Stonegate Capital Partners has updated its coverage on NU Skin Enterprises Inc. (NYSE: NUS) following the company's first-quarter 2026 earnings release. The report highlights that NUS reported revenue, adjusted net income, and adjusted earnings per share of $320.6 million, $6.8 million, and $0.14, respectively, compared to Stonegate's estimates of $329.7 million, $7.7 million, and $0.15. Revenue came in near the low end of guidance, while adjusted EPS remained within range as management continued investing behind Prysm iO and emerging markets while maintaining cost discipline.
The core Nu Skin gross margin improved 20 basis points year-over-year to 76.9%, though adjusted operating margin fell to 3.6% from 6.4% in the prior year. According to the report, the more important takeaway was management's commentary that brand affiliate confidence improved and new sales leaders grew year-over-year exiting the quarter. This suggests early field stabilization as Prysm iO training and leader engagement scale.
Prysm iO remains the core commercialization catalyst for NUS. Nearly 2 million scans across over 30,000 devices support early adoption, while 5% year-over-year subscription volume growth suggests the platform is beginning to improve customer engagement and recurring revenue quality. Field trends are showing early stabilization despite pressured headline KPIs. Sales leaders, paid affiliates, and customers declined 13%, 8%, and 14% year-over-year, respectively, but management cited improving brand affiliate confidence and year-over-year growth in new sales leaders exiting the quarter.
Guidance implies confidence in a second-half 2026 improvement cadence. NUS maintained its full-year 2026 revenue and adjusted EPS guidance of $1.35 billion to $1.50 billion and $0.80 to $1.20, supported by broader Prysm iO adoption, India's planned year-end launch, and continued cost discipline. For more details, view the full announcement here.
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