So, you know, we got in, as you said earlier, and I hope the slides work here. If not, maybe I can have you advance one. Are you guys seeing one that's, oh, maybe you guys are seeing. I'm trying to see which slide we're looking at here. You guys help me with the wellness industry slide, whoever's running point here. Yeah, there we go. As you mentioned earlier, we have Nu Skin. We realize that beauty devices, well, I'll take a step back, in the beauty space, or in the wellness space, as we all know, in business, you need to have access to data of your customers in order to build truly personalized solutions for them. So, way back when I first returned from Japan, we got into IoT-connected beauty devices.
LumiSpa iO, WellSpa iO launched, and that, as you noted, Euromonitor now, we're acclaimed as the world's largest beauty and wellness device systems brand. The challenge has been more, as the world is now diving deeper and deeper into wellness, and we all know biomarkers are becoming prevalent: wearables, Oura, Whoop, Apple Watch, Garmin. People, consumers, are really into the data, and this has amassed a pretty significant global wellness movement that is, according to Grand View Research, suggests it's going to be a trillion dollars by 2030. This consists of all types of wellness industries, including supplements, which are approximately $480 billion. Wearables themselves, or smart wearables, about an $80 billion marketplace. We realized that there was a great opportunity for us in the wellness space, and if we were going to remain true to providing the best product solutions, we needed devices there.
That is really where we've started to move here with Prysm iO.
Yeah, you've highlighted the biomarker measurement, the personalization as some of the key differentiators.
Yes.
Maybe how does that impact the customer experience and then translate that into a recurrent revenue stream that you mentioned earlier?
We absolutely, you know, we believe, well, I think we all know we're all consumers today, and what's most important for us is having a clear understanding of our own personal well-being. I think that's the movement behind biomarkers today. So if you think of the most prevalent biomarkers in the non-medical space, you have HRV, heart rate variability, you have VO2 max if you're an athlete, you have BMI, body mass index. There are all kinds of biomarkers out there. What's missing today in the biomarker space is how to measure nutrition specifically. And what's more fascinating about nutrition is it drives all aspects of health. So if you think about nutrition as effectively fuel for the body, any aspect from the brain to the body function to movement, it's all based upon the fuel that we put in our bodies.
Up until today, the only way you really understand your health, or your nutrition health specifically, from diet to supplementation is through blood work traditionally, which is very expensive and somewhat painful if you don't like needles, like I do not, and there hasn't been a way to measure this. There actually has been, about in 2004, Nu Skin, working with some scientists and researchers from the University of Utah, created a technology that we brought to market, and we called it Biophotonic Scanner, and this was a very expensive technology, I think $5,000 per device, sat on a table, predominantly was utilized in med spas or doctors' offices to scan patients and give them a nutritional health score, so over the course of 20 years, we've amassed what I believe to be the world's largest antioxidant database or nutritional health database.
We have over 26 million scans from more than 10 million people in 50 countries around the world. That database has been there. We have the technology, but it was not scalable. It was too expensive, $5,000 per machine. You can't have one in every home. And so we set down the course of building Biophotonic Scanner-based capabilities into Prism iO and then leveraging AI insights effectively. And we have our own proprietary LLM. By partnering with various experts in the AI field, we've developed that, taking all of the data that we've had and amassed into an AI-informed algorithm that now utilizes the Prism iO score to give, one, our customers a nutritional health score, which is proprietary to Nu Skin.
Wow. That's pretty impressive. Maybe just looking into 2026, trying to make this a little more concrete.
Yeah.
How should we expect rollout, adoption, contributions to growth to come from Prysm iO?
You know, in our business today, maybe if I break this down a little bit, our business is predominantly in the solutions, not in the devices. Some have said at the conference, "Oh, this is a razor razor blade model." It is, with the exception that we're not selling the razors on the cheap. These are actually complex IoT-connected devices. Each Prysm iO has substantial compute capability and obviously cost built into those. And so these are devices that are very important. They're very intricate and well-designed. A lot of back-and-forth data transfer into the cloud. Those are important solutions or devices to get access to the data. The real value comes in the product solutions that we offer.
So unlike every other wearable, you know, BMI or my Garmin watch or my Oura ring that gives me a KPI or a biomarker, it doesn't provide me with the solution on how to improve that particular thing. It'll give product recommendations on how I should work out or more anaerobic versus aerobic. What we specialize in is not just giving the data and the insights through this AI algorithm to the consumer through their app. We really specialize in the product solutions that will guarantee a result in their nutritional health. So with every subscription that comes across our platform, our intelligent wellness platform, we guarantee those results.
If your score does not improve as you scan and measure the analytes or the carotenoids in your skin, and I should say this one more thing on supplementation, because it's something, as we've gone down this path now significantly, we're finding that more and more people utilize supplementation because we're not eating the right fruits and vegetable intake. So we take nutritional supplements. The challenge is when you come across people who are spending hundreds of dollars a month in supplements today, and they are not being absorbed into the body. Now, how do you know that? Well, you can go and get blood work, which is a prevalent way of doing that, but it's not consistent and accessible. Or you can get it scanned through the Prism. Most people take supplements. You take it in through the mouth.
It should digest in the gut, go to the blood, and then transfer to the organs. Your skin is the biggest organ on the body, so it should show up on your skin. Most supplements pass right through you, literally, and they don't absorb. You need a good supplement that has bioabsorption capability, either through nanotechnologies or using the right omegas or delivery mechanisms. That's what we specialize in, is providing the right supplementation to help that $480 billion market understand whether or not their products actually work.
Right. No, that's fantastic all around on Prysm iO. I appreciate that. I do want to spend some time on India. It represents a significant growth opportunity for you guys.
Yes.
Just thinking about how important this could be maybe to your mid- to long-term outlook and maybe your experiences in growing the Latin American market, how they might inform this?
Yeah. So Nu Skin, historically, from day one, we were an innovation-driven company. So that put us into the premium space. Of all the segments where we perform historically, where we've performed well, they've traditionally been in the developed market segments. So if we think of even China, for instance, the vast majority of Nu Skin's business in China happens in three key cities: Beijing, Shanghai, and Guangzhou. In other words, the most economically developed with the largest premium market segments. However, there's the rest of the world that's very important to us. And so a few years ago, we set out specifically in Latin America to understand how our business can work better and apply to consumers in the emerging to developing segments of the marketplace.
We began a special project in Latin America to rebuild our model in a manner that's scalable, profitable, and meets the consumers where they are. Fortunately, that's gone very well. It's our fastest-growing segment. Today, Latin America is doing extremely well, and we've learned a lot from that experimentation. We've learned not only where the products need to be priced and the degree of efficacy that a consumer can understand locally, because the education levels aren't as high as a developed market in nutritional supplementation, for example. We've learned how to price right, how to position right from a compensation system for our independent sales force. How do we need to reward the right behaviors to get the right outcomes? And so we've tuned that model in Latin America, and it's going well. Fast forward to where we are now in India.
We announced last year that we're preparing to move into this market. 1.6 billion people. It's the world's largest market. It's also the world's most progressive digital-first market that enables us to move differently into that market. We began work in the market years ago, but we in Q4, and we'll talk about it in our earnings release in a month or so, we started to actually begin to prepare to do business, but begin to take some revenue in while we prepare for an opening of that business in mid to late 2026, is what I anticipate. I really believe India is a vital market for us. It is not going to be a fast market. I mentioned to one of our analysts earlier that it took us about five to six years to figure out China to then be able to scale.
We've taken a deliberately different approach into India, digital-first with local partners like Infosys, who is India's largest digital and technology company, partnering with them to do it right, local manufacturing, so I think we'll fast-track that, but I still think it's a mid-term to long-term play, but as we gain traction in India, it will really open up so many other parts of the world where Nu Skin historically hasn't yet reached, so for example, Southeast Asia, we have Indonesia, we have Malaysia, you know, nearly 400 million people in Southeast Asia where Nu Skin exists today, but we don't actually meet that market. We play at the most premium levels in those markets, and we're not able to reach the masses.
As we understand India, we're able to take Latin America lessons into markets like Southeast Asia, Eastern Europe, even second and third-tier cities in China where all the growth, the economic growth is happening in China. It's not in those mega centers. It's now in the second and third-tier cities. All of this will be informed through the India learnings and the Latin America learnings.
No, that's right. And taking that beyond India, you know, the emerging markets are really shaping the next three to five years.
Absolutely.
I guess with the revenues starting to become more evenly distributed, though, how are you navigating some of that regional volatility? Maybe which markets or indices do you find mattering most over the?
You know, so when I first came back from Japan, this is 2017, 2018, we came back and stepped into a situation whereby Nu Skin was overly dominant in a single or one to two segments out of six or seven, and at the time, we were very concerned about that because specifically the region was China, and with the trade wars going on and all the geopolitical tension there, we determined in 2019 that we needed to really diversify and balance the business. Today, now, I would love to still have the same size business as we had in China. We don't. We've lost a lot of that business. What it has given us is an opportunity to rebalance our segments, so now today, in our six regional segments plus Rhyz, each of those segments is around an equal size.
And so we are not over-indexed or over-weighted or over-risked on any single segment. We're very evenly distributed. And I believe that from a shareholder perspective, especially in today's world, I think that's a very important aspect of any business is to be that diverse. And I would anticipate we'll continue to strive for that diversity.
No, that's great. That makes a lot of sense. So I guess with all that discussed, it does feel like the market's missing something.
Yeah.
You know, when we think about.
I think the market's missing something.
I mean, compared to other beauty, wellness peers and especially tech-enabled peers, you know, what do you see as the divergence there?
So I was on a call. James and I, our CFO, were on an investor call a couple of weeks ago, and this question was asked. You know, so if you guys have all of this great technology and you have all these great product solutions and nobody else is doing that, and then you look at other biomarker companies in the private space and they're at $8 billion, $10 billion on $400 million in revenue, what's missing? And I always say the thing that frustrates me most as CEO of the company over the last few years is that Nu Skin is one of the very few companies in the entire beauty or wellness sector that are not valued for the products or services that we provide, but discounted by the channel by which we provide them.
We were at an investor conference out in California earlier this year or late last year and having this discussion, and it really frustrates me because when we consider ourselves as a company, we are all about high innovation, knowing our customers in a digital-first manner, providing data for them to build personalized product solutions for their needs in both the beauty and wellness space. If you were to take our valuation and evaluate it as the lowest beauty company out there, you would see probably a six-plus time revenue enterprise value multiple on top of where we are today. If you did wellness, it would be another 2-3 times that. If you were to do technology, which is what's in our devices or Prism iO, all about intelligent wellness, you're talking about a 12-20 time REV.
There's this enormous discount on this business, and it's because of the direct sales channel by which we distribute the products. But if you break that channel out, more than 98% of all of our revenue comes direct to company through attributed links. Furthermore, every beauty company on the planet, every wellness company on the planet is trying to find affiliates or ambassadors or influencers, and they're doing exactly what Nu Skin's done for 42 years. And so there's this, from an investor and analyst point of view, I believe there's an enormous disconnect. Value is created in a very near-term, immediate. Let's look at the next five years. What brand will spike next? And unless you're a brand, a house of brands strategy where you're acquiring and divesting companies, that's not a sustainable model. You will have a pop and drop. We see these.
I've been coming to ICR for several years now, and you see these amazing flashy companies, and they're gone three years later. But because they're sexy and new, they're not sustainable businesses. And so I believe as Nu Skin does our job as a world's leading intelligent beauty and wellness platform, as we do our job and as we perform, my belief is that we will demonstrate the staying power of knowing your customer, having a captured sales force that still leverages social media to build the brand. We have hundreds of thousands of micro-influencers around the globe in 50 markets who share. It brings the customer acquisition costs way down. It enables the unit economics to be significantly more profitable. And I could name a few companies here that are astronomical valuations, and they're still burning through $500-$1 billion a year in CAC alone.
That is an unsustainable model, and there will be a buyer of that business that ends up paying too much and then absorbing that business in five years because it's gone. I believe, and I believe the staying power of Nu Skin over 42 years is that we understand that true value is created by meeting customers where they are, providing product solutions based on their needs, and then growing enterprise value in doing that, and that's what we're committed to doing, and I think Prism iO this coming year, we're just getting into the rollout of this December, just to give you a quick, because we have a couple of minutes. Prism iO, so we had in the marketplace with Biophotonic scanners, we had around 1,500 to service about 50 markets around the globe, servicing approximately a $250 million recurring revenue product business.
In December, we were able to place multiples of that into the market of Prysm, which are in-home units. So it's not a direct corollary. It's not apples to apples. Many more units into market that are then creating household-based subscriptions will be multiplying those thousands of units in quarter by quarter into hundreds of thousands of units throughout 2026. So I think as we roll this out, the product, the device, the app, they're working optimally today globally. Data's connected. The cloud's working. The AI LLM is working well. First half is all about getting our sales force acclimated and trained to scale. And then second half will be the consumer launch.
So I think you'll see us as we come out, and you know, obviously I'm not giving guidance here, but as people listen into our call here at February 12th, we'll be talking about what we anticipate to happen. But I see this as a unique opportunity for Nu Skin to, number one, reestablish both sides of the flywheel for us, which is beauty will continue to be an important part, but adding wellness back into a focus and creating IoT-enabled consumer experiences that give personalized product recommendations that will re-strengthen the wellness side of the business while we sustain our beauty. And we'll really, I believe, will enable us to really stabilize the business as we return, you know, to growth in the coming two to three years. So it should be exciting.
That's fantastic. A lot to look forward to. Ryan, with that, I appreciate your time and.
Thank you.
Yeah,
thanks, everybody. Appreciate it.
Thank you.