Herbalife Reports Second Quarter Net Sales Growth; Marks Fourth Consecutive Quarter of Topline Expansion

Herbalife Advances Personalized Nutrition with Bioniq launch; CFO John DeSimone to Retire at Year-End; Scott Schaefer Named Successor. 

LOS ANGELES, CA – Herbalife Ltd. (NYSE: HLF) reported financial results for the second quarter ended June 30, 2026:

“This quarter marks an important milestone in the execution of our personalized nutrition strategy with the launch of Bioniq in Europe and the United States. We are bringing our vision to life and expanding the value we create for customers.”

— Stephan Gratziani, CEO

Highlights

Second Quarter 2026

• Net sales of $1.3 billion, up 5.4% vs. Q2’25, and at the top of guidance range
  • Up 5.8% year-over-year on constant currency basis²; exceeds guidance
  • North America net sales up slightly
• Net loss attributable to Herbalife of $(26.3) million includes loss on extinguishment of debt; adjusted net income¹ of $53.3 million
  • Loss on extinguishment of debt of $94.6 million after successful April 2026 refinancing
• Adjusted EBITDA¹ of $166.6 million, toward the upper end of guidance
  • Adjusted EBITDA¹ at constant currency² of $174.4 million exceeds guidance
  • Credit Agreement EBITDA¹ of $190.7 million
• Diluted loss per share of $(0.25); adjusted diluted EPS¹ of $0.51
• Year-to-date net cash provided by operating activities of $146.7 million; capital expenditures of $22.2 million

Recent Developments

• Launched next generation of personalized product with Bioniq GO matching customers to one of forty formulas in eleven EMEA markets in June and North America in July, as well as two new products, Helio and Activate Energy, under its healthy lifespan brand, Life I/O
• Delivered a significant update to the Pro2col^TM platform as part of an extended beta program at the North America Extravaganza, featuring a new user experience, enhanced features, and blood-test diagnostic integration
• Unveiled beta version of at-home blood test diagnostic to select distributors in North America in July

Outlook

• Third quarter 2026 guidance provided
• Full-year 2026 guidance revised: range tightened for net sales; narrowed adjusted EBITDA¹ guidance range to $670 million to $690 million from $675 million to $705 million, primarily reflecting FX headwinds, as constant currency guidance was raised.

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 second quarter 2026 net sales of $1.3 billion, up 5.4% year-over-year, including 40 basis points of foreign currency (“FX”) headwinds. On a constant currency basis², net sales increased 5.8% year-over-year for the quarter. This was the Company’s fourth consecutive quarter of year-over-year net sales growth on both a reported and constant currency basis.

Gross profit margin was 77.7% in the second quarter, compared to 78.0% in the prior year period. On a year-over-year and approximate basis, the change primarily reflects 47 basis points of sales mix pressure, 22 basis points of higher other costs, 20 basis points from higher inventory write-downs and 9 basis points from cost changes related to self-manufacturing and sourcing. These impacts were partially offset by 64 basis points of pricing benefits.

For the quarter, net loss attributable to Herbalife was $(26.3) million, with net loss margin of 2.0%, and adjusted net income¹ of $53.3 million. Adjusted EBITDA¹ of $166.6 million includes approximately $7.6 million of FX headwinds year-over-year, with adjusted EBITDA¹ margin of 12.6%, down 120 basis points versus the second quarter of 2025. Diluted loss per share was $(0.25), with adjusted diluted EPS¹ of $0.51, which includes a $0.04 year-over-year FX headwind.

Net cash provided by operating activities was $32.9 million and $146.7 million for the three and six months ended June 30, 2026, respectively. Capital expenditures were $11.3 million and $22.2 million for the three and six months ended June 30, 2026, respectively, and capitalized SaaS implementation costs were approximately $8 million and $18 million, respectively. The Company expects to incur total capitalized SaaS implementation costs of approximately $35 million to $55 million for the full year of 2026, which are not included in capital expenditures.

“Our net sales and EBITDA results for the second quarter were at the high end of previously issued guidance,”

said John DeSimone, Chief Financial Officer.

“While the recent strengthening of the U.S. dollar has resulted in additional foreign exchange headwinds affecting our reported outlook for the back half of the year, our constant currency outlook remains consistent with the expectations we shared last quarter.”

Following the first 2026 Extravaganza events in India in April, the Company hosted additional events in Uzbekistan, China, Panama, Singapore, Poland, and the United States. To date, the 2026 events have attracted over 110,000 attendees, reflecting strong distributor engagement and continued demand for in-person training, recognition and business development opportunities. In conjunction with the EMEA and U.S. Extravaganzas, the Company launched Bioniq GO, entering its next generation of personalized products, matching customers to one of forty formulas, across eleven European markets and the U.S., with additional markets to follow later in 2026. In addition, the Company is now offering distributors, customers and preferred members in the newly-launched European markets the option to subscribe to automatic monthly deliveries of Bioniq GO.

Our global Fuel Like Ronaldo campaign brought our personalized nutrition philosophy to life by highlighting the daily habits behind Cristiano Ronaldo’s performance. The global campaign reached consumers worldwide across social media, digital, print and broadcast media, as well as in-person fan fest activations around a major sporting event, creating new opportunities to engage consumers and support our distributors around the world.

Recent Developments

At the North America Extravaganza in July, the Company delivered the next release of its Pro2col™ platform as part of its extended beta program, introducing a new user experience, enhanced features, and integration with blood test diagnostics, rooted in direct distributor feedback received since initiation of the beta program. Alongside the platform updates, the Company began an early beta of at-home blood biomarker diagnostics with a select group of distributors.

In July, the Company also launched two new products under Life I/O, its recently launched healthy lifespan brand. Helio is a daily, all-in-one super shake formulated with foundational and trending ingredients like protein, fiber, methylated B vitamins, creatine, and superfood, adaptogen, and polyphenol blends for everyday health and wellness.^* Stemming from its acquisition of Pruvit, Activate Energy marks the Company’s channel-exclusive entry into the exogenous ketones market, containing D-isomer BHB ketones.

CFO Transition

As announced in a separate press release, Scott Schaefer will succeed John DeSimone as CFO, as part of a planned transition, effective January 1, 2027. Mr. DeSimone will retire, effective December 31, 2026.

“We delivered a fourth consecutive quarter of year-over-year net sales growth, and we continue to expect net sales growth for the remainder of the year,”

said Stephan Gratziani.

“This momentum reflects the resilience of Herbalife and has us poised to successfully carry out our long-term growth strategy. John DeSimone played an impactful role in laying this foundation, and I am grateful to him for his leadership and partnership. I am confident Scott Schaefer’s financial expertise and strategic perspective will help propel us in our next chapter.”

* These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.

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