Nu Skin Enterprises, Inc.

And our next anticipated major market, India, holds tremendous potential in the future as we apply key learnings in this pre-market entry phase of operations to better understand the need of entrepreneurs and customers in the world's most populous market. We're working to solidify our operations, infrastructure, and such ahead of our planned formal launch by the end of this year. Evolving a premium global brand to a broader market is challenging and requires thoughtful execution. However, finding the right balance that remains true to our core brand promise while helping more people around the world look, feel, and live better can unlock meaningful long-term growth. What remains constant throughout all of this is the central role of our independent sales leaders. We are a leadership-driven company, and our long-term success depends on our ability to inspire, equip, and align our leaders around these compelling opportunities. Next week, we'll be in South Africa with our top global sales leaders for our Team Elite trip. This will provide an important opportunity to closely engage with them as we share learnings, strengthen alignment, and continue building confidence in the future we are all creating together. Now, throughout all of this, operating efficiency remains a critical focus for us. We're working tirelessly to sustain growth in gross margin in spite of the headwinds associated with uncertain trade practices, which have placed significant pressures over the past many years. We're pleased with progress to date and are committed to continuing improvements in gross margin through localized manufacturing, portfolio optimization, and strategic pricing actions. We will also work to optimize selling expense to reward leadership for growth and maintain discipline controls on our G&A. This discipline allows us to invest in our strategic growth priorities while ensuring our cost structure remains aligned with revenue. So with that, let me turn some time over to Chelsea Lance, who's been a key leader for us over the past several years and valuable contributor to our finance organization. Chelsea has been instrumental in driving cost reductions throughout our organization, and she is now leading us as interim CFO. It's also Chelsea's birthday tomorrow, so we've intentionally synced these two things up. So, Chelsea, take it away.

Hey, thank you, Ryan, and good afternoon, everyone. Before I begin, I'll briefly introduce myself. I'm currently serving as interim chief financial officer and have been with Nu Skin for 15 years, most recently as corporate controller. In that role, I partnered closely with the executive team on operational efficiency and gross margin initiatives while overseeing the company's global financial operations and financial reporting. I'm excited to continue supporting the business as we focus on disciplined execution and long-term value creation. Today, I'll walk through our first quarter results, provide our outlook for the second quarter, and share an update on our expectations for the full year. Additional details can be found on our investor relations website. As a reminder, I will be discussing adjusted non-GAAP measures. Reconciliations to the most directly comparable GAAP measures are available on our website. For the first quarter, we delivered revenue of $320.6 million within the guidance range, including a 1% favorable foreign currency impact. GAAP earnings per share were 4 cents, while adjusted earnings per share were 14 cents excluding costs related to our decision to wind down our separate beauty bio business and other charges. Adjusted EPS was in line with our guidance range. These results reflect continued investment in our key strategic priorities, including the expansion of our intelligent beauty and wellness platform through Prism.io, as well as ongoing investment in emerging markets. We believe these investments are important for our future growth and we're encouraged by our ability to advance these initiatives while maintaining a disciplined focus on operational execution and margin improvement. From a margin perspective, adjusted growth margin was 67.9% compared to 67.8% in the prior year, reflecting a relatively stable revenue mix between the Nu Skin core and RISE entities. Within our core Nu Skin business, growth margin improved to 76.9%, up 20 basis points from the prior year, reflecting continued progress in our operational efficiency initiatives and product mix optimization, consistent with our focus on margin improvement. Consolidated selling expense was 34.3% of revenue compared to 32.5% in the prior year. Within the core Nu Skin business, selling expense was 40.5% up from 38.7% in the prior year, consistent with our expectations as we continue to focus on rewarding sales leaders' productivity through compensation plan enhancements. Looking ahead, we expect selling expense in the core business to remain around 40% as we continue to prioritize investment and initiatives that support top-line revenue growth and sales leader engagement. General and administrative expenses declined by $9 million year-over-year on an adjusted basis, reflecting continued cost discipline while focusing on future investments. As a percentage of revenue, G&A was 29.9%, up from 28.9% in the prior year, reflecting our ongoing investments in technology and emerging market expansion, including India. As a result, adjusted operating margin for the quarter was 3.6% down from 6.4% in the prior year. We remain focused on improving operating efficiency and aligning our cost structure with the current operating environment while continuing to invest in future growth initiatives. Now I'll turn to the balance sheet. Over the past several years, we have focused on paying down debt to strengthen our balance sheet and improve our liquidity position. During the quarter, we completed a refinancing of our credit facilities, extending maturities through 2031, and improving our overall cost of borrowing. This transaction provides appropriate financial flexibility to support our operating and strategic priorities. Proceeds from the refinance were used to repay existing indebtedness. Consistent with our discipline capital allocation strategy, we returned approximately $8 million to shareholders during the quarter, comprised of 3 million in dividends and 5 million in share repurchases. At quarter end, we had 137.3 million remaining under our current share repurchase authorization. Looking ahead, we remain in the early stages of our key growth initiatives and are encouraged by early signs of stabilization including improved brand affiliate and new sales leader trends across several markets. At the same time, we are mindful of potential inflationary pressures impacting consumer sentiment related to macro factors such as tariffs, recent fuel price increases, and broader geopolitical dynamics. As a result, we are taking a measured approach as we evaluate the remainder of the year. We are maintaining our annual guidance and expect to provide more clarity following the second quarter. For the second quarter, we expect revenue in the range of $330 million to $360 million, assuming relatively neutral foreign currency impact, reflecting sequential improvement from the first quarter. We expect earnings per share in the range of $0.15 to $0.25, also reflecting sequential improvement. In closing, we were pleased to deliver results in line with expectations while continuing to invest in our strategic priorities. While the near-term environment remains challenging and the financial impact of these initiatives will take time to scale, we are focused on disciplined execution through managing costs, improving efficiency, and positioning the business for long-term growth. We appreciate your continued support and look forward to updating you on our progress next quarter. And with that, operator will now open the call for questions.

Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Dave Storms of StoneGate. Your line is now open.