• Herbalife for natural health and herbal supplements.

• Like Amway, but focused exclusively on natural health, wellness, and personal care products.

• The Vitamin Shoppe or GNC of direct sales.

• Vitamins and Minerals: These include a wide range of supplements providing essential nutrients for overall health and well-being.
• Herbal Supplements: Plant-based formulations designed to support specific bodily functions and address various health concerns.
• Weight Management Products: Nutritional supplements and programs aimed at assisting with healthy weight loss and maintenance.
• Essential Oils: Concentrated plant extracts used for aromatherapy and topical applications to support physical and emotional health.
• Personal Care Products: A line of items for external use, including skincare, hair care, and oral hygiene products.

Natures Sunshine Products (NATR) primarily sells its products to **individuals** through a direct-selling model. Its major customers fall into the following categories:

1. Independent Distributors/Consultants: These are individuals who purchase products from Natures Sunshine Products at wholesale prices for resale to end consumers and for personal use. They also recruit and train other distributors, forming the core of the company's multi-level marketing network.
2. Preferred Customers: These are individuals who sign up for a membership program directly with Natures Sunshine Products to receive discounts on products for their personal consumption, without necessarily engaging in distribution or sales activities.
3. Retail Customers: These are individuals who purchase Natures Sunshine Products for their personal use at full retail price, either directly from an independent distributor or through the company's e-commerce platform, without being a distributor or preferred customer.

Mr. Moorehead brings more than 25 years of experience in the retail consumer products industry. He previously served as Chief Executive Officer of Carlisle Etcetera LLC and Dana Beauty, Inc.. Prior to that, he held various leadership positions over 20 years at Avon Products, Inc., including Vice President of Global Strategic Planning, Vice President of Strategy and Digital for North America, General Manager of Avon Italy, President of Avon Canada, and President and Chairman of Avon Japan. Mr. Moorehead was also a Management Consultant at Booz Allen & Hamilton Inc.. He holds an MBA from Columbia University and a BA in Economics and Marketing from Boston College.

Mr. Jones brings over 25 years of finance experience. He most recently served as Chief Financial Officer at FullSpeed Automotive, an international automotive aftermarket repair company. Previously, Mr. Jones was Chief Financial Officer of three different private equity-owned, direct-to-consumer companies: West Marine (January 2020 to August 2021), 1-800 Contacts (February 2018 to February 2019), and Backcountry.com (December 2015 to February 2018). He also held senior-level finance roles at notable companies such as Amazon, L Brands, and YUM! Brands. Mr. Jones holds a Master of Business Administration and a Bachelor of Science degree in Finance from Brigham Young University.

Mr. Brower previously served as Senior Director, Legal Counsel for Nature's Sunshine from May 2015 to December 2017. Before joining Nature's Sunshine, he was Associate General Counsel at LifeVantage, Inc., a publicly-traded network marketing company, from July 2011 to May 2015. Prior to that, Mr. Brower was a securities and corporate attorney in private practice at a large multinational law firm. He earned a Bachelor of Science degree in Economics from Weber State University and a Juris Doctor degree from the University of Idaho.

Mr. Herbert joined Nature's Sunshine in June 2023, bringing over 25 years of global experience in leading transformation and growth. He has held numerous executive and senior leadership positions for well-known companies including Samsung, Borden, Hain Celestial, White Wave Foods, and Procter & Gamble. Prior to Nature's Sunshine, Mr. Herbert led the Natural Specialty Channel at Crossmark. He holds a Master's Degree in Management with a concentration in Finance, Marketing and Organizational Behavior from Northwestern’s J.L. Kellogg Graduate School of Management and a Bachelor’s Degree in Business Administration from the University of Notre Dame.

Mr. Gonzalez joined Nature's Sunshine as Executive Vice President of Global Supply Chain Operations in May 2022. He has over 30 years of experience from companies such as Unilever, Molson Coors/SABMiller, and Sara Lee. Throughout his career, he has successfully led transformations to deliver savings and growth by streamlining processes, improving operational efficiencies, and driving overall manufacturing and supply chain excellence.

The following are clear emerging threats for Natures Sunshine Products (NATR):

• Increasing Consumer and Regulatory Scrutiny of Multi-Level Marketing (MLM) Business Models: There is a growing global trend of consumer skepticism and public backlash against the multi-level marketing business model, particularly among younger demographics. This is fueled by increased awareness campaigns (e.g., on social media platforms) highlighting high distributor failure rates, perceptions of pyramid schemes, and pressure tactics often associated with MLMs. Simultaneously, regulatory bodies in various countries are increasing their scrutiny of MLM companies, focusing on deceptive income claims, product efficacy substantiation, and whether compensation plans prioritize recruitment over legitimate product sales. This evolving landscape makes it increasingly challenging for NATR to attract and retain new distributors and customers, directly impacting its core revenue generation and expansion model.

• Proliferation of Direct-to-Consumer (DTC) Supplement Brands and Personalized Nutrition Services: The health and wellness market is experiencing rapid growth in digitally native, direct-to-consumer supplement brands. These companies leverage e-commerce, subscription models, and sophisticated digital marketing to reach customers directly, bypassing traditional distribution networks like NATR's MLM. Many new DTC brands emphasize transparency in sourcing, clean ingredients, scientific backing, and often offer personalized nutrition plans or subscription boxes tailored to individual health goals. This trend appeals to modern consumers seeking convenience, clear information, and often lower prices due to the absence of multi-tiered compensation structures, thus posing a significant competitive threat to NATR's market share and ability to differentiate through its distributor network.

Natures Sunshine Products (NATR) operates within the health and wellness industry, primarily manufacturing and selling nutritional and personal care products, with a strong focus on herbal supplements, distributed through a direct selling model.

Addressable Markets:

Herbal Supplements Market

• Globally, the herbal dietary supplement market was valued at approximately $11 billion in 2022 and is projected to reach $21.4 billion by 2032. Other estimates place the global herbal supplement market size at USD 42.33 billion in 2024, anticipated to reach USD 90.24 billion by 2033, or from USD 101.0 billion in 2025 to USD 201.1 billion by 2035. One report noted the global herbal supplements market reached USD 39.3 billion in 2024 and is expected to reach USD 67.5 billion by 2033. Another estimate indicates the global herbal supplements market size is expected to be around USD 82.9 billion in 2024, growing to USD 166.2 billion by 2034.
• In the U.S., retail sales of herbal dietary supplements reached a record $13.231 billion in 2024. Annual U.S. retail sales totaled an estimated $15.551 billion in 2023. The U.S. herbal supplements market was valued at $2209.20 million in 2023 and is predicted to grow to $2946.52 million by 2030. The herbal medicine market in the U.S. is projected to reach USD 37.90 billion by 2032.

Direct Selling Market (Health & Wellness Segment)

• The global direct selling market's health and wellness segment accounted for a revenue of USD 72,136.5 million in 2022, within a total direct selling market that reached USD 200,139.3 million in 2022 and is expected to reach USD 328,260.2 million by 2030. The Health & Wellness Products segment of the global direct selling market is expected to reach US$160.4 billion by 2030.
• In the U.S., the direct selling market generated USD 40,718.0 million in 2022 and is expected to reach USD 62,566.5 million by 2030. The health and wellness segment was the largest revenue-generating product category in this market in 2022, and held a 35.4% revenue share in 2024. The U.S. direct selling market, for health and wellness products specifically, is a growing business, expanding to more than $12 billion in annual revenue.

Overall Health and Wellness Market

• The global health and wellness market was valued at USD 3,805.84 billion in 2024 and is estimated to reach USD 5,273.30 billion by 2033.
• The U.S. health and wellness market was valued at USD 935 billion in 2024 and is anticipated to reach USD 1,545.13 billion by 2033.

Natures Sunshine Products (NATR) is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and strong market performances. Key factors include:

1. Continued Digital Transformation and Sales Growth: Nature's Sunshine Products is experiencing robust growth in its digital sales channels, particularly in North America. Strategic investments in digital platforms and enhanced customer engagement strategies have led to a significant increase in digital sales, with a 52% year-over-year increase reported in Q3 2025. This momentum is expected to continue, contributing to strong growth in North America in the coming years.
2. Expansion and Strong Performance in Asia-Pacific Markets: The Asia-Pacific region remains a significant growth engine for NATR, with exceptional results in Japan, China, and Korea. The company reported 17% year-over-year net sales growth in Asia-Pacific in Q3 2025, driven by increases of 32%, 36%, and 12% in Japan, China, and Korea respectively, excluding foreign exchange impacts. Consumer-friendly product bundles and the autoship program are appealing to customers and distributors, leading to increased acquisition and repeat business in this region.
3. Sustained Growth in European Markets: Europe is also contributing to revenue growth, with overall mid-single-digit growth anticipated. Central Europe, in particular, has shown robust growth due to excellent field execution and strong adoption of the company's "Power Line" products, alongside continued expansion in the Baltics region. Eastern Europe has also shown encouraging signs of sales growth.
4. Launch and Growth of New/Relaunched Products Focused on Health Trends: The company is strategically launching and enhancing product lines to address current health and wellness trends. A significant example is the relaunch of its "Power Line" suite of products, including new offerings like Power Balance and enhanced existing products like Power Beets and Power Greens, aimed at tackling the metabolic health crisis. These innovative supplements, combining traditional wisdom with modern nutritional science, are expected to drive sales by meeting consumer demand for effective health solutions.
5. Increased Customer Acquisition and Retention: A surge in new customers, combined with strong retention rates, is a fundamental driver of revenue growth. This is evident in the success of digital sales in North America and the continued growth in customer numbers and orders in markets like Japan, where the autoship program accounts for approximately 50% of sales. The company aims to maintain this positive customer growth trend.

Share Repurchases

• On March 8, 2022, Nature's Sunshine Products amended its share repurchase program, authorizing an additional $30.0 million for repurchases.
• For the year ended December 31, 2022, the company repurchased 909,000 shares of its common stock for $13.6 million, with $24.0 million remaining available under the program.
• Through September 30, 2025, the company repurchased 1.1 million shares for approximately $14.4 million, leaving $19.3 million available on the share repurchase program.

Share Issuance

• Shares withheld for minimum statutory withholding requirements upon the vesting of Restricted Stock Units (RSUs) amounted to 70,000 shares for the nine-month period ended September 30, 2025, and 63,000 shares for the same period in 2024. These are treated as common share repurchases for accounting purposes.

Outbound Investments

• As of Q3 2025, Nature's Sunshine Products entered into agreements to purchase its partners' interests in two China joint ventures for a total of $7.0 million ($3.9 million and $3.1 million), subject to PRC approvals.

Capital Expenditures

• The company's Credit Agreement imposes restrictions on certain capital expenditures.
• Nature's Sunshine Products has not required, nor does it anticipate, any material capital expenditures for compliance with federal, state, or local environmental regulations.
• Depreciation and amortization, indicative of prior capital investments, amounted to approximately $19.64 million in 2024 and $16.23 million in 2023.