Herbalife Raises Full-Year Sales Outlook After Fifth Growth Quarter

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter net sales reached $1.35 billion, up 6.0%, as Asia Pacific and Latin America offset a China decline.

Herbalife Ltd. (HLF) reported third-quarter net sales of $1.35 billion, up 6.0% from a year earlier, marking a fifth consecutive quarter of year-over-year growth on both a reported and constant-currency basis.

The health-and-wellness company said the increase included 160 basis points of foreign-currency headwinds and was primarily driven by higher sales volume. On a constant-currency basis, net sales rose 7.6%. Reported growth had been 5.4% in the second quarter.

Asia Pacific was the largest regional contributor, with net sales of $517.9 million, up 18.4% as reported and 26.1% in constant currency. Latin America net sales were $250.2 million, up 9.0% reported and 5.1% constant currency. North America net sales were $267.5 million, up 1.7%, a second consecutive quarter of year-over-year growth. EMEA net sales were $259.0 million, down 4.9% reported and 5.2% constant currency. China net sales were $55.6 million, down 22.0% reported and 26.4% constant currency.

Gross profit margin was 77.3%, compared with 77.7% in the year-ago period. The company attributed the decline primarily to sales-mix pressure and cost changes related to self-manufacturing and sourcing, partially offset by pricing benefits.

Adjusted EBITDA was $182.4 million, with a 13.5% margin, up 70 basis points from the third quarter of 2025. Constant-currency adjusted EBITDA of $193.4 million exceeded guidance. Credit Agreement EBITDA was $198.9 million. Adjusted EBITDA margin had been 12.6% in the second quarter.

Net income attributable to Herbalife was $58.8 million, or $0.55 a share. Adjusted net income was $68.5 million, and adjusted diluted earnings were $0.64 a share. The second quarter had included a $94.6 million loss on debt extinguishment after the April 2026 refinancing.

Net interest expense savings were $19.1 million year-over-year in the third quarter. As of September 30, 2026, cash and cash equivalents were $409.2 million, total debt was $2.0 billion, and the net leverage ratio was 2.0 times, compared with 2.2 times at June 30, 2026.

Net cash provided by operating activities was $151.3 million for the three months ended September 30, 2026, and $298.0 million for the nine months, up $63.0 million from $235.0 million in the prior-year nine-month period. Capital expenditures were $18.5 million in the quarter and $40.7 million year-to-date. The company expects total capitalized and prepaid SaaS implementation costs of about $35 million to $45 million for full-year 2026, which are not included in capital expenditures.

The board authorized a new share-repurchase program of up to $250 million over three years, to be executed systematically and opportunistically beginning in the fourth quarter. No shares were repurchased under the program in the third quarter.

For the fourth quarter of 2026, Herbalife guides net sales to increase 0.5% to 4.5% year-over-year as reported, or 2.5% to 6.5% in constant currency, with adjusted EBITDA of $145 million to $165 million reported and $155 million to $175 million constant currency.

Full-year 2026 net sales guidance was raised to 4.9% to 5.9% year-over-year growth on a reported basis and 5.3% to 6.3% in constant currency, from the August range of 2.5% to 5.5% on both bases. Adjusted EBITDA guidance was maintained at $670 million to $690 million on a reported basis and increased to $700 million to $720 million on a constant-currency basis from $690 million to $710 million.

John DeSimone was appointed interim chief executive and Scott Schaefer chief financial officer, both effective November 1, 2026. The board’s succession committee continues its search for a permanent chief executive. Interim CEO DeSimone said the company continues to expect net sales growth for the remainder of the year.