USANA Health Sciences, Inc.

Greetings and welcome to the USANA Health Sciences second quarter 2026 earnings. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I'd now like to turn the conference over to your host, Andrew Masuda, Director of Investor Relations. Please go ahead.

Thank you and good morning everyone. We appreciate you joining us to review our second quarter results. Today's conference call is being broadcast live via webcast and can be accessed directly from our website at ir.isana.com. Shortly following the call, a replay will be available on our website. As a reminder, during the course of this conference call, management will make forward-looking statements regarding future events or the future financial performance of our company. Those statements involve risks and uncertainties that could cause actual results to differ, perhaps materially, from the results projected in such forward-looking statements. Examples of these statements include those regarding our strategies and outlook for fiscal year 2026, uncertainty related to the economic and operating environment around the world, and our operations and financial results. We caution you that these statements should be considered in conjunction with Disclosures including specific risk factors and financial data contained in our most recent filings with the SEC. I'm joined by our Chairman and Chief Executive Officer, Kevin Guest, our Chief Financial Officer, Doug Hekking, our Chief Commercial Officer, Brent Neidig, our Chief Operating Officer, Walter Noot, our Chief Scientific Officer, Dr. Catherine Armstrong, as well as other executives. Yesterday, after the market closed, we announced our second quarter results. and posted our management commentary document on the company's website. We'll now hear brief remarks from Kevin and Doug before opening the call for questions.

Thank you, Andrew, and good morning, everyone. I want to use my time this morning to step back from the corridor and talk about where USANA is headed because I remain more convinced than ever that the path we're on is the right one. We're building something different Evolving the company, we are building a diversified, omnichannel health and wellness company anchored by science and built on deep, lasting consumer loyalty, with our products reaching consumers wherever they choose to shop. This transformation is well underway, and the progress we are seeing across our portfolio this year reinforces by confidence in our strategic direction. Our core nutritional business continues to demonstrate stability and momentum. Mainland China, our largest and most established market, is showing signs of renewed strength, and that matters because it reflects the deep trust our brand partners and customers place on this brand. We're backing that trust with continued innovation, including the recent launch of Glow, our first skin health supplement, which extends our science leadership beyond topical skin care into cellular level formulations. Looking ahead, I'm pleased to note that USANA will host our live 2026 Americas Convention on August 12th through the 15th in San Diego, California. This event brings together our brand partners from across the United States, Canada, and Mexico for business training, new product launches, product education, and recognition of our top performers. reinforcing the engagement and momentum that we continue to drive from our core nutritional business. That same momentum is what we're working to build across the business. We're evolving our brand partner compensation plan, accelerating our product innovation, and modernizing technology that underpins how our brand partners and our customers experience and interact with our brand. I'm genuinely excited about the compounding effect these initiatives will have as they mature. Hyatt continues to open doors for us in ways that would have been hard to imagine a few years ago. The brand's presence at Target remains strong. Our early footprint in Canada and the UK is trending in the right direction, and the Hyatt team is leaning into the traction we are seeing on Amazon as well. At the same time, Hiya's direct-to-consumer business has experienced a tougher and more expensive digital marketing environment, and that's had a clear impact on subscriber growth this year. I don't want to gloss over that. It's a real challenge the business is confronting right now. But in the long run, I assure you that the brand equity Hiya has built as the category leader in children's health and wellness is a durable asset that gives us multiple paths for growth. We see a very encouraging future as HIAA expands into new retail channels, new geographies, new product categories, and new customer demographics. Rise Wellness experienced a packaging issue that affected execution of the commercial plan during the quarter. Although that issue is resolved, we now expect that HIAA's net sales for the full year to be lower than we previously anticipated. When I look beyond this short-term disruption and focus on RISE's long-term potential, I am very confident. Protein Pop is barely a year into its life as a national brand, and it's already built real distribution and shelf presence across major retail channels. The team is launching an additional Protein Pop product in the third quarter that demonstrates its commitment to speed and innovation. So yes, The current outlook has been disrupted, but our conviction is where the brand is headed long term remains firmly intact. I see the potential synergy and growth opportunity in our company through executing a clear strategy with discipline and stabilizing and strengthening our core nutritional business while scaling our high potential ventures brand and investing in the technology and innovation will define our next decade. We anticipate these efforts will stimulate growth, and I'm encouraged by the caliber and engagement of the teams driving this forward. Our balance sheet remains a real source of strength and opportunity for us. We ended the quarter with $169 million in cash, zero debt, and generated $20 million of free cash flow driven in large part by efforts to improve our working capital management. Our financial flexibility allows us to keep investing in USANA's evolution into a diversified, omnichannel health and wellness company even as we navigate near-term puts and take across the portfolio. With that, let me hand it over to Doug to provide additional color on our second quarter financial results and our updated outlook as things come to fruition.