USANA Health Sciences, Inc

USANA Health Sciences is a U.S.-based developer and manufacturer of nutritional supplements, personal care products, and skincare products sold internationally through direct selling. The company also operates a direct-to-consumer business through Hiya, which offers children's health and wellness products.

7,6 %

78,3 %

1,2 %

2.24

1.45

— USANA Health Sciences, Inc
	%
USANA Nutritionals	88% Core supplement lines including Optimizers, Essentials/CellSentials, and related nutritional products.
USANA Foods	6% Food and active nutrition products sold within the direct selling channel.
Personal care and Skincare	5% Topical personal care and skincare products distributed through the direct selling network.
Hiya direct-to-consumer	1% Children's health and wellness products sold directly to consumers under the Hiya brand.

USANA sells primarily to independent Brand Partners/Associates and Preferred Customers in its direct selling business...

Brand Partners / Associatesprimary
Independent distributors who purchase USANA products for resale and personal use; they are central to the direct selling model.
Preferred Customersprimary
Consumers who buy USANA products for personal use and do not resell them.
Retail customerssecondary
End consumers reached through Associates in certain markets, buying for household use and wellness needs.
Parents and familiessecondary
Hiya buyers purchasing children's vitamins and wellness products through the direct-to-consumer channel.

USANA operates in multiple international markets, with a large share of direct selling net sales generated outside the...

•Direct selling sales are generated across multiple international markets
•Net sales outside the United States represent the majority of direct selling sales
•China is a major operating market and cash concentration area
•United States remains the corporate base and a key sales market
•Foreign currency movements affect translated sales and earnings

USANA's strategy centers on growing active Customers in its direct selling network while supporting Brand Partners with...

Increase active Customersshort-term

The direct selling model depends on customer count and repeat purchasing to drive product volume.

Scale Hiya direct-to-consumermedium-term

Hiya adds channel diversification and reduces reliance on the traditional direct selling model.

Maintain financial flexibilityshort-term

Liquidity supports operations, acquisitions, stock repurchases, and market expansion.

USANA is exposed to customer concentration and distributor-network risk because sales depend on recruiting and...

high

Active Customer decline

Direct selling revenue is driven by the number of active Customers and their spend.

Scope: Direct selling segment
Materiality: high

high

Foreign exchange volatility

Most sales are outside the U.S., so translation affects reported revenue and earnings.

Scope: International operations
Materiality: high

high

China operating exposure

China is a major market and cash concentration area, increasing regulatory and transfer risk.

Scope: China
Materiality: high

medium

Distributor compensation and incentive pressure

Brand Partner incentives are a major cost and are tied to sales activity.

Scope: Direct selling model
Materiality: medium

medium

Acquisition integration risk

Hiya adds a new channel, brand, and operating model that must be integrated successfully.

Scope: Hiya direct-to-consumer
Materiality: medium

Revenue recognition by channel

Reported revenue and comparability

Brand Partner incentives

Operating margin and earnings

Foreign currency translation

Revenue, earnings, and liquidity

Amortization of acquired intangibles

Operating income and net income

USANA Health Sciences, Inc

Active Customer decline

Foreign exchange volatility

China operating exposure

Distributor compensation and incentive pressure

Acquisition integration risk

USANA HEALTH SCIENCES INC

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