Key Highlights

  • Net sales slipped 4% to USD 206 million in the fiscal third quarter ended October 3, 2026, down from USD 214 million, based on the November 3, 2026 release.
  • The net loss narrowed to USD 5.6 million, or USD 0.30 per diluted share, from USD 6.5 million, or USD 0.36, while adjusted diluted loss per share improved to USD 0.11 from USD 0.15.
  • Fiscal 2026 adjusted EBITDA guidance now stands at USD 77 million, down from a corrected USD 80.5 million, and consolidated net sales are expected to approach USD 900 million.
  • Core Nutritional active customers dropped to 356,000 from 388,000, while Hiya active monthly subscribers grew 18% sequentially to 195,500.

A Mixed Quarter Behind the Lower Profit Target

USANA Health Sciences (NYSE:USNA) reported fiscal third quarter results for the period ended October 3, 2026 on November 3, 2026. Net sales came to USD 206 million, down 4% from USD 214 million, and adjusted EBITDA attributable to the company was USD 12.1 million compared with USD 13.8 million. The net loss reflected income tax expense of USD 6 million against a pretax loss of about USD 1 million. The chief executive described the quarter as mixed, with meaningful gains in some areas and shortfalls in others. Fiscal 2026 guidance now points to a net loss of USD 16 million, adjusted diluted EPS of USD 0.55 versus USD 0.76 previously, and adjusted EBITDA of USD 77 million.

Hiya Investment Weighs on Margins as Core Customers Decline

Management opted to increase Marketing spend at Hiya, which pressured margins but added about 29,500 active monthly subscribers sequentially and returned the segment to 2% year-over-year sales growth, reaching USD 32 million. Customer Acquisition costs fell from the first half, and net sales through Target and Amazon more than doubled from the second quarter. Core Nutritional sales decreased 3% to USD 171 million, and active customers fell 8%, while Greater China sales rose 1% but its active customers dropped 9%. Rise Wellness sales declined 45% to USD 4 million. The company said core Margin improved on a leaner cost base, and it is revising its Brand Partner incentive plan to reward active customer growth.

A Corrected Baseline, Cash Position and Near-Term Watch Items

The release fixes earlier adjusted EBITDA attributable to USANA, because the USD 29.1 million Hiya Goodwill Impairment had been added back in full rather than net of the USD 6.2 million tied to the noncontrolling interest. The corrected second quarter figure is USD 21.7 million, and the August 4, 2026 outlook becomes USD 80.5 million instead of about USD 87 million, a non-GAAP change that leaves GAAP results untouched. The company finished the quarter with USD 179 million in cash, no debt, USD 36 million of year-to-date free Cash Flow and roughly USD 34 million left on its buyback authorization, having repurchased no shares this quarter. Risks include ongoing customer attrition and Hiya margin pressure, while management anticipates sequential Hiya progress in the fourth quarter.

Where Things Stand

The cut reflects weaker expectations at Rise Wellness and deliberate Hiya spending, which outweighed better Core Nutritional profitability, according to the chief financial officer. USANA Health Sciences (NYSE:USNA) is also working from a corrected baseline, since the prior adjusted EBITDA guidance fell from about USD 87 million as first published to USD 80.5 million after the error was fixed. The Balance Sheet is sound, with USD 179 million of cash and no debt, though active customers in the core Business continue to shrink. Hiya subscriber growth and any early-2027 update on wider retail reach are the next items to watch.