Nature's Sunshine Products, Inc.

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Nature's Sunshine's financial results for the second quarter ended June 30th, 2025. Joining us today are Nature's Sunshine CEO Terence Morehead, CFO Shane Jones, and General Counsel Nate Brower. Following their remarks, we'll open the call for analyst questions. Before we go further, I would like to turn the call over to Mr. Brower as he reads the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Nate, please go ahead.

Thank you, and good afternoon. I'd like to remind everyone that this call is available for replay by telephonic dial-ins through August 14th and via a live webcast that will be posted on the investor relations portion of our website at ir.naturesunshine.com. The information on this call contains forward-looking statements. These statements are often characterized by terminology such as believe, hope, may, anticipate, expect, will, and other similar expressions. Forward-looking statements are not guarantees of future performance, and the actual results may be materially different from the results implied by forward-looking statements. Factors that could cause results to differ materially from those implied therein include, but are not limited to, those factors disclosed in the company's annual report on Form 10-K under the caption, Risk Factors and Other Reports Filed with the Securities and Exchange Commission. The information on this call speaks only as of today's date, and the company disclaims any duty to update the information provided herein. Now I would like to turn the call over to the CEO of Nature Sunshine, Terrance Morehead. Terrance?

Thank you, Nate, and good afternoon, everyone. I want to thank you for joining today's call to discuss our second quarter results. Today, I'll provide some context for our second quarter performance and offer some insights in how the business is building momentum. From there, Shane will take you through our financials in more detail. In the second quarter, Nature Sunshine continued to build on the momentum we saw in Q1 with another quarter of strong performance. Our team is focused, the strategies are holding steady, and we continue to position the company for long-term sustainable growth. For the quarter, revenue came in at $115 million, up 4% versus the prior year, or 2% in constant currency. Q2 adjusted EBITDA was also strong, coming in at $11 million, an 8% increase versus the prior year's adjusted EBITDA of $10 million. These results reflect strong execution across the business with standout performance in Japan, continued strength in Central Europe, and improved traction in North America, where we saw a notable acceleration in our digital business. As we move into the back half of the year, we remain focused on unlocking long-term value through strong consumer engagement and continued execution of our sales and marketing strategies. We delivered these results despite ongoing uncertainty from the current macroeconomic environment and the evolving trade and tariff situation. Fortunately, we've taken strong proactive measures to minimize our exposure and safeguard our business. We're also closely monitoring consumer spending patterns and whether household budgets come under increased pressure. Having said that, our focus remains unchanged as we continue to implement strategies to drive customer growth and strengthen our value proposition with targeted investment, new innovation, and more reliable service. As a result, We believe our growth strategy continues to demonstrate significant long-term potential. Looking at our business by geography, Asia Pacific saw sales in the second quarter increase 5 percent, or 2 percent on a local currency basis. Growth in the region was driven by another exceptional quarter in Japan, where sales increased 27 percent. Our focus on attracting younger consumers while leveraging our Subscribe and Thrive Auto Shift program continues to pay dividends as we saw strong growth in both customers and orders in the second quarter. Taiwan and South Korea experienced strong growth for the past three quarters, but we saw softer results this quarter as consumer spending slowed. In the second quarter, both Taiwan and South Korea faced a more challenging macroeconomic environment driven by slowing exports and fragile domestic demand and increased uncertainty surrounding trade policy. Taiwan's last GDP forecast is tariff fears escalated, while South Korea narrowly avoided recession and grappled with weak consumption and the threat of new import duties. In both markets, inflationary pressure, political instability, and a shift in global trade environment have raised new challenges. As we move into the back half of the year, We expect tough comparisons to pressure our year-over-year growth trends in these markets, but we're confident in the strength of our underlying fundamentals and expect to see improved performance as the macroeconomic environment stabilizes. Asia Pacific will continue to be a key growth driver of our business. In North America, we continued to make significant progress as sales increased 4 percent versus prior year, driven by strong performance in our digital business, which grew 34% and continued to build momentum. This further validates the strength and potential of our digital strategy and puts us on track to deliver our long-term objectives. We also continued to build momentum in our Subscribe and Thrive Autoship program, which remains the most attractive way for consumers to buy our products. The program continued to expand in the second quarter and now represents over 50% of DTC sales. And we expect this to help drive further sales growth as we optimize and improve the experience. As we continue to strengthen our digital capabilities, we believe our digital footprint will continue to expand and grow. Another important factor driving North America's second quarter performance was the significant improvement in field fundamentals, discipline, and sales support. Our specialty retailers, nutritional health practitioners, and affiliates responded well to increased touch management and targeted field activation, as sales with this very important group improved in the quarter. Moving to Europe, sales were up 1%, but down 2% in constant currency, reflecting the timing of price changes between Q1 and Q2. Notably, we experienced robust growth in Central Europe, which was supported by strong management and disciplined execution across the region. The success of our power line products continued to drive customer growth and help expand customer activation, including expansion in the Baltic states. We also saw average order increase, which in this case is a strong sign of consumer loyalty and engagement as our positive sales trends continued. Overall, we remain confident in the underlying direction of the business. In summary, the strategy we've outlined, sharpening digital execution, stabilizing the core business in North America, and driving focused growth in key international markets is working. Importantly, we're seeing progress on these fronts at an accelerated pace, and we believe the momentum is sustainable. Shane is going to talk about this a little bit later, but as a result of our strong first half performance and increased visibility into the back half of the year, we're increasing our full year guidance to remove some of the risks associated with market uncertainty and to reflect the positive direction of the business. Based on the momentum we're seeing, we have a more positive outlook for our full year sales and adjusted EBITDA. Shane will provide more details and insights in a moment, but with that, I want to turn the call over to our Chief Financial Officer, Shane Jones. Shane?