Mannatech is profitable again, but still owes more than it owns

Mannatech, a US direct seller of nutrition and wellness products, earned an operating profit of USD 998k on revenue of USD 26.7m in the second quarter of 2026. A year earlier it lost USD 1.4m at the operating line. Revenue rose only 3.8%, so the swing came mostly from costs, not from sales. Net profit was USD 1.0m, against a net loss of USD 4.3m in the second quarter of 2025. Yet equity at the end of June 2026 stood at USD -5.0m, compared with USD 6.0m a year before.

Equity turns negative when accumulated losses or payouts exceed what the owners put in. Here the equity ratio is -18.1% on total assets of USD 27.5m, so liabilities exceed everything the company owns. Equity is USD 10.9m lower than a year earlier, which tells me one profitable quarter does not close the gap. Cash of USD 6.0m gives some room. In October 2026 Mannatech reported a change of its certifying accountant, and I would keep that in view. The profit has returned. The balance sheet has not caught up.