Tue, May 13, 9:01 PM (36 days ago)
**Mannatech, Inc. (MTEX) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $26.6 million, a 9.6% decrease from $29.4 million in Q1 2024. The decline was primarily due to slowing demand in Asia due to weakened economic conditions. - **Profit Margins:** Gross profit decreased by 14.6% to $19.7 million, with gross margin falling to 74.3% from 78.6% in Q1 2024. This decline was attributed to increased product costs and freight expenses. - **Net Income:** Mannatech reported a net loss of $1.5 million, or $0.80 per diluted share, compared to a net income of $1.2 million, or $0.63 per diluted share, in Q1 2024. - **Cash Flow:** Operating activities used $1.4 million in cash, a reversal from the $1.9 million provided in Q1 2024. Cash and cash equivalents decreased by 18.2% to $9.3 million. **Key Metrics and Trends:** - **Sales Mix:** Product sales decreased by 8.6%, while pack sales and associate fees dropped by 36.4%. The decline in product sales was due to a decrease in the number of orders processed and a reduction in the average order value. - **Operating Expenses:** Total operating expenses decreased by 7.7% to $20.6 million. Commissions and incentives decreased by 9.7%, while selling and administrative expenses fell by 5.4%. - **Foreign Exchange Impact:** Unfavorable foreign exchange rates reduced GAAP net sales by $1.2 million. On a constant dollar basis, net sales decreased by 5.4%. - **Regional Performance:** Asia/Pacific sales decreased by 9.9%, while Americas sales fell by 11.8%. EMEA sales increased by 4.8% due to higher revenue per active associate. **Uncertainties and Future Operations:** - **Economic Conditions:** Weakened economic conditions in Asia impacted sales, and further disruptions could affect future performance. - **Currency Fluctuations:** Changes in foreign exchange rates could positively or negatively affect results expressed in U.S. dollars. - **Supply Chain and Costs:** Increased manufacturing and supply chain costs, along with potential tariffs, could impact profitability. - **Market Risks:** The company is exposed to market risks, including changes in currency exchange rates, which could affect financial results. **Management's Outlook:** - **Liquidity:** Mannatech believes its existing liquidity and cash flows from operations are adequate to fund future business operations for the next twelve months. - **Strategic Initiatives:** The company is focusing on revenue growth, margin improvement, and cost control, including price increases and supply chain cost reductions. - **Risk Management:** Mannatech monitors market risks and maintains policies to manage exposure to currency fluctuations and other market risks.