Natural Health Trends reported third-quarter revenue of $7.6 million, unchanged from the prior quarter but down 20% from a year earlier. The direct-selling and e-commerce company narrowed its quarterly operating and net losses, while results for the first nine months remained weaker than in 2025.
Management said consumer pessimism in its largest market, regulatory uncertainty and member conduct issues continued to weigh on sales and activity. Lower-priced product packages and added incentives helped lift the number of active members sequentially, but also contributed to the year-over-year revenue decline.
Key details
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Third-quarter results: Revenue was $7.6 million, matching the second quarter’s total and comparing with $9.5 million in the third quarter of 2025. The operating loss was $277,000, down from $643,000 in the prior quarter and $495,000 a year earlier. Net loss was $232,000, or 3 cents per diluted share, versus $451,000, or 5 cents, in the second quarter and $431,000, or 4 cents, a year earlier.
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Membership: The company counted 27,040 active members at Sept. 30, up from 26,000 at June 30 but below 28,030 a year earlier. It defines active members as people who placed at least one product order in the previous 12 months.
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First nine months: Revenue fell 19% to $24.4 million from $30.0 million in the same period of 2025. The operating loss widened to $1.4 million from $1.2 million, and net loss increased to $837,000, or 9 cents per diluted share, from $294,000, or 3 cents.
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Cash and capital returns: Cash, cash equivalents and marketable securities totaled $17.6 million at Sept. 30, down from $28.9 million at the end of 2025. The company attributed the decline primarily to share repurchases, dividends and cash used in operations. Operating cash use was $3.3 million in the first nine months, compared with $5.0 million a year earlier.
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Share repurchases: Natural Health Trends bought back 28,022 shares for $27,000 in the third quarter and another 57,269 shares for $56,000 in October. Its board authorized additional repurchases under the existing program, with $15.8 million available, subject to market conditions and other considerations.
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Operating initiatives: The company said restructuring efforts to reduce costs and protect margins contributed to the smaller operating loss versus the second quarter. It also introduced an AI-powered marketing and communications app and held follow-up appreciation events in three markets.
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Anniversary event: In August, the company held its 25th anniversary celebration in Hong Kong, drawing 1,000 attendees from around the world.
Plain-English implications
The quarter showed sequential stabilization in revenue and member count, alongside lower losses than in the second quarter. However, year-to-date revenue and net income remained substantially weaker than a year earlier. The lower cash balance reflects operating outflows as well as dividends and buybacks; the additional repurchase authorization leaves funds available for further returns of capital, but actual purchases remain discretionary.