Goodwill and Intangibles

6 Months Ended

Jun. 30, 2026

4.	Goodwill and Intangibles

Goodwill

The Company’s reporting units for goodwill are its operating segments, which are also its reportable segments, with the exception of Rhyz Other. The Rhyz Other segment is made up of two reporting units, which had goodwill of $4.7 million and $0.0, respectively, as of both June 30, 2026 and December 31, 2025.

During the three months ended June 30, 2026, the Company determined that the continued decline in the Company’s stock price and corresponding market capitalization as well as declines in the manufacturing segment forecast was a triggering event that required the Company to perform a quantitative impairment analysis. Based on the analysis, the Company concluded the fair value of the manufacturing reporting unit was less than the carrying value. As a result, the Company recorded a non-cash goodwill impairment charge of $78.9 million within impairment expenses on the consolidated statement of income. As part of the Company’s impairment analysis, the fair value of the reporting unit was determined using the income and market approach. The income approach used level 3 inputs and utilized management’s estimates related to future cash flows, which assumed factors such as revenue growth rates, profitability margins, and discount rates.

The following table presents the change in carrying amount of goodwill by reporting unit for the six months ended June 30, 2026 (U.S. dollars in thousands):

	Nu Skin														Rhyz
			Southeast		Mainland				Europe &				Hong Kong/					Rhyz		Total
	Americas		Asia/Pacific		China		Japan		Africa		South Korea		Taiwan		Manufacturing			Other		Segments
Goodwill as of December 31, 2025	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	78,875		$	4,750	$	83,625
Impairment		-		-		-		-		-		-		-		(78,875	)		-		(78,875	)
Goodwill as of June 30, 2026	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-		$	4,750	$	4,750

Accumulated impairment losses for each segment as of June 30, 2026 and December 31, 2025 are as follows:

	Nu Skin														Rhyz
			Southeast		Mainland				Europe &				Hong Kong/				Rhyz		Total
	Americas		Asia/Pacific		China		Japan		Africa		South Korea		Taiwan		Manufacturing		Other		Segments
Accumulated impairment losses as of December 31, 2025	$	9,449	$	18,537	$	32,179	$	16,019	$	2,875	$	29,261	$	6,634	$	-	$	19,587	$	134,541
Impairment		-		-		-		-		-		-		-		78,875		-		78,875
Accumulated impairment losses as of June 30, 2026	$	9,449	$	18,537	$	32,179	$	16,019	$	2,875	$	29,261	$	6,634	$	78,875	$	19,587	$	213,416

Intangibles

The Company reviews long-lived assets for impairment when performance expectations, events or change in circumstances indicate that the assets’ carrying value may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows by comparing the carrying value of the asset group to the net undiscounted cash flows. If the evaluation indicates that the carrying amount of the assets may not be recoverable, any potential impairment is measured based upon the fair value of the related asset group.

During the first quarter of 2025, the Company decided to make a strategic shift in how it operates the BeautyBio asset group. These strategy changes included exiting certain sales channels, which reduced the forecasted revenues for BeautyBio. The Company concluded these actions were an interim impairment triggering event. As a result, the Company performed an interim impairment test of the asset group and assessed the recoverability of the related asset group by comparing the carrying value of the asset group to the net undiscounted cash flow expected to be generated. The recoverability test indicated that the asset group was impaired. The Company concluded the asset group’s carrying value exceeded its estimated fair value, which was determined utilizing the discounted projected future cash flows, which resulted in an impairment charge. The estimated fair value was based on expected future cash flows using level 3 inputs and utilized management estimates related to revenue growth rates, profitability margins and discount rates. As a result, during the three months ended March 31, 2025, the Company recorded an impairment charge of $25.1 million on the BeautyBio asset group, which is part of its Rhyz Other segment within impairment expenses on the consolidated statement of income. As of the impairment date, the BeautyBio asset group had a remaining carrying value of $2.3 million with a remaining weighted-average amortization period of approximately 7 years.

During the first quarter of 2026, the Company decided to wind down its separate BeautyBio business. As a result of this decision, the Company recorded an impairment charge of $1.8 million on the BeautyBio asset group, which is part of its Rhyz Other segment, within impairment expenses on the consolidated statement of income. As of March 31, 2026, the BeautyBio asset group has no remaining carrying value.