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Mannatech, Incorporated (NASDAQ: MTEX) reported financial results for its fourth quarter and full year ended December 31, 2025, highlighting lower revenue, margin pressure, and a net loss driven largely by income tax charges.
For the three months ended December 31, 2025, Mannatech reported net sales of $26.6 million, down $2.4 million, or 8.2%, from $29.0 million in the fourth quarter of 2024. On a constant dollar basis, net sales declined 7.6%. Unfavorable foreign exchange reduced net sales by $0.2 million versus the prior-year quarter.
Gross profit as a percentage of net sales fell to 75.3% for the three months ended December 31, 2025, from 80.5% in the same period of 2024.
Selling and administrative expenses decreased by $0.6 million to $9.8 million for the fourth quarter of 2025, compared with $10.4 million in the fourth quarter of 2024. The decline included reductions of $0.2 million in legal and consulting fees, $0.1 million in travel and entertainment costs, $0.1 million in bad debt, $0.1 million in miscellaneous administrative expenses, and $0.1 million in warehouse costs.
The company recorded a fourth-quarter operating loss of $0.2 million, compared with operating income of $0.9 million in the fourth quarter of 2024.
Net loss for the fourth quarter of 2025 was $11.3 million, or $5.94 per diluted share, compared with net income of $2.3 million, or $1.20 per diluted share, in the fourth quarter of 2024. The company attributed the higher net income in 2024 to foreign currency exchange gains.
For 2025, Mannatech reported net sales of $108.0 million, down $9.9 million, or 8.3%, from $117.9 million in 2024. Foreign currency exchange rate fluctuations had an overall unfavorable impact, reducing 2025 net sales by approximately $1.9 million versus the prior year. On a constant dollar basis, net sales declined 6.8%.
The company said a significant portion of the revenue decline—approximately 15% of the total decrease in North America—was attributable to the implementation of a new ordering system that negatively impacted sales.
Gross profit as a percentage of net sales decreased to 74.9% in 2025 from 77.6% in 2024, largely due to increased costs related to supply chain challenges, including higher product costs and freight costs.
Selling and administrative expenses were $39.6 million in 2025, compared with $41.7 million in 2024. The $2.1 million decrease included a $1.6 million reduction in payroll-related costs, a $0.6 million decrease in warehouse costs, and smaller declines in travel and entertainment, charitable contributions, and miscellaneous administrative expenses, partially offset by a $0.4 million increase in marketing costs.
Operating loss was $0.4 million in 2025, compared with operating income of $1.4 million in 2024.
For the year ended December 31, 2025, Mannatech recorded an income tax provision of $12.3 million. The company said the provision primarily reflected: (i) valuation allowance recognition in certain jurisdictions based on updated assessments of the realizability of deferred tax assets, driven by changes in the expected mix of earnings across jurisdictions; and (ii) the recording of a deferred tax liability related to outside basis differences in certain foreign subsidiaries.
The combined adjustment to its deferred tax asset allowance and deferred tax liability resulted in an additional $11.5 million charge to deferred tax expense. This brought the total net deferred tax position from a net deferred tax asset of $1.8 million at December 31, 2024 to a net deferred tax liability of $9.7 million at December 31, 2025.
Management noted that the deferred tax liability recorded as of December 31, 2025 reflects the company’s assessment under ASC 740-30 with respect to undistributed earnings of foreign subsidiaries and does not represent a current cash tax obligation. The company said it continues to evaluate planning strategies and structural options to mitigate the long-term impact of its tax structure, including those related to intercompany balances and applicable tax treaties across its international subsidiary network.
Other expense was $2.1 million for 2025, primarily due to foreign exchange losses. In 2024, other income was $2.6 million, primarily due to foreign exchange gains.
Net loss for 2025 was $15.2 million, or $8.00 per diluted share, compared with net income of $2.5 million, or $1.32 per diluted share, for 2024.
As of December 31, 2025, Mannatech’s cash and cash equivalents decreased to $6.2 million from $11.4 million as of December 31, 2024.
For the fiscal year ended December 31, 2025, Mannatech generated net sales of $108.0 million amid broader macroeconomic pressures affecting the global direct-selling industry. The company reported that it reduced total operating expenses by $8.6 million year over year.
Gross profit was $81.0 million, reflecting a gross margin of 74.9%. The company reported operating loss from core business activities of $0.4 million.
The company said the reported net loss of $15.2 million was predominantly attributable to income tax charges of $12.3 million, including a non-cash deferred income tax expense of $11.5 million.
Mannatech reported net operating cash outflow of $2.8 million, primarily reflecting the timing of working capital settlements, and said underlying cash consumption before working capital movements was less than $1.1 million for the year.
The company said it made progress in reducing aged payables, strengthening vendor relationships, and improving balance-sheet quality. It also reported that finance lease repayments declined from $1.6 million in 2024 to $0.3 million in 2025.
Mannatech ended the fiscal year with $7.0 million in cash and cash equivalents.
President and CEO Landen Fredrick said 2025 was challenging, particularly in North America where system-related issues affected sales momentum, and in Asia/Pacific where persistent economic challenges continued. He said the company remains focused on implementing new revenue programs and incentives, operating as a lean organization, and managing expenses.
Mannatech reported that, in addition to GAAP results, it discloses operating results adjusted to exclude the impact of changes due to the translation of foreign currencies into U.S. dollars. The company refers to these adjusted figures as constant dollar items, a non-GAAP measure. It said constant currency results are calculated using the prior year’s exchange rate to determine currency impact as the difference between actual GAAP results and recalculated results at constant dollar rates.
This release includes forward-looking statements under applicable U.S. securities laws. The company said these statements are subject to risks and uncertainties, including factors such as its ability to attract and retain associates and members, increases in competition, litigation, regulatory changes, and planned growth into new international markets. The company said forward-looking statements speak only as of the date of the release.
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