Nu Skin Enterprises, Inc.

Good day and thank you for standing by. Welcome to the Q2 2025 New SCIM Enterprises Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, B.G. Hunt, Vice President of Treasury and Investor Relations. Please go ahead.

Thanks, James, and good afternoon, everyone. I'm joined by Ryan Napierski, President and CEO, and James D. Thomas, CFO. We're excited to share Nu Skin's results from Q2 of 2025. Before I turn the time over to Ryan, let me point out that on today's call, comments will be made that include forward-looking statements. These statements involve important risks and uncertainties, and actual results may differ materially from those discussed or anticipated. Please refer to today's earnings release and our SEC filings for complete discussion on these risks. Also during the call, certain financial numbers may be discussed that differ from comparable numbers obtained in our financial statements. We believe these non-GAAP numbers assist in comparing period-to-period results in a more consistent manner. Please refer to our investor website, ir.newskin.com, for any required reconciliation of these non-GAAP numbers. And with that, I'd like to now turn the call over to Brian.

Thanks, BG. Thanks, everyone, for joining the call. We spent some time this past quarter with our amazing and talented top leaders, in our annual Team Elite incentive trip in Greece where we aligned around our vision, strategy, and plans for our next big opportunities, which I'll get to in just a moment. But before I get to the strategy, I'll begin with an overview of our Q2 performance, then provide an update on our key strategic priorities for the remainder of 2025 as we continue pursuing our mission of being a global force for good by empowering people to look, feel, and live better lives. I'm pleased to report that we delivered revenue at the high end of our guidance range and significantly exceeded our earnings per share forecast for the second quarter. We achieved revenue of $386.1 million. More notably, we delivered earnings per share of 43 cents, well above our guidance range of 20 to 30 cents. This strong earnings performance reflects our disciplined approach to cost management and operational efficiency improvements that we've been implementing across the organization. As we review our reporting segments, we're seeing encouraging signs in several parts of the business as we navigate the macro environmental uncertainties impacting consumers around the world. We continue to drive strong year-over-year growth in Latin America as our developing market strategy takes hold in the region. This was offset by declines in North America, which has faced increasing macro pressures on the business. Japan reported growth in the quarter and continues to benefit from a strong subscription-based wellness business. While revenue in South Korea and China was down due to persistent economic challenges, we're seeing signs of sequential improvement. We experienced growth in the Pacific while the rest of Southeast Asia remained sluggish. Europe and Africa also experienced improving trends in customer and new sales leader engagement with our enhanced sales performance plans. And our rise segments performed well with manufacturing reporting 17% up year over year in the quarter. Now let me update you on our strategic priorities for 2025 as we've made significant progress in preparing our sales leaders for these next opportunities. First, we're making good progress in bringing to market our next big innovation, Prism.io, our truly intelligent wellness platform. As I mentioned in Q1, Prism.io is built upon more than 20 years of collective scientific scientific research and development, and our extensive antioxidant database that contains more than 20 million scans from 10 million participants across more than 50 countries. By utilizing AI capabilities to interpret this data through our own proprietary new intelligence platform, we'll be able to provide our customers with truly intelligent, healthy lifestyle insights that as well as personalized product recommendations to improve their antioxidant score and support their wellness journey. In just 15 seconds, this palm-sized device will accurately and non-invasively measure carotenoid levels in the skin via the fingertip. As we educate consumers on four primary dimensions of health, diet, fitness, oxidative stress, and supplementation, Their PRISM-IO score can provide insights to motivate them to implement lifestyle changes aimed at improving their overall health span. We'll begin rolling out PRISM-IO in limited quantities for qualified sales leaders during the fourth quarter of this year, followed by broader leader launches around the globe in the first half of 2026 and consumer launches anticipated to the back half of the year. The PRISMIO launch will be accompanied by enhanced and expanded line of geographically customized LifePak product solutions, as well as other targeted wellness products via our subscription-based retention model. We will be reformulating our leading line of nutritional supplements, leveraging the latest metadata and scientific research to meet geographic dietary needs at various pricing tiers. For example, studies show that vitamin E is often under-consumed in many parts of the world, which can negatively affect immune and cardiovascular health. Adjusting vitamin E levels for these areas provides customized product solutions to better meet the needs of diverse consumer segments around the world. As consumers are growing increasingly more conscientious about their overall well-being, we're excited about the potential impact of Prism.io and our revolutionary intelligent wellness platform. And with our unique ability to provide customized subscription-based product solutions that support one's overall health and well-being, we are uniquely positioned to play in this rapidly growing wellness movement. Our second key priority is our developing market strategy, which continues to deliver remarkable results in Latin America, which reported up more than 100% year-over-year in revenue, customers, and sales leaders. Nu Skin has historically been known for our premium market positioning in the beauty and wellness space, and as we envision a more expansive future for our company, it is imperative that we broaden our positioning to appeal to emerging segments in both existing and new markets. We continue to learn and gain insights that help us expand this strategy into other markets, including India, which represents an enormous opportunity given the 1.4 billion population and rapidly growing beauty and wellness industries. As we prepare for India, we're following this simplified and scalable business model, including a localized product portfolio containing a new mastige brand called Saranu that is priced for India's growing middle class. This targeted product offering combined with a refined compensation plan and a digital-first operating infrastructure will enable a more focused and scalable path to growth for this emerging market. We're on track with our plans in India for a Q4 pre-market opening for qualified India-eligible sales leaders and are building towards a formal launch anticipated in mid-2026. We remain excited about the prospects for India and our other developing markets, which we anticipate will become a much larger portion of our revenue moving forward. And thirdly, we're pleased to see overall margin expansion through Project Accelerate, our ongoing initiative to improve operational efficiencies to strengthen our bottom line. We're focused on three key drivers, improving gross margin in the core Nu Skin business to 78% through product portfolio optimization, selling expense alignment to better reward growth in our sales force, and GNA prudence around the globe. Overall, our efforts led to significant improvements in our Q2 operating margin to 8%. We have also strengthened our balance sheet to become a cash-to-debt positive, which provides us with greater flexibility amid market fluctuations and an improved ability to invest in growth initiatives and return value to shareholders. One last point I'd like to mention is about RISE, our innovation incubator. As we experienced with our recently transacted Maybelline business, which generated approximately $200 million in value to the balance sheet, RISE plays a strategically significant role for our enterprise. Notably, RISE manufacturing, which grew 17% year-over-year, enables us to gain speed to market for new, cutting-edge beauty and wellness innovations. For example, our U.S. business recently introduced mSmart, a drink mix-in that helps support a healthy blood glucose response after meals and brought it to market in less than two months. Another RISE business, Life DNA, a genetic wellness assessment business, continues to perform ahead of expectations, and we anticipate will support our broader intelligent wellness platform vision in the future. So with that, I'll turn the time over to James, who will provide more financial details, including our updated guidance for the remainder of 2025. James? Thanks.