USANA Swings to Loss After Hiya Goodwill Impairment

The Tip Desk · August 4, 2026 · 4 min read

The health-products company booked a $29.1 million preliminary Hiya goodwill charge and cut fiscal 2026 sales guidance to $910 million.

USANA Health Sciences (USNA) swung to a net loss of $21.4 million, or $1.16 a share, in the fiscal second quarter ended July 4, 2026, from net earnings of $9.7 million, or $0.52 a share, a year earlier, after recording an estimated preliminary non-cash impairment of $29.1 million against Hiya goodwill.

Adjusted diluted earnings were a loss of $0.07 a share versus $0.74 a year earlier. Adjusted EBITDA attributable to USANA was $27.8 million.

Consolidated net sales were $223 million, down 5% from $236 million a year earlier, including a $6 million, or 3%, favorable foreign-exchange impact. Sales fell 11% sequentially after a flat year-over-year first quarter. Chairman and Chief Executive Officer Kevin Guest said Core Nutritional results were generally in line with expectations, while the ventures businesses performed below expectations. Hiya, he said, continued to face a challenging digital-marketing environment that pressured topline performance, subscriber growth and margins. Rise Wellness experienced a packaging-related disruption that affected commercial execution.

The company said it now expects full-year net sales for Hiya and Rise to be below prior expectations and is updating its outlook accordingly.

Core Nutritional, the largest segment, generated $192 million of net sales, down 4% from a year earlier and 6% sequentially. Active customers were 384,000. Greater China sales were $114 million, up 1% year over year and down 3% in constant currency, with 216,000 active customers. North Asia sales were $14 million, down 20% year over year, with 32,000 active customers. Southeast Asia Pacific sales were $29 million, down 13% year over year, with 59,000 active customers. Americas and Europe sales were $34 million, down 5% year over year, with 77,000 active customers.

Hiya Health net sales were $28 million, down 17% from a year earlier and 12% sequentially. Active monthly subscribers were 166,000. Rise Wellness net sales were $3 million, up 40% from a year earlier but down 75% sequentially from $14 million in the first quarter.

Chief Financial Officer Doug Hekking said the GAAP net loss and negative adjusted diluted EPS reflected lower-than-expected commercial performance from Hiya and Rise. The Hiya impairment, he said, primarily reflects recent performance and changes in near-term forecasts, as well as updated valuation assumptions under applicable accounting standards, including adjustments to market multiples and discount rates. An increase in the annual estimated income tax rate, driven by both current performance and lower near-term forecasts, disproportionately impacted the quarter and contributed to the net loss. Income tax expense was $9 million against a pretax loss of $19 million.

The company updated fiscal 2026 guidance. Consolidated net sales are now expected at $910 million, down from a prior range of $925 million to $1.0 billion. Net loss is now expected at $11 million, versus a prior range of $20 million to $27 million of earnings. Diluted EPS is now expected at a loss of $0.61 a share, versus a prior range of $1.11 to $1.45. Adjusted diluted EPS is now expected at $0.76 a share, versus a prior range of $1.95 to $2.29. Adjusted EBITDA is now expected at $87 million, versus a prior range of $101 million to $109 million.

Segment guidance was cut for Hiya to $125 million from $140 million to $155 million and for Rise Wellness to $35 million from $65 million to $80 million. Core Nutritional net sales are set at $750 million, versus a prior range of $720 million to $765 million, reflecting an expected favorable currency impact of about $20 million, or 2% of net sales, and one less week of operations versus a 53-week fiscal 2025.

Cash and cash equivalents were $169 million at quarter-end, with zero debt, versus $163 million of cash and $14 million of debt after the first quarter. The company generated $20 million of free cash flow, which it said was driven in large part by improved working-capital management. Total inventories were $95 million as of July 4, 2026. The company did not repurchase shares and had about $34 million remaining under its current authorization.