Good day, ladies and gentlemen. Thank you for standing by. Welcome to today's conference call to discuss LifeVantage's Fourth Quarter of Fiscal 2025 Results. [Operator Instructions] Hosting today's conference will be Reed Anderson with ICR. As a reminder, today's conference is being recorded. And I would now like to turn the conference over to Mr. Anderson. Please go ahead.

Thank you. Good afternoon, and welcome to LifeVantage Corporation's conference call to discuss results for the fourth quarter of fiscal 2025. On the call today from LifeVantage with prepared remarks are Steven Fife, President and Chief Executive Officer; and Carl Aure, Chief Financial Officer. By now, everyone should have access to the earnings release, which went out this afternoon at approximately 4:05 p.m. Eastern Time. If you have not received the release, it is available on the Investor Relations portion of LifeVantage's website at www.lifevantage.com. This call is being webcast, and a replay will be available on the company's website as well. Before we begin, we would like to remind everyone that our prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions. These statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the Risk Factors section of LifeVantage's most recently filed Forms 10-K and 10-Q. Please note that during today's call, we will discuss non-GAAP financial measures, including results on an adjusted basis. Management believes these financial measures can facilitate a more complete analysis and greater transparency into LifeVantage's ongoing results of operations, particularly when comparing underlying operating results from period to period. We've included a reconciliation of these non-GAAP measures with today's release. This call also contains time-sensitive information that is accurate only as of the date of this live broadcast, September 4, 2025. LifeVantage assumes no obligation to update any forward-looking projection that may be made in today's release or call. Now I will turn the call over to Steven Fife, the President and Chief Executive Officer of LifeVantage.

Thanks, Reed, and good afternoon, everyone. Thank you for joining us today. We are pleased with our fourth quarter results, including continued growth and improving margins. Revenues increased approximately 13% year-over-year to $55.1 million, driven largely by our MindBody GLP-1 system. Profitability also remained strong, and we delivered 40 basis points of gross margin expansion versus the prior year period. Adjusted EBITDA of $4.8 million was flat versus last year's fourth quarter. While revenues in the Americas region were up a solid 14%, another exciting development was our international business returning to growth for the first time in 12 quarters. For the quarter, revenues in our Asia Pacific and Europe regions increased by 8%. The rollout of MindBody to Japan, Australia, Europe and Thailand beginning mid-March was the key driver for higher international sales and momentum continues to build. Active account metrics reflected the positive trends we are seeing across our business. In the Americas, total active accounts were up 6% versus last year with increases in both consultants and customers. In Asia Pacific and Europe, total active accounts were down versus last year, but increased 3% on a sequential basis as the MindBody rollout led to growth in customers. Average revenue per consultant was up 4% in the Americas and 14% in Asia Pacific and Europe, further demonstrating the early success of MindBody internationally. Acentuating the incredible year we have had is yesterday's announcement that we have entered into a definitive agreement to acquire the critical assets of LoveBiome, a pioneer direct selling company with a growing global sales presence and strong product philosophy. This strategic partnership enables both consulting groups the opportunity for accelerated growth by cross-selling products while LifeVantage realizes operational leverage. Two things primarily attracted us to this incredible company. First, LoveBiome has established itself as…

Thank you, Steve, and good afternoon, everyone. Let me walk you through our fourth quarter financial results. Please note that I will be discussing our non-GAAP adjusted results. You can refer to the GAAP to non-GAAP reconciliations in today's press release for additional details. Fourth quarter revenue was $55.1 million, up 12.6% on a year-over-year basis. Foreign currency impacted revenue by $0.5 million in the fourth quarter. Excluding the impact of foreign currency fluctuations, fourth quarter revenue was up approximately 11.6% compared to the prior year period. Revenue in the Americas region increased 14.1% to $43.5 million in the fourth quarter, continuing to benefit from the success of our MindBody GLP-1 system. Growth was driven by a 9.7% increase in active independent consultants, along with a 4% increase in total average revenue per consultant. Total active accounts, which includes consultants and customers, increased 6.4% in the Americas during the fourth quarter. Revenue in our Asia Pacific and Europe region increased 7.6% to $11.6 million in the quarter, reflecting the positive impact of our international MindBody rollout that began in March. The year-over-year growth in Asia Pacific and Europe reflected a 13.9% increase in total average revenue per consultant. We are excited to see a return to growth in this region with revenue up both year-over-year and sequentially from the third quarter. Gross margin was 79.9% for the fourth quarter compared to 79.5% in the prior year period. This improvement was primarily driven by lower shipping costs, favorable product mix, including strong sales of MindBody as well as lower inventory obsolescence. Commissions and incentive expense as a percentage of revenue was 42.1% in the fourth quarter compared to 44.9% in the prior year period, reflecting lower incentive-related expenses and the positive impact from changes in sales mix. Non-GAAP adjusted SG&A expense…

[Operator Instructions] Our first question is from Doug Lane with Water Tower Research.

Before we get to the acquisition, which sounds very interesting, I just wanted to go over the fourth quarter and the demand trends there, where $55 million was at the low end of the range and $3 million or so below the midpoint. So where did you -- I don't want to say softness, but where did the disconnect come from the $55 million versus the $58 million at the middle of the range?

Yes. Thanks, Doug, for the question. Yes. So I think -- yes, in Q4, you're right, things came in a little bit softer than what we anticipated. And it was really primarily, I think, in the U.S. side. I think we started to experience some softness around or the seasonality impact of MB here in the fourth quarter. As you saw in the rest of the numbers, international was still pretty strong, but I think it was just a little bit of continued softness there in the U.S. trailing at the end of Q4.

Got it. Got it. Okay. Now on the outlook, looking, I guess, again, using midpoint of the ranges here, Carl, we're looking for maybe low single-digit growth in fiscal 2026. And how much of that is going to come from LoveBiome versus organic?

Yes. We haven't completely figured that piece out yet, Doug. I mean the transaction is looking to close sometime during the second quarter with integration intended to be towards sometime by the end of the second quarter. And there's obviously uncertainties associated with that all comes together. So I'd say when you're looking at that guidance range that we put out, there is a modest amount of revenue associated with that transaction. So I would say, overall, it's a combination of some organic growth from the current baseline or run rate where we are from Q4 with a moderate amount of anticipated LoveBiome revenue.

And LoveBiome, obviously, is a private company. It's a direct seller out in [indiscernible]. I haven't really seen any data from independent sources on LoveBiome. Can you disclose anything with regards to what its sales are or how many consultants it has and what it's really going to bring to LifeVantage here?

Yes, probably not. As far as any of the current revenue information or the consultants, I mean, I think some of that information will be available at a later point. But at this point in time, there's probably not much that we can discuss on at least with those revenue metrics and the related drivers to their business.

How old a business is it? It's still a pretty young business, right? So it can't be that big.

Yes. They started in about 2022, so about 3 years. And I can tell you, the U.S. is their biggest market, followed by Taiwan, and then they have a reasonable presence in Europe and then a smattering in other countries throughout the world. So they have a large footprint, some overlap with LifeVantage, which I think is a really good thing. The product that they've developed, they've been very singularly focused on the gut microbiome and have several products, but most recently announced in March the launch of a product that they refer to as P84. And it has really kind of changed the trajectory of the company and has energized their consultant base, their customer base -- and as we've looked over the past, we've distinguished ourselves, I think, as a company of activation and our products, most recently with MindBody and prior to that, Collagen and then originally with Protandim Nrf2, all critical activation products for our health and well-being. And we have -- we had identified the microbiome space as a real opportunity for LifeVantage. And in fact, 12, 18 months ago, when we were kind of dual pathing our GLP-1 product and a microbiome, a gut product. And obviously, we decided to go down the path of GLP-1, which we're thrilled with. But based on our research and analysis of the market, we knew it was a growing market. In the press release that went out yesterday, we quoted a research analyst that talked about the current market of $14 billion growing to $32 billion by 2035. So it's a dynamic growing market. One that I think is, well, at the center of health literally in our bodies, but also one that plays into our activation story. And as we met with Kelly Olsen, one of the co-founders and CEO of the company and started to understand their science, their product, their vision of this industry, it aligned so clearly and so quickly with LifeVantage that it almost became a no-brainer to pursue this partnership. And it was just announced yesterday. We had a town hall meeting of LifeVantage and LoveBiome consultants on last night. We maxed out our Zoom capabilities. And so there's a lot of benefits, not just from P84 and LoveBiome's products, but our ability to cross-sell one another's products and obviously, the operational leverage that we'll get through combining the 2 entities.

We've been learning a lot about gut health through your MindBody launch over the last year.

That's exactly right.

And I believe that's your first foray into gut health. And it really is...

We do have a probiotic and a prebiotic product that our consultants, our customers love. But we also see those products continuing and working very synergistically with P84. So from that standpoint, there's not any anticipated product cannibalization. Geographically, although we are in a number of the same company or countries, even in the U.S. where LoveBiome's dominant footprint is more on the East Coast. And so it will actually complement the LifeVantage's footprint. And it's really -- as far as Kelly and I see it, it's a synergistic opportunity for us to really grow in a very sustainable way, good for both companies as we look at this rollout.

So maybe just one last and then I'll move on. But could you give us a little -- I don't know much about LoveBiome. I haven't heard of it before the acquisition. And obviously, I don't know much about P84. Could you give us a little color on what P84, how that's marketed versus your MindBody and prebiotic and probiotics?

Yes. It is really, I'd say, a much more complete and comprehensive product focused on the microbiome. And there's a lot of ways companies and products address this. Most of them are through pre and probiotics, but it's not really getting to the microbiome itself. And so this product, we're already thinking of it as it will -- it does regulate, repair and restore the gut microbiome, not just the gut, but the microbiome layer. And the science is out there about the criticality of a healthy microbiome and its connection points with so many other organs, tissues in the body that having that healthy microbiome is critical to the support. And like you said, there is a direct correlation between our MindBody GLP-1 product, the research that we have done about that in terms of increasing the production of GLP-1 hormone by 200% that we know that our product is more effective when the gut is more healthy. And so I think this, again, ties into that GLP-1 story really well, does not conflict at all that ties in. And I believe when we get to our future studies, we're going to see a synergistic benefit of those 2 products taking them tandem.

Well, I have been reading a lot about the microbiome recently. It's certainly become a topic of interest and seems like a very exciting acquisition.

There are no additional questions in queue. I'll now turn the call back to Steve Fife for closing remarks.

Well, thank you, everyone, for joining us today. As we conclude, I just want to extend my appreciation to our committed employees, our outstanding independent consultants, stockholders and our faithful customer base. And I also want to welcome Kelly Olsen and the entire LoveBiome team of consultants and customers that may be joining on the call for the first time. We're happy to have you and look forward to building a great success story together. Thank you, everyone.

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.