Good afternoon, everyone, and thank you for participating in today's conference call to discuss Nature's Sunshine's financial results for the third quarter ended September 30, 2025. Joining us today are Nature Sunshine CEO, Ken Romanzi; CFO, Shane Jones; and General Counsel, Nate Brower. Following their remarks, we'll open the call for analyst questions. Before we go further, I would like to turn the call over to Mr. Brower as he reads the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Nate, please go ahead.

Thank you, Sergio. Good afternoon, and thanks for joining our conference call to discuss our third quarter 2025 financial results. I'd like to remind everyone that this call is available for replay by telephonic dial-in through November 20 and a live webcast that will be posted in the Investor Relations portion of our website at ir.naturesunshine.com. The information on this call contains forward-looking statements. These statements are often characterized by terms such as believe, hope, may, anticipate, expect, will and other similar expressions. Forward-looking statements are not guarantees of future performance, and the actual results may be materially different from the results implied by forward-looking statements. Factors that could cause results to differ materially from those implied herein include, but are not limited to, those factors disclosed in the company's annual report on Form 10-K under the caption Risk Factors and other reports filed with the Securities and Exchange Commission. The information on this call speaks only as of today's date, and the company disclaims any duty to update the information provided herein. Now I would like to turn the call over to our recently appointed CEO of Nature's Sunshine, Ken Romanzi, Ken?

Thank you, Nate, and good afternoon, everyone. Thank you for joining our third quarter earnings call. Before I turn the call over to Shane to discuss our strong third quarter performance, I'd like to quickly introduce myself and share how excited and grateful I am to be the CEO of Nature's Sunshine. I joined just over a week ago, and I am absolutely honored to lead this iconic brand into its next chapter of growth. Throughout my career, I've had the privilege of leading organization transformations and driving growth of beloved iconic brands, many in your kitchens at home at both public and private companies across the consumer packaged goods industry, including B&G Foods, Nabisco, now part of Mondelez, Hasbro, Ocean Spray, Cranberries, Cadbury Schweppes and Frito Lay, just to name a few. At each stage of my career, one thing has always been true, strong brands with great products and a clear mission, create lasting value for customers, employees and shareholders. That is exactly what Nature's Sunshine. The company possesses a strong legacy of foundation of trusted products, passionate consultants and practitioners, a deep-rooted commitment to improving lives through natural health. As someone who is dedicated to health and wellness myself, I see tremendous potential to build on this foundation and accelerate growth globally. In my very short time here, I've met with our teams, listened to field leaders and employees and immersed myself in our business. And it's very evident that we have a mission-driven organization and a unique opportunity to strengthen our brand, leverage our vast direct sales network of amazing consultant entrepreneurs. Expand our digital and direct-to-consumer capabilities and deliver even greater value to our customers and shareholders. I'd like to thank my predecessor, Terrence Moorehead for his leadership and the strong platform that he and the Nature's Sunshine team have built. And I'm excited to lead the business through its next phase of growth, powered by our iconic brand our operational excellence and continued innovation in natural health and wellness. I look forward to meeting our various stakeholders over the coming months and addressing our shareholders more formally on our fourth quarter earnings call. Now I'd like to turn it over to the real highlight of the show today, our CFO, Shane Jones to provide details of our strong operational and financial performance in the third quarter. Shane?

Thank you, Ken. I'd like to start by saying that I'm very happy to be working with Ken. He combines a wealth of knowledge and experience with outstanding values and leadership. He is the right person to take Nature's Sunshine to the next level and I am more confident than ever in our future. We're pleased to report our best quarter ever. As the strategic investments we've made over the past 2 years, combined with strong execution and hard work are yielding meaningful improvements across North America, Asia and Europe. We're seeing a strong surge in new customers, better engagement from current customers and improved activity with our distributors. Our efforts to modernize the business, expand digital capabilities and strengthen field engagement are translating into tangible growth across our key regions. The combination of these initiatives, along with disciplined cost management positions us very well for continued profitable expansion despite the macroeconomic and trade headwinds that persist in many of our markets. Now diving into specific financial performance. Net sales in the third quarter were $128.3 million, a quarterly record compared to $114.6 million in the year ago quarter. This represents a 12% increase versus the prior year or an 11% increase, excluding the impact of foreign exchange rates. Growth was driven by acceleration across Asia Pacific, North America and Europe. These results reinforce the traction we're seeing from our transformation initiatives and the strength of our product portfolio manufactured in-house with the very highest quality ingredients and our passionate and knowledgeable distributors, combined with our 50-plus year heritage and global brand. Looking at our results in more detail, starting with regional performance. In North America, we continue to see improved momentum as digital accelerates, while maintaining our core business of specialty retailers, practitioners, affiliates and business builders. Q3 sales…

[Operator Instructions] Your first question comes from Brian Holland from D.A. Davidson.

Can you hear me now?

Hi Brian.

So I'll start again. I apologize. First of all, welcome and congratulations, Ken, look forward to working with you. And then just digging into the quarter here, Shane, maybe to start naturally in the North America segment, particularly in light of the ongoing inflection in the digital business. Maybe just kind of -- maybe a multipart question here. But one, where are we seeing particular success as far as reaching the consumer, which channels within digital, how is that informing investment? And then mindful of the particularly compelling combination of new customer acquisition and retention which doesn't usually happen, usually trade one-off for the other, right, from a growth perspective, especially when one is that magnitude. How do we think about the right level of investment going for leading into this momentum and kind of peaking into 2026.

Yes. That's a great question, Brian. So first of all, we're really pleased with what we're seeing in our digital channel. And it's really across multiple areas. Our Amazon business is doing very well. Our DTC business is doing well and our social commerce business is also doing very well. So very encouraged by what we're seeing is the most encouraging is we've seen an opportunity to really invest in digital advertising at a much lower CAC, customer acquisition costs than what we've seen in the past and which is driving a lot of new customers, which is obviously a good thing for the business now and go forward. So we will continue to invest as long as our return on ad spend and our CAC continue to be at advantageous rates.

Appreciate it. Good color. Maybe just quickly this is...

Actually, sorry, I think Ken had something on to add.

I'm sorry to interrupt, but I just wanted to add, just in my learning curve in the last week, I've heard a few amazing things, number one, TikTok has become a really great social commerce at avenue for us. I had not even realized there was a store competing with Amazon on TikTok, I am not a personal user, but that has been tremendous success over the last quarter. And we have a tremendous opportunity for more autoship. I love the autoship program. It's working well around the world. And in the U.S., if people's first experience and purchase for us is combined with an autoship the repeat, obviously and the coming back nature of that customer is far greater than someone who just buys product wants and doesn't sign up for autoship. So autoship is the gift that keeps on giving. And if we can get people into that early, it just creates much more retention and, of course, drives a lot of the great numbers that Shane was describing.

I appreciate the color, Ken, and Shane as well. Maybe moving over to APAC, there are obviously certain markets where the momentum has been in place Japan, et cetera. China was, I think, a positive surprise here. So maybe just mindful of you guys have spent a fair amount of time talking about the challenging macro backdrop and how that was flowing through in the business. So that seems to me to be the biggest source of surprise here relative to what I was thinking even just conceptually going into the quarter. So would be great to kind of double-click there on how that business is kind of flipping.

Yes, we're very pleased with what we saw in Q3 and what we continue to see from China in that a lot of the trends that we had talked about 6 months ago are getting much, much better now. If we look at really what's driving that, there are a number of factors, but the biggest factor goes back to that auto ship program that Ken was talking about as well. We didn't have an auto ship program in China until earlier this year. So we implemented a subscription autoship program there, similar to what we have in other markets already around the world. And already, it accounts for over 12% of total sales and is a big part of what's really driven around the economics and the fundamentals there to get that business running again. And once you've got the momentum going there, that actually helps feed the rest of the business as well.

And maybe just a quick follow-up on China from your perspective. Is the underlying macro backdrop as it pertains to your core consumer, has there been any improvement there? Or is this really just about execution and self-help on your end and the backdrop really hasn't changed that much.

So the macroeconomic environment there, we've seen it stabilize. So I wouldn't say that it's gotten a lot better, but it hasn't gotten worse either. And just getting the stabilization there has helped us then to do some of the fundamental changes that we need to do to be able to reaccelerate that market.

Great. And I'll be mindful of time here. So maybe 1 for Ken, and I'll hop back in the queue. But Ken maybe just, obviously, we saw in the press release in your introductory remarks today. So a sense of the overlap here from a consumer-facing standpoint with some of the brands that you've dealt with before. Maybe just a little bit more I would love to understand as you think about the skills that you've developed over your career and applying it here at Nature's obviously, the business is performing quite well year-to-date. Where do you see yourself spending a disproportionate time here in the first 100 or so days? And where do you see particular opportunity to apply your expertise to the infrastructure here to maybe either improve or enhance what's in place.

I can't wait to see you one-on-one, because I can take a long time answering that question. I will try to -- in the spirit of time, I will try to be as brief as possible and condensed 43 years into a few minutes. So number one, my first 100 days is just learning the business, learn the [peaceful], learn the people, the organization, and most of all, get out with leaders. I had my first meeting with a leader last night. It was so inspiring a long-term practitioner in North America. It was a fascinating meeting, I have pages of notes just from a 90-minute discussion with him. So learn the business and get out there and be with our frontline leaders. And my particular inspiration about this company is great brand, great products, great -- we're on a macro trend -- megatrend of with the wind in our sales. I've spent a lot of time trying to sell things against the wind, but the wind is in our sales on health and wellness and people looking for natural health and wellness cures, both the young and old. It is a trend that's been around for a long time and will continue for a long time. So that's what excites me about this. To me, we have hundreds -- to me, I look at this company, and we have hundreds of thousands of salespeople in our company. That's the way I see our consultants and practitioners and partners. When I started my career, I was a company called Frito-Lay, we used to brag that we had 10,000 route salesman delivering to 300,000 retail accounts a day in the U.S. And we used to brag we had 10,000. I have hundreds of thousands of salespeople. When I ran sales and…

Your next question comes from Susan Anderson from Canaccord Genuity.

Alec Legg on for Susan. Welcome, Ken. We're definitely excited to work for you. We can hear the passion already coming through.

Thank you.

Question on for third quarter, I mean, obviously, there was a big step change in growth going from low single digits to low double digits. I guess was there any 1 key factor or something that came together? Or was it just the strategy that you've been executing everything is coming together in the quarter?

It really is the combination of all the work that we've done over the last couple of years coming to fruition and really starting to fire on all engines. So we had very, very robust growth, as you see in digital, which was a key part of that. In addition to that, we had very, very good growth in APAC and some of APAC is timing based. So because of our field initiatives and the way the timing of what that was this year, it pushed some of the revenue that we would have normally seen in Q4 into Q3. So there's about a $2 million slide in timing there. But then also just really, really robust growth and good things happening in Europe, both in Eastern and in Central Europe. And then all of that combined with strong gross margin, good cost containment as well. So I think it's largely just the work that we are doing, it's great to actually see the strong momentum and those actions coming to fruition combined with just a little bit of timing.

And then I saw there was a new power line launch not too long ago. Is that a global rollout or just in North America? Or is that also included in the Baltic region where that line is fairly popular?

Right. So we will be phasing when the timing on that, but it will go to multiple markets. We'll start in the U.S. and then move to other markets as well.

And then my last question. On SG&A, a little bit of a step up there. It looks like on a pretty good return on ad spend. Is that a new level that we should think of SG&A going forward? Or is that pretty flexible just depending on the market?

Yes. So a little bit going back to the question of the previous person, as we see strong opportunities to be able to invest and get a very strong return on digital ad spend. We will continue to make those investments. And right now, we see those opportunities. So we've guided our SG&A for the next quarter to be in that $46 million to $47 million range with $1 million to $2 million of nonrecurring. I think that's the right amount to think about for the short term, but we will continue to respond as we have good opportunities that make sense. As I said, we will -- as we have good returns, we will feed those returns.

At this time, this concludes our question-and-answer session. I would now like to turn the call back over to Mr. Romanzi for closing remarks.

Thank you very much. So as I said earlier, I'm just delighted to be leading major Sunshine feel so privileged. And after hearing and learning about and hearing our third quarter results, which are -- which I have no association with, right? I didn't do anything to drive those results. But hearing those results and learning what Shane said about what drove all those results, the business is working on all cylinders. We have issues to address, but you saw a quarter where the strategies are working and the management team and leadership team is really delivering. So it just makes me so much more excited about the potential of the business, even more so than I was just a few days ago. So I just want to thank everyone for listening and joining with us today and really look forward to speaking with you when we get together to report our fourth quarter 2025 results. And I'm new, so I'll have much more to say on that call about kind of where we think we're taking it in the future. But there'll be a lot of the same of what's working now. I don't feel like I have to overturn the whole ship. So I just feel very fortunate to be joining such a strong team with great results and a great strategy in place. So with that, we wish you again, thanks for joining us, and wish you a good night.

Ladies and gentlemen, these concludes today's conference call. You may disconnect your lines at this time. Thank you all for your participation.