Herbalife Achieves Third Quarter Net Sales Growth of 6.0%; Strong Profitability and Robust Operating Cash Flow; Fifth Consecutive Quarter of Expansion

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

• Net sales of $1.35 billion, up 6.0% vs. Q3’25, underscores the progress of the Company’s transformation
  • Up 7.6% year-over-year on constant currency basis²
  • North America net sales up 1.7%, its second consecutive quarter of year-over-year growth
• 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%
• Adjusted EBITDA¹ of $182.4 million; adjusted EBITDA¹ margin of 13.5%, up 70 basis points year-over-year
  • Adjusted EBITDA¹ at constant currency² of $193.7 million exceeds guidance
  • Credit Agreement EBITDA¹ of $198.9 million
• Diluted EPS of $0.55, up $0.13 year-over-year; adjusted diluted EPS¹ of $0.64, up $0.14 year-over-year
• Year-to-date net cash provided by operating activities of $298.0 million; capital expenditures of $40.7 million
• Net interest expense savings of $19.1 million year-over-year in the third quarter

Recent Developments

• Board authorized new share repurchase program of up to $250 million over three years
• Appointed Scott Schaefer Chief Financial Officer, effective November 1, 2026

Outlook

• Fourth quarter 2026 guidance provided
• 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

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 Update

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.”

Third Quarter 2026 Key Metrics

Regional Net Sales and FX Impact

Outlook

Fourth 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 October 2026 to translate local currency projections

Additional FY 2026 Expectations – Revised

• Capitalized and prepaid SaaS implementation costs of $35 million to $45 million, which are not included in capital expenditures
• Depreciation and amortization, and amortization of SaaS implementation costs, of $135 million to $145 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 third quarter 2026 financial results on Monday, November 2, 2026, at 5:00 p.m. ET (2:00 p.m. PT).

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

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/BIbc86d3675fac41e6bb6e7213dc72cc0b

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

Supplemental Information

SCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)

Adjusted Net Income, Adjusted Diluted EPS, Adjusted EBITDA, Credit Agreement EBITDA and Net Debt

In addition to its reported results calculated in accordance with U.S. GAAP, the Company has included in this release adjusted net income, adjusted diluted EPS, adjusted EBITDA and credit agreement EBITDA, performance measures that the Securities and Exchange Commission defines as “non-GAAP financial measures.” Adjusted net income, adjusted diluted EPS, adjusted EBITDA and credit agreement EBITDA are calculated as net income attributable to Herbalife excluding the impact of certain unusual or non-recurring items such as expenses related to restructuring initiatives, expenses related to the digital technology program, gains or losses from sale of property, gains or losses from extinguishment of debt and certain tax expenses and benefits, as further detailed in the reconciliations below. In addition, during the fourth quarter of 2024, the Company recognized $147.3 million of non-cash net deferred income tax benefits related to changes the Company initiated to its corporate entity structure, including intra-entity transfers of intellectual property to one of its European subsidiaries, which was excluded from adjusted net income and adjusted diluted EPS. A portion of these non-cash net deferred income tax benefits will reduce cash taxes paid and result in net deferred tax expense recognized in future periods. Beginning in the first quarter of 2025 and in future periods, the related net deferred tax effects will be excluded from adjusted net income and adjusted diluted EPS. Adjusted EBITDA margin represents adjusted EBITDA divided by net sales. Credit agreement EBITDA represents EBITDA adjusted for items permitted under the Company’s senior secured credit facilities.

Management believes that such non-GAAP performance measures, when read in conjunction with the Company’s reported results, calculated in accordance with U.S. GAAP, can provide useful supplemental information for investors because they facilitate a period to period comparative assessment of the Company’s operating performance relative to its performance based on reported results under U.

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