usna-20260404

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 4, 2026

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ____________

Commission file number: 001-35024

______________________

USANA HEALTH SCIENCES, INC.

(Exact name of registrant as specified in its charter)


Utah			87-0500306
(State or other jurisdiction			(I.R.S. Employer
of incorporation or organization)			Identification No.)

______________________

3838 West Parkway Blvd., Salt Lake City, Utah 84120

(Address of principal executive offices, including zip code)

______________________

(801) 954-7100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

USNA

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	o	Accelerated filer	x
Non-accelerated filer	o	Smaller reporting company	o
		Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of May 8, 2026, there were 18,463,011 outstanding shares of the registrant’s common stock, $0.001 par value.


Auditor Name: KPMG LLP			Auditor Location: Salt Lake City, Utah			Auditor Firm ID: 185


		Page
Cautionary Note Regarding Forward-Looking Statements and Certain Risks		1
PART I. FINANCIAL INFORMATION
Item 1	Financial Statements (unaudited)	4
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Comprehensive Income	5
	Condensed Consolidated Statements of Stockholders’ Equity	6
	Condensed Consolidated Statements of Cash Flows	7
	Notes to Condensed Consolidated Financial Statements	8 - 18
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19 - 27
Item 3	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4	Controls and Procedures	27
PART II. OTHER INFORMATION
Item 1	Legal Proceedings	29
Item 1A	Risk Factors	29
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 5	Other Information	29
Item 6	Exhibits	30
Signatures		31


	As of April 4, 2026		As of January 3, 2026
ASSETS
Current assets
Cash and cash equivalents	$	162,751	$	158,380
Trade accounts receivable (net of allowance of $141 and $137, respectively)	9,657		4,285
Inventories	96,358		102,608
Prepaid expenses and other current assets	25,467		23,132
Total current assets	294,233		288,405
Property and equipment, net	94,625		94,383
Goodwill	138,127		137,962
Intangible assets, net	128,901		133,151
Deferred tax assets	25,159		27,209
Other assets	57,921		61,805
Total assets	$	738,966	$	742,915

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	16,230	$	17,263
Line of credit	14,000		14,000
Other current liabilities	87,009		97,302
Total current liabilities	117,239		128,565
Deferred tax liabilities	5,057		4,892
Other long-term liabilities	21,884		23,186
Total liabilities	144,180		156,643

Redeemable noncontrolling interest	51,236		53,168

Stockholders' equity
Common stock, $0.001 par value; Authorized -- 50,000 shares, issued and outstanding 18,457 as of April 4, 2026 and 18,281 as of January 3, 2026	18		18
Additional paid-in capital	84,733		83,544
Retained earnings	473,235		465,720
Accumulated other comprehensive income (loss)	(14,436)		(16,178)
Total stockholders' equity attributable to USANA	543,550		533,104
Total liabilities, redeemable noncontrolling interest, and stockholders' equity	$	738,966	$	742,915


	Three months ended
	April 4, 2026		March 29, 2025
Net sales	$	250,218	$	249,539
Cost of sales	59,436		52,445
Gross profit	190,782		197,094
Operating expenses:
Brand Partner incentives	88,654		89,985
Selling, general and administrative	88,254		91,438


Total operating expenses	176,908		181,423
Earnings from operations	13,874		15,671
Other income (expense):
Interest income	437		723
Interest expense	(240)		(411)
Other, net	1,394		756
Other income (expense), net	1,591		1,068
Earnings before income taxes	15,465		16,739
Income taxes	8,506		7,449
Net earnings	6,959		9,290
Net (loss) earnings attributable to redeemable noncontrolling interest	(556)		(112)
Net earnings attributable to USANA	$	7,515	$	9,402

Earnings per common share attributable to USANA
Basic	$	0.41	$	0.49
Diluted	$	0.41	$	0.49

Weighted average common shares outstanding
Basic	18,398		19,049
Diluted	18,411		19,085

Comprehensive income (loss):
Net earnings	$	6,959	$	9,290
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	1,878		125
Tax (expense) benefit related to foreign currency translation adjustment	(136)		(207)
Other comprehensive income (loss), net of tax	1,742		(82)
Comprehensive income (loss)	8,701		9,208
Comprehensive (loss) income attributable to redeemable noncontrolling interest	(556)		(112)
Comprehensive income (loss) attributable to USANA	$	9,257	$	9,320


	Common stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive income (loss)		Total stockholders' equity attributable to USANA
	Shares	Value
Balance at December 28, 2024	19,064	$	19	$	75,816	$	478,944	$	(22,670)	$	532,109
Net earnings attributable to USANA						9,402				9,402
Other comprehensive income (loss), net of tax								(82)		(82)
Equity-based compensation expense				2,880						2,880
Common stock repurchased and retired	(399)	—		(1,662)		(10,718)				(12,380)
Common stock issued under equity award plans	121	—								—
Tax withholding for net-share settled equity awards				(2,167)						(2,167)
Balance at March 29, 2025	18,786	$	19	$	74,867	$	477,628	$	(22,752)	$	529,762


	April 4, 2026		Fair value measurements using
			Inputs
			Level 1		Level 2		Level 3
Money market funds included in cash equivalents	$	98,054	$	98,054	$	—	$	—

Net investment hedge included in other current liabilities	(344)		—		(344)		—
Deferred compensation liabilities included in other long-term liabilities	(5,677)		—		(5,677)		—


	January 3, 2026		Fair value measurements using
			Inputs
			Level 1		Level 2		Level 3
Money market funds included in cash equivalents	$	87,851	$	87,851	$	—	$	—
Foreign currency contracts included in other current liabilities	(26)		—		(26)		—
Deferred compensation liabilities included in other long-term liabilities	(6,024)		—		(6,024)		—


	April 4, 2026		January 3, 2026
Raw materials	$	34,013	$	31,732
Work in progress	5,214		5,003
Finished goods	57,131		65,873
Inventories	$	96,358	$	102,608
Noncurrent inventories	$	3,029	$	4,799


	April 4, 2026		January 3, 2026
Contract liabilities, included in other current liabilities, at beginning of period	$	10,640	$	12,050
Increase due to deferral of revenue at end of period	8,202		10,640
Decrease due to beginning contract liabilities recognized as revenue	(8,523)		(12,050)
Contract liabilities, included in other current liabilities, at end of period	$	10,319	$	10,640


	Three months ended April 4, 2026
	Core Nutritional		Hiya		Rise		Total
Net sales (1)	$	204,399	$	32,150	$	13,669	$	250,218
Less:
Cost of sales	36,749		9,983		12,704		59,436
Brand Partner incentives	88,654		—		—		88,654
Selling, general and administrative (2)	60,747		24,771		2,736		88,254
Segment earnings (loss) from operations	$	18,249	$	(2,604)	$	(1,771)	$	13,874

Reconciliation of segment earnings from operations
Interest income							437
Interest expense							(240)
Other, net							1,394
Earnings before income taxes							$	15,465


	Three months ended March 29, 2025
	Core Nutritional		Hiya		Rise		Total
Net sales (1)	$	210,824	$	37,089	$	1,626	$	249,539
Less:
Cost of sales	37,279		14,107		1,059		52,445
Brand Partner incentives	89,985		—		—		89,985
Selling, general and administrative (2)	66,637		23,513		1,288		91,438
Segment earnings (loss) from operations	$	16,923	$	(531)	$	(721)	$	15,671

Reconciliation of segment earnings from operations
Interest income							723
Interest expense							(411)
Other, net							756
Earnings before income taxes							$	16,739


	Three months ended
	April 4, 2026		March 29, 2025
Cash flows from operating activities
Net earnings	$	6,959	$	9,290
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities
Depreciation and amortization	8,277		8,339
Right-of-use asset reduction	1,512		1,906
Loss on sale of property and equipment	13		—
Equity-based compensation expense	3,454		2,880
Deferred income taxes	2,108		1,355
Inventory write-down	1,299		1,211

Changes in operating assets and liabilities:
Trade accounts receivable	(5,367)		1,004
Inventories	6,597		(4,921)
Prepaid expenses and other assets	(1,689)		(1,256)
Accounts payable	(1,459)		1,975
Other liabilities	(11,945)		(6,301)
Net cash provided by (used in) operating activities	9,759		15,482
Cash flows from investing activities

Payments for net investment hedge	—		(1,072)

Proceeds from sale of property and equipment	48		—
Purchases of property and equipment	(2,645)		(2,803)
Net cash provided by (used in) investing activities	(2,597)		(3,875)
Cash flows from financing activities
Repurchase of common stock	—		(12,300)
Borrowings on line of credit	4,000		—
Payments on line of credit	(4,000)		—
Payments related to tax withholding for net-share settled equity awards	(2,265)		(2,167)
Distributions to redeemable noncontrolling interest	(1,376)		—

Net cash provided by (used in) financing activities	(3,641)		(14,467)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	896		719
Net increase (decrease) in cash, cash equivalents, and restricted cash	4,417		(2,141)
Cash, cash equivalents, and restricted cash at beginning of period	161,240		184,508
Cash, cash equivalents, and restricted cash at end of period	$	165,657	$	182,367
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets


	Three months ended
	April 4, 2026		March 29, 2025
Net sales to external customers:
Asia Pacific
Greater China	$	123,334	$	118,746
Southeast Asia Pacific	30,663		35,720
North Asia	15,352		18,941
Asia Pacific total	169,349		173,407
Americas and Europe (1)	80,869		76,132
Consolidated total	$	250,218	$	249,539


	As of
	April 4, 2026		January 3, 2026
Long-lived assets:
United States (1)	$	77,497	$	77,137
China	29,344		29,556


	Three months ended
	April 4, 2026				March 29, 2025
	Core Nutritional	Hiya	Rise	Consolidated	Core Nutritional	Hiya	Rise	Consolidated
Net sales	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
Cost of sales	18.0%	31.1%	92.9%	23.8%	17.7%	38.0%	65.1%	21.0%
Gross profit	82.0%	68.9%	7.1%	76.2%	82.3%	62.0%	34.9%	79.0%
Operating expenses:
Brand Partner incentives	43.4%	—%	—%	35.4%	42.7%	—%	—%	36.1%
Selling, general and administrative	29.7%	77.0%	20.0%	35.3%	31.6%	63.4%	79.2%	36.6%
Total operating expenses	73.1%	77.0%	20.0%	70.7%	74.3%	63.4%	79.2%	72.7%
Earnings (loss) from operations	8.9%	(8.1%)	(12.9%)	5.5%	8.0%	(1.4%)	(44.3%)	6.3%

Amortization of acquired intangible assets	—%	13.9%	1.5%	1.9%	—%	12.0%	13.0%	1.9%


	Three months ended April 4, 2026
Beginning balance	$	53,168

Net (loss) earnings attributable to redeemable noncontrolling interest	(556)
Distributions to redeemable noncontrolling interest	(1,376)
Ending balance	$	51,236


	Three months ended
Product line	April 4, 2026	March 29, 2025
Kids Daily Multivitamin	55%	52%
Kids Daily Probiotic	14%	14%
Kids Daily Greens and Superfoods	12%	17%
Kids Bedtime Essentials	11%	10%
Kids Daily Iron	4%	4%
Kids Daily Hydration	2%	—%
Kids Daily Immune	1%	3%
Kids Daily Fiber+	1%	—%


	Total active customers by region						Change from prior year	Percent change
	As of April 4, 2026			As of March 29, 2025
Asia Pacific:
Greater China	235,000	58.2	%	254,000	55.3	%	(19,000)	(7.5	%)
Southeast Asia Pacific	59,000	14.6	%	75,000	16.4	%	(16,000)	(21.3	%)
North Asia	32,000	7.9	%	45,000	9.8	%	(13,000)	(28.9	%)
Asia Pacific total	326,000	80.7	%	374,000	81.5	%	(48,000)	(12.8	%)
Americas and Europe	78,000	19.3	%	85,000	18.5	%	(7,000)	(8.2	%)
	404,000	100.0	%	459,000	100.0	%	(55,000)	(12.0	%)


	Net sales by region (in thousands)								Change from prior year		Percent change		Currency impact on sales		Percent change excluding currency impact
	Three months ended
	April 04, 2026				March 29, 2025
Core Nutritional:
Asia Pacific
Greater China	$	123,334	49.3	%	$	118,746	47.6	%	$	4,588	3.9	%	$	4,986	(0.3	%)
Southeast Asia Pacific	30,663		12.3	%	35,720		14.3	%	(5,057)		(14.2	%)	1,942		(19.6	%)
North Asia	15,352		6.1	%	18,941		7.6	%	(3,589)		(18.9	%)	(160)		(18.1	%)
Asia Pacific total	169,349		67.7	%	173,407		69.5	%	(4,058)		(2.3	%)	6,768		(6.2	%)
Americas and Europe	35,050		14.0	%	37,417		15.0	%	(2,367)		(6.3	%)	1,323

SEC Form 10-Q filed by USANA Health Sciences Inc.