Natures Sunshine Products (NATR) risk factors, FY2025 10-K

Natures Sunshine Products's FY2025 10-K, filed Mar 10, 2026, lists 25 risk factors in 3 groups. Against the prior year's 24: 2 new, 1 dropped, 5 substantially reworded.

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Risk factors listed
253 groups
New this year
2vs 24 last year
Dropped
1since the prior 10-K
Substantially reworded
5of those kept
Section length
7k wordsItem 1A

What the changes say

  • The company bought out its joint ventures in China from Fosun Industrial for a total consideration of $7.0 million.
  • Direct selling risks continue to dominate operations, sales, and consultant retention.

What changed since the prior 10-K

New

  • NewRisks Related to Our Business

    independent consultants and/or retain existing independent consultants and attract additional independent consultants to maintain and/or increase future sales

    We face numerous factors that could impact our ability to attract, retain, and motivate independent consultants to maintain or increase sales.

  • NewRisks Related to Our Business

    On August 25, 2014, we completed a transaction with Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun Pharma”), which created a joint venture owned 80 percent by us and 20 percent by a wholly owned subsidiary of Fosun Pharma

    We completed the buyout of Fosun Industrial's interests in our Hong Kong and Shanghai joint ventures for $3.9 million and $3.1 million in cash.

Dropped

  • DroppedRisks Related to Our Business

    Our expansion in China is subject to risks associated with operating a joint venture

Reworded

  • 75% rewrittenRisks Related to Our Business

    We may be unable to attract and retain independent consultants

    Updated consultant retention and recruitment language regarding the need to maintain future sales.

  • 28% rewrittenRegulatory and Litigation Risks

    If our independent consultants fail to comply with advertising laws, it could adversely affect our results of operations and financial condition

    Minor grammatical correction changing 'is not a permitted claim' to 'are not permitted claims' regarding disease treatments.

  • 28% rewrittenRisks Related to Our Business

    The loss of key independent consultants who have a significant sales networks could have a material adverse effect on our results of operations and financial condition

    Added specific risks regarding integration, compliance, purchase price obligations, and China-related regulations following the buyout.

  • 24% rewrittenRegulatory and Litigation Risks

    Our global operations are subject to numerous laws and regulations relating to trade restrictions and export controls and failure to comply with such rules could adversely affect our business

    Minor punctuation and phrasing updates regarding trade restrictions and export control enforcement agencies.

  • 22% rewrittenRegulatory and Litigation Risks

    Laws and regulations regarding direct selling may prohibit or restrict our ability to sell our products in some markets or require us to make changes to our business model in some markets

    Retained existing direct selling regulatory risks in markets including South Korea and China without substantive changes.

All 25 risk factors

Headings as the filing states them, in filing order.

Regulatory and Litigation Risks

  1. 01Our global operations are subject to numerous laws and regulations relating to trade restrictions and export controls and failure to comply with such rules could adversely affect our business24% rewritten
  2. 02Laws and regulations regarding direct selling may prohibit or restrict our ability to sell our products in some markets or require us to make changes to our business model in some markets22% rewritten
  3. 03Our products, business practices and manufacturing activities are subject to extensive government regulations and could be subject to additional laws and regulations
  4. 04Difficulties in registering our products for sale in foreign countries could have a material adverse effect on our results of operations and financial condition
  5. 05Our direct selling system could be challenged in one or more countries in which we do business
  6. 06If our independent consultants fail to comply with advertising laws, it could adversely affect our results of operations and financial condition28% rewritten
  7. 07Product liability claims could adversely affect our business
  8. 08We are subject to anti-bribery laws, including the Foreign Corrupt Practices Act

Risks Related to Our Business

  1. 09We may be unable to attract and retain independent consultants75% rewritten
  2. 10independent consultants and/or retain existing independent consultants and attract additional independent consultants to maintain and/or increase future salesNew
  3. 11The loss of key independent consultants who have a significant sales networks could have a material adverse effect on our results of operations and financial condition28% rewritten
  4. 12On August 25, 2014, we completed a transaction with Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun Pharma”), which created a joint venture owned 80 percent by us and 20 percent by a wholly owned subsidiary of Fosun PharmaNew
  5. 13Currency exchange rate fluctuations could adversely affect our results of operation and financial condition
  6. 14We could incur obligations resulting from the activities of our independent consultants
  7. 15We may be adversely affected by changes to our independent consultant compensation plans
  8. 16Geopolitical issues, conflicts and other global events could adversely affect our results of operations and financial condition
  9. 17Difficult economic conditions could adversely affect our results of operations and financial condition
  10. 18Our manufacturing activity is subject to certain risks
  11. 19Supply chain disruptions, manufacturing interruptions or delays or the failure to accurately forecast customer demand could adversely affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory
  12. 20If we fail to timely and effectively obtain shipments of products from our suppliers and deliver products to our independent consultants and customers, our business and results of operations could be harmed
  13. 21Taxation and transfer pricing could adversely affect our results of operations and financial condition

Risks Related to Our Use of Technology and Intellectual Property

  1. 22Cybersecurity risks and the failure to maintain the integrity of data could expose us to data loss, litigation and liability, which could adversely affect our results of operations and financial condition
  2. 23The storage, processing and use of data, some of which contain personal information, are subject to complex and evolving privacy and data protection laws and regulations that could adversely affect our results of operation and financial condition
  3. 24System failures could adversely affect our results of operations and financial condition
  4. 25Our business is subject to intellectual property risks

Other Natures Sunshine Products 10-Ks

  • FY2024 10-K risk factors
    24 risks

    The company faces heavy regulatory exposure across direct selling laws, product formulations, and global trade compliance. Revenue heavily depends on the productivity, retention, and advertising compliance of independent consultants. International exposure is significant, with joint venture risks in China and reliance on foreign currencies.

    Filed Mar 11, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.