{"url_path":"/sec/nus/10-k/2026/item-7a","section_key":"item-7a","section_title":"Item 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-02-13","source_url":"https://www.sec.gov/Archives/edgar/data/1021561/0001140361-26-005130-index.html","accession_number":"0001140361-26-005130","cik":"0001021561","ticker":"NUS","issuer_name":"NU SKIN ENTERPRISES, INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1021561/0001140361-26-005130-index.html","primary_entity_key":"0001021561","primary_entity_name":"NU SKIN ENTERPRISES, INC."},"word_count":791,"has_tables":true,"body_markdown":"ITEM 7A.\n\nQUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK\n\nCurrency Risk and Exchange Rate Information\n\nA majority of our revenue and many of our expenses are recognized outside of the United States, except for inventory purchases, a significant portion of which are primarily transacted in U.S.\ndollars from vendors in the United States. The local currency of each of our Subsidiaries’ primary markets is considered the functional currency with the exception of our Asia product-distribution subsidiary in Singapore and, as discussed\nbelow, our subsidiary in Argentina. All revenue and expenses are translated at weighted-average exchange rates for the periods reported. Therefore, our reported revenue and earnings will be positively impacted by a weakening of the U.S. dollar\nand will be negatively impacted by a strengthening of the U.S. dollar. These impacts may be significant because a large portion of our business is derived from outside of the United States. Given the uncertainty of exchange rate fluctuations,\nit is difficult to predict the effect of these fluctuations on our future business, product pricing and results of operations or financial condition.\n\nIn the second quarter of 2018, published inflation indices indicated that the three-year cumulative inflation in Argentina exceeded 100%, and as of July 1, 2018, we elected to adopt highly\ninflationary accounting for our subsidiary in Argentina. Under highly inflationary accounting, Argentina’s functional currency became the U.S. dollar, and its income statement and balance sheet have been measured in U.S. dollars using both\ncurrent and historical rates of exchange. The effect of changes in exchange rates on peso-denominated monetary assets and liabilities has been reflected in earnings in Other income (expense), net and was not material. As of December 31, 2025,\nour Argentina subsidiary had a small net peso monetary position. Net sales of Argentina were less than 4% of our consolidated net sales for 2025, 2024 and 2023.\n\n64\n\n[Table of Contents](#TABLEOFCONTENTS)\n\nWe may seek to reduce our exposure to fluctuations in foreign currency exchange rates through the use of foreign currency exchange contracts and through intercompany loans of foreign currency. We\ndo not use derivative financial instruments for trading or speculative purposes. We regularly monitor our foreign currency risks and periodically take measures to reduce the impact of foreign exchange fluctuations on our operating results. As\nof December 31, 2025, and 2024, we did not hold non-designated mark-to-market forward derivative contracts to hedge foreign-denominated intercompany positions or third-party foreign debt. As of December 31, 2025 and 2024, we did not hold any\nforward contracts designated as foreign-currency cash flow hedges.  We continue to evaluate our foreign currency hedging policy.\n\nFollowing are the weighted-average currency exchange rates of U.S. $1 into local currency for each of our international or foreign markets in which revenue exceeded U.S. $5.0 million for at least\none of the quarters listed:\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n \n\n4th Quarter\n\n \n\n \n\n3rd Quarter\n\n \n\n \n\n2nd Quarter\n\n \n\n \n\n1st Quarter\n\n \n\n \n\n4th Quarter\n\n \n\n \n\n3rd Quarter\n\n \n\n \n\n2nd Quarter\n\n \n\n \n\n1st Quarter\n\n \n\nArgentina\n\n \n\n \n\n1,437\n\n \n\n \n\n \n\n1,331\n\n \n\n \n\n \n\n1,147\n\n \n\n \n\n \n\n1,056\n\n \n\n \n\n \n\n1,001\n\n \n\n \n\n \n\n948.8\n\n \n\n \n\n \n\n888.9\n\n \n\n \n\n \n\n821.9\n\n \n\nAustralia\n\n \n\n \n\n1.5\n\n \n\n \n\n \n\n1.5\n\n \n\n \n\n \n\n1.6\n\n \n\n \n\n \n\n1.6\n\n \n\n \n\n \n\n1.5\n\n \n\n \n\n \n\n1.5\n\n \n\n \n\n \n\n1.5\n\n \n\n \n\n \n\n1.5\n\n \n\nCanada\n\n \n\n \n\n1.4\n\n \n\n \n\n \n\n1.4\n\n \n\n \n\n \n\n1.4\n\n \n\n \n\n \n\n1.4\n\n \n\n \n\n \n\n1.4\n\n \n\n \n\n \n\n1.4\n\n \n\n \n\n \n\n1.4\n\n \n\n \n\n \n\n1.3\n\n \n\nEurozone countries\n\n \n\n \n\n0.9\n\n \n\n \n\n \n\n0.9\n\n \n\n \n\n \n\n0.9\n\n \n\n \n\n \n\n1.0\n\n \n\n \n\n \n\n0.9\n\n \n\n \n\n \n\n0.9\n\n \n\n \n\n \n\n0.9\n\n \n\n \n\n \n\n0.9\n\n \n\nHong Kong\n\n \n\n \n\n7.8\n\n \n\n \n\n \n\n7.8\n\n \n\n \n\n \n\n7.8\n\n \n\n \n\n \n\n7.8\n\n \n\n \n\n \n\n7.8\n\n \n\n \n\n \n\n7.8\n\n \n\n \n\n \n\n7.8\n\n \n\n \n\n \n\n7.8\n\n \n\nIndonesia\n\n \n\n \n\n16,662\n\n \n\n \n\n \n\n16,374\n\n \n\n \n\n \n\n16,511\n\n \n\n \n\n \n\n16,336\n\n \n\n \n\n \n\n15,839\n\n \n\n \n\n \n\n15,805\n\n \n\n \n\n \n\n16,167\n\n \n\n \n\n \n\n15,664\n\n \n\nJapan\n\n \n\n \n\n154.1\n\n \n\n \n\n \n\n147.5\n\n \n\n \n\n \n\n144.5\n\n \n\n \n\n \n\n152.4\n\n \n\n \n\n \n\n152.4\n\n \n\n \n\n \n\n148.8\n\n \n\n \n\n \n\n156.0\n\n \n\n \n\n \n\n148.5\n\n \n\nMainland China\n\n \n\n \n\n7.1\n\n \n\n \n\n \n\n7.2\n\n \n\n \n\n \n\n7.2\n\n \n\n \n\n \n\n7.3\n\n \n\n \n\n \n\n7.2\n\n \n\n \n\n \n\n7.2\n\n \n\n \n\n \n\n7.2\n\n \n\n \n\n \n\n7.2\n\n \n\nMalaysia\n\n \n\n \n\n4.2\n\n \n\n \n\n \n\n4.2\n\n \n\n \n\n \n\n4.3\n\n \n\n \n\n \n\n4.4\n\n \n\n \n\n \n\n4.4\n\n \n\n \n\n \n\n4.5\n\n \n\n \n\n \n\n4.7\n\n \n\n \n\n \n\n4.7\n\n \n\nMexico\n\n \n\n \n\n18.3\n\n \n\n \n\n \n\n18.6\n\n \n\n \n\n \n\n19.5\n\n \n\n \n\n \n\n20.4\n\n \n\n \n\n \n\n20.1\n\n \n\n \n\n \n\n18.9\n\n \n\n \n\n \n\n17.3\n\n \n\n \n\n \n\n17.0\n\n \n\nSingapore\n\n \n\n \n\n1.3\n\n \n\n \n\n \n\n1.3\n\n \n\n \n\n \n\n1.3\n\n \n\n \n\n \n\n1.3\n\n \n\n \n\n \n\n1.3\n\n \n\n \n\n \n\n1.3\n\n \n\n \n\n \n\n1.4\n\n \n\n \n\n \n\n1.3\n\n \n\nSouth Korea\n\n \n\n \n\n1,449\n\n \n\n \n\n \n\n1,387\n\n \n\n \n\n \n\n1,398\n\n \n\n \n\n \n\n1,453\n\n \n\n \n\n \n\n1,399\n\n \n\n \n\n \n\n1,352\n\n \n\n \n\n \n\n1,372\n\n \n\n \n\n \n\n1,330\n\n \n\nTaiwan\n\n \n\n \n\n31.1\n\n \n\n \n\n \n\n30.0\n\n \n\n \n\n \n\n31.0\n\n \n\n \n\n \n\n32.9\n\n \n\n \n\n \n\n32.4\n\n \n\n \n\n \n\n32.2\n\n \n\n \n\n \n\n32.4\n\n \n\n \n\n \n\n31.5\n\n \n\nVietnam\n\n \n\n \n\n26,339\n\n \n\n \n\n \n\n26,278\n\n \n\n \n\n \n\n25,963\n\n \n\n \n\n \n\n25,416\n\n \n\n \n\n \n\n25,282\n\n \n\n \n\n \n\n25,046\n\n \n\n \n\n \n\n25,363\n\n \n\n \n\n \n\n24,568\n\n \n\nInterest Rate Risk\n\nWe are exposed to risks related to fluctuations in interest rates on our\noutstanding variable rate debt. As of December 31, 2025, we had $224.2 million outstanding on the term loan, net of unamortized debt issuance cost and outstanding borrowings on our revolving credit facility. Our four interest rate swaps ended\nin the third quarter of 2025. As a result, the total variable debt of $224.2 million was exposed to market risks as of December 31, 2025. A hypothetical one percentage point increase (decrease) in interest rates on our variable rate debt\nwould increase (decrease) our annual interest expense by approximately $2.2 million.\n\nFor variable rate debt, interest rate changes generally do not affect the fair value of the debt instrument, but do impact future earnings and cash flows, assuming other factors are held constant.\nWe have not entered into and currently do not hold derivatives for trading or speculative purposes.\n\nFor additional information about our market risk see Note 15 to the consolidated financial statements contained in this report.\n\n65\n\n[Table of Contents](#TABLEOFCONTENTS)"}