$NUS Q1 2026 earnings: Core Network Collapses as Management Sells the Future Nu Skin's first quarter delivered a brutal reality check against management's optimistic transition narrative. Revenue fell 12% YoY to $320.6M, marking the fifth consecutive quarter of double-digit contraction. More alarmingly, the underlying sales engine is eroding fast: total customers dropped 14% to a multi-year low of 669K, and the sales leader count fell 13%. While management continues to hype the upcoming H2 consumer rollout of the Prysm iO intelligent wellness platform and a late-2026 India expansion, the core business lacks stability. With adjusted operating margins compressing to 3.6% and guidance pointing to continued top- and bottom-line erosion, the company is racing against the clock to pivot before its distribution network hollows out entirely. Full article with charts - link in bio 🐂 𝐁𝐮𝐥𝐥 𝐂𝐚𝐬𝐞 • 𝐏𝐫𝐲𝐬𝐦 𝐢𝐎 𝐓𝐫𝐨𝐮𝐠𝐡 𝐀𝐩𝐩𝐫𝐨𝐚𝐜𝐡𝐢𝐧𝐠 — The company is actively flushing out low-margin, legacy beauty revenue in favor of high-LTV wellness subscriptions. The planned H2 2026 full consumer rollout of the Prysm iO AI platform could reignite distributor excitement. • 𝐂𝐥𝐞𝐚𝐧 𝐁𝐚𝐥𝐚𝐧𝐜𝐞 𝐒𝐡𝐞𝐞𝐭 𝐏𝐫𝐨𝐯𝐢𝐝𝐞𝐬 𝐑𝐮𝐧𝐰𝐚𝐲 — Despite operational weakness, the company has successfully deleveraged over the past year (reducing debt significantly since early 2025) and maintained a net cash positive position, ensuring they can fund the India and Prysm iO initiatives without distress. 🐻 𝐁𝐞𝐚𝐫 𝐂𝐚𝐬𝐞 • 𝐒𝐚𝐥𝐞𝐬 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐄𝐯𝐚𝐩𝐨𝐫𝐚𝐭𝐢𝐧𝐠 — A direct-selling model cannot function without sellers. The continued 13% YoY loss in Sales Leaders and 8% loss in Paid Affiliates limits the funnel for any new product launches, making a back-half recovery highly questionable. • 𝐑𝐡𝐲𝐳 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐢𝐧𝐠 𝐒𝐭𝐨𝐫𝐲 𝐁𝐫𝐞𝐚𝐤𝐬 — The Rhyz segment, previously touted as a key growth driver and diversification engine ( 17% YoY in 25Q2), suddenly saw manufacturing revenues plunge 18.7% YoY in Q1, stripping the company of its only growing pillar. ⚖️ 𝐕𝐞𝐫𝐝𝐢𝐜𝐭: 🔴🔴 Highly Bearish. When management cites 'early signs of improving paid affiliates' while the printed data shows a 14% sequential drop in total customers and a YoY contraction in every major region, credibility is strained. The core business is shrinking faster than the new initiatives can scale. 𝐊𝐞𝐲 𝐓𝐡𝐞𝐦𝐞𝐬 🔴🔴 𝐍𝐚𝐫𝐫𝐚𝐭𝐢𝐯𝐞 𝐯𝐬. 𝐑𝐞𝐚𝐥𝐢𝐭𝐲 𝐨𝐧 𝐒𝐚𝐥𝐞𝐬 𝐅𝐨𝐫𝐜𝐞 𝐇𝐞𝐚𝐥𝐭𝐡 [NEW] Management explicitly stated they are 'encouraged by early signs of improving paid affiliates and new sales leader development.' This directly contradicts the printed financials: Paid Affiliates dropped 8% YoY (and fell from 129,311 in 25Q4 to 120,850 in 26Q1) while Sales Leaders dropped 13% YoY. A sequential loss of roughly 8,500 affiliates and 3,100 leaders in a single quarter is a massive red flag that casts doubt on the 'improving' narrative. 🔴 𝐑𝐡𝐲𝐳 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐢𝐧𝐠 𝐆𝐫𝐨𝐰𝐭𝐡 𝐑𝐞𝐯𝐞𝐫𝐬𝐞𝐬 [NEW] For the past year, the Rhyz Manufacturing segment was management's reliable bright spot, consistently growing ( 17.3% in 25Q2, for instance) and validating the incubator strategy. In 26Q1, that trend is Reversing violently. Rhyz Manufacturing revenue fell 18.7% YoY to $44.9M. If external partner demand is drying up, Nu Skin is left entirely reliant on its contracting direct-sales channel. 🟢 𝐏𝐫𝐲𝐬𝐦 𝐢𝐎 𝐚𝐬 𝐭𝐡𝐞 𝐌𝐚𝐤𝐞-𝐨𝐫-𝐁𝐫𝐞𝐚𝐤 𝐂𝐚𝐭𝐚𝐥𝐲𝐬𝐭 The entire strategic pivot rests on Prysm iO, an AI-powered intelligent wellness platform. Management is currently equipping sales leaders with the device to build the nutritional health biomarker database ahead of a full consumer rollout in H2 2026. The thesis: use hardware to drive high-LTV wellness product subscriptions. If successful, this could transform Nu Skin from a transactional cosmetics company to a recurring-revenue wellness platform. 🔴 𝐒𝐞𝐯𝐞𝐫𝐞 𝐃𝐞𝐭𝐞𝐫𝐢𝐨𝐫𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐭𝐡𝐞 𝐀𝐦𝐞𝐫𝐢𝐜𝐚𝐬 𝐚𝐧𝐝 𝐒𝐨𝐮𝐭𝐡 𝐊𝐨𝐫𝐞𝐚 Geographic performance remains bleak. South Korea was the worst laggard, plunging 22.1% YoY to $25.3M (with customers down 20%). The Americas, historically a core stronghold, dropped 16.3% to $57.8M (customers down 18%). The continued erosion of the Americas footprint suggests deep systemic issues with the compensation model or brand resonance in developed, hyper-competitive social commerce markets. ⚪ 𝐈𝐧𝐝𝐢𝐚 𝐌𝐚𝐫𝐤𝐞𝐭 𝐄𝐱𝐩𝐚𝐧𝐬𝐢𝐨𝐧 𝐃𝐞𝐥𝐚𝐲𝐞𝐝 𝐈𝐦𝐩𝐚𝐜𝐭 Management continues to highlight India (a 1.4 billion population market) as a massive structural growth opportunity. However, they clarified that the formal launch is not anticipated until late 2026. While strategically sound, this means investors cannot expect any meaningful revenue rescue from India during the current fiscal year. 𝐎𝐭𝐡𝐞𝐫 𝐊𝐏𝐈𝐬 𝐀𝐝𝐣𝐮𝐬𝐭𝐞𝐝 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐌𝐚𝐫𝐠𝐢𝐧 (𝟐𝟔𝐐𝟏): 3.6% Decelerating sharply from 6.4% in 25Q1. While adjusted gross margins held perfectly steady (67.9% vs 67.8%), operating deleverage crushed the bottom line. Selling expenses rose to 34.3% of revenue (up from 32.5%), and adjusted G&A rose to 29.9% (up from 28.9%). The company is losing scale faster than it can cut costs. 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐑𝐞𝐭𝐮𝐫𝐧𝐬 (𝟐𝟔𝐐𝟏): $7.9 million Stable. The company paid $2.9M in dividends and executed $5.0M in stock repurchases. While mathematically sound given their cash balance, buying back stock when the distributor network is actively imploding raises questions about capital allocation priorities versus investing in network stabilization. 𝐆𝐮𝐢𝐝𝐚𝐧𝐜𝐞 𝟐𝟔𝐐𝟐 𝐑𝐞𝐯𝐞𝐧𝐮𝐞: $330 - $360 million Stable trajectory. The midpoint of $345M implies a YoY decline of roughly 11% (vs 25Q2's $386.1M) and roughly 0% FX impact. This indicates management does not expect any meaningful sequential rebound in the core business before the H2 launches. 𝟐𝟔𝐐𝟐 𝐄𝐏𝐒: $0.15 - $0.25 Decelerating. Compared to 25Q2's adjusted EPS of $0.43, this represents a severe YoY profit contraction. It reflects the ongoing deleverage from lower sales volumes and the absence of margin support from the Rhyz Manufacturing segment. 𝐅𝐘𝟐𝟔 𝐑𝐞𝐯𝐞𝐧𝐮𝐞: $1.35 - $1.50 billion Stable. Management maintained their full-year guide, which implies a range of -9% to 1% YoY growth. Achieving the higher end of this range mathematically requires a massive, unprecedented revenue acceleration in the second half of the year. Given current run-rates, reaching the midpoint relies heavily on Prysm iO execution. 𝐅𝐘𝟐𝟔 𝐀𝐝𝐣𝐮𝐬𝐭𝐞𝐝 𝐄𝐏𝐒: $0.80 - $1.20 Reiterated, but requires a steep back-half ramp. In prior quarters, management noted that 2026 EPS will be heavily pressured by an effective tax rate spike to roughly 35% (compared to 2025's tax-advantaged ~19%). 𝐊𝐞𝐲 𝐐𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬 𝐀𝐟𝐟𝐢𝐥𝐢𝐚𝐭𝐞 𝐆𝐫𝐨𝐰𝐭𝐡 𝐃𝐢𝐬𝐜𝐫𝐞𝐩𝐚𝐧𝐜𝐲 You noted 'early signs of improving paid affiliates' in your prepared remarks, yet the reported data shows Paid Affiliates are down 8% YoY and dropped sequentially by over 8,000. In which specific markets are you seeing these improvements, and why aren't they offsetting the broader collapse? 𝐑𝐡𝐲𝐳 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐢𝐧𝐠 𝐑𝐞𝐯𝐞𝐫𝐬𝐚𝐥 Rhyz Manufacturing went from a double-digit growth engine last year to an 18.7% YoY decline this quarter. Did you lose a major third-party customer, or is this a broader slowdown in the external beauty manufacturing space? 𝐇𝟐 𝐄𝐱𝐞𝐜𝐮𝐭𝐢𝐨𝐧 𝐑𝐢𝐬𝐤 Your FY26 revenue guidance relies entirely on a second-half inflection driven by Prysm iO. With total customers and sales leaders at multi-year lows, how will you effectively distribute and scale a new hardware platform through a rapidly shrinking network?

Why I’m Bullish on $ALLR: 1) The Science is Solid Allarity ($ALLR) has delivered compelling clinical results. Their precision oncology approach, utilizing the PARP inhibitor Stenoparib, which targets the WNT pathway, is showing remarkable promise. A Phase 2 trial was concluded early after demonstrating clear clinical benefit, with one patient achieving a full response and several others experiencing significantly prolonged survival—an extraordinary outcome considering Stenoparib is administered as a last-line treatment when all other therapies have failed. 2) Addressing Market Concerns: Dilution & Reverse Splits Investor concerns over dilution and reverse splits have been prevalent due to past filings. However, these fears should now be largely alleviated. CEO Thomas Jensen has committed to increasing shareholder value without engaging in toxic financing. Furthermore, the company has officially canceled their S-1 filing, reducing dilution risk. The only remaining ATM (At-the-Market offering) is according to my calculations approximately $10M, but it’s unlikely to be utilized given their recent $5 million share buyback announcement—a clear signal of confidence in the company’s future(I don't think SEC looks favorably at share buyback simultaneous with companies tapping ATM). Furthermore there is only one class of shares and no longer any debt conversions or warrants as far as I can see. 2b) another outstanding concern till now was Legal/SEC related to missteps by previous management. They are long gone but there were remaining lawsuits and SEC charges. However, over the past 2 weeks, Allarity announced that the class action was dismissed and they settled with the SEC to quote: "Allarity has now resolved all regulatory and legal challenges related to these issues and all other previously outstanding legal matters." 3) The March 6th Game-Changer: Government-Backed Trial Perhaps the most overlooked yet groundbreaking development was $ALLR’s March 6th announcement that a Phase 2 trial for Stenoparib in lung cancer (SCLC) will be fully funded by the U.S. Department of Veterans Affairs (VA). This is highly significant for two reasons: It underscores the government's confidence in the drug's efficacy. It marks the first expansion of Stenoparib into lung cancer, a previously untapped indication. Presumably, this level of government backing would not have materialized unless Stenoparib was demonstrating exceptional results in late-stage ovarian cancer trials. 4) The Market Hasn’t Caught Up Yet Despite these pivotal developments, the market continues to price $ALLR as if dilution remains a major overhang—which is simply outdated thinking. With that concern effectively neutralized, the potential upside is enormous. If the market wakes up to the company’s strong science, promising clinical data, and improved financial structure, we could see a dramatic re-rating of the stock. 5) Conclusion: A Misunderstood Turnaround Play $ALLR represents a highly asymmetric risk/reward opportunity. The market has mispriced the stock based on past concerns that are no longer relevant. If upcoming conference abstracts confirm the strength of Stenoparib’s data, the valuation could shift rapidly. Given its current market cap and historical price levels, the potential for a significant revaluation is very real. Shorts who have been leaning on this company for years, may not be feeling so comfortable in the weeks ahead and months ahead.

$ONEW huge miss on rev and bottom line..

$ALLR wow this deal.. cash to 28 🔥🔥 "Financing Structured as Non-Convertible Debt Financing" $10m 10m I really like this.. Waiting for the SEC filing to come out but everything I've seen the PR looks amazing wow I don't know how Thomas got these terms wow ~$35m cash

$ECVT looks like stellar #EPS report..No vol yet