# USANA HEALTH SCIENCES INC (USNA)

Informational only - not investment advice.

CIK: 0000896264
SIC: 2833 Medicinal Chemicals & Botanical Products
SIC breadcrumb: [Manufacturing](/division/D/) > [Chemicals And Allied Products](/major-group/28/) > [SIC 2833 Medicinal Chemicals & Botanical Products](/industry/2833/)
Latest 10-K filed: 2026-03-16
SEC page: https://www.sec.gov/edgar/browse/?CIK=896264
Filing source: https://www.sec.gov/Archives/edgar/data/896264/000089626426000021/usna-20260103.htm

## At a glance

FY2025 · period end 2026-01-03 · filed 2026-03-16 · accession 0000896264-26-000021 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000896264.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 925,257,000 USD | 2025 | verified |
| Net income | 10,760,000 USD | 2025 | verified |
| Assets | 742,915,000 USD | 2025 | verified |
| Free cash flow | 8,526,000 USD | 2025 | computed |
| Net margin | 1.16% | 2025 | computed |
| Operating margin | 4.05% | 2025 | computed |
| Revenue YoY | +8.28% | 2025 | computed |
| ROE | 2.02% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | USNA | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 1.2% | 1.2% | 50 | 219 |
| Operating margin | 4.0% | 3.0% | 52 | 201 |
| Revenue growth | 8.3% | 8.0% | 50 | 251 |
| FCF margin | 0.9% | -1.7% | 52 | 251 |
| ROE | 2.0% | -23.2% | 69 | 314 |
| ROA | 1.4% | -12.1% | 70 | 340 |
| Liabilities / equity | 0.29 | 0.61 | 33 | 319 |
| Current ratio | 2.24 | 3.93 | 27 | 341 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 28 Chemicals And Allied Products, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 925257000 | USD | 2025 | 2026-03-16 |
| Net income | 10760000 | USD | 2025 | 2026-03-16 |
| Assets | 742915000 | USD | 2025 | 2026-03-16 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-16. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000896264.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  | 1,189,248,000 | 1,060,902,000 | 1,134,644,000 | 1,186,464,000 | 998,601,000 | 921,010,000 | 854,503,000 | 925,257,000 |
| Net income | 100,041,000 | 62,535,000 | 126,224,000 | 100,526,000 | 124,664,000 | 116,505,000 | 69,350,000 | 63,788,000 | 42,030,000 | 10,760,000 |
| Operating income | 138,622,000 | 132,504,000 | 188,353,000 | 146,190,000 | 176,491,000 | 170,192,000 | 107,614,000 | 93,071,000 | 66,324,000 | 37,432,000 |
| Gross profit | 825,893,000 | 867,861,000 | 988,538,000 | 873,399,000 | 925,533,000 | 968,566,000 | 804,711,000 | 744,317,000 | 693,291,000 | 724,405,000 |
| Diluted EPS | 3.99 | 2.53 | 5.12 | 4.41 | 5.86 | 5.73 | 3.59 | 3.30 | 2.19 | 0.58 |
| Operating cash flow | 136,891,000 | 123,774,000 | 152,119,000 | 126,733,000 | 160,401,000 | 121,227,000 | 103,902,000 | 70,641,000 | 60,992,000 | 22,349,000 |
| Capital expenditures | 32,698,000 | 13,220,000 | 11,433,000 | 16,569,000 | 15,094,000 | 12,763,000 | 10,400,000 | 14,494,000 | 10,073,000 | 13,823,000 |
| Share buybacks | 64,610,000 | 50,000,000 | 105,375,000 | 150,000,000 | 57,029,000 | 177,837,000 | 25,382,000 | 11,599,000 | 9,444,000 | 27,507,000 |
| Assets | 470,642,000 | 519,269,000 | 554,463,000 | 516,934,000 | 640,887,000 | 577,740,000 | 596,549,000 | 632,757,000 | 748,193,000 | 742,915,000 |
| Liabilities |  |  |  |  |  |  |  | 135,555,000 | 161,861,000 | 156,643,000 |
| Stockholders' equity | 325,287,000 | 363,210,000 | 391,146,000 | 351,712,000 | 441,650,000 | 395,124,000 | 434,472,000 | 497,202,000 | 532,109,000 | 533,104,000 |
| Cash and cash equivalents | 175,774,000 | 247,131,000 | 214,326,000 | 234,830,000 | 311,917,000 | 239,832,000 | 288,420,000 | 330,420,000 | 181,768,000 | 158,380,000 |
| Free cash flow | 104,193,000 | 110,554,000 | 140,686,000 | 110,164,000 | 145,307,000 | 108,464,000 | 93,502,000 | 56,147,000 | 50,919,000 | 8,526,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  | 10.61% | 9.48% | 10.99% | 9.82% | 6.94% | 6.93% | 4.92% | 1.16% |
| Operating margin |  |  | 15.84% | 13.78% | 15.55% | 14.34% | 10.78% | 10.11% | 7.76% | 4.05% |
| Return on equity | 30.75% | 17.22% | 32.27% | 28.58% | 28.23% | 29.49% | 15.96% | 12.83% | 7.90% | 2.02% |
| Return on assets | 21.26% | 12.04% | 22.77% | 19.45% | 19.45% | 20.17% | 11.63% | 10.08% | 5.62% | 1.45% |
| Liabilities / equity |  |  |  |  |  |  |  | 0.27 | 0.30 | 0.29 |
| Current ratio | 2.01 | 2.41 | 2.64 | 2.42 | 2.53 | 2.27 | 2.67 | 3.52 | 2.00 | 2.24 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000896264.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-10-01 |  |  | 0.78 | reported discrete quarter |
| 2023-Q1 | 2023-04-01 | 248,360,000 | 18,383,000 | 0.95 | reported discrete quarter |
| 2023-Q2 | 2023-07-01 | 238,202,000 | 17,292,000 | 0.89 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 213,365,000 | 11,347,000 | 0.59 | reported discrete quarter |
| 2024-Q1 | 2024-03-30 | 227,800,000 | 16,537,000 | 0.86 | reported discrete quarter |
| 2024-Q2 | 2024-06-29 | 212,869,000 | 10,432,000 | 0.54 | reported discrete quarter |
| 2024-Q3 | 2024-09-28 | 200,221,000 | 10,607,000 | 0.56 | reported discrete quarter |
| 2025-Q1 | 2025-03-29 | 249,539,000 | 9,402,000 | 0.49 | reported discrete quarter |
| 2025-Q2 | 2025-06-28 | 235,848,000 | 9,655,000 | 0.52 | reported discrete quarter |
| 2025-Q3 | 2025-09-27 | 213,670,000 | -6,522,000 | -0.36 | reported discrete quarter |
| 2025-Q4 | 2026-01-03 | 226,200,000 | -1,775,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-04-04 | 250,218,000 | 7,515,000 | 0.41 | reported discrete quarter |
| 2026-Q2 | 2026-07-04 | 223,273,000 | -21,382,000 | -1.16 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from USNA's latest 10-K: [/company/USNA/business/](/company/USNA/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from USNA's latest 10-K: [/company/USNA/risk-factors/](/company/USNA/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/896264/000089626426000056/usna-20260704.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-13
Report date: 2026-07-04

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is designed to provide an understanding of USANA’s financial condition, results of operations and cash flows by reviewing certain key indicators and measures of performance.

The MD&A is presented in six sections as follows:

•Overview

•Products

•Customers

•Non-GAAP Financial Measures

•Results of Operations

•Liquidity and Capital Resources

This discussion and analysis from management's perspective should be read in conjunction with the Unaudited condensed consolidated financial statements and Notes thereto that are contained in this quarterly report, as well as Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended January 3, 2026 (“2025 Form 10-K”), filed with the SEC on March 16, 2026, and our other filings, including the Current Reports on Form 8-K, that have been filed with the SEC through the date of this report. Forward-looking statements in Part I, Item 2 may involve risks and uncertainties that could cause results to differ materially from those projected (refer to the section entitled “Cautionary Note Regarding Forward-Looking Statements and Certain Risks” on page 1 and the risk factors provided in Part II, Item 1A for discussion of these risks and uncertainties).

Overview

We develop and manufacture high quality nutritional supplements, functional foods and personal care products that are sold throughout the world. Historically, we have distributed our products through the direct selling channel, because we believe it is conducive to our vision of improving the overall health and nutrition of individuals and families around the world. On December 23, 2024, we acquired a 78.85% controlling ownership interest in Hiya, a leading provider of high-quality children's health and wellness products. We believe that the addition of Hiya to our business promotes our vision and adds a diversified layer of growth in the direct-to-consumer channel. In 2022, we acquired Rise and have expanded Rise's product offering, distribution channel, and customer base over the last three years. Consequently, through our Core Nutritional business, Hiya, and Rise, we now operate and sell products through an omni-channel platform, which includes direct selling, direct-to-consumer, third-party marketplace and retail channels and organize our business into three reportable segments: Core Nutritional, Hiya, and Rise.

Core Nutritional: Core Nutritional is our primary business with approximately 84% of consolidated net sales during the six months ended July 4, 2026. Our Core Nutritional customer base is primarily comprised of two types of customers: “Brand Partners” and “Preferred Customers,” referred to together as “active Customers.” Our Brand Partners also sell our products to retail customers. Brand Partners share in our company vision by acting as independent distributors of our products in addition to purchasing our products for their personal use. In 2023, we launched our Affiliate program in the United States, Canada, and Mexico, which offers another sales and compensation opportunity to individuals who are interested in selling USANA products. Affiliates are discussed and reported in the report as part of our Brand Partners. Preferred Customers purchase our products strictly for personal use and are not permitted to resell or to distribute the products. We only count as active Customers those Brand Partners and Preferred Customers who have purchased from us at any time during the most recent three-month period. As of July 4, 2026, we had approximately 384,000 active Customers worldwide in the Core Nutritional business.

We have Core Nutritional operations in multiple markets, with sales and expenses being generated and incurred in multiple currencies. Our reported U.S. dollar sales and earnings can be significantly affected by fluctuations in currency exchange rates. In general, our operating results are affected positively by a weakening of the U.S. dollar and negatively by a strengthening of the U.S. dollar. During the six months ended July 4, 2026, net sales outside of the United States represented 91.1% of Core Nutritional net sales. In our net sales discussions that follow, we approximate the impact of currency fluctuations on net sales by translating current year sales at the average exchange rates in effect during the comparable periods of the prior year.

22

Table of Contents

Hiya: Hiya operates and sells products to customers in the United States, Canada, and the United Kingdom. Hiya's customers purchase Hiya products for personal use primarily through a subscription model, which is intended to provide a steady, predictable income stream for Hiya. The ongoing nature of subscriptions fosters stronger relationships with customers by making it easier for them to receive products regularly, which we believe leads to retention and loyalty. Hiya's subscription model also provides important data on customer preferences and behaviors, which enables personalized offerings, efficient marketing and data-driven innovation insights. We evaluate Hiya's customer counts and behavior through their monthly subscribers and only count as "active Monthly Subscribers" those Hiya customers who have purchased from Hiya at any time during the most recent month. Hiya expanded distribution into retail during the first quarter of 2026.

Rise: Rise manufactures and sells high-quality protein bars, powdered drinks, and clear protein drinks that are formulated to help customers achieve their health goals through clean and simple ingredients. Rise's revenue is generated primarily from sales to large national retailers and club retailers.

The following tables summarize operating results as a percentage of net sales for the current and prior-year periods, as indicated:

[[GREPCENT_TABLE]]
[["","","Three months ended"],["","","July 4, 2026","","June 28, 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","","18.9%","","32.1%","","89.2%","","21.7%","","18.2%","","36.2%","","61.8%","","21.3%"],["Gross profit","","81.1%","","67.9%","","10.8%","","78.3%","","81.8%","","63.8%","","38.2%","","78.7%"],["Operating expenses:"],["Brand Partner incentives","","43.6%","","\u2014%","","\u2014%","","37.4%","","43.6%","","\u2014%","","\u2014%","","36.9%"],["Selling, general and administrative","","30.8%","","74.8%","","61.3%","","36.9%","","31.5%","","52.8%","","51.1%","","34.7%"],["Goodwill impairment","","\u2014%","","103.1%","","\u2014%","","13.0%","","\u2014%","","\u2014%","","\u2014%","","\u2014%"],["Total operating expenses","","74.4%","","177.9%","","61.3%","","87.3%","","75.1%","","52.8%","","51.1%","","71.6%"],["(Loss) earnings from operations","","6.7%","","(110.0%)","","(50.5%)","","(9.0%)","","6.7%","","11.0%","","(12.9%)","","7.1%"],["Amortization of acquired intangible assets","","\u2014%","","15.8%","","6.2%","","2.1%","","\u2014%","","13.1%","","8.6%","","2.0%"],["","","Six months ended"],["","","July 4, 2026","","June 28, 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","","18.4%","","31.5%","","92.2%","","22.8%","","18.0%","","37.2%","","63.1%","","21.1%"],["Gross profit","","81.6%","","68.5%","","7.8%","","77.2%","","82.0%","","62.8%","","36.9%","","78.9%"],["Operating expenses:"],["Brand Partner incentives","","43.5%","","\u2014%","","\u2014%","","36.4%","","43.1%","","\u2014%","","\u2014%","","36.5%"],["Selling, general and administrative","","30.3%","","76.0%","","28.2%","","35.9%","","31.5%","","58.3%","","62.4%","","35.7%"],["Goodwill impairment","","\u2014%","","48.2%","","\u2014%","","6.2%","","\u2014%","","\u2014%","","\u2014%","","\u2014%"],["Total operating expenses","","73.8%","","124.2%","","28.2%","","78.5%","","74.6%","","58.3%","","62.4%","","72.2%"],["(Loss) earnings from operations","","7.8%","","(55.7%)","","(20.4%)","","(1.3%)","","7.4%","","4.5%","","(25.5%)","","6.7%"],["Amortization of acquired intangible assets","","\u2014%","","14.8%","","2.5%","","2.0%","","\u2014%","","12.5%","","10.4%","","2.0%"]]
[[/GREPCENT_TABLE]]

23

Table of Contents

For more information relating to our reportable segments, see Note K to our condensed consolidated financial statements.

Products

The following table summarizes the approximate percentage of total product revenue for the Core Nutritional business that has been contributed by major product lines and our top-selling products for the current and prior-year periods, as indicated:

[[GREPCENT_TABLE]]
[["","","Six months ended"],["","","July 4, 2026","","June 28, 2025"],["Product line"],["USANA\u00ae Nutritionals"],["Optimizers","","71%","","72%"],["Essentials/CellSentials(1)","","15%","","16%"],["USANA Foods(2)","","8%","","6%"],["Personal care and Skincare","","5%","","5%"],["All other","","1%","","1%"],["Key product"],["USANA\u00ae Essentials/CellSentials","","8%","","9%"],["Proflavanol\u00ae","","8%","","9%"],["Probiotic","","6%","","8%"]]
[[/GREPCENT_TABLE]]

______________________________

(1)Represents a product line consisting of multiple products, as opposed to the actual USANA® Essentials / CellSentials product.

(2)Includes our Active Nutrition line.

The following table summarizes the approximate percentage of total product revenue for our Hiya segment that has been contributed by major product lines for the current and prior-year periods, as indicated:

[[GREPCENT_TABLE]]
[["","","Six months ended"],["Product line","","July 4, 2026","","June 28, 2025"],["Kids Daily Multivitamin","","55%","","53%"],["Kids Daily Probiotic","","13%","","14%"],["Kids Daily Greens and Superfoods","","12%","","14%"],["Kids Bedtime Essentials","","11%","","11%"],["Kids Daily Iron","","5%","","4%"],["Kids Daily Hydration","","2%","","1%"],["Kids Daily Immune","","1%","","3%"],["Kids Daily Fiber+","","1%","","\u2014%"]]
[[/GREPCENT_TABLE]]

24

Table of Contents

The following table summarizes the approximate percentage of total product revenue for our Rise segment that has been contributed by major product lines for the current and prior-year periods, as indicated:

[[GREPCENT_TABLE]]
[["","","Six months ended"],["Product line","","July 4, 2026","","June 28, 2025"],["Protein Pop (1)","","70%","","\u2014%"],["Bars","","29%","","91%"],["Powders","","1%","","9%"]]
[[/GREPCENT_TABLE]]

______________________________

(1)Protein Pop was launched in the third quarter of 2025.

Customers

Core Nutritional

Because we primarily sell our products to a customer base of independent Brand Partners and Preferred Customers, we increase our sales by increasing the number of our active Customers, the amount they spend on average, or both. Our primary focus continues to be increasing the number of active Customers. We believe this focus is consistent with our vision of improving the overall health and nutrition of individuals and families around the world. Increases or decreases in product sales are typically the result of variations in the volume of product sold relating to fluctuations in the number of active Customers purchasing our products. The number of active Customers is, therefore, used by management as a key non-financial indicator to evaluate our operational performance.

Sales to Brand Partners accounted for approximately 51% of Core Nutritional business sales during the six months ended July 4, 2026, with the remainder of our sales generated from Preferred Cu

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/896264/000089626426000021/usna-20260103.htm
Complete FY 2026 MD&A: /company/USNA/mda/fy2026/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-03-16
Report date: 2026-01-03

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of USANA’s financial condition and results of operations is presented in nine sections:

•Overview

•Customers

•Presentation

•Non-GAAP Financial Measures

•Results of Operations

•Liquidity and Capital Resources

•Contractual Obligations and Commercial Contingencies

•Inflation

•Critical Accounting Policies and Estimates

This discussion and analysis from management's perspective should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this report.

Overview

We develop and manufacture high quality nutritional supplements, functional foods and personal care products that are sold throughout the world. Historically, we have distributed our products through the direct selling channel, because we believe it is conducive to our vision of improving the overall health and nutrition of individuals and families around the world. On December 23, 2024, we acquired a 78.85% controlling ownership interest in Hiya, a leading provider of high-quality children's health and wellness products. We believe that the addition of Hiya to our business promotes our vision and adds a diversified layer of growth in the direct-to-consumer channel. In 2022, we acquired Rise and have expanded Rise's product offering, distribution channel, and customer base over the last three years. Consequently, through our core nutritional business, Hiya and Rise, we now operate and sell products through an omni-channel platform, which includes direct selling, direct-to-consumer, third-party marketplace and retail channels and organize our business into two reportable segments: Core nutritional and Hiya direct-to-consumer.

Core nutritional: Core nutritional is our primary business with approximately 84% of consolidated net sales during 2025. Our core nutritional customer base is primarily comprised of two types of customers: “Brand Partners” and “Preferred Customers,” referred to together as “active Customers.” Our Brand Partners also sell our products to retail customers. Brand Partners share in our company vision by acting as independent distributors of our products in addition to purchasing our products for their personal use. In 2023, we launched our Affiliate program in the United States, Canada, and Mexico, which offers another sales and compensation opportunity to individuals who are interested in selling USANA products. Affiliates are discussed and reported in the report as part of our Brand Partners. Preferred Customers purchase our products strictly for personal use and are not permitted to resell or to distribute the products. We only count as active Customers those Brand Partners and Preferred Customers who have purchased from us at any time during the most recent

51

Table of Contents

three-month period. As of January 3, 2026, we had approximately 387,000 active Customers worldwide in our core nutritional business.

We have core nutritional operations in multiple markets, with sales and expenses being generated and incurred in multiple currencies. Our reported U.S. dollar sales and earnings can be significantly affected by fluctuations in currency exchange rates. In general, our operating results are affected positively by a weakening of the U.S. dollar and negatively by a strengthening of the U.S. dollar. During 2025, net sales outside of the United States represented 90.3% of core nutritional net sales. In our net sales discussions that follow, we approximate the impact of currency fluctuations on net sales by translating current year sales at the average exchange rates in effect during the comparable periods of the prior year.

Hiya direct-to-consumer: Hiya operates and sells products to customers in the United States. Hiya's customers purchase Hiya products for personal use primarily through a subscription model, which is intended to provide a steady, predictable income stream for Hiya. The ongoing nature of subscriptions fosters stronger relationships with customers by making it easier for them to receive products regularly, which we believe leads to retention and loyalty. Hiya's subscription model also provides important data on customer preferences and behaviors, which enables personalized offerings, efficient marketing and data-driven innovation insights. We evaluate Hiya's customer counts and behavior through its monthly subscribers and only count as "active Monthly Subscribers" those Hiya customers who have purchased from Hiya at any time during the most recent month. As of January 3, 2026, Hiya had approximately 181,700 active Monthly Subscribers.

Other: The other category is comprised of Rise Bar Wellness, Inc. ("Rise") and Oola Global, LLC ("Oola"), which are both businesses we acquired in 2022. Rise manufactures and sells high-quality protein bars, powdered drinks, and clear protein drinks that are formulated to help customers achieve their health goals through clean and simple ingredients. Oola is a direct selling company that offers a personal development framework and nutritional products that helps individuals create a life of balance, growth, and purpose.

We discuss our other category, which is not a reportable segment, together with our "core nutritional" segment.

The following table summarizes operating results as a percentage of net sales for the current and prior-year periods, as indicated:

[[GREPCENT_TABLE]]
[["","","Year Ended"],["","","January 3, 2026","","December 28, 2024"],["","","Core nutritional & other","","Hiya direct-to-consumer","","Consolidated","","Core nutritional & other","","Hiya direct-to-consumer","","Consolidated"],["Net sales","","100.0%","","100.0%","","100.0%","","100.0%","","100.0%","","100.0%"],["Cost of sales","","19.5%","","35.1%","","21.7%","","18.8%","","30.4%","","18.9%"],["Gross profit","","80.5%","","64.9%","","78.3%","","81.2%","","69.6%","","81.1%"],["Operating expenses:"],["Brand Partner incentives","","42.4%","","\u2014%","","36.3%","","42.7%","","\u2014%","","42.6%"],["Selling, general and administrative","","32.2%","","62.3%","","36.5%","","30.7%","","62.2%","","30.8%"],["Cost realignment and impairment","","1.7%","","\u2014%","","1.5%","","\u2014%","","\u2014%","","\u2014%"],["Total operating expenses","","76.3%","","62.3%","","74.3%","","73.4%","","62.2%","","73.4%"],["Earnings from operations","","4.2%","","2.6%","","4.0%","","7.8%","","7.4%","","7.7%"],["Amortization of acquired intangible assets","","0.2%","","13.8%","","2.1%","","0.1%","","14.9%","","0.2%"]]
[[/GREPCENT_TABLE]]

Customers

Core nutritional

Because we primarily sell our products to a customer base of independent Brand Partners and Preferred Customers, we increase our sales by increasing the number of our active Customers, the amount they spend on average, or both. Our primary focus continues to be increasing the number of active Customers. We believe this focus is consistent

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with our vision of improving the overall health and nutrition of individuals and families around the world. Sales to Brand Partners account for approximately 53% of our segment product sales during 2025, with the remainder being to Preferred Customers. Increases or decreases in product sales are typically the result of variations in the volume of product sold relating to fluctuations in the number of active Customers purchasing our products. The number of active Brand Partners and Preferred Customers is therefore used by management as a key non-financial indicator to evaluate our operational performance.

The table below summarizes the change in our active Customer base by geographic region, rounded to the nearest thousand, as of the dates indicated.

[[GREPCENT_TABLE]]
[["","Total Active Customers by Region","","Change from Prior Year","","Percent Change"],["","As of January 3, 2026","","As of December 28, 2024"],["Asia Pacific:"],["Greater China","208,000","","53.8","%","","246,000","","54.2","%","","(38,000)","","(15.4","%)"],["Southeast Asia Pacific","63,000","","16.3","%","","77,000","","16.9","%","","(14,000)","","(18.2","%)"],["North Asia","35,000","","9.0","%","","38,000","","8.4","%","","(3,000)","","(7.9","%)"],["Asia Pacific Total","306,000","","79.1","%","","361,000","","79.5","%","","(55,000)","","(15.2","%)"],["Americas and Europe","81,000","","20.9","%","","93,000","","20.5","%","","(12,000)","","(12.9","%)"],["","387,000","","100.0","%","","454,000","","100.0","%","","(67,000)","","(14.8","%)"]]
[[/GREPCENT_TABLE]]

Hiya direct-to-consumer

Hiya's active Monthly Subscribers are comprised of two types: first-time customers and recurring customers. First-time customers are viewed as an investment as the customer is provided a discount, and shipping costs are higher due to the inclusion of a refillable glass bottle. Additionally, as a direct-to-consumer company, customer acquisition is heavily influenced by the level of marketing spend. Recurring customers are not provided the same discount, and shipping costs are lower on refill orders. Both gross margins as well as operating margins improve with recurring customer orders, therefore, profitability margins are affected by sales mix between these two types of customers.

Presentation

Product sales along with the shipping and handling fees billed to our customers are recorded as revenue net of applicable sales discounts when, or as control of, the promised product is transferred to the customer, which is at the time of delivery to the third-party carrier for shipment. Payments received for unshipped products are recorded as deferred revenue and are included in the "Other current liabilities" line item in the consolidated balance sheets. Also reflected in net sales is a provision for a refund liability for sales returns, which is estimated based on our historical experience. Additionally, other types of revenue include fees, which are paid by the customer at the beginning of the service period, for access to online customer service applications and annual account renewal fees for Brand Partners, for which control is transferred over time as services are delivered and are recognized as revenue on a straight-line basis over the term of the respective contracts.

Cost of sales primarily consists of expenses related to raw materials, labor, quality assurance, overhead costs, and freight out that are all directly associated with the production and distribution of our products and sales materials, as well as duties and taxes that are associated with the import and export of our products. As international sales increase as a percentage of net sales, cost of sales are increasingly affected by additional duties, freight, and other factors, such as changes in currency exchange rates.

Brand Partner incentives expense is incurred only in the core nutritional segment and includes all forms of commissions, and other incentives paid to our Brand Partners. Incentives paid to Brand Partners include bonuses earned, rewards from contests and promotions, and base commissions, which makes up the majority of our Brand Partner incentives expense. We pay bonuses to Brand Partners based on certain business-related criteria, total base commission earnings, and leadership level. Contests and promotions are offered as an incentive and reward to our Brand Partners and are typically paid out only after a Brand Partner achieves specific criteria. Base commissions are paid out on the sale of products. Brand Partners earn their commissions based on sales volume points that are generated in their sales organization. Sales volume points are assigned to each commissionable product and comprise a certain percent of the product price. Items such as our starter kits and sales tools have no sales volume point value, and commissions are not paid on the sale of

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these items. Although insignificant to our financial statements, a Brand

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2026 MD&A: /company/USNA/mda/fy2026/
All MD&A years: /company/USNA/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/USNA/mda/fy2024/): filed 2025-03-12; accession 0000896264-25-000092 (https://www.sec.gov/Archives/edgar/data/896264/000089626425000092/usna-20241228.htm)
- [FY 2023 MD&A](/company/USNA/mda/fy2023/): filed 2024-02-27; accession 0000896264-24-000093 (https://www.sec.gov/Archives/edgar/data/896264/000089626424000093/usna-20231230.htm)
- [FY 2022 MD&A](/company/USNA/mda/fy2022/): filed 2023-02-28; accession 0000896264-23-000004 (https://www.sec.gov/Archives/edgar/data/896264/000089626423000004/usna-20221231.htm)
- [FY 2022 MD&A](/company/USNA/mda/a-0001437749-22-004802/): filed 2022-03-01; accession 0001437749-22-004802 (https://www.sec.gov/Archives/edgar/data/896264/000143774922004802/usna20220101b_10k.htm)


## FDA-approved drug applications

Applications listed under this company's exact-matched sponsor name. Approved applications only.

No resolved FDA applications were found for this company under the exact-unique, approved-only publish rule.

Sponsor as listed in Drugs@FDA at retrieval (2026-08-07); FDA sponsor listings can lag ownership transfers.

This list covers FDA applications whose listed sponsor name maps to this company by an exact-unique match; applications listed under sponsor names not mapped to this company (subsidiaries, name variants, joint ventures) are absent.


## Macro cross-references

Indicators mapped to this company's SIC classification (industry 2833 Medicinal Chemicals & Botanical Products) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/USNA.md · JSON record: /company/USNA.json · verified financials: /company/USNA/financials.json / /company/USNA/financials.csv · machine TOC for the whole site: /llms.txt