Stonegate Capital Partners has updated its coverage on NU Skin Enterprises Inc. (NYSE: NUS) following the company's first quarter 2026 earnings report. The company reported revenue of $320.6 million, adjusted net income of $6.8 million, and adjusted earnings per share of $0.14. While revenue came in near the low end of guidance, adjusted EPS remained within range as management continued investing behind Prysm iO and emerging markets while maintaining cost discipline.
Core Nu Skin gross margin improved 20 basis points year-over-year to 76.9%, but adjusted operating margin declined to 3.6% from 6.4% in the prior year. However, the more important takeaway from management's commentary was that brand affiliate confidence improved and new sales leaders grew year-over-year exiting the quarter, suggesting early field stabilization as Prysm iO training and leader engagement scale.
Prysm iO remains the core commercialization catalyst for NU Skin. Nearly 2 million scans across over 30,000 devices support early adoption, while 5% year-over-year subscription volume growth indicates 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. NU Skin maintained 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. The full announcement, including downloadable images and bios, is available here.
