Shares of USANA Health Sciences tumbled in morning trading following an unexpectedly weak second-quarter report and a sharp reduction to full-year expectations. The stock fell 26.1% after the company disclosed results and guidance that fell short of analyst models.
For the quarter ended July 4, 2026, USANA recorded an adjusted loss of $0.07 per share, a figure that contrasted with the $0.43 consensus estimate. Revenue for the period was $223 million, below the $235 million analysts had forecast and representing a 5.4% decrease from the year-ago quarter. Adding to the negative headline numbers was a preliminary, non-cash impairment charge of $29.1 million related to goodwill and intangible assets, which contributed to a GAAP net loss of $(21.4) million for the quarter.
Perhaps most consequential for investors was management's revision to full-year guidance. The company now expects FY 2026 earnings per share of $0.76, a mark that sits well under the analyst consensus of $2.12. Revenue guidance was lowered to $910 million, compared with the Street's $945.1 million estimate. Those adjustments prompted heightened scrutiny from market participants.
A live earnings conference call on the morning of August 5 provided analysts and institutional investors the chance to question management, but the session did not appear to ease concerns. Company-reported customer engagement measures deteriorated: Core Nutritional Active Customers declined to 384,000 from 418,000 year-over-year, while Hiya subscribers fell to 166,000 from over 200,000. These trends added to worries about the firm's demand trajectory.
The share price drop occurred against a backdrop of modest gains across major indexes; the S&P 500, Dow Jones and Nasdaq were trading slightly higher on the same day. That contrast highlighted the company-specific nature of USANA's selloff rather than any broad market weakness.
Analyst sentiment heading into the report had already been cautious, with an average rating of "Reduce." The combination of a significant earnings miss, the impairment charge, a conservative guidance update and weakening customer metrics produced a strong negative reaction from investors, driving the stock down to an intraday 52-week low of $16.51 and erasing much of the prior three months' gains.
Key points
- USANA reported an adjusted loss of $0.07 per share for Q2 and revenue of $223 million, missing consensus expectations.
- The company announced a $29.1 million preliminary non-cash impairment charge and a GAAP net loss of $(21.4) million.
- Full-year guidance was cut to $0.76 EPS and $910 million revenue, well below analyst projections; important customer engagement metrics also declined.
Risks and uncertainties
- Continued deterioration in customer engagement - declines in active customers and subscription counts could pressure near-term revenue and demand.
- Market reaction to guidance and impairment - further downward revisions or additional non-cash charges could deepen investor losses and weigh on the stock.
- Analyst coverage and sentiment - an existing "Reduce" consensus may lead to further negative reassessments following the earnings miss and guidance cut.