What Nu Skin Enterprises, Inc. told the SEC could break it.

Nu Skin's revenue is concentrated in four major markets — Mainland China, South Korea, the United States and Japan — with ~74% of revenue generated internationally (only ~26% from the U.S.), and in Mainland China it operates its own manufacturing facilities producing the majority of products sold there; this geographic concentration exposes it to China/Korea/Japan demand swings (South Korea customers fell 28% and China Sales Leaders fell 32% in 2025) and to foreign-currency fluctuations.

“In 2025, we generated approximately 26% of our revenue from the United States (consisting of our Nu Skin United States and Rhyz businesses) and the remainder from our international markets.”

Nu Skin's revenue depends on its ability to recruit, retain and drive productivity in its direct-sales force — Sales Leaders, Paid Affiliates and Customers — which fluctuates materially: from December 2024 to December 2025, Customers in South Korea declined 28% and Sales Leaders in Mainland China declined 32%; continued attrition or failure to drive sales-force growth/productivity could further harm operating results.

“For example, from December 31, 2024 to December 31, 2025, our Customers in South Korea declined 28% and our Sales Leaders in Mainland China declined 32%.”

Nu Skin obtains products, ingredients and packaging from third-party suppliers and manufacturers, including sole suppliers that own or control the formulations, ingredients or IP for certain products, and it licenses the right to distribute some products from third parties; in 2025 one third-party supplier (plus two owned manufacturing subsidiaries) each accounted for more than 10% of product purchases, so loss of a sole supplier or failure to renew a key contract could disrupt supply.

“We obtain some products and ingredients from sole suppliers that own or control the product formulations, ingredients or other intellectual property rights associated with such products. We also license the right to distribute some of our products from third parties.”

Nu Skin's direct-selling model and products are heavily regulated worldwide — several markets (Mainland China, South Korea, Indonesia, Vietnam) cap the sales compensation it can pay its sales force (e.g. 30% in China, 35% in South Korea), and its products are regulated by the FDA, FTC, CPSC and equivalents abroad (China SAMR, Korea MFDS, Japan MHLW); regulatory investigations or sanctions (it notes prior adverse-publicity events) could bring fines, license revocation or material business harm.

“Several markets, including Mainland China, South Korea, Indonesia and Vietnam, impose limits on the amount of sales compensation we can pay to our sales force.”