Aug 5, 2026, 4:24 PM ETConsumer Defensive

Herbalife Ltd. — Second Quarter 2026 Earnings Summary

HLFHERBALIFE LTD

Financial Performance

Net sales for Q2 2026 were $1.3 billion, a 5.4% increase year-over-year, reaching the top of the guidance range; constant currency sales grew 5.8%.
Year-to-date net sales were $2.644 billion, up 6.6% year-over-year.
Adjusted EBITDA for Q2 2026 was $166.6 million (12.6% margin), with constant currency adjusted EBITDA at $174.4 million; Credit Agreement EBITDA was $190.7 million.
Year-to-date adjusted EBITDA was $342.3 million.
Net loss attributable to Herbalife was $(26.3) million, including a $94.6 million loss on the extinguishment of debt following April 2026 refinancing; adjusted net income was $53.3 million.
Diluted loss per share was $(0.25); adjusted diluted EPS was $0.51.
Gross profit margin was 77.7% in Q2 2026, down from 78.0% in Q2 2025, impacted by sales mix pressure, higher other costs, inventory write-downs, and sourcing costs, partially offset by pricing benefits.
Net cash provided by operating activities was $32.9 million for the quarter and $146.7 million year-to-date.
Capital expenditures were $11.3 million for the quarter and $22.2 million year-to-date; capitalized SaaS implementation costs were $8 million for the quarter and $18 million year-to-date.
Total debt was $2,015.7 million ($12.0 million current portion, $2,003.7 million long-term); net debt was $1,669.1 million as of June 30, 2026.
Credit Agreement total leverage ratio was 2.7x; net leverage ratio was 2.2x as of June 30, 2026.

Q3 2026 net sales guidance is +0.5% to +4.5% year-over-year (reported) and +1.5% to +5.5% (constant currency).
Q3 2026 adjusted EBITDA guidance is $160 million to $180 million (reported) and $165 million to $185 million (constant currency).
Q3 2026 capital expenditures guidance is $15 million to $25 million.
Full-year 2026 net sales guidance is +2.5% to +5.5% year-over-year.
Full-year 2026 adjusted EBITDA guidance was revised to $670 million to $690 million (narrowed from $675 million to $705 million), reflecting FX headwinds, while constant currency guidance was raised to $690 million to $710 million.
Full-year 2026 capital expenditures guidance is $50 million to $70 million.
Full-year 2026 capitalized SaaS implementation costs are expected to be $35 million to $55 million (excluded from CapEx).
Full-year 2026 depreciation and amortization, including SaaS amortization, is expected to be $140 million to $150 million.
Full-year 2026 adjusted effective tax rate is expected to be approximately 35%.
Management expects net sales growth to continue for the remainder of the year.

North America net sales were $273.0 million in Q2 2026, up 0.2% year-over-year.
Latin America net sales were $245.0 million in Q2 2026, up 16.6% year-over-year (8.2% constant currency).
EMEA net sales were $277.8 million in Q2 2026, down 3.5% year-over-year (down 5.6% constant currency).
Asia Pacific net sales were $470.6 million in Q2 2026, up 15.2% year-over-year (up 23.1% constant currency).
China net sales were $60.4 million in Q2 2026, down 24.5% year-over-year (down 29.0% constant currency).
Launched Bioniq GO, a next-generation personalized nutrition product matching customers to one of forty formulas, in eleven EMEA markets and North America.
Launched two new products under the Life I/O brand: Helio (a daily super shake) and Activate Energy (an exogenous ketones product).
Delivered an update to the Pro2col™ platform featuring a new user experience and blood-test diagnostic integration.
Unveiled a beta version of an at-home blood test diagnostic for select North American distributors.
Hosted 2026 Extravaganza events in India, Uzbekistan, China, Panama, Singapore, Poland, and the U.S., attracting over 110,000 attendees.

The company reported its fourth consecutive quarter of year-over-year net sales growth on both reported and constant currency bases.
The "Fuel Like Ronaldo" global campaign was launched to promote personalized nutrition philosophy across social media, digital, print, and broadcast channels.
The company operates in more than 90 markets through independent distributors.

Foreign exchange headwinds from a strengthening U.S. dollar impacted reported outlook for the back half of the year.
Gross margin was pressured by sales mix, higher other costs, inventory write-downs, and self-manufacturing/sourcing costs.
Significant one-time loss on debt extinguishment ($94.6 million) impacted net income.
Risks include global economic conditions, inflation, tariffs, ability to attract/retain members, regulatory compliance (including FTC Consent Order), and geopolitical instability (e.g., wars in Ukraine and the Middle East).

John DeSimone, CFO, stated that Q2 net sales and EBITDA results were at the high end of previously issued guidance and that constant currency outlook remains consistent with prior expectations despite FX headwinds.
Stephan Gratziani noted the resilience of the company, the momentum of four consecutive quarters of growth, and confidence in the long-term growth strategy.
Management highlighted strong distributor engagement and demand for in-person training at Extravaganza events.
The tone reflects confidence in the execution of the growth strategy and the foundation laid by the outgoing CFO.

CFO John DeSimone will retire effective December 31, 2026; Scott Schaefer will succeed him effective January 1, 2027.
The company completed a refinancing in April 2026, resulting in the extinguishment of the 2024 Credit Facility and 2029 Secured Notes, with a loss of $94.6 million.
Proceeds from senior secured notes due 2033 were $800.0 million; repayment of senior secured notes due 2029 was $849.0 million.
Share repurchases totaled $10.0 million for the six months ended June 30, 2026.
The company retrospectively reclassified selling expenses and royalty overrides for the six months ended June 30, 2025, to simplify financial statement presentation.
The company expects to incur total capitalized SaaS implementation costs of $35 million to $55 million for the full year of 2026.