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Natural Health Trends (NHTC) AI Stock Analysis
Natural Health Trends
(NASDAQ:NHTC)
The overall score is at the minimum of 37, reflecting a company in severe financial distress. The most significant factor is the unsustainable cash burn and persistent operating losses driven by a structural decline in revenue, as confirmed by both financial statements and segment-level KPI insights. Technicals reinforce this weakness with a strong downtrend, and the high dividend yield is a danger signal rather than a benefit. The earnings call confirms these challenges, with management's cost-cutting efforts failing to offset a 23% drop in sales and a rapidly depleting cash balance.
Natural Health Trends Key Performance Indicators (KPIs)
Operating Income by SegmentTracks each segment’s profitability after operating expenses like marketing and administration, highlighting which businesses actually contribute to the company’s bottom line and which require continued investment or restructuring. Identifies where management should allocate capital and where losses may pose a risk to overall earnings.
Primary Reporting Unit operating income has steadily eroded since 2021—roughly halving by early‑2026—and is the main driver of the company’s weakening profitability; modest, consistent cuts to corporate overhead have softened the hit but can’t offset the core decline. China is volatile with intermittent recoveries but recurring losses, adding geographic execution risk, while Russia & Kazakhstan remain immaterial. Investors should track whether management can restore demand or margins in the Primary Reporting Unit or deliver deeper structural cost savings to stabilize earnings.
The FlyNatural Health Trends (NHTC) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $6.40M
- Dividend Yield
- 79.68%
- Average Volume (3M)
- 63.68K
- Price to Earnings (P/E)
- -5.3
- Beta (1Y)
- 0.68
- Revenue Growth
- -16.53%
- EPS Growth
- -1330.39%
- Country
- US
- Employees
- 119
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Specialty Retail
Natural Health Trends Business Overview & Revenue Model
Company Description
Natural Health Trends Corp. (NHTC) operates as an international enterprise specializing in direct sales and e-commerce. It distributes a diverse portfolio of personal care, wellness, and lifestyle products, all marketed under its NHT Global brand. Th...
How the Company Makes Money
NHTC generates revenue primarily from product sales made through its direct-selling (multi-level marketing) distribution model. The company sells health and wellness products (e.g., nutritional supplements and personal care items) to end consumers, w...
Natural Health Trends Earnings Call Summary
The call presented a mix of operational improvements and new product momentum (margin expansion, restructuring savings, improved operating cash flow, product launch, and share repurchase authorization), but these positives were overshadowed by a pronounced revenue decline (-23% year-over-year), a swing to net loss, increased operating loss, significant cash reduction since year-end, and ongoing China-related headwinds and member misconduct that disrupted business. While management is taking disciplined steps to improve efficiency and engagement, near-term financial performance and market challenges weigh heavily on the outlook.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
The guidance emphasized financial discipline and execution to drive savings and position the business for recovery: Q2 net sales were $7.6M (down 23% YoY) while gross margin improved to 75.2% from 73.9% and commissions remained 40.9% of revenue; restructuring delivered roughly $300K of savings in the quarter and more than $600K year-to-date with additional savings expected in the second half, SG&A was $3.3M (down $323K YoY), operating loss was $643K (net loss $451K, or $0.05 per diluted share, versus net income $15K prior-year), and the company reported $18.6M of cash and marketable securities at June 30 (down from $28.9M at Dec. 31, 2025) after repurchases and dividends, used $2.2M of operating cash in the first six months (vs $5.2M a year earlier), resumed share repurchases with $15.9M available, and plans customer- and field-focused initiatives (including a 25th‑anniversary event expected to draw more than 1,000 attendees) to support long-term growth.
Natural Health Trends Financial Statement Overview
Summary
Financial performance is critically weak. The income statement shows a persistent and accelerating revenue decline with deepening net losses. Cash flow is the most severe issue, with consistent negative operating and free cash flow indicating an unsustainable cash burn. The only mitigating factor is a conservative balance sheet with very low debt, but this is overshadowed by the deteriorating operations.
Income Statement
28NegativeBalance Sheet
65PositiveCash Flow
15Very Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.12M | 39.78M | 42.96M | 43.92M | 49.13M | 60.01M |
| Gross Profit | 25.32M | 29.25M | 31.79M | 32.75M | 36.47M | 44.99M |
| EBITDA | -1.18M | -458.00K | 751.00K | 909.00K | 806.00K | 1.81M |
| Net Income | -1.43M | -882.00K | 572.00K | 568.00K | 313.00K | 1.08M |
Balance Sheet | ||||||
| Total Assets | 27.26M | 38.43M | 55.36M | 69.09M | 82.82M | 98.36M |
| Cash, Cash Equivalents and Short-Term Investments | 17.59M | 28.87M | 43.94M | 56.18M | 69.67M | 83.84M |
| Total Debt | 2.58M | 3.13M | 2.64M | 3.46M | 4.12M | 3.17M |
| Total Liabilities | 12.26M | 15.00M | 22.49M | 27.49M | 32.67M | 38.87M |
| Stockholders Equity | 15.00M | 23.43M | 32.87M | 41.60M | 50.15M | 59.49M |
Cash Flow | ||||||
| Free Cash Flow | -3.52M | -6.07M | -3.42M | -4.32M | -5.00M | 791.00K |
| Operating Cash Flow | -3.07M | -6.00M | -3.37M | -4.28M | -4.85M | 1.02M |
| Investing Cash Flow | 5.41M | 8.15M | -30.07M | -46.00K | -143.00K | -225.00K |
| Financing Cash Flow | -11.06M | -9.21M | -9.21M | -9.21M | -9.14M | -9.14M |
Natural Health Trends Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NHTC, the sentiment is Negative. The current price of 0.77 is below the 20-day moving average (MA) of 0.90, below the 50-day MA of 1.21, and below the 200-day MA of 2.26, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 28.43 is Positive, neither overbought nor oversold. The STOCH value of 9.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NHTC.
Natural Health Trends Risk Analysis
Natural Health Trends disclosed 40 risk factors in its most recent earnings report. Natural Health Trends reported the most risks in the "Legal & Regulatory" category.
Latest Risks Added
1 New RiskNatural Health Trends Peers Comparison
Overall Rating
OCG52Neutral
MOGU49Neutral- NHTC37Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| OCG | 52Neutral | $3.10M | 0.00 | -6.73% | ― | 203.34% | 37.54% |
| MOGU | 49Neutral | $15.45M | 49.56 | 0.35% | ― | -9.81% | ― |
| NHTC | 37Underperform | $6.40M | -5.34 | -8.13% | 79.68% | -16.53% | -1330.39% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| NHTC | Natural Health Trends Corp | 0.75 | -3.18 | -80.84% | |
| MOGU | Mogu Inc | 1.89 | -0.86 | -31.27% | |
| MI | Nft Limited Class A | 0.40 | -319.60 | -99.88% | |
| OCG | Oriental Culture Holding Ltd | 1.60 | -1865.65 | -99.91% | |
| JBDI | JBDI Holdings Limited | 2.36 | -0.20 | -7.81% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 29, 2026