4/29/2026

speaker
Operator
Conference Operator

Good day, and welcome to the Natural Health Trends Corps First Quarter 2026 Earnings Conference Call. At this time, I would like to turn the conference over to Michelle Glidewell with Natural Health Trends. Please go ahead.

speaker
Michelle Glidewell
Director of Investor Relations

Thank you, and welcome to Natural Health Trends First Quarter 2026 Earnings Conference Call. During today's call, there may be statements made relating to the future of the company, but a forward-looking statement as defined in the Private Security Politication Reform Act of 1995. Actual results, performance, or achievements could differ materially from those anticipated in such forward-looking statements through the results of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission. It should also be noted that a replay of today's call can be found on the Investor section of the company's corporate website at naturalhealthtransports.com. After this, I'd like to turn the call over to Chris Shawn, President of Natural Health Trends.

speaker
Chris Shawn
President

Thank you, Michelle. Good morning, and thanks to everyone joining us to discuss our first quarter of 2026 financial results. Scott Iveson, our Senior Vice President and Chief Financial Officer, is also here today. Our business was adversely impacted a year ago when trade war rhetoric between America and China intensified. Since then, despite continued macroeconomic pressure and subdued consumer spending, we have managed to stabilize our top line. Importantly, tangible benefits from the restructuring program implemented in the fourth quarter of last year have begun to materialize. During the first quarter, these efforts contributed to an improvement in gross profit margin and a deduction in operating expenses. totaling approximately $300,000. Meanwhile, we continue to invest in improving our business efficiency. We just launched our enhanced NHGoogle.com website. The new site introduces refreshed branding, more robust product information, and a moderate intuitive customer journey. Also well underway are our new back-office platforms. an AI power member app, and AI agents for logistics and member services. These technologies will support future growth by strengthening member productivity and knowledge, enhancing end-to-end selling and the customer experience, and improving our business insights. Just last week, we introduced our newest product, SuperU3.1, a tropical flavor greens powder for digestion, detox, and immunity. We are also looking forward to our 25th anniversary in Hong Kong later this year. A full calendar of events and brand initiatives is in the works. We look forward to marking this important milestone in our company's history. While external conditions remain challenging, we believe that by reducing costs, streamlining our business, and investing in technologies, we are positioned to navigate the current environment and grow our revenue. Our leaders are experienced, deeply committed, and actively engaged in both our business opportunity and our products as they pursue their personal success and wellness goals. We appreciate your dedication and hard work amid a challenging and complex sales landscape. With that, I'd like to turn the call over to our CFO, Scott Davidson, to discuss our financial results in greater detail. Scott?

Disclaimer

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Investor presentation