Herbalife Reports Q4 and Full-Year Sales Growth

Herbalife Delivers Fourth Quarter and Full-Year Net Sales Growth, Net Sales and Adjusted EBITDA¹ Exceed Guidance.

Los Angeles, CA – Herbalife Ltd. (NYSE: HLF), a premier health and wellness company, community and platform, reported financial results for the fourth quarter and year ended December 31, 2025.

“We exited 2025 with solid momentum, delivering Q4 and full‑year net sales growth and adjusted EBITDA¹ above guidance. Cristiano Ronaldo’s investment in Pro2col reflects our shared ambition to scale personalized nutrition and wellness globally—uniting science, data, AI, innovation, and community to improve the health and performance of millions.”

– Stephan Gratziani, CEO

Highlights

Fourth Quarter 2025

• Net sales up 6.3% vs. Q4 ‘24 to $1.3 billion; exceeds guidance
  • Up 5.5% year-over-year on constant currency basis²; exceeds guidance
• Net income attributable to Herbalife of $85.4 million; adjusted net income¹ of $47.5 million
• Adjusted EBITDA¹ of $156.1 million, or $167.7 million on a constant currency basis²; both exceed guidance
• Diluted EPS of $0.81; adjusted diluted EPS¹ of $0.45

Full-Year 2025

• Net sales up 0.9% vs. 2024 to $5.0 billion; exceeds guidance
  • Includes 160 basis points of foreign currency (“FX”) headwind
  • Up 2.5% year-over-year on constant currency basis², exceeds guidance
• Net income attributable to Herbalife of $228.3 million; adjusted net income¹ of $219.4 million
• Adjusted EBITDA¹ of $657.6 million, or $713.9 million on a constant currency basis²; both exceed guidance
  • Credit Agreement EBITDA¹ of $742.0 million, maintained total leverage ratio at 2.8x at Dec 31
• Diluted EPS of $2.20; adjusted diluted EPS¹ of $2.12
• Net cash provided by operating activities of $333.3 million; capital expenditures of $80.4 million

Recent Developments

• In February, global sports icon Cristiano Ronaldo, invested $7.5 million and provided sponsorship rights for a 10% equity stake in HBL Pro2col Software, LLC (“Pro2col Software”)

Outlook

• First quarter and full-year 2026 guidance provided

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.
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 fourth quarter 2025 net sales of $1.3 billion, up 6.3% year-over-year, including 80 basis points of FX tailwinds. On a constant currency basis², net sales increased 5.5% year-over-year for the quarter.

Gross profit margin was 77.5% in the fourth quarter, compared to 77.8% in the prior year period. On a year-over-year and approximate basis, the change primarily reflects 100 basis points of FX headwinds, 30 basis points of unfavorable sales mix, and 30 basis points of input cost inflation, driven mainly by lower absorption rates. These impacts were partially offset by 80 basis points of pricing benefits, 10 basis points of lower outbound freight costs, and 30 basis points of other favorable cost changes.

For the quarter, net income attributable to Herbalife was $85.4 million, with net income margin of 6.7%, and adjusted net income¹ of $47.5 million. Adjusted EBITDA¹ of $156.1 million includes approximately $12 million of FX headwinds year-over-year, with adjusted EBITDA¹ margin of 12.2%, down 20 basis points versus the fourth quarter of 2024. Diluted EPS was $0.81, with adjusted diluted EPS¹ of $0.45, which includes a $0.07 year-over-year FX headwind.

Full-year 2025 net sales were $5.0 billion, up 0.9% year-over-year, including 160 basis points of FX headwinds. On a constant currency basis², net sales increased 2.5% year-over-year.

Full-year 2025 net income attributable to Herbalife was $228.3 million, with net income margin of 4.5%, and adjusted net income¹ of $219.4 million. Adjusted EBITDA¹ of $657.6 million includes approximately $56 million of FX headwinds year-over-year, with adjusted EBITDA¹ margin of 13.1%, up 40 basis points versus 2024. Diluted EPS was $2.20, with adjusted diluted EPS¹ of $2.12, which includes a $0.39 year-over-year FX headwind.

Net cash provided by operating activities was $98.3 million and $333.3 million for the quarter and year ended December 31, 2025, respectively. Capital expenditures were $18.5 million and $80.4 million for the fourth quarter and full-year 2025, respectively, and capitalized software as a service (“SaaS”) implementation costs were approximately $9 million and $25 million, respectively.

In accordance with the terms of the Pro2col Health LLC asset purchase agreement entered into in April 2025, the Company made a contingency payment of $3.0 million during the fourth quarter following the release of Pro2col Beta 2.0 in the U.S., Canada and Puerto Rico in December 2025. For full‑year 2025, total contingency payments related to Pro2col were $5.0 million.

As of December 31, 2025, the Company’s revolving credit facility was undrawn, compared to $25.0 million outstanding as of September 30, 2025.

“Our results reflect strong operational and financial momentum,”

said Chief Financial Officer John DeSimone.

“For the full year, we delivered our second consecutive year of adjusted EBITDA¹ and adjusted EBITDA¹ margin expansion, generated strong operating cash flows, reduced debt, and ended 2025 with a total leverage ratio of 2.8x.”

For the fourth quarter, the Company’s North America region delivered its second consecutive quarter of double-digit new distributor growth, up 19% year-over-year, while Latin America achieved its seventh straight quarter of year-over-year growth, up 6%. While new distributors joining worldwide declined 5% year-over-year, they increased 16% on a two-year stack basis, reflecting sustained multi‑year momentum.

In December, the Company hosted a virtual distributor event introducing the next phase of its strategic beta program for Pro2col, Herbalife’s personalized health and wellness operating system. As part of the event, the Company released Pro2col Beta 2.0, expanding the availability of beta access to distributors and customers in the U.S., Canada, and Puerto Rico. The release also included improvements to distributor marketing pages and the coach dashboard, designed to further enhance the connection and support between distributors and their customers.

The ongoing beta phases are strategically designed to further advance platform development and innovation by incorporating in‑market user insights to inform personalization capabilities, prioritize new features, and guide the timing and scope of future rollout phases. Building on these learnings, the Company expects to expand beta access to additional international markets, beginning with select EMEA markets in 2026.

Recent Developments

As announced in a separate press release, in February 2026, global sports icon Cristiano Ronaldo acquired a 10% equity interest in Pro2col Software, an indirect wholly-owned subsidiary of Herbalife Ltd. that holds the Pro2col technology. Ronaldo invested $7.5 million, along with a commitment to provide services and sponsorship rights to Pro2col Software. This investment underscores Ronaldo’s deep personal commitment to health and nutrition, as well as his shared vision to make personalized nutrition and wellness more accessible globally.

“For more than 45 years, Herbalife’s distributor network has supported millions of customers on their health journeys,”

said Chief Executive Officer Stephan Gratziani.

“Today, we are building on that legacy — combining science, data, AI, innovation, and community to bring the next generation of personalized nutrition and wellness to more people around the world. With Cristiano Ronaldo’s investment in Pro2col, our 2025 acquisitions, and continued investments in product and digital innovation, we are strengthening our platform and expanding our global impact.”

For full report, visit Herbalife.com

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.

SOURCE: Herbalife