Stonegate Capital Partners has recently initiated coverage on Skin Enterprises Inc. (NYSE: NUS), showcasing the company's robust financial results and its strategic initiatives aimed at fostering growth. Skin Enterprises reported revenue, adjusted Net Income, and adjusted EPS of $386.1M, $21.1M, and $0.43, respectively, with revenue at the high end of the guidance range. The Rhyz Manufacturing segment notably saw a 17% year-over-year revenue growth, and EPS significantly outpaced guidance. Gross margin for the quarter was 68.8%, reflecting a quarter-over-quarter expansion of 106 bps from 1Q25.
The company's strong performance is attributed to its focus on revenue growth and operational optimization, leading to a remarkable year-over-year growth of adjusted Net Income by 103.5%. Skin Enterprises is also making strides with two strategic initiatives: expansion into India and the launch of the Prysm iO wellness device. The India expansion is on track for pre-opening activities in 4Q25, with a full launch anticipated in mid-2026. The Prysm iO, an AI-powered wellness assessment device, is expected to revolutionize the company's approach to personalized product recommendations.
Despite a year-over-year decline in sales leaders, paid affiliates, and customers, Skin Enterprises has seen strong revenue growth in Latin America, thanks to its scalable digital-first model. The company ended the quarter with a solid balance sheet, including $264.2M in cash on hand, and has tightened its FY25 revenue guidance to $1.48B to $1.55B, while raising its adjusted EPS guidance to $1.15 to $1.35. Stonegate Capital Partners values Skin Enterprises at a forward Price to adjusted EPS of 5.2x, applying a valuation range that suggests significant upside potential.
For more information on Skin Enterprises Inc., visit https://www.nuskin.com. Stonegate Capital Partners' coverage provides a comprehensive analysis of Skin Enterprises' financial health and growth prospects, underscoring the company's potential in the evolving wellness and beauty industry.
