Herbalife Delivers Q3 Net Sales Increase Above Guidance Midpoint, North America Returns to Growth; Q3 Adjusted EBITDA 1 Exceeds Guidance; Tightens Full-Year Guidance Ranges

LOS ANGELES--( BUSINESS WIRE)-- Herbalife Ltd. (NYSE: HLF) today reported financial results for the third quarter ended September 30, 2025:

“Herbalife’s third-quarter performance reflects continued progress in our transformation strategy, as well as disciplined financial and operational execution. With North America returning to growth and adjusted EBITDA 1 exceeding guidance, we are delivering on our commitments and building forward momentum.”

- Stephan Gratziani, CEO

Highlights

Third Quarter 2025

Recent Developments

Outlook

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.

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 2025 net sales of $1.3 billion, up 2.7% year-over-year, including 50 basis points of foreign currency headwinds. On a constant currency basis 2, net sales were up 3.2% year-over-year for the quarter.

Gross profit margin was 77.7% in the third quarter, compared to 78.3% in the prior year period. On a year-over-year and approximate basis, pricing benefits of 80 basis points were more than offset primarily by foreign currency headwinds of 90 basis points, 30 basis points of input cost inflation, driven mainly by higher raw material costs, and 10 basis points each from increased inventory write-downs and unfavorable sales mix.

For the quarter, net income attributable to Herbalife was $43.2 million, with net income margin of 3.4% and adjusted net income 1 of $51.5 million. Adjusted EBITDA 1 of $163.0 million includes approximately $12 million of foreign currency headwinds year-over-year, with adjusted EBITDA 1 margin of 12.8%, down 60 basis points versus the third quarter of 2024. Diluted EPS was $0.42, with adjusted diluted EPS 1 of $0.50, which includes a $0.08 year-over-year foreign currency headwind.

Net cash provided by operating activities was $138.8 million and $235.0 million for the three and nine months ended September 30, 2025, respectively. Capital expenditures were $20.8 million and $61.9 million for the three and nine months ended September 30, 2025, respectively, and capitalized software as a service (“SaaS”) implementation costs were approximately $7 million and $16 million, respectively. The Company expects to incur total capitalized SaaS implementation costs of approximately $25 million to $30 million for full year 2025, which are not included in capital expenditures.

As previously disclosed, and in accordance with the terms of the Pro2col Health LLC asset purchase agreement entered into in April 2025, a contingency payment of $2.0 million was paid during the third quarter as a result of the release of the beta version of the Pro2col technology platform in July 2025.

In September 2025, the Company repaid the remaining outstanding principal balance of $147.3 million on its 7.875% Senior Notes due 2025 (“2025 Notes”) at maturity. The aggregate payment at maturity, including accrued and unpaid interest, was $153.1 million. As of September 30, 2025, $25.0 million was outstanding under the Company’s revolving credit facility.

“The third quarter demonstrated clear progress, with a return to growth in both North America and on a worldwide basis,” said Chief Financial Officer John DeSimone. “We also further reduced our total leverage ratio to 2.8x, underscoring our continued capital discipline and outperformance against our capital structure commitments.”

For the third quarter, three of the Company’s five regions reported year-over-year growth in the number of new distributors joining Herbalife, led by North America, with a 17% increase. While the number of new distributors joining worldwide in the third quarter declined 2% year-over-year, they increased 11% on a two-year stack basis.

This growth reflects the continued momentum the Company is building through strategic distributor engagement, training and product innovation. Supporting this momentum is the Diamond Development Mastermind Program, an ongoing training and accountability program that expanded to India in August, which also marked the program’s first anniversary. Today, approximately 10,700 distributors and service providers worldwide are committed to the program, reporting increased confidence in applying core business and leadership principles and strategies. The program will expand to include additional markets in 2026.

This momentum is further reflected in the strong attendance at the Company’s September Extravaganza training events, where approximately 57,200 attendees gathered in Tashkent, Mexico City, Delhi, Bengaluru and Budapest. In total, Extravaganza events in 2025 attracted nearly 142,000 attendees, a 5% increase compared to 2024.

During the EMEA Extravaganza in Budapest, the Company launched HL/Skin, a new skincare line that combines advanced South Korean science with K-beauty-formulated ingredients. The HL/Skin range builds on Herbalife’s science-backed approach to product development, with the efficacy of each product supported by clinical studies. Currently available in select European markets, HL/Skin is also supported by an AI-powered assessment tool that delivers a personalized facial analysis to customers in less than 60 seconds, while simultaneously providing product recommendations directly to distributor dashboards to enhance customer engagement and support sales.

Recent Developments

On October 30, the Company expanded beta access to the Pro2col app to retail customers in the U.S., Canada, and Puerto Rico of distributors in the beta group. Formed following the app’s initial beta release in July 2025, the beta group has scaled to include approximately 7,900 distributors.

Concurrently, the Company introduced new features within the Pro2col digital experience, including a coach dashboard, customizable sales funnels and a website builder to support existing distributor daily methods of operations, as well as multiple app enhancements. Together, these developments represent significant advancements toward the planned commercial release of Pro2col Beta 2.0 to all customers and distributors in the U.S. and Puerto Rico by the end of 2025. The Company plans to expand the Pro2col digital experience to additional global markets beginning in 2026.

“Across our business, product innovation, digital evolution and disciplined execution are driving momentum and delivering results,” said Chief Executive Officer Stephan Gratziani. “Through our transformation, we are equipping and supporting our distributors to grow stronger businesses—supporting progress today and building a clear path to sustainable growth and long-term shareholder value.”

Third Quarter and Year to Date 2025 Key Metrics

Regional Net Sales and FX Impact

Reported Net Sales

YoY Growth (Decline)

$ million

Q3 ‘25

Q3 ‘24

including FX

excluding FX 2

North America

263.1

260.4

1.0

1.1

Latin America

229.6

207.1

10.9

10.7

EMEA

272.3

261.9

4.0

2.3

Asia Pacific

437.4

436.1

0.3

2.8

China

71.3

74.8

(4.7

(4.8

Worldwide

1,273.7

1,240.3

2.7

3.2

Reported Net Sales

YoY Growth (Decline)

$ million

YTD ‘25

YTD ‘24

including FX

excluding FX 2

North America

789.9

809.4

(2.4

(2.3

Latin America

646.5

633.0

2.1

10.3

EMEA

833.5

827.6

0.7

1.5

Asia Pacific

1,268.5

1,284.0

(1.2

1.1

China

216.1

231.7

(6.7

(6.5

Worldwide

3,754.5

3,785.7

(0.8

1.5

Outlook

Fourth Quarter 2025 Guidance

$ million

Net Sales

Adjusted EBITDA 1

CapEx

Reported

+1.5% to +5.5% YoY

144 – 154

18 – 28

Constant Currency (a)

+0.5% to +4.5% YoY

154 – 164

Q4 ‘24 Actuals

1,207.4

150.0

12.4% margin

25.7

Full-Year 2025 Guidance – REVISED

$ million

Net Sales

Adjusted EBITDA 1

CapEx

Reported

(0.3)% to +0.7% YoY

645 – 655

80 – 90

Previous Guidance (Aug 6 ‘25)

(1.0)% to +3.0% YoY

640 – 660

75 – 95

Constant Currency (a)

+1.2% to +2.2% YoY

700 – 710

Previous Guidance (Aug 6 ‘25)

0.0% to +4.0% YoY

685 – 705

FY ‘24 Actuals

4,993.1

634.8

12.7% margin

122.0

(a)

Non-GAAP Measure. Represents projections using U.S. dollars at Q4 ‘24 and FY ‘24 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

Earnings Webcast and Conference Call

Herbalife’s senior management team will host an audio webcast and conference call to discuss its third quarter 2025 financial results on Wednesday, November 5, 2025, 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/4btutrtf

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/BI82b13d7dc5304a62b671758da6411eaa

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 12 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, 2024, filed with the Securities and Exchange Commission on February 19, 2025, as supplemented by the Quarterly Reports on Form 10-Q for the fiscal quarters ended June 30, 2025 and September 30, 2025 filed on August 6, 2025 and November 5, 2025, respectively, 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 made 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

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

(unaudited)

1,273.7

1,240.3

3,754.5

3,785.7

284.2

268.7

826.3

836.8

989.5

971.6

2,928.2

2,948.9

416.1

405.5

1,224.4

1,236.0

447.6

444.0

1,327.4

1,438.5

(5.0

)

(4.8

)

(5.0

)

125.8

127.1

381.2

279.4

51.0

56.5

156.6

152.1

10.5

74.8

70.6

224.6

116.8

31.7

23.2

81.9

40.4

43.1

47.4

142.7

76.4

(0.1

)

(0.2

)

43.2

47.4

142.9

76.4

0.42

0.47

1.39

0.76

0.42

0.46

1.38

0.75

103.3

100.9

102.6

100.4

104.0

101.9

103.2

101.4

(1)

(2)

September 30,

December 31,

2025

2024

(unaudited)

305.5

415.3

97.8

68.9

512.5

475.4

190.4

184.1

1,106.2

1,143.7

456.7

460.2

171.7

185.7

315.7

312.3

101.0

87.7

401.7

398.6

144.2

139.9

2,697.2

2,728.1

88.1

70.0

345.8

334.1

20.7

283.5

545.3

542.8

999.9

1,230.4

1,997.2

1,976.6

157.0

169.5

149.1

152.7

3,303.2

3,529.2

0.1

304.6

278.2

(251.6

)

(271.4

)

(665.1

)

(808.0

)

(612.0

)

(801.1

)

6.0

(606.0

)

(801.1

)

2,697.2

2,728.1

Nine Months Ended September 30,

2025

2024

(unaudited)

142.7

76.4

91.9

92.4

33.2

36.7

12.3

9.4

5.3

(52.7

)

21.4

17.0

1.6

11.9

10.5

(1.2

)

3.8

(25.6

)

(3.6

)

(29.8

)

(41.7

)

8.9

(3.7

)

12.4

0.9

(4.3

)

(2.3

)

(13.8

)

62.1

(20.0

)

(1.3

)

235.0

215.8

(61.9

)

(96.3

)

(25.5

)

37.9

(2.6

)

(0.6

)

(90.0

)

(59.0

)

552.3

1,117.7

(543.9

)

(1,655.0

)

(197.0

)

778.4

(262.3

)

(344.3

)

(0.1

)

(22.4

)

(8.1

)

(5.7

)

(0.7

)

2.0

(262.8

)

(326.3

)

7.7

(8.1

)

(110.1

)

(177.6

)

438.1

595.5

328.0

417.9

Supplemental Information

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

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

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.

The Company’s definitions and calculations as set forth in the tables below of adjusted net income, adjusted diluted EPS, adjusted EBITDA and credit agreement EBITDA 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 or diluted EPS 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, the comparable U.S. GAAP measure, 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 attributable to Herbalife to adjusted net income:

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

43.2

47.4

142.9

76.4

0.6

4.2

0.8

2.7

4.8

68.2

9.4

5.1

2.8

22.1

(4.0

)

(4.0

)

10.5

0.6

6.8

(2.0

)

(20.5

)

6.3

19.2

51.5

58.0

171.9

162.1

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

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

0.42

0.46

1.38

0.75

0.01

0.04

0.01

0.03

0.05

0.68

0.10

0.05

0.03

0.22

(0.04

)

(0.04

)

0.10

0.01

0.07

(0.02

)

(0.20

)

0.06

0.19

0.50

0.57

1.67

1.61

(1)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

0.2

(0.8

)

0.2

5.3

(0.9

)

(14.9

)

0.6

(1.9

)

0.2

(0.5

)

(0.3

)

(2.5

)

0.9

0.5

(2.1

)

0.6

6.8

(2.0

)

(20.5

)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

(0.01

)

0.05

(0.01

)

(0.15

)

(0.02

)

0.01

(0.01

)

(0.02

)

0.01

(0.02

)

0.01

0.07

(0.02

)

(0.20

)

(2)

(3)

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

1,240.3

1,207.4

1,221.7

1,259.1

1,273.7

4,961.9

47.4

177.9

50.4

49.3

43.2

320.8

56.5

53.9

52.0

53.6

51.0

210.5

23.2

(125.3

)

20.4

29.8

31.7

(43.4

)

30.6

29.0

30.7

30.5

30.7

120.9

157.7

135.5

153.5

163.2

156.6

608.8

5.0

5.7

5.0

21.4

3.6

0.6

4.2

2.7

0.9

3.3

0.7

0.8

5.7

4.0

5.1

4.6

2.4

0.4

7.4

(4.0

)

166.5

150.0

164.9

173.6

163.0

651.5

2.8

3.0

2.6

1.8

2.0

9.4

5.6

1.9

11.4

3.5

6.5

23.3

13.0

13.3

11.6

10.4

11.2

46.5

9.3

(4.1

)

1.5

3.1

1.5

2.0

197.2

164.1

192.0

192.4

184.2

732.7

2,079.1

3.8

14.7

4.1

3.9

3.4

6.5

13.4

12.4

13.5

13.8

12.8

13.1

2025

2024

3,754.5

3,785.7

4,993.1

142.9

76.4

254.3

156.6

152.1

206.0

81.9

40.4

(84.9

)

91.9

92.4

121.4

473.3

361.3

496.8

16.4

17.3

22.3

4.2

4.8

68.2

69.1

9.4

13.4

2.8

22.1

26.7

(4.0

)

(4.0

)

10.5

501.5

484.8

634.8

6.4

9.3

12.3

21.4

17.0

18.9

33.2

36.7

50.0

6.1

16.9

12.8

568.6

564.7

728.8

2,332.7

3.8

2.0

5.1

13.4

12.8

12.7

(1)

(2)