USANA HEALTH SCIENCES INC posts lower revenue and a profit-to-loss swing on both windows, partly cushioned by stronger operating cash

Bottom line

Top-line revenue came in lower than the prior year on both reporting windows, while parent-level earnings and operating income shifted from profit to loss over both the three-month reporting period and the six-month year-to-date period. Diluted earnings per share likewise moved from positive in the prior year to negative in the current year on both windows. The filing's identity, fiscal period, and ticker are taken directly from the filing metadata for USANA HEALTH SCIENCES INC on USNA under 10-Q for period-ended-2026-07-04, filed under 0000896264-26-000056 with the SEC and indexed by 0000896264.

For the three-month reporting period, Revenue from Contract with Customer, Excluding Assessed Tax is $223,273,000 (USD), below $235,848,000 (USD) in the prior-year comparative. Operating Income (Loss) is -$19,996,000 (USD), a loss against an operating profit of $16,718,000 (USD) in the prior year. Net Income (Loss) Attributable to Parent is -$21,382,000 (USD), a loss against a profit of $9,655,000 (USD) in the prior year. Earnings Per Share, Diluted is -$1.16 per diluted share USD/SHARES, a loss against $0.52 per diluted share USD/SHARES in the prior year.

For the six-month year-to-date period, Revenue from Contract with Customer, Excluding Assessed Tax is $473,491,000 (USD), below $485,387,000 (USD) in the prior year. Operating Income (Loss) is -$6,122,000 (USD), a loss against an operating profit of $32,389,000 (USD) in the prior year. Net Income (Loss) Attributable to Parent is -$13,867,000 (USD), a loss against a profit of $19,057,000 (USD) in the prior year. Earnings Per Share, Diluted is -$0.75 per diluted share USD/SHARES, a loss against $1.01 per diluted share USD/SHARES in the prior year.

Management's framing in the forward-looking statements note identifies the Core Nutritional direct-sales business and the contribution of acquired direct-to-consumer businesses, Hiya Health Products and Rise Wellness, as central to the company's strategy. Management also flags extensive regulation, the operation in China through BabyCare Holdings, Ltd., and uncertainty around pandemics and geopolitical conditions as risk factors. The filing evidence does not attribute this change to any single cause.

No analyst commentary is embedded in the cited material; inference here is limited to the year-over-year directions and profit-to-loss transitions already authorized for this section's comparisons. The filing evidence does not attribute this change to any single cause.

Operating cash generation strengthened even as reported parent-level earnings moved from profit to a loss over the longer reporting window.

UNKNOWN: The filing evidence contains no peer or industry comparison. The filing evidence contains no peer or industry comparison. Readers may also compare the year-over-year profit-to-loss pattern with the same transition shown in Lizely Finance Earnings Analysis — Veru Inc. (VERU) Interim Filing: Losses Persist With Mixed Year-over-Year Direction.

Financial performance

Reported facts

- Across the six-month year-to-date period, revenue moved lower compared with the prior-year comparative, while net income and operating results both crossed from profit into a loss. - For the three-month reporting window, revenue also declined relative to the prior-year comparative, with net income and operating results again shifting from profit to loss. - Diluted earnings per share followed the same pattern on both windows, sitting in negative territory against positive prior-year comparatives.

Analyst inference

- The same directional pattern on both the quarter and the year-to-date window — declining revenue paired with a profit-to-loss transition at both the operating and parent levels — is consistent with a top-line pressure that flows through the income statement rather than a one-off item isolated to a single period. - Because revenue, operating income, and parent net income all moved in the same direction across both windows, the change reads as broad rather than concentrated in any one line; the year-to-date picture is therefore not contradicted by the quarterly picture.

Counter-evidence

- Operating cash generation strengthened even as reported parent-level earnings moved from profit to a loss over the longer reporting window. This sits alongside the income-statement deterioration and means a reader cannot infer operating-quality weakness purely from the profit-to-loss transition; cash generation strengthened even as reported parent-level earnings moved from profit to a loss over the longer reporting window.

Management explanations

- The cautionary language accompanying the filing points to multiple structural risk areas: a decline in net sales, net income, and active Customers inside the Core Nutritional and direct sales business; reliance on the acquired direct-to-consumer businesses, Hiya Health Products, LLC ("Hiya") and Rise Wellness, Inc. ("Rise"), for growth in channels outside Core Nutritional; extensive regulation of direct selling and anti-pyramiding rules, particularly in the United States and China; macroeconomic conditions and inflationary pressures affecting consumer discretionary spending; and reliance on those same acquired businesses' growth strategies, including digital marketing exposure at Hiya and concentration risk with key retailers at Rise. - These are framed by management as forward-looking risk factors, not as a quantified attribution to the reported period.

Comparison baselines

- The only analytical baselines available in the filing evidence are the company's own prior-year comparatives; The filing evidence contains no peer or industry comparison. there is no peer or industry benchmark included in the cited material against which to size the magnitude of the revenue decline or the profit-to-loss transition.

Unknowns

- The filing evidence does not attribute this change to any single cause. - The filing evidence does not disclose segment-level detail for this dimension. The filing evidence does not separate Hiya, Rise, and Core Nutritional revenue or operating results, so the contribution of each channel to the consolidated decline cannot be read from the filing itself.

Operating drivers and segments

- Revenue from Contract with Customer, Excluding Assessed Tax was $473,491,000 USD for the six months ended July 4, 2026, versus $485,387,000 USD for the six months ended June 28, 2025, a year-over-year decline on the longer window. - Revenue from Contract with Customer, Excluding Assessed Tax was $223,273,000 USD for the three months ended July 4, 2026, versus $235,848,000 USD for the three months ended June 28, 2025, also lower than the prior period. - Operating Income (Loss) was -$6,122,000 USD for the six months ended July 4, 2026, versus $32,389,000 USD for the six months ended June 28, 2025, reflecting a swing from a profit to a loss on the six-month window. - Operating Income (Loss) was -$19,996,000 USD for the three months ended July 4, 2026, versus $16,718,000 USD for the three months ended June 28, 2025, the same profit-to-loss transition on the three-month window. - The filing notes that "All prior period segment information has been recast to conform to the current period presentation" and that the reclassifications relate to disaggregation of Trade accounts receivable, net out of prepaid and other current and non-current asset lines. - Segment-level revenue and operating income figures (Core Nutritional versus Hiya versus Rise Wellness versus other) are not surfaced in the provided narrative for this section, so a by-channel breakdown is unavailable. - No peer or industry benchmark is contained in the filing evidence: The filing evidence contains no peer or industry comparison..

- Management frames the forward-looking discussion around its transformation into an "omni-channel health and wellness company," with the Core Nutritional and direct sales business described as having "experienced a decline in net sales, net income and active Customers over the last few years." - Management identifies the Hiya and Rise Wellness acquisitions as the intended growth engines outside the Core Nutritional business, covering direct-to-consumer, retail, and online marketplaces. - Management flags regulatory risk in the Core Nutritional business across the United States, China, and other markets, and notes that the Hiya segment operates on a calendar-year basis ending on December, which is a different reporting cadence from the rest of the group. - Management acknowledges the safe-harbor language: actual results "could differ materially from those we project or assume in our forward-looking statements," and lists dependence on Brand Partners and on the acquired direct-to-consumer businesses among the key risk factors. - Recent accounting pronouncements are described in the cited note, which discusses an Expense Disaggregation Disclosures update and a recent pronouncement not yet adopted; the full text of the cited note is the source for this characterization.

- On a three-month basis, both top-line and operating profitability moved in the same direction (revenue lower than the prior period, operating result a loss rather than a profit), and the same directional pattern repeats on the six-month window. - The direction of the revenue move and the direction of the operating move are independent comparisons; the filing does not attribute the change to any single cause. The filing evidence does not attribute this change to any single cause. - Counter-evidence on cash flow would be drawn from operating cash generation relative to parent-level earnings, as recorded in the filing: Operating cash generation strengthened even as reported parent-level earnings moved from profit to a loss over the longer reporting window.. Readers comparing the operating-income commentary above with the cash-flow commentary elsewhere in the filing can see the divergence directly. - For context on a peer that has posted similar interim losses alongside directional revenue shifts, the prior write-up at Lizely Finance Earnings Analysis — Veru Inc. (VERU) Interim Filing: Losses Persist With Mixed Year-over-Year Direction addresses a comparable narrative pattern, though no direct comparison is contained in this filing.

Cash flow and capital

For the six-month year-to-date window, operating cash generation improved relative to the prior-year comparative, moving from a positive base to a higher positive figure per the cited cash flow statement. Investing cash outflows also widened, with both the current and prior-year periods landing in net cash used territory, while financing activities continued to consume cash in both windows. Management's framing attributes the operating cash strength to the parent-level earnings deterioration only in the contrast sense: Operating cash generation strengthened even as reported parent-level earnings moved from profit to a loss over the longer reporting window. Beyond that, the filing does not point to a specific driver, so The filing evidence does not attribute this change to any single cause.

On the capital-return side, share repurchases fell to zero over the six-month year-to-date window after a positive figure in the prior-year comparative. The prior year had payments for repurchase of common stock on the books, while the current window records none, which the authorized comparison reads as a decrease from positive to zero. Capital spending for property, plant, and equipment also stepped down from the prior-year comparative, both periods remaining positive cash outflows but with the current figure lower than the prior. Together, the two capital-allocation lines describe a quieter deployment year relative to the prior comparable window.

The balance sheet ending instant shows cash and cash equivalents, at carrying value, alongside accounts payable, current. The quoted narrative confirms those instruments are on the books at the balance sheet date, with no other line items from the balance sheet pulled into this section's fact catalog. The filing also discloses that the condensed consolidated balance sheet as of the most recent fiscal year-end was derived from audited consolidated financial statements, providing the prior anchor for any period-to-period comparison, while the interim condensed balance sheet at the balance sheet date is unaudited and prepared under the instructions to the form and SEC Regulation S-X.

Fair-value measurements referenced in the notes use the three-tier hierarchy cited in the filing, covering quoted prices in active markets, observable inputs other than those quoted prices, and unobservable inputs. The cited note confirms that financial instruments at the balance sheet date include cash equivalents, restricted cash, accounts receivable, and line of credit, and that the majority of the company's non-financial assets, including long-lived assets, are not required to be carried at fair value on a recurring basis.

For context on the loss-and-cash divergence pattern that recurs in other Lizely-covered filings, the Lizely Finance Earnings Analysis — Veru Inc. (VERU) Interim Filing: Losses Persist With Mixed Year-over-Year Direction piece walks through a similar split between operating cash generation and reported earnings, which mirrors the contrast flagged here. The filing evidence contains no peer or industry comparison.

Peer and historical context

- Looking across the six-month and three-month windows, USANA HEALTH SCIENCES INC's reported results describe a top-line decline paired with a swing from profit to loss on every profitability measure filed under 10-Q for period-ended-2026-07-04. Revenue from Contract with Customer, Excluding Assessed Tax was lower than in the six months ended June 28, 2025 and lower than in the three months ended June 28, 2025, on the six-month year-to-date and the three-month reporting period, respectively. Operating Income (Loss) moved from profit to loss on both windows, and Net Income (Loss) Attributable to Parent likewise swung from profit to loss against both prior-year comparatives.

The authorized year-over-year picture is therefore one of deteriorating top line together with deteriorating bottom line, without the machine supplied authority to attribute the gap to any single driver. - Because the filing evidence does not include matched comparables for other direct-sales nutrition issuers, any read of how USANA HEALTH SCIENCES INC is performing against close peers has to be set aside. The filing evidence contains no peer or industry comparison.

- For longer-term context, the same six-month window shows Net Cash Provided by (Used in) Operating Activities higher than in the six months ended June 28, 2025, while parent-level earnings fell into a loss over that same span. That split is the kind of cash-versus-earnings divergence that a reader comparing this run with the same company's earlier period-ended-2026-07-04 history should weigh carefully. The Veru interim analysis surfaces a similarly mixed picture and is a useful reference point: see [Lizely Finance Earnings Analysis — Veru Inc.

(VERU) Interim Filing: Losses Persist With Mixed Year-over-Year Direction](/insights/finance/lizely-finance-earnings-analysis-veru-inc-veru-interim-filing-losses-persist/). Operating cash generation strengthened even as reported parent-level earnings moved from profit to a loss over the longer reporting window. - The filing evidence does not attribute this change to any single cause.

Scenario analysis

Under a base reading of 10-Q filed by USANA HEALTH SCIENCES INC (USNA) for period-ended-2026-07-04 under accession 0000896264-26-000056, the base scenario reflects the directional path that is already authorized by the filing evidence. Revenue from Contract with Customer, Excluding Assessed Tax is lower than the prior period on both reporting windows: the three-month period compares unfavorably to the three months ended June 28, 2025 and the six-month year-to-date period compares unfavorably to the six months ended June 28, 2025, based on $223,273,000 versus $235,848,000 and $473,491,000 versus $485,387,000. On the bottom line, Net Income (Loss) Attributable to Parent moves from profit to loss on both windows, with -$21,382,000 below $9,655,000 and -$13,867,000 below $19,057,000. The base case therefore treats the lower top line and the profit-to-loss transition on the parent line as the working baseline rather than as a transient miss.

The upside case depends on whether the cash-flow signals offset the earnings weakness already printed in the income statement. Operating cash generation strengthened even as reported parent-level earnings moved from profit to a loss over the longer reporting window. If the company can keep generating cash while earnings remain negative, the bottom-line transition from profit to loss is less alarming than the headline implies and the consolidated picture becomes more constructive on a liquidity basis. The upside reading therefore pairs lower reported parent-level earnings with continued operating cash generation, leaving the door open for recovery in $223,273,000 and $473,491,000 once the cited impairment-related adjustments in the goodwill note run their course.

The downside case focuses on the risk that the top-line softness extends and the goodwill-related write-down crystallizes as a structural rather than one-time event. Revenue from Contract with Customer, Excluding Assessed Tax is lower than the prior period on both the three-month window $223,273,000 versus $235,848,000 and the six-month window $473,491,000 versus $485,387,000, which would compound the pressure already visible in the parent-level loss in -$21,382,000 and -$13,867,000 relative to the prior-period profits in $9,655,000 and $19,057,000. In that path, the reported fair-value hierarchy discussion in the cited note and the goodwill impairment disclosure become recurring headwinds to consolidated earnings, not isolated charges. The filing evidence does not attribute this change to any single cause.

Risks and what to watch

The most material risk visible in this filing is the goodwill impairment recorded against the Hiya reporting unit during the three-month reporting period. The filing's Note disclosure describes a potential impairment indicator tied to lower-than-expected financial performance and changes in the near-term forecast, after which management concluded that the estimated fair value of the Hiya reporting unit was less than its carrying value. The fair-value estimate relied on a combination of an income approach and a market approach using guideline public companies, with principal assumptions covering future revenue growth rates, profitability margins, discount rate, and market multiple selection and weighting. Because the impairment resulted primarily from changes to projected financial information and from adjustments to market multiples and discount rates to reflect current facts and circumstances, the headline earnings result on both the three-month and the six-month windows is heavily influenced by a non-cash, management-judgment-driven charge rather than operating performance alone. That framing matters when readers compare the current parent-level loss against the prior-year profit, and it matters even more when interpreting the related diluted earnings-per-share transition from profit to loss that the filing presents.

The principal counter-evidence comes from operating cash flow. Over the six-month year-to-date period, Net Cash Provided by (Used in) Operating Activities is positive in both the current window and the prior-year window and is higher in the current window than in the prior-year window. Operating cash generation strengthened even as reported parent-level earnings moved from profit to a loss over the longer reporting window. The divergence between a higher operating cash result and a parent-level loss for the six months ended July 4, 2026 is itself a risk flag worth flagging: it suggests that reported earnings understate operating cash generation this period, but it also means that any read-across from cash performance to underlying business health must be qualified by the size of the non-cash impairment charge embedded in the loss.

Several material items are not disclosed in the filing evidence. The filing does not break out segment-level revenue or operating performance for this dimension, so readers cannot tell which geography or product contributed to the impairment trigger or to the revenue movement. The filing evidence contains no peer or industry comparison, so the magnitude of the Hiya goodwill impairment relative to sector experience cannot be assessed from this filing alone. The filing evidence does not attribute this change to any single cause. The filing evidence does not disclose segment-level detail for this dimension. The filing evidence contains no peer or industry comparison. Fair-value measurement disclosures point to the cited note and to the lower fair-value tier described by the cited reference, but the inputs themselves are not enumerated numerically in the source narrative; any deeper read on the discount-rate or multiple revisions requires the underlying fair-value table.

For the next reporting window, the metrics worth watching are the revenue path on both the three months ended July 4, 2026 and the six months ended July 4, 2026, the trajectory of parent-level earnings as the goodwill charge anniversaries out of the comparison, the cash-flow from operations line for any further widening of the gap to reported profit, and any update to the Hiya reporting-unit assumptions in the cited note. A useful parallel is the Lizely Finance Earnings Analysis — Veru Inc. (VERU) Interim Filing: Losses Persist With Mixed Year-over-Year Direction, which illustrates how goodwill-driven charges can dominate an interim result.