Health and wellness products company USANA Health Sciences (NYSE: USNA) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 10.9% year on year to $236 million. The company’s full-year revenue guidance of $960 million at the midpoint came in 1.4% above analysts’ estimates. Its non-GAAP profit of $0.74 per share was 37% above analysts’ consensus estimates.
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USANA (USNA) Q2 CY2025 Highlights:
- Revenue: $236 million vs analyst estimates of $225.2 million (10.9% year-on-year growth, 4.8% beat)
- Adjusted EPS: $0.74 vs analyst estimates of $0.54 (37% beat)
- Adjusted EBITDA: $30 million vs analyst estimates of $24.9 million (12.7% margin, 20.5% beat)
- The company reconfirmed its revenue guidance for the full year of $960 million at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $2.68 at the midpoint
- EBITDA guidance for the full year is $115 million at the midpoint, above analyst estimates of $112.6 million
- Operating Margin: 8.9%, in line with the same quarter last year
- Market Capitalization: $564.1 million
Company Overview
Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE: USNA) manufactures and sells nutritional, personal care, and skincare products.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.
With $899.4 million in revenue over the past 12 months, USANA is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers.
As you can see below, USANA’s revenue declined by 5.9% per year over the last three years, a poor baseline for our analysis.
This quarter, USANA reported year-on-year revenue growth of 10.9%, and its $236 million of revenue exceeded Wall Street’s estimates by 4.8%.
Looking ahead, sell-side analysts expect revenue to grow 10.5% over the next 12 months, an acceleration versus the last three years. This projection is commendable and suggests its newer products will catalyze better top-line performance.
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Cash Is King
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
USANA has shown decent cash profitability, giving it some flexibility to reinvest or return capital to investors. The company’s free cash flow margin averaged 6.7% over the last two years, slightly better than the broader consumer staples sector.
Key Takeaways from USANA’s Q2 Results
We were impressed that USANA beat analysts’ revenue, EBITDA, and EPS expectations this quarter. Despite this, the company maintained previously-provided full-year revenue and EPS guidance. This could be reflecting management's conservatism, not yet wanting to raise guidance due to some levels of uncertainty. Still, we think this was a good print with some key areas of upside. The stock remained flat at $31.53 immediately after reporting.
Is USANA an attractive investment opportunity at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.
