USANA's Q2 10-Q confirms a $29.1M Hiya goodwill impairment and a $21.4M net loss
USNA is trading near its 52-week low of $13.5 (1.6% above the low).
Summary
USANA's Q2 10-Q details a $29.1M Hiya goodwill impairment, $21.4M net loss, and declining customer counts across all segments, though cash remains strong at $168.6M.
Key Events · Earnings and Guidance · USNA
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Hiya Goodwill Impairment
A $29.1 million non-cash goodwill impairment charge was recorded for the Hiya reporting unit in Q2 2026, reflecting lower-than-expected performance and reduced near-term forecasts.
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Net Loss and Tax Impact
Net loss attributable to USANA was $21.4 million for Q2 2026, compared to net earnings of $9.7 million a year ago. Income tax expense of $9.1 million was recorded on a pretax loss, driven by unfavorable jurisdictional earnings mix and a $6.3 million discrete tax benefit from the impairment.
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Customer Base Decline
Core Nutritional active customers fell 8.1% year-over-year to 384,000, with declines across all regions. Hiya active monthly subscribers dropped 17% to 166,000.
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Segment Performance
Core Nutritional net sales declined 4.0% to $191.6 million, Hiya fell 16.7% to $28.3 million, while Rise grew 40.3% to $3.4 million in Q2 2026.
Analysis · USNA · Life Sciences
The second-quarter 10-Q from USANA confirms the previously announced $29.1 million non-cash goodwill impairment for its Hiya segment, which drove a net loss of $21.4 million. A $6.3 million discrete tax benefit partially offset the impairment, yet the company still recorded income tax expense of $9.1 million on a pretax loss due to an unfavorable jurisdictional earnings mix. Core Nutritional active customers fell 8.1% year-over-year to 384,000, while Hiya subscribers dropped 17% to 166,000. The company maintains $168.6 million in cash and a $75 million credit facility with no outstanding balance, providing liquidity runway despite deteriorating operations.
At the time of this filing, USNA was trading at $13.71 on NYSE in the Life Sciences sector, with a market capitalization of approximately $253.1M. The 52-week trading range was $13.50 to $32.32. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.