USANA Posts Q2 Net Loss on Hiya Goodwill Write-Down, Cuts 2026 Outlook

Quarterly numbers turn negative

USANA Health Sciences (NYSE: USNA) published results for the second quarter of its 2026 fiscal year, the period ended 4 July 2026, on 4 August 2026. Net sales for the quarter came in at $223 million, down from $236 million in the second quarter of 2025. First-half net sales totalled $473.5 million, below the comparable period a year earlier.

The company recorded a net loss of $21.4 million for the quarter, against net earnings of $9.7 million a year earlier. The result includes a preliminary, non-cash goodwill impairment charge of $29.1 million related to the Hiya brand.

Diluted earnings per share were negative $1.16, compared with $0.52 in the prior-year quarter. On an adjusted basis, diluted EPS was negative $0.07, versus $0.74 in 2025. Adjusted EBITDA reached $27.8 million, down from $30.5 million a year ago.

Customer counts and ventures under pressure

Active customers in the Core Nutritional segment numbered 384,000, down from 418,000. Hiya's active monthly subscribers fell to 166,000 from 200,400.

Rise Wellness generated $3 million in second-quarter revenue, a 40 percent increase year over year but a 75 percent decline sequentially.

Management attributed the weaker performance to a digital marketing environment for Hiya that has become more difficult and more expensive, along with a packaging disruption at Rise Wellness. Together, the company estimates, these factors accounted for roughly $30 million to $40 million in lost revenue and $4 million to $5 million in margin pressure. According to management, the Core Nutritional business performed broadly in line with expectations, while the ventures businesses — Hiya and Rise Wellness — fell short.

Guidance lowered, balance sheet debt-free

USANA reduced its full-year 2026 revenue guidance to approximately $910 million, down from a previous range of $925 million to $1.0 billion. The company now anticipates a net loss of roughly $11 million for 2026, in place of the previously indicated net earnings of $20.3 million to $26.6 million.

The balance sheet remained unlevered. USANA closed the quarter with $169 million in cash and no debt. Inventory stood at $95 million as of 4 July 2026, down $13 million, or 12 percent, from year-end 2025. Free cash flow in the quarter was $20 million.

The company did not repurchase any shares during the quarter, leaving approximately $34 million available under its buyback authorisation.

In the week following the report, USANA's share price fell by around 30 percent, while the S&P 500 index rose 3.6 percent and the Nasdaq Composite gained 5.2 percent.