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

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

Recent Developments

Outlook

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 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 basis 2, 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 income 1 of $68.5 million. Adjusted EBITDA 1 of $182.4 million includes approximately $11.3 million of FX headwinds year-over-year, with adjusted EBITDA 1 margin of 13.5%, up 70 basis points versus the third quarter of 2025. Diluted EPS was $0.55, with adjusted diluted EPS 1 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 ratio 1 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

Reported Net Sales

YoY Growth (Decline)

$ million

Q3 ‘26

Q3 ‘25

including FX

excluding FX 2

North America

267.5

263.1

1.7

Latin America

250.2

229.6

9.0

5.1

EMEA

259.0

272.3

(4.9

(5.2

Asia Pacific

517.9

437.4

18.4

26.1

China

55.6

71.3

(22.0

(26.4

Worldwide

1,350.2

1,273.7

6.0

7.6

Reported Net Sales

YoY Growth (Decline)

$ million

YTD ‘26

YTD ‘25

including FX

excluding FX 2

North America

788.1

789.9

(0.2

(0.3

Latin America

737.2

646.5

14.0

6.6

EMEA

811.6

833.5

(2.6

(5.8

Asia Pacific

1,484.3

1,268.5

17.0

23.4

China

173.0

216.1

(19.9

(24.3

Worldwide

3,994.2

3,754.5

6.4

6.3

Outlook

Fourth Quarter 2026 Guidance

$ million

Net Sales

Adjusted EBITDA 1

CapEx

Reported

+0.5% to +4.5% YoY

145-165

13 – 23

Constant Currency (a)

+2.5% to +6.5% YoY

155-175

Q4 ‘25 Actuals

1,283.0

156.1

12.2% margin

18.5

Full-Year 2026 Guidance – Revised

$ million

Net Sales

Adjusted EBITDA 1

CapEx

Reported

Previous Guidance (Aug 5 ’26)

+4.9% to +5.9% YoY

+2.5% to +5.5% YoY

670-690

670 – 690

55 – 65

50 – 70

Constant Currency (a)

Previous Guidance (Aug 5 ’26)

700-720

690 – 710

700-720

690 – 710

FY ‘25 Actuals

5,037.5

657.6

13.1% margin

80.4

Non-GAAP Measure. Represents projections using U.S. dollars at Q4 ‘25 and FY ‘25 average FX rates, respectively, and adjusting for other FX related impacts. 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 and non-GAAP guidance.

Guidance Assumptions

Additional FY 2026 Expectations – Revised

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:

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

2026

2025

2026

2025

(unaudited)

1,350.2

1,273.7

3,994.2

3,754.5

306.1

284.2

893.5

826.3

1,044.1

989.5

3,100.7

2,928.2

473.5

450.7

1,401.3

1,330.0

432.1

413.0

1,299.7

1,221.8

(5.5

)

(4.8

)

138.5

125.8

405.2

381.2

31.9

51.0

116.1

156.6

94.6

106.6

74.8

194.5

224.6

49.5

31.7

102.7

81.9

57.1

43.1

91.8

142.7

(1.7

)

(0.1

)

(2.6

)

(0.2

)

58.8

43.2

94.4

142.9

0.56

0.42

0.90

1.39

0.55

0.42

0.88

1.38

105.1

103.3

104.4

102.6

107.3

104.0

107.7

103.2

2026

2025

409.2

353.1

116.9

91.9

508.3

511.7

194.0

188.0

1,228.4

1,144.7

400.8

447.7

161.4

168.3

331.4

315.1

128.0

100.5

453.7

464.3

184.8

145.3

2,888.5

2,785.9

93.7

99.8

401.4

402.4

12.1

20.9

524.3

489.8

1,031.5

1,012.9

1,917.1

1,971.7

145.7

155.7

197.9

155.0

3,292.2

3,295.3

0.1

343.8

316.0

(268.2

)

(251.5

)

(485.3

)

(579.7

)

(409.6

)

(515.1

)

5.9

5.7

(403.7

)

(509.4

)

2,888.5

2,785.9

2026

2025

91.8

142.7

91.3

91.9

29.4

33.2

9.2

12.3

4.8

5.3

18.1

21.4

1.4

1.6

94.6

2.3

(1.2

)

(24.2

)

(25.6

)

(22.2

)

(29.8

)

(3.2

)

8.9

(5.1

)

12.4

3.8

(5.0

)

31.1

(13.1

)

(25.1

)

(20.0

)

298.0

235.0

(40.7

)

(61.9

)

(10.0

)

(25.5

)

(0.9

)

(2.6

)

(51.6

)

(90.0

)

785.5

552.3

(884.1

)

(543.9

)

800.0

(849.0

)

(262.3

)

(21.9

)

(0.1

)

(10.2

)

(8.1

)

9.0

(0.7

)

(170.7

)

(262.8

)

(18.9

)

7.7

56.8

(110.1

)

375.3

438.1

432.1

328.0

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.S. GAAP, while isolating the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company’s operations and underlying operational performance.

Net debt is calculated as the aggregate outstanding principal amount of total debt less cash and cash equivalents. Management believes net debt is useful, when read in conjunction with the Company’s reported balance sheet, because it provides investors with information regarding the Company’s leverage profile, including its debt obligations that could not be repaid with cash and cash equivalents on hand. This measure is not meant, however, to imply that the Company intends to use all available cash to pay down debt.

The Company’s definitions and calculations as set forth in the tables below of adjusted net income, adjusted diluted EPS, adjusted EBITDA, credit agreement EBITDA and net debt may not be comparable to similarly titled measures used by other companies because other companies may not calculate them in the same manner as the Company does and should not be viewed in isolation from, nor as alternatives to, net income attributable to Herbalife, diluted EPS or total debt, as applicable, calculated in accordance with U.S. GAAP.

The Company does not provide a reconciliation of forward-looking adjusted EBITDA or constant currency adjusted EBITDA guidance to net income attributable to Herbalife, and adjusted effective tax rate to GAAP tax rate, the comparable U.S. GAAP measures, because, due to the unpredictable or unknown nature of certain significant items, such as income tax expenses or benefits, loss contingencies, and any gains or losses in connection with refinancing transactions, the Company cannot reconcile these non-GAAP projections without unreasonable efforts. The Company expects the variability of these items, which are necessary for a presentation of the reconciliation, could have a significant impact on the Company’s reported U.S. GAAP financial results.

Currency Fluctuation

The Company’s international operations have provided and will continue to provide a significant portion of its total net sales. As a result, total net sales will continue to be affected by fluctuations in the U.S. dollar against foreign currencies. In order to provide a framework for assessing how the Company’s underlying businesses performed excluding the effect of foreign currency fluctuations, in addition to comparing the percent change in net sales from one period to another in U.S. dollars, the Company also compares the percent change in net sales from one period to another period using “net sales in local currency.” Net sales in local currency is not a measure presented in accordance with U.S. GAAP. Net sales in local currency removes from net sales in U.S. dollars the impact of changes in exchange rates between the U.S. dollar and the local currencies of the Company’s foreign subsidiaries, by translating the current period net sales into U.S. dollars using the same foreign currency exchange rates that were used to translate the net sales for the previous comparable period. The Company believes presenting net sales in local currency is useful to investors because it allows a meaningful comparison of net sales of its foreign operations from period to period. In addition, the Company presents adjusted EBITDA on a constant currency basis, which is a non-GAAP financial measure, and is calculated by translating the current period adjusted EBITDA into U.S. dollars using the same foreign currency exchange rates that were used to translate such measure for the previous comparable period and adjusting for other FX related impacts. However, net sales in local currency and adjusted EBITDA on a constant currency basis should not be considered in isolation or as an alternative to net sales and adjusted EBITDA, respectively, in U.S. dollar measures that reflect current period exchange rates, or to net sales and net income attributable to Herbalife calculated and presented in accordance with U.S. GAAP.

The following is a reconciliation of net income (loss) attributable to Herbalife to adjusted net income:

2026

2025

2026

2025

58.8

43.2

94.4

142.9

0.8

0.6

4.3

4.2

0.8

4.8

5.6

6.9

2.8

94.6

1.2

(1.9

)

0.6

(23.4

)

(2.0

)

4.1

6.3

12.8

19.2

68.5

51.5

190.8

171.9

The following is a reconciliation of diluted earnings per share to adjusted diluted earnings per share:

2026

2025

2026

2025

0.55

0.42

0.88

1.38

0.01

0.04

0.01

0.05

0.06

0.03

0.88

0.01

(0.02

)

0.01

(0.22

)

(0.02

)

0.04

0.06

0.12

0.19

0.64

0.50

1.77

1.67

2026

2025

2026

2025

0.1

0.2

(1.0

)

(0.8

)

0.2

(0.9

)

(1.7

)

(2.1

)

0.2

(0.3

)

(20.0

)

(0.3

)

(0.3

)

(1.9

)

0.6

(23.4

)

(2.0

)

2026

2025

2026

2025

(0.01

)

(0.01

)

(0.01

)

(0.02

)

(0.02

)

0.01

(0.19

)

(0.02

)

0.01

(0.22

)

(0.02

)

The following are reconciliations of net income (loss) attributable to Herbalife to EBITDA, adjusted EBITDA and Credit Agreement EBITDA and Credit Agreement total leverage ratio for the respective periods:

Three Months Ended

TTM

Year Ended

Sep 30 '25

Dec 31 '25

Mar 31 '26

Jun 30 '26

Sep 30 '26

Dec 31 '25

1,273.7

1,283.0

1,317.2

1,326.8

1,350.2

5,277.2

5,037.5

43.2

85.4

61.9

(26.3

)

58.8

179.8

228.3

51.0

49.3

46.8

37.4

31.9

165.4

205.9

31.7

(34.6

)

30.4

22.8

49.5

68.1

47.3

30.7

29.3

29.4

31.4

30.5

120.6

121.2

156.6

129.4

168.5

65.3

170.7

533.9

602.7

5.0

4.9

4.8

4.3

4.1

18.1

21.3

0.6

4.9

2.4

1.1

0.8

9.2

9.1

1.3

5.6

6.9

0.8

2.2

7.0

3.4

6.2

11.3

94.6

1.2

163.0

156.1

175.7

166.6

182.4

680.8

657.6

2.0

2.1

2.7

2.6

2.3

9.7

8.5

6.5

4.5

5.9

6.1

22.6

25.9

11.2

10.9

10.6

10.1

8.7

40.3

44.1

1.5

(0.2

)

(0.9

)

5.3

(0.6

)

3.6

5.9

184.2

173.4

194.0

190.7

198.9

757.0

742.0

1,951.9

2,050.0

(409.2

)

(353.1

)

1,542.7

1,696.9

3.4

6.7

4.7

-2.0

4.4

3.4

4.5

12.8

12.2

13.3

12.6

13.5

12.9

13.1

(1)

(2)

(3)

(4)

(5)

2026

2025

3,994.2

3,754.5

5,037.5

94.4

142.9

228.3

116.1

156.6

205.9

102.7

81.9

47.3

91.3

91.9

121.2

404.5

473.3

602.7

13.2

16.4

21.3

4.3

4.2

9.1

6.9

4.8

7.0

2.8

6.2

11.3

94.6

1.2

524.7

501.5

657.6

7.6

6.4

8.5

18.1

21.4

25.9

29.4

33.2

44.1

3.8

6.1

5.9

583.6

568.6

742.0

2,050.0

(353.1

)

1,696.9

2.4

3.8

4.5

13.1

13.4

13.1

(1)

(2)

(3)

(4)

(5)

SCHEDULE B: RECLASSIFICATIONS

Reclassifications

Effective in the fourth quarter of 2025, the Company retrospectively separated selling expenses from selling, general, and administrative expenses in the consolidated statements of income and combined those selling expenses with royalty overrides in the consolidated statements of income to simplify its financial statement presentation. Specifically, the Company’s Member compensation payments recognized as operating expenses, previously reported as royalty overrides, have been combined with the service fees to China’s independent service providers which were previously reported as selling expense within selling, general, and administrative expenses, and the two categories of expense are now collectively being presented in selling expenses within the condensed consolidated statements of income. As a result, $34.6 million and $105.6 million related to service fees to China independent service providers previously presented as selling, general, and administrative expenses and all amounts previously presented as royalty overrides were collectively reclassified to selling expenses within the condensed consolidated statements of income for the three and nine months ended September 30, 2025, respectively.

As a result of the above, the Member compensation previously reported as royalty overrides within the operating activities in the condensed consolidated statements of cash flows is now presented as Member compensation liabilities. In addition, $0.7 million of cash outflows related to service fees to China independent service providers were reclassified from other current liabilities to Member compensation liabilities within the Company’s cash flows from operating activities in the condensed consolidated statements of cash flows for the nine months ended September 30, 2025.

These reclassifications did not impact the amounts of the prior period total assets, total liabilities, operating income, net income attributable to Herbalife, and net cash provided by operating activities, investing activities and financing activities, and did not impact the Company’s condensed consolidated statements of comprehensive income and condensed consolidated statements of changes in shareholders’ deficit.