Lifevantage Corporation

Good day, ladies and gentlemen, and thank you for standing by. Welcome to today's conference call to discuss LifeVantage's second quarter of fiscal 2026 results. At this time, all participants are in a listen-only mode. Following the formal remarks, we will conduct a question-and-answer session. Instructions will be provided at that time for you to queue up. Hosting today's conference call will be Reed Anderson with ICR. As a reminder, today's conference is being recorded I would now like to turn the conference over to Mr. Anderson. Please go ahead, sir.

Thank you. Good afternoon and welcome to LifeVantage Corporation's conference call to discuss results for the second quarter of fiscal 2026. On the call today from LifeVantage, with prepared remarks, are Steve Fyfe, President and Chief Executive Officer, and Carl Alray, Chief Financial Officer. By now, everyone should have access to the earnings release, which went out this afternoon at approximately 4.05 p.m. Eastern Time. If you have not received the release, it is available on the investor relations portion of LifeVantage's website at www.lifevantage.com. This call is being webcast, and a replay will be available on the company's website as well. Before we begin, I would like to remind everyone that our prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions. These statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the risk factors section of LifeVantage's most recently filed Forms 10-K and 10-Q. Please note that during today's call, we will discuss non-GAAP financial measures, including results on an adjusted basis. Management believes these financial measures can facilitate a more complete analysis and greater transparency into LifeVantage's ongoing results of operations. particularly when comparing underlying operating results from period to period. We've included reconciliation of these non-GAAP measures with today's release. This call also contains time-sensitive information that is accurate only as of the date of this live broadcast, February 4th, 2026. LifeVantage assumes no obligation to update any forward-looking projections that may be made in today's release or call. Now, I will turn the call over to Steve Feith, the President and Chief Executive Officer of LifeVantage.

Thanks Reed and good afternoon everyone. Thank you for joining us today. The second quarter presented both challenges and opportunities as we navigated a rapidly evolving competitive landscape while executing on our strategic initiatives. While our Q2 revenue and earnings were down significantly from prior year levels, we were cycling the explosive launch of our MindBody GLP-1 system in October of last year. Despite this headwind, we made significant progress on several key fronts and remain well positioned for long-term growth in the broader health and wellness ecosystem. As a management team, we acknowledge that our performance during the quarter did not meet your expectation or ours, and we are redoubling our efforts to stabilize our GLP-1 business and make the other changes necessary to return to revenue growth. Let me start by addressing the primary driver for our revenue decline, the competitive dynamics we've experienced in the natural GLP-1 market since launching our MindBody GLP-1 system last year. Our product is scientifically validated and proven effective, and we have a loyal customer base. However, the overall market has become significantly more competitive with pharmaceutical GLP-1 drugs becoming more accessible and affordable, along with new formulations and formats, including pills. When we launched MindBody, pharmaceutical options were in short supply and cost several hundred dollars per month to consumers. At that time, MindBody was a compelling value proposition plus had the added benefit of not requiring any injections and being a proven all-natural solution. Today, pharmaceutical options have come down significantly in price and are increasingly covered by insurance, which has led to much broader use by consumers. In addition, the drug is now available in more convenient formats, including pills. This rapidly shifting competitive dynamic has dramatically impacted the sale of our GLP-1 offering. As a result, to be conservative, we are recognizing a reserve against a portion of our GLP-1 inventory and evaluating all options to respond to the changing competitive landscape. We are also taking a hard look at cost reduction opportunities to ensure we continue to maintain strong levels of profitability. We remain committed to our MindBody GLP-1 system. It is a great product that works, and we continue to believe strongly in the positioning of natural weight management solutions. The science supporting our approach is robust, and we see this as a temporary market adjustment. What excites us most about this quarter is the continued momentum from our Love Biome acquisitions. From an operational perspective, we successfully integrated the Love Biome team and systems, and we're realizing the operational synergies. The combined expertise of our teams is already evident in our product development pipeline and go-to-market strategies. Two new products from the Love Biome portfolio launched earlier this week that should drive engagement, consultant growth, and continue to diversify our product portfolio. First is Axial X, a new addition to our Axial line that focuses on pre-workout consumers looking for long-lasting energy, enhancing oxygen uptake, and stamina. Second is Phytopower B, where the B stands for blocker. an innovative approach that helps to slow sugar absorption and support a healthy metabolism. These launches represent the power of our combined innovation capabilities and demonstrate how the Love Biome acquisition is already paying dividends in terms of product diversification and market growth. Over the next couple of months, we will be launching additional Love Biome products, further leveraging and expanding the Love Biome portfolio. Our now patent-pending P84 product continues to be a hero product with strong positioning in the rapidly growing gut microbiome market. The in vitro testing results we announced in October at our Momentum Academy event further validate the science behind this comprehensive gut health activator. and we're seeing strong adoption among both our combined consultant and consumer base. The Healthy Edge Stack, which combines our proven protandim NRF2 synergizer with P84, has become a lead enrollment story for our consultants. In January, we released the results of our third-party cell study that shows this combination delivers foundational health support throughout the entire body and the synergistic benefits are resonating strongly with health conscious consumers. I'm also pleased to report continued progress on our Shopify partnership. This strategic initiative represents a significant modernization in our technology infrastructure and will deliver enhanced e-commerce capabilities that benefit both LifeVantage and our consultants. We're on track for our pilot program and expect this platform to drive improved conversion rates and customer experience. Looking at our international expansion efforts, we continue to see opportunities for growth in key markets. The infrastructure we've built through the Love Biome integration position us well to scale our operations globally and serve the evolving needs of health conscious consumers worldwide. Now, as we look ahead, I'm optimistic about our positioning. We have a comprehensive wellness ecosystem that addresses multiple aspects of human health, from cellular health with Protandim, to metabolic wellness with MindBody, to Get Health with P84, to beauty and longevity with TrueScience Liquid Collagen. Combined with our industry-leading Evolve Compensation Plan and vibrant consultant community, We're uniquely positioned to serve the evolving needs of both consumers and entrepreneurs. The direct sales industry continues to evolve, and companies that can combine innovative products, compelling compensation, modern technology, and authentic communities will be the winners. We believe LifeVantage, enhanced by our LoveBiome partnership and strengthened by our commitment to science validation, is perfectly positioned to lead in this new era. We also continue to have a strong balance sheet and proven track record of returning excess capital to shareholders. Since the beginning of fiscal 2024, we've returned over $20 million to shareholders through dividends and share repurchases. And today we announced a new $60 million share repurchase authorization. understoring our commitment to the future and commitment to driving long term value. The board remains committed to this perspective, as evidenced by the quarterly dividend and new share repurchase program just announced. With that, let me turn the call over to Carl for the detailed review of our financial results and outlook.