)Income taxes payable (4,901) (3,817)Accrued commissions (194) 106 Other accrued expenses (110) 136 Deferred revenue (311) 1,432 Amounts held in eWallets (170) (339)Operating lease liabilities (561) (560)Other current liabilities (182) (104)Net cash used in operating activities (5,151) (3,019)CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (20) (30)Purchases of marketable securities (27,552) (36,164)Proceeds from maturities of marketable securities 34,215 3,307 Net cash provided by (used in) investing activities 6,643 (32,887)CASH FLOWS FROM FINANCING ACTIVITIES: Dividends paid (4,606) (4,606)Net cash used in financing activities (4,606) (4,606)Effect of exchange rates on cash, cash equivalents and restricted cash 118 (92)Net decrease in cash, cash equivalents and restricted cash (2,996) (40,604)CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period 13,567 56,217 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $10,571 $15,613 SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: Right-of-use assets obtained in exchange for operating lease liabilities $112 $196

CONTACT:

Scott Davidson
Senior Vice President and Chief Financial Officer
Natural Health Trends Corp.
Tel (U.S.): 310-541-0888
[email protected]