Natural Health Trends Corp. Stock price
Is Natural Health Trends Corp. a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $6.54m | Revenue (TTM) = $36.04m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $-12.08m | Revenue (TTM) = $36.04m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Natural Health Trends Corp. Events
Past Events
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OCT
28
Q3 2026 Earnings Call
12 days ago
|
|
JUL
29
Q2 2026 Earnings Call
3 months ago
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|
APR
29
Q1 2026 Earnings Call
6 months ago
|
|
FEB
4
Q4 2025 Earnings Call
9 months ago
|
|
NOV
5
Q3 2025 Earnings Call
about one year ago
|
StocksGuide Free
Natural Health Trends Corp. — Q3 2026 Earnings Call
1. Management Discussion
Good day, and welcome to the Natural Health Trends Corp. Third Quarter 2026 Conference Call. At this time, I would like to turn the conference over to Michelle Glidewell with Natural Health Trends Corp. Please go ahead.
Thank you, and welcome to Natural Health Trends Third Quarter 2026 Earnings Conference Call. During today's call, there may be statements made relating to the future results of the company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements due to the result of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission.
It should also be noted that a replay of today's call can be found on the Investors section of the company's corporate website at naturalhealthtrendscorp.com.
At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.
Thank you, Michelle. Good morning, and thanks to everyone joining us to discuss our third quarter 2026 financial results. Scott Davidson, our Senior Vice President and Chief Financial Officer, is also here today. Third quarter net sales were $7.6 million or flat compared to the second quarter this year and were down 20% from $9.5 million when compared to the same quarter last year. Consumer pessimism in our largest and most important market remains one of our biggest challenges. The uncertainty is making people cautious about both spending and investing, and we saw that caution show up in purchasing decisions.
We also continue to see lingering effects from the regulatory uncertainty in China and member misconduct we previously reported. To address this difficult economic environment, we introduced additional incentives and lower-priced packages, which accounted for most of the revenue decline compared to a year ago, but managed to lift the member count and steady the top line compared to the preceding second quarter. Partially offsetting these headwinds, our restructuring initiatives from late last year improved gross margin and cut operating expenses by almost $500,000 this quarter, bringing year-to-date savings to $1.1 million. As such, we were able to reduce our operating loss by 57% compared to the preceding quarter.
During the quarter, we celebrated our 25th anniversary with a landmark event in Hong Kong, bringing together approximately 1,000 members and guests from our international teams. Celebrating this milestone together was a highlight of the quarter, and the event reinforced the strength of our community at a time when engagement matters most. We rolled out an AI-powered marketing and communication app for our Chinese members. This mobile-friendly tool helps facilitate direct communication with additional features to come, including AI-enabled search and product training.
In the coming weeks, we're excited to launch a new joint health supplement called Move Prime, a citrus-flavored powder drink mix designed to support joint comfort and mobility. We're also readying a new traditional Chinese medicine product for our China market and to be introduced in the coming months.
Turning to the rest of our global footprint. They remain an important part of our long-term growth story. Half of our markets outside of Hong Kong and China managed to increase their sales over the second quarter. Going forward, our priorities are straightforward: maintain financial discipline, invest where we can strengthen our competitive position and equip our field with innovative products, better digital tools and meaningful engagement. We believe this positions us to benefit as market conditions improve.
We also continue to return capital to shareholders as the Board has authorized continued repurchases under our existing program with $15.8 million currently remaining available. It reflects our confidence in the business and our commitment to shareholder returns.
With that, I'd like to turn the call over to our CFO, Scott Davidson, to discuss our financial results in greater detail. Scott?
Thank you, Chris. Total revenue for the second quarter (sic) [ third quarter ] of $7.6 million was steady compared to $7.6 million in the second quarter of 2026 and declined 20% compared to $9.5 million in the third quarter of 2025. As Chris mentioned, the operating environment remains challenging in China.
Turning to our cost and operating expenses. We continue to see the impact of strong execution on our previously announced restructuring program reflected in improved margins and reduced operating expenses. Gross profit margin was 74.2%, down from 75.2% in the second quarter of 2026 due to the mix of promotions offered during the third quarter to support our teams and members. However, gross profit margin improved from 73.7% in the third quarter of 2025, largely as a result of our shift to manufacturing in East Asia.
Commissions expense as a percent of total revenue for the second quarter (sic) [ third quarter ] was 35.9%, down from 40.9% reported in each of the second quarter of 2026 and the third quarter last year, primarily due to lower weekly commissions earned following disciplinary action taken against certain members as a result of the previously reported code of conduct matter. Selling, general and administrative expenses for the quarter were $3.2 million, a decrease of $80,000 compared to the second quarter of 2026 and down $433,000 compared to the third quarter a year ago.
Operating loss for the third quarter was $277,000, an improvement compared to $643,000 in the second quarter of 2026 and $495,000 in the third quarter of 2025. Net loss for the third quarter was $232,000 or $0.03 per diluted share, also an improvement compared to $451,000 or $0.05 per diluted share in the second quarter of 2026 and $431,000 or $0.04 per diluted share in the third quarter of 2025.
Now I'll turn to our balance sheet and cash flow. Net cash used in operating activities was $3.3 million during the first 9 months of 2026 compared to $5 million in the first 9 months of 2025. Total cash, cash equivalents and marketable securities were $17.6 million at September 30, down from $28.9 million at December 31, 2025, primarily due to repurchase of shares of common stock, dividends paid and cash used in operations during the first 9 months of 2026.
We repurchased 85,291 shares of our common stock in the open market for an aggregate purchase price of $84,000 during the third quarter through early October. Our Board of Directors has since authorized additional share repurchases under our existing stock repurchase program with $15.8 million remaining available.
Our 25th anniversary celebration in Hong Kong was a great success, and I was inspired by the loyalty and enthusiasm of our members and customers. We remain focused on executing our strategy of launching innovative new products, digital tools that drive engagement and support member training and returning value to our shareholders.
That concludes our prepared remarks. I will now turn the call back over to the operator.
This does conclude today's call. Thank you for your participation. You may now disconnect.
Natural Health Trends Corp. — Q2 2026 Earnings Call
1. Management Discussion
Good day, and welcome to the Natural Health Trends Corp. Quarter 2 2026 Earnings Conference Call.
At this time, I would like to turn the conference over to Michelle Glidewell.
Thank you, and welcome to Natural Health Trends Second Quarter 2026 Earnings Conference Call.
During today's call, there may be statements made relating to the future results of the company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements due to the result of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission.
It should also be noted that a replay of today's call can be found on the Investors section of the company's corporate website at naturalhealthtrendscorp.com.
At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.
Thank you, Michelle. Good morning, and thanks to everyone joining us to discuss our second quarter 2026 financial results.
Scott Davidson, our Senior Vice President and Chief Financial Officer, is also here today.
Second quarter net sales were $7.6 million, a 23% decrease compared to the second quarter of 2025. In China, consumers continue to be cautious about spending and investing, while regulatory uncertainty caused some members to pause activities during the quarter. We also identified conduct by certain members that violated the company's Hong Kong policies, procedures and professional code of conduct. These activities disrupted our business and adversely affected our second quarter revenue and operating results.
At the same time, the restructuring initiatives implemented late last year drove improvements in gross margin and reduced operating expenses by approximately $300,000 during the quarter. Year-to-date, these actions have generated more than $600,000 in savings with additional savings expected to be realized in the second half of the year.
During the quarter, we launched SuperNutri One, our new tropical flavor of grain powder formulated to support digestion, p classification and immune health. Early customer response has been encouraging with positive feedback across our markets on the product's taste, convenience and overall value proposition. We also reinforced our commitment to product quality by hosting a group of field leaders at one of our primary manufacturing facilities in Korea, providing them with firsthand insight into our manufacturing processes and quality standards.
Across our global markets, we continue to execute targeted product launches, promotions, recognition programs and incentive initiatives designed to increase engagement, strengthen customer loyalty and support long-term sales growth. We look forward to celebrating our 25th anniversary in Hong Kong next month. Leading up to and throughout the event, customers will have the opportunity to qualify for a range of prices and rewards. We expect to welcome more than 1,000 attendees from around the world as we reaffirm our long-term strategy to strengthen engagement with our global field leadership and reinforce our commitment to future growth.
As we look ahead, our priorities remain clear: execute with financial discipline, invest in initiatives that strengthen our competitive position and support our field with innovative products, enhanced digital capabilities and tools and meaningful engagement. These actions position us to capitalize on opportunities as market conditions improve.
On that note, our Board of Directors authorized the resumption of share repurchases under our existing stock repurchase program with $15.9 million remaining available. This initiative indicates our confidence in the business as well as continued commitment to returning cash to the shareholders.
With that, I'd like to turn the call over to our CFO, Scott Davidson, to discuss our financial results in greater detail. Scott?
Thank you, Chris.
Total revenue for the second quarter was $7.6 million compared to $9.8 million in the second quarter of 2025, a decline of 23%, primarily due to, as Chris mentioned, Chinese consumers' continued hesitancy to spend and regulatory uncertainty in China that caused some of our members to pause activities during the quarter. We also identified conduct by certain members that violated the company's Hong Kong policies, procedures and code of conduct that disrupted our business and impacted second quarter results.
Turning to our cost and operating expenses. We are seeing the impact of strong execution on our previously announced restructuring program with improved margin and reduced operating expenses. Gross profit margin increased to 75.2% from 73.9% in the second quarter last year due to the transition of much of our product manufacturing from the United States to East Asia, closer to our main markets. Commissions expense as a percent of total revenue for the second quarter was 40.9%, consistent with the second quarter last year. Selling, general and administrative expenses for the quarter were $3.3 million, a decrease of $323,000 compared to a year ago.
Operating loss for the quarter was $643,000 compared to $333,000 in the second quarter last year. Net loss for the second quarter was $451,000 or $0.05 per diluted share compared to a net income of $15,000 or breakeven per diluted share in the second quarter of 2025.
Now I'll turn to our balance sheet and cash flow. Net cash used in operating activities was $2.2 million during the first 6 months of 2026 compared to $5.2 million in the first 6 months of 2025. Total cash, cash equivalents and marketable securities were $18.6 million at June 30, down from $28.9 million at December 31, 2025, primarily due to the repurchase of shares of common stock and dividends paid during the first 6 months of 2026. On April 27, our Board of Directors authorized the resumption of share repurchases under our existing stock repurchase program with $15.9 million remaining available.
While the operating environment remains challenging, we continue to take proactive steps to strengthen the business through disciplined execution, operational efficiency and targeted investments that support long-term growth. The restructuring initiatives implemented late last year are delivering the expected financial benefits and contributing to improved gross margin, and we expect additional savings to be realized in the second half of the year.
We remain confident in our strategy and focus on building a stronger foundation for the future through continued innovation, enhanced digital capabilities and deeper engagement with our global field. Our upcoming 25th anniversary celebration in Hong Kong represents an important milestone as we bring our global community together and reaffirm our commitment to the next chapter of growth.
That concludes our prepared remarks. I will now turn the call back over to the operator.
This concludes today's call. Thank you for your participation. You may now disconnect.
Natural Health Trends Corp. — Q1 2026 Earnings Call
1. Management Discussion
Good day, and welcome to the Natural Health Trends Corp. First Quarter 2026 Earnings Conference Call. At this time, I would like to turn the conference over to Michelle Glidewell with Natural Health Trends. Please go ahead.
Thank you, and welcome to Natural Health Trends First Quarter 2026 Earnings Conference Call. During today's call, there may be statements made relating to the future results of the company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission. It should also be noted that a replay of today's call can be found on the Investors section of the company's corporate website at naturalhealthtrendscorp.com.
At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.
Thank you, Michelle. Good morning, and thanks to everyone joining us to discuss our first quarter 2026 financial results. Scott Davidson, our Senior Vice President and Chief Financial Officer, is also here today.
Our business was adversely impacted a year ago when trade war rhetoric between America and China intensified. Since then, despite continued macroeconomic pressure and subdued consumer spending, we have managed to stabilize our top line. Importantly, tangible benefits from the restructuring program implemented in the fourth quarter of last year have begun to materialize. During the first quarter, these efforts contributed to an improvement in gross profit margin and a reduction in operating expenses, totaling approximately $300,000.
Meanwhile, we continue to invest in improving our business efficiency. We just launched our enhanced nhtglobal.com website. The new site introduces refreshed branding, more robust product information and a modern intuitive customer journey. Also well underway are our new back-office platform and AI-powered member app and AI agents for logistics and member services. These technologies will support future growth by strengthening member productivity and knowledge, enhancing end-to-end selling and the customer experience and improving our business insights.
Just last week, we introduced our newest product, Super Nutri One, a tropical flavor greens powder for digestion, detox and immunity. We are also looking forward to our 25th anniversary in Hong Kong later this year. A full calendar of events and brand initiatives is in the works. We look forward to marking this important milestone in our company's history.
While external conditions remain challenging, we believe that by reducing costs, streamlining our business and investing in technologies, we are positioned to navigate the current environment and grow our revenue. Our leaders are experienced, deeply committed and actively engaged in both our business opportunity and our products as they pursue their personal success and wellness goals. We appreciate their dedication and hard work amid a challenging and complex sales landscape.
With that, I'd like to turn the call over to our CFO, Scott Davidson, to discuss our financial results in greater detail. Scott?
Thank you, Chris. Total revenue for the first quarter was $9.2 million, a decrease of 6% from $9.7 million in the fourth quarter of 2025 and a decline of 14% compared to $10.7 million in the first quarter of 2025.
Turning to our cost and operating expenses. We are seeing the impact of executing on our previously announced restructuring program with improved margin and reduced operating expenses. Gross profit margin increased to 75% from 73.6% in the first quarter last year as we continue to transition much of our product manufacturing from the United States to East Asia, closer to our main markets.
Commissions expense as a percent of total revenue for the first quarter was 41.8%, consistent with the prior year. Selling, general and administrative expenses for the quarter were $3.5 million, a decrease of $238,000 compared to a year ago. Operating loss for the quarter was $474,000 compared to $345,000 in the first quarter last year. Net loss for the first quarter was $154,000 or $0.02 per diluted share compared to a net income of $122,000 or $0.01 per diluted share in the first quarter of 2025.
Now I'll turn to our balance sheet and cash flow. Net cash used in operating activities was $797,000 during the first 3 months of 2026 compared to net cash provided by operating activities of $484,000 during the first quarter a year ago. Total cash, cash equivalents and marketable securities were $21.2 million at March 31, down from $28.9 million at December 31, 2025, due to the repurchase of approximately 25.5% of our shares of common stock in February as well as our quarterly dividend payment and cash used in operations.
Returning capital to our stockholders remains a top priority. I am pleased to announce that on April 27, our Board of Directors declared another quarterly cash dividend of $0.10 per share. This will be payable on May 22 to stockholders of record as of May 12.
Referring back to Chris' earlier remarks, we have managed to stabilize our top line over the past 4 quarters despite a challenging operating environment, reflecting the resilience of our core markets. As a result of the restructuring program and our focus on top line growth, we are on a clear path towards profitability and improved financial performance. We look forward to celebrating our 25th anniversary with our leaders, members and new customers later this year. The activities before, during and after this milestone event are designed to drive engagement and strengthen the NHT Global brand as we build momentum into the next phase of the business.
That concludes our prepared remarks. I will now turn the call back over to the operator.
This does conclude today's call. Thank you for your participation. You may now disconnect.
Natural Health Trends Corp. — Q4 2025 Earnings Call
1. Management Discussion
Good day, and welcome to the Natural Health Trends Corp. Fourth Quarter 2025 Earnings Conference Call.
At this time, I would like to turn the conference over to Michelle Glidewell with Natural Health Trends Corp.
Thank you, and welcome to Natural Health Trends Fourth Quarter and Full Year 2025 Earnings Conference Call.
During today's call, there may be statements made relating to the future results of the company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements through the result of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission. It should also be noted that a replay of today's call can be found on the Investors section of the company's corporate website at naturalhealthtrendscorp.com.
At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.
Thank you, Michelle, and thanks to everyone for joining us this morning to discuss our fourth quarter and full year 2025 financial results. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer.
In the fourth quarter, we delivered a 3% sequential increase in revenue over the preceding third quarter. Meanwhile, our full year performance is more balanced than it may appear as we saw glimpses of stability and rebound starting in April. For example, in our largest market, reorders as a percent of total orders increased compared to 2024 and sales of our curated product bundles rose 10% for the full year. These trends reflect continued member engagement and ongoing demand for our core products. We also saw encouraging growth in the fourth quarter in Taiwan and Peru. Moreover, Japan and Colombia achieved strong increases all year.
During the quarter, we continue to take actions to improve the efficiency and strength of our operations. Restructuring initiatives announced last quarter are substantially complete, including the relocation of about 40% of our product sourcing from America to East Asia in order to reduce tariff uncertainty and streamline logistics, also included our measures to optimize our workforce and downsize several offices. Of these actions, we expect to realize a significant portion of the associated $1.5 million annualized cost savings during 2026.
2026 represents an important milestone for the company as we celebrate our 25th anniversary. We have prepared exciting programs that include a big celebration event in Hong Kong, where we anticipate 1,500 attendees, signature products for the anniversary and incentives to leverage these special moments. We expect a catalyst for renewed momentum across our products and our business.
As I close, I want to sincerely thank our leaders, members, prefer customers, employees and stockholders. Your commitment is foundational to NHT Global's long-term success, and it directly supports the global reach and impact of our products. NHT Global continues to offer opportunities for people of all backgrounds, whether they seek to supplement income, build a business or take a more proactive approach to health and wellness. With a strong product portfolio and the renewed focus on execution, we are confident in our ability to support these goals in an evolving global environment. As we welcome the year of the horse, we extend our best wishes for health, prosperity and success throughout 2026.
Now I'll pass the call to our CFO, Scott Davidson, who will share a detailed review of our financial results. Scott?
Thank you, Chris. Fourth quarter revenue of $9.7 million increased 3% compared to $9.5 million in the third quarter of 2025 and declined 10% compared to $10.8 million in the fourth quarter of last year. Revenue in our primary market of Greater China increased 2% compared to the third quarter and was supplemented by improvement in other markets, particularly Taiwan and Peru.
Gross profit margin was 73.9% in the fourth quarter compared with 74.2% in the fourth quarter of last year due to the write-off of components inventory related to discontinued products and products whose manufacturing has transitioned outside the United States. Gross profit margin would be comparable to last year without these write-offs. Commissions expense as a percent of net sales for the fourth quarter was 40.3% compared with 41.9% a year ago. Selling, general and administrative expenses were $3.8 million for the fourth quarter compared with $3.9 million a year ago. SG&A would have declined by $309,000 or 8% year-over-year, if not for the $208,000 of restructuring-related charges recognized in SG&A during the quarter.
As a result, operating loss for the quarter was $635,000 compared to $421,000 in the fourth quarter of last year. Excluding $283,000 of restructuring-related charges recognized in cost of sales and SG&A during the fourth quarter, operating loss would have been $352,000 during the quarter.
Net loss for the fourth quarter was $588,000 or $0.05 per diluted share compared to net income of $176,000 or $0.02 per diluted share in the fourth quarter of 2024. Despite the loss before income taxes in the fourth quarter this year, tax expense of $175,000 was recognized during the quarter due to an increase in foreign tax expense.
Now I'll turn to our cash flows and balance sheet. Net cash used in operating activities was $959,000 during the fourth quarter this year, primarily due to the restructuring-related activities and payments related to our new back office system implementation. For the full year, net cash used in operating activities was $6 million compared to $3.4 million a year ago. Excluding our required annual tax installment payment related to the 2017 U.S. Tax Cuts and Jobs Act, we used $943,000 in cash from operations during 2025. Total cash, cash equivalents and marketable securities were $28.9 million at December 31, down from $32 million at September 30 due to our quarterly dividend payment and the cash used in operations during the quarter. For the full year 2025, we paid out $9.2 million in dividends.
As returning capital to our stockholders remains a priority, I am pleased to announce that on February 2, our Board of Directors declared a quarterly cash dividend of $0.10 per share, which will be payable on February 27 to stockholders of record as of February 17.
In closing, I'm pleased with the progress we were able to make during the fourth quarter as our restructuring initiatives are substantially complete. Looking forward, we can expect to realize a significant portion of the approximately $1.5 million in cost savings during 2026, which positions the business on a clear path towards profitability and improved performance. As we enter our 25th anniversary year, we view this milestone as both a celebration of our legacy and a foundation for our future. We believe there will be a special and engaging year to be a part of our business, and we look forward to making it meaningful and rewarding for our global community.
That completes our prepared remarks. I will now turn the call back over to the operator.
This does conclude today's call. Thank you for your participation. You may now disconnect.
Natural Health Trends Corp. — Q3 2025 Earnings Call
1. Management Discussion
Greetings. Welcome to Natural Health Trends Corp.'s Third Quarter 2025 Earnings Conference Call. Please note, this conference is being recorded. I will now turn the conference over to Michelle Glidewell with Natural Health Trends Corp. Thank you. You may begin.
Thank you, and welcome to Natural Health Trends Third Quarter 2025 Earnings Conference Call. During today's call, there may be statements made relating to the future results of the company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements through the result of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission. It should also be noted that a replay of today's call can be found on the Investors section of the company's corporate website at naturalhealthtrendscorp.com. At this time, I'd like to turn the call over to Chris Sarn, President of Natural Health Trends.
Thank you, and thanks to everyone our third quarter 2021 financial results today we stand higher to the third quarter of 2024, while orders declined 5% year-over-year. The decrease in net sales is in part due to the timing of product promotion and the presale of our new skin care line at the end of September 2025 in Hong Kong.
The economic outlook in our largest market remains challenging in the near term. In response, we're executing a targeted major restructuring plan, which we expect will result in $1.5 million annualized savings by mid-2026. The -- our ongoing measures include optimizing our workforce by approximately 10%, reducing operating costs and cutting back or exiting certain facility leases. Also, as reported last quarter, we've already begun the process of transitioning U.S.-based product manufacturing to be closer to Asia to mitigate tariff uncertainty, streamline logistics and reduce costs.
As part of these restructuring initiatives, we expect to incur a onetime charge of approximately $250,000 in the fourth quarter and anticipate a reduction in our quarterly cash dividend to $0.10 per share in the first quarter next year. These actions will enable investments in new systems and technologies including an AI-enabled marketing app and a member interface business suite as well as new marketing initiatives designed to drive growth and engagement.
By aligning costs with global sales performance, -- we are positioning the company for sustainable growth, profitability and long-term value creation. In mid-September, we hosted a 4-day cruise to Kagoshima Japan recognizing our top-performing and up-and-coming members and qualifiers with immersive training and team building experiences designed to strengthen collaboration and performance.
Our Greater China market remains focused on continuous training and leadership development to deepen product expertise and reinforce the strong foundation needed for sustained business growth. In Hong Kong, we prelaunched a new Korean formulated moisturizing skincare series called -- so Via in September.
The 4-step line features a cleaner toner, probiotic-infused booster serum and cream design to support skin barrier repair and deliver lasting hydration. Our markets and product teams are working to roll out these new products to the global markets in the near future. To honor 10 successful years in Sweden, we also hosted a sagitory in-person event in September, unveiling Celine, a limited-edition anti-aging cream formulated to hydrate restore and diminish the signs of aging.
Next year marks 25 years of our company's journey, a legacy build on meaningful relationships, share wellness traditions, and providing opportunity to all to achieve their health and wellness goals. We are thoughtfully preparing a year-long celebration designed to deepen member engagement, strengthen our brand and create new opportunities for growth.
We're excited about this opportunity to showcase our 25-year history while setting the groundwork for our future. Together, we will honor our past celebrate our presence and embrace the promise of the future. With that, I'd like to turn the call over to our CFO, Scott Davidson, to discuss our financial results in greater detail. Scott?
Thank you, Chris. Net sales in the third quarter were $9.5 million, a decline of 11% compared to $10.7 million in the third quarter a year ago. Our sales in Hong Kong which made up 82% of our sales during the quarter declined 8% over a year ago or 4% excluding the impact of the product promotion and the presale of our new skin care line at the end of September that Chris mentioned. Gross profit margin was 73.7% for the third quarter compared with 74.1% last year due to the write-off of components inventory related to discontinued products. Commissions expense as a percent of total sales for the third quarter was 40.9% compared with 40.5% a year ago. Commissions expense as a percent of net sales increased primarily due to higher weekly commissions earned by our members during the third quarter of this year. Selling, general and administrative expenses declined $262,000 to $3.6 million for the quarter from $3.9 million in the third quarter a year ago.
As a result, Operating loss for the quarter was $495,000 compared to $275,000 in the third quarter last year, partially due to, as I mentioned previously, the timing of product promotions and new product presales in Hong Kong during the quarter as well as the write-off of components inventory related to discontinued products during the third quarter.
Net loss for the third quarter was $431,000 or $0.04 per diluted share compared to net income of $35,000 or breakeven per diluted share in the third quarter of 2024. Despite the loss before income taxes in the third quarter of this year, tax expense of $142,000 was recognized during the quarter due to the fluctuation in our annual effective tax rate quarter-over-quarter.
I'll now turn to our cash flows and balance sheet. Net cash used in operating activities was $5 million during the first 9 months of 2025 compared to $3.5 million during the comparable period a year ago. Excluding our required annual tax installment payments related to the 2017 U.S. Tax Cuts and Jobs Act, cash provided by operating activities was $16,000 in the first 9 months of 2025 compared to $514,000 during the same period a year ago. Total cash, cash equivalents and marketable securities were $32 million at September 30 down from $43.9 million at December 31, 2024.
In regard to our quarterly dividend, I am pleased to announce that on November 3, our Board of Directors declared another cash dividend of $0.20 per share, which will be payable on November 28 to stockholders of record as of November 18. In closing, we continue to navigate near-term challenges in our largest market, and our priority in the coming quarters is to execute the restructuring plan outlined by Chris.
By realizing the estimated $1.5 million in annualized savings by mid-2026, we will free resources to drive top line growth, invest in new systems and technologies and implement global programs and incentives that support our members' success.
These necessary actions position the company for sustainable growth. long-term profitability and continued value creation for both shareholders and customers. That completes our prepared remarks. I will now turn the call back over to the operator.
Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines at this time, and have a wonderful day.
Financial data from Natural Health Trends Corp.
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 36 36 |
14%
14%
100%
|
|
| - Direct Costs | 9.32 9.32 |
15%
15%
26%
|
|
| Gross Profit | 27 27 |
14%
14%
74%
|
|
| - Selling and Administrative Expenses | 29 29 |
11%
11%
80%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | -2.16 -2.16 |
73%
73%
-6%
|
|
| - Depreciation and Amortization | 0.08 0.08 |
33%
33%
0%
|
|
| EBIT (Operating Income) EBIT | -2.25 -2.25 |
64%
64%
-6%
|
|
| Net Profit | -1.62 -1.62 |
563%
563%
-4%
|
|
In millions USD.
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Natural Health Trends Corp. Stock News
Company Profile
Natural Health Trends Corp. engages in the provision of direct selling and e-commerce. It involves in the sale of products to a member network from market to market, as well as through an e-commerce platform for Chinese market. The firm also offers personal care, wellness products through NHT Global brand. The company was founded in 1988 and is headquartered in Hong Kong.
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| Head office | United States |
| CEO | Christopher Sharng |
| Employees | 119 |
| Founded | 1988 |
| Website | www.naturalhealthtrendscorp.com |
