Herbalife Achieves Third Quarter Net Sales Growth; Marks Fifth Consecutive Quarter of Expansion
Herbalife Achieves Third Quarter Net Sales Growth of 6.0%; Strong Profitability and Robust Operating Cash Flow; Fifth Consecutive Quarter of Expansion
LOS ANGELES, CA – Herbalife Ltd. (NYSE: HLF) reported financial results for the third quarter ended September 30, 2026:
“Our third quarter results demonstrate continued progress, with strong sales growth, profitability, and cash generation, enabling us to return capital to shareholders going forward, while we continue to strengthen our business and position Herbalife for sustainable, long-term growth.”
– John DeSimone, Interim CEO
Highlights
Third Quarter 2026
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Net sales of $1.35 billion, up 6.0% vs. Q3’25, underscores the progress of the Company’s transformation
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Net income attributable to Herbalife of $58.8 million and margin of 4.4%; adjusted net income1 of $68.5 million; adjusted net income1 margin of 5.1%
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Adjusted EBITDA1 of $182.4 million; adjusted EBITDA1 margin of 13.5%, up 70 basis points year-over-year
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Diluted EPS of $0.55, up $0.13 year-over-year; adjusted diluted EPS1 of $0.64, up $0.14 year-over-year
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Year-to-date net cash provided by operating activities of $298.0 million; capital expenditures of $40.7 million
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Net interest expense savings of $19.1 million year-over-year in the third quarter
Recent Developments
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Board authorized new share repurchase program of up to $250 million over three years
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Appointed Scott Schaefer Chief Financial Officer, effective November 1, 2026
Outlook
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Fourth quarter 2026 guidance provided
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Full-year 2026 guidance revised: net sales guidance increased on both reported and constant currency basis; adjusted EBITDA1 guidance maintained on a reported basis and increased on constant currency basis.
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1 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. |
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2 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. |
Management Commentary
Herbalife reported third quarter 2026 net sales of $1.35 billion, up 6.0% year-over-year, including 160 basis points of foreign currency (“FX”) headwinds, and primarily driven by increased sales volume. On a constant currency basis2, net sales increased 7.6% year-over-year for the quarter, led by Asia Pacific, up 26.1%, and Latin America, up 5.1%, with North America up 1.7%. This was the Company’s fifth consecutive quarter of year-over-year net sales growth on both a reported and constant currency basis.
Gross profit margin was 77.3% in the third quarter, compared to 77.7% in the prior year period, primarily impacted by sales mix pressure and cost changes related to self-manufacturing and sourcing, partially offset by pricing benefits.
For the quarter, net income attributable to Herbalife was $58.8 million and adjusted net income1 of $68.5 million. Adjusted EBITDA1 of $182.4 million includes approximately $11.3 million of FX headwinds year-over-year, with adjusted EBITDA1 margin of 13.5%, up 70 basis points versus the third quarter of 2025. Diluted EPS was $0.55, with adjusted diluted EPS1 of $0.64, which includes a $0.06 year-over-year FX headwind.
Net cash provided by operating activities was $151.3 million and $298.0 million for the three and nine months ended September 30, 2026, respectively. Year-to-date net cash provided by operating activities increased $63.0 million from $235.0 million in the prior year period. Capital expenditures were $18.5 million and $40.7 million for the three and nine months ended September 30, 2026, respectively, and capitalized and prepaid SaaS implementation costs were approximately $14.5 million and $32.5 million, respectively. The Company expects to incur total capitalized and prepaid SaaS implementation costs of approximately $35 million to $45 million for the full year of 2026, which are not included in capital expenditures.
“Third quarter net sales and adjusted EBITDA both exceeded guidance, and adjusted EBITDA margin expanded 70 basis points year-over-year,”
said Scott Schaefer, CFO.
“Our April refinancing reduced net interest expense by $19.1 million year-over-year in the third quarter, strengthening our earnings and cash generation. This supports a disciplined and balanced approach to capital allocation, including continued debt reduction and the flexibility to return capital to shareholders through share repurchases.”
As of September 30, 2026, the Company had cash and cash equivalents of $409.2 million, total debt of $2.0 billion and a net leverage ratio1 of 2.0x, compared to 2.2x as of June 30, 2026. In September, the Company announced a share repurchase program of up to $250 million over three years, which will be executed on both systematically and opportunistically beginning in the fourth quarter. No shares were repurchased under the program during the third quarter.
Leadership Development
John DeSimone was appointed interim CEO and Scott Schaefer was appointed CFO, both effective November 1, 2026.
The Board committee overseeing the succession process, supported by an executive search firm, continues its search for the Company’s next Chief Executive Officer and will provide updates as appropriate.
“We delivered a fifth consecutive quarter of year-over-year net sales growth, and we continue to expect net sales growth for the remainder of the year,”
said John DeSimone, Interim CEO.
“Our priorities are clear: disciplined execution, profitable growth, and a focused roadmap for our business opportunity and digital platforms with measurable success metrics.”
About Herbalife Ltd.
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.
Source: Herbalife
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