Herbalife Reports Second Quarter Net Sales Growth; Marks Fourth Consecutive Quarter of Topline Expansion; Net Sales and Adjusted EBITDA1 Exceed Guidance Excluding FX Headwinds2

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

LOS ANGELES--(BUSINESS WIRE)--Herbalife Ltd. (NYSE: HLF) today 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.

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 today, 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.

Second Quarter 2026 Key Metrics

Regional Net Sales and FX Impact

Outlook

Third Quarter 2026 Guidance

Full-Year 2026 Guidance – Revised

Guidance Assumptions

• Net sales and adjusted EBITDA¹ use the average daily exchange rates for the first two weeks of July 2026 to translate local currency projections

Additional FY 2026 Expectations – Revised

• Capitalized SaaS implementation costs of $35 million to $55 million, which are not included in capital expenditures
• Depreciation and amortization, and amortization of SaaS implementation costs, of $140 million to $150 million
• Adjusted effective tax rate¹ of approximately 35%

Earnings Webcast and Conference Call

Herbalife’s senior management team will host an audio webcast and conference call to discuss its second quarter 2026 financial results on Wednesday, August 5, 2026, at 5:30 p.m. ET (2:30 p.m. PT).

The audio webcast will be available at the following link: https://edge.media-server.com/mmc/p/6vz6bf9d

Participants joining via the conference call may obtain the dial-in information and personal PIN to access the call by registering at the following link:

https://register-conf.media-server.com/register/BI6c9d643b8ab14a798e591c1cf18bbc2e

Senior management also plans to reference slides during the webcast and call, which will be available under the Investor Relations section of Herbalife’s website at https://ir.herbalife.com, where financial and other information is posted from time to time. The webcast will also be available at the same website, along with a replay of the webcast following the completion of the event and for three months thereafter.

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.

For more information, visit https://ir.herbalife.com.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures, or share repurchases; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing or other future events. Forward-looking statements may include, among others, the words “may,” “will,” “estimate,” “intend,” “continue,” “believe,” “expect,” “anticipate” or any other similar words.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include the following:

• the potential impacts of current global economic conditions, including inflation, unfavorable foreign exchange rate fluctuations, and tariffs or retaliatory tariffs, on us; our Members, customers, and supply chain; and the world economy;
• our ability to attract and retain Members;
• our relationship with, and our ability to influence the actions of, our Members;
• our noncompliance with, or improper action by our employees or Members in violation of, applicable U.S. and foreign laws, rules, and regulations;
• adverse publicity associated with our Company or the direct-selling industry, including our ability to comfort the marketplace and regulators regarding our compliance with applicable laws;
• changing consumer preferences and demands and evolving industry standards, including with respect to climate change, sustainability, and other environmental, social, and governance matters;
• the competitive nature of our business and industry;
• legal and regulatory matters, including regulatory actions concerning, or legal challenges to, our products or network marketing program and product liability claims;
• the Consent Order entered into with the Federal Trade Commission, or FTC, the effects thereof and any failure to comply therewith;
• risks associated with operating internationally and in China;
• our ability to execute our growth and other strategic initiatives (such as restructuring efforts, increased market penetration in existing markets, and personalized product and related technology initiatives);
• the effectiveness and acceptance of new technology-driven initiatives;
• any material disruption to our business caused by natural disasters, other catastrophic events, acts of war or terrorism, including the wars in Ukraine and the Middle East, cybersecurity incidents, pandemics, and/or other acts by third parties;
• our ability to adequately source ingredients, packaging materials, and other raw materials and manufacture and distribute our products;
• our reliance on our information technology infrastructure, and our ability to successfully develop, deploy, and integrate artificial intelligence into our business;
• noncompliance by us or our Members with any privacy, artificial intelligence and data protection laws, rules, or regulations or any security breach involving the misappropriation, loss, or other unauthorized use or disclosure of confidential information;
• contractual limitations on our ability to expand or change our direct-selling business model;
• the sufficiency of our trademarks and other intellectual property;
• product concentration;
• our reliance upon, or the loss or departure of any member of, our senior management team;
• our ability to integrate and capitalize on acquisition transactions;
• restrictions imposed by covenants in the agreements governing our indebtedness;
• risks related to our convertible notes;
• changes in, and uncertainties relating to, the application of transfer pricing, income tax, customs duties, value added taxes, and other tax laws, treaties, and regulations, or their interpretation;
• our incorporation under the laws of the Cayman Islands; and
• share price volatility related to, among other things, speculative trading and certain traders shorting our common shares.

Additional factors and uncertainties that could cause actual results or outcomes to differ materially from our forward-looking statements are set forth in the Company’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission on February 18, 2026, including under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and in our Consolidated Financial Statements and the related Notes included therein. In addition, historical, current, and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.

Forward-looking statements in this release speak only as of the date hereof. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

Results of Operations

Media Contact:
Miguel Lopez-Najera
Director, Global Corporate Communications
miguellope@herbalife.com

Investor Contact:
Samantha Holway
Vice President, Head of Investor Relations
samanthagou@herbalife.com