Kevin Guest, Chairman and Chief Executive Officer, said the consolidated results reflected mixed performance. The Core Nutritional business delivered results generally in line with expectations. However, the ventures businesses performed below expectations.

Hiya faced a challenging digital marketing environment that pressured topline performance, subscriber growth, and margins. Rise Wellness experienced a packaging-related disruption that affected commercial execution. Management believes these challenges are temporary and that both companies remain well positioned for growth. Full-year net sales for these businesses are now expected to fall below prior expectations, prompting an updated outlook.

Guest reaffirmed confidence in USANA’s strategic transformation from a single-channel direct sales business into a diversified, omnichannel health and wellness company focused on consumer acquisition and loyalty. The company continues to evolve its Brand Partner incentive plan, accelerate product innovation, and modernize its technology infrastructure.

Hiya’s management team is expanding the brand across additional channels, building on strong performance at a major national retailer, early-stage international expansion, and momentum in other e-commerce channels. Rise Wellness’ Protein Pop brand, now one year old, continues to attract new retailers and expand with existing ones while building a broader product pipeline.

Doug Hekking, Chief Financial Officer, noted that the GAAP net loss and negative adjusted diluted EPS reflected lower-than-expected commercial performance from Hiya and Rise. The company has updated its full-year outlook accordingly.