Herbalife Reports Q1 2025 Results

Herbalife  (NYSE: HLF) reported financial results for the first quarter ended March 31, 2025.

“Our first quarter results were strong, and we raised our full-year 2025 Adjusted EBITDA² expectations. Our recent acquisitions strengthen our position and support our commitment to transformative growth,”

stated Stephan Gratziani, President and incoming CEO (effective May 1, 2025).

First Quarter 2025: Key Highlights

• Net sales of $1.2 billion at midpoint of guidance range
  • Down 3.4% vs. Q1 ‘24
  • Includes 480 basis points of FX headwinds
  • Up 1.4% year-over-year on constant currency basis¹; at low end of guidance range
• Net income of $50.4 million; adjusted net income² $59.9 million
• Adjusted EBITDA¹ of $164.9 million exceeds guidance
  • Adjusted EBITDA² at constant currency¹ of $181.5 million exceeds guidance
  • Adjusted EBITDA² margin up 260 basis points vs. Q1 ‘24
  • Credit Agreement EBITDA² of $192.0 million
  • Total leverage ratio reduced to 3.0x at March 31
• Diluted EPS of $0.49; adjusted diluted EPS² $0.59

Recent Developments

• Completed acquisitions of certain assets of Pro2col Health LLC and Pruvit Ventures, Inc.
• Formed and obtained a 51% ownership interest in HBL Link Bioscience LLC, which acquired assets of Link BioSciences Inc.

Management Commentary

Herbalife reported first quarter 2025 net sales of $1.2 billion, down 3.4% year-over-year, including 480 basis points of foreign currency headwinds. On a constant currency basis¹, net sales increased 1.4% year-over-year, marking the second consecutive quarter of year-over-year net sales growth excluding FX headwinds.

First quarter gross profit margin improved to 78.3% compared to 77.5% in the first quarter of 2024. On a year-over-year basis, gross profit margin primarily benefited from approximately 80 basis points of pricing and approximately 50 basis points of favorable input costs, mainly related to lower raw material costs, partially offset by approximately 50 basis points of unfavorable impact related to higher inventory write-downs.

Net income was $50.4 million, with net income margin of 4.1% and adjusted net income² of $59.9 million. Adjusted EBITDA² of $164.9 million includes approximately $17 million of foreign currency headwinds year-over-year, with adjusted EBITDA² margin of 13.5%, up 260 basis points versus the first quarter of 2024. Diluted EPS was $0.49, with adjusted diluted EPS² of $0.59, which includes a $0.13 year-over-year foreign currency headwind.

“2025 is off to a strong start,”

said John DeSimone, Chief Financial Officer.

“We delivered net sales growth on a constant currency basis¹ for the second consecutive quarter, adjusted EBITDA² exceeded guidance, and we reduced our total leverage ratio to 3.0x, a target achieved ahead of plan.”

The first quarter of 2025 marked the Company’s fourth consecutive quarter of year-over-year growth in the number of new distributors joining Herbalife worldwide, up 16% year-over-year, reflecting continued strength in distributor trends and engagement globally.

Positive momentum continued to build throughout the quarter as approximately 2,600 distributors convened in Los Angeles, California for Herbalife Honors, the Company’s annual global leadership development and recognition event. Strategic and transformative business initiatives were unveiled, including the planned asset acquisitions of Pro2col Health LLC (“Pro2col LLC”), Pruvit Ventures, Inc. (“Pruvit”) and Link BioSciences Inc. (“Link BioSciences”).

Also at Honors, the Company, in collaboration with network marketing industry leader and coach, Eric Worre, introduced the all-new Herbalife Flex45 Challenge, which is a distributor engagement program centered on health, product use, personal development and business fundamentals. It builds upon the leadership development and engagement initiatives introduced in 2024, which included the Diamond Development Mastermind Program, an ongoing training and accountability program led by President and incoming CEO Stephan Gratziani and supported by Eric Worre. In April, the program expanded to the China market with approximately 1,300 service providers committing to the program. Since the launch of the program in the U.S. in August 2024, followed by rollouts to the Asia Pacific region, Mexico and China in 2025, approximately 7,100 distributors and service providers have committed to the program, with continued expansion into additional markets planned for the remainder of 2025.

Also in April, the Company kicked off its first Extravaganza training events of 2025. Approximately 12,200 attendees convened in Shanghai for China’s event, while India hosted its first of two multi-city Extravaganza events planned for 2025, with events in both Bengaluru and Delhi collectively drawing approximately 34,800 attendees. Distributors’ response to the Company’s new business initiatives has been overwhelmingly positive and strong demand is expected to continue for these training and business development opportunities.

The recent Pruvit and Pro2col LLC acquisitions, and ownership interest in HBL Link Bioscience, expand Herbalife’s health and wellness offerings and are expected to provide opportunities for distributors to expand their customer base through a personalized health, wellness and nutrition platform. To lead these efforts, Blake Mallen, who is the co-founder of Pro2col LLC and previously served as President of Pruvit, was appointed as Herbalife’s Chief Strategy Officer and President of Pro2col. Mr. Mallen will report directly to Stephan Gratziani. Mr. Mallen is a recognized entrepreneur, brand builder, and direct selling executive. With more than two decades of experience building mission-driven businesses and consumer-focused brands, Mr. Mallen brings a wealth of experience in innovation, execution, and category creation.

“As I transition into the role of CEO, I am committed to honoring Herbalife’s 45-year legacy of empowering our communities through health, wellness and a strong entrepreneurial opportunity,”

said Stephan Gratziani.

“Our recent acquisitions are a bold step to provide innovation and growth as we move toward our vision of becoming the world’s premier health and wellness company, community and platform.”

To read the full Q1 press release, please visit Herbalife.com

¹ Non-GAAP measure. Refer to Schedule A – “Reconciliation of Non-GAAP Financial Measures” for a discussion of why the Company believes adjusting for the effects of foreign exchange is useful.

² Non-GAAP measure. Refer to Schedule A – “Reconciliation of Non-GAAP Financial Measures” for a detailed reconciliation of these measures to the most directly comparable U.S. GAAP measure for historical periods, as applicable, and a discussion of why the Company believes these non-GAAP measures are useful and certain information regarding non-GAAP guidance.

About Herbalife

Herbalife (NYSE: HLF) is a premier health and wellness company, community and platform that has been changing people’s lives with great nutrition products and a business opportunity for its independent distributors since 1980.

The Company offers science-backed products to consumers in more than 90 markets through entrepreneurial distributors who provide one-on-one coaching and a supportive community that inspires their customers to embrace a healthier, more active lifestyle to live their best life. For more information, visit herbalife.com.