USANA’s second quarter results were met with a positive market reaction, driven by revenue and non-GAAP earnings that both exceeded Wall Street expectations. Management attributed this performance to the implementation of strategic initiatives, including a shift in sales terminology and compensation structure, and increased momentum in its recently acquired businesses. CEO Jim Brown highlighted that the company’s direct-to-consumer platform Hiya achieved strong growth and improved profitability, while the refreshed approach to brand partners and expanded product offerings contributed to higher engagement and sales activity.
Is now the time to buy USNA? Find out in our full research report (it’s free).
USANA (USNA) Q2 CY2025 Highlights:
- Revenue: $235.8 million vs analyst estimates of $225.2 million (10.8% year-on-year growth, 4.7% beat)
- Adjusted EPS: $0.74 vs analyst estimates of $0.54 (37% beat)
- Adjusted EBITDA: $30 million vs analyst estimates of $24.9 million (12.7% margin, 20.5% beat)
- The company reconfirmed its revenue guidance for the full year of $960 million at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $2.68 at the midpoint
- EBITDA guidance for the full year is $115 million at the midpoint, above analyst estimates of $112.6 million
- Operating Margin: 7.1%, down from 8.4% in the same quarter last year
- Market Capitalization: $585.5 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 USANA’s Q2 Earnings Call
- Anthony Lebiedzinski (Sidoti & Company) asked about China’s sales performance amid a decline in active customers. Chief Commercial Officer Brent Neidig explained that tariff-related buying and continued optimism among brand partners supported results, but economic uncertainty persists.
- Anthony Lebiedzinski (Sidoti & Company) inquired about the impact of upcoming compensation program changes on active customer count. Neidig said acquisition dipped as partners awaited new incentives, but expects trends to improve as changes roll out.
- Anthony Lebiedzinski (Sidoti & Company) requested details on how the new compensation plan benefits new brand partners. Neidig described earlier earning opportunities and streamlined bonuses to drive faster success for new entrants.
- Anthony Lebiedzinski (Sidoti & Company) sought clarification on the effect of tariffs beyond China. CFO Doug Hekking noted minimal impact thus far, citing proactive sourcing and inventory strategies, while remaining cautious about future policy changes.
- Ivan Feinseth (Tigress Financial Partners) questioned opportunities from health trends and tools for brand partners. Neidig and CEO Jim Brown discussed investments in AI-driven business tools and responsiveness to market trends, particularly in children’s health with Hiya.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will closely watch (1) the impact of the new compensation plan and business tools on customer acquisition and partner retention, (2) the success of product launches and incentive programs revealed at the global convention, and (3) operational progress in integrating Hiya and expanding its distribution. Execution in these areas will clarify whether USANA’s strategies can drive sustained growth and margin improvement.
USANA currently trades at $31.44, in line with $31.53 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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