Herbalife Delivers Fourth Quarter and Full-Year Net Sales Growth, Net Sales and Adjusted EBITDA¹ Exceed Guidance
Key Terms
adjusted EBITDA financial
non-GAAP financial
FX financial
SaaS technical
Cristiano Ronaldo Invests
“We exited 2025 with solid momentum, delivering Q4 and full‑year net sales growth and adjusted EBITDA1 above guidance. Cristiano Ronaldo’s investment in Pro2col reflects our shared ambition to scale personalized nutrition and wellness globally—uniting science, data, AI, innovation, and community to improve the health and performance of millions.”
- Stephan Gratziani, CEO
Highlights
Fourth Quarter 2025
-
Net sales up
6.3% vs. Q4 ‘24 to$1.3 billion -
Up
5.5% year-over-year on constant currency basis2; exceeds guidance
-
Up
-
Net income attributable to Herbalife of
$85.4 million $47.5 million -
Adjusted EBITDA1 of
$156.1 million $167.7 million -
Diluted EPS of
$0.81 $0.45
Full-Year 2025
-
Net sales up
0.9% vs. 2024 to$5.0 billion - Includes 160 basis points of foreign currency (“FX”) headwind
-
Up
2.5% year-over-year on constant currency basis2, exceeds guidance
-
Net income attributable to Herbalife of
$228.3 million $219.4 million -
Adjusted EBITDA1 of
$657.6 million $713.9 million -
Credit Agreement EBITDA1 of
$742.0 million
-
Credit Agreement EBITDA1 of
-
Diluted EPS of
$2.20 $2.12 -
Net cash provided by operating activities of
$333.3 million $80.4 million
Recent Developments
-
In February, global sports icon Cristiano Ronaldo, invested
$7.5 million 10% equity stake in HBL Pro2col Software, LLC (“Pro2col Software”)
Outlook
- First quarter and full-year 2026 guidance provided
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 |
|
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 fourth quarter 2025 net sales of
Gross profit margin was
For the quarter, net income attributable to Herbalife was
Full-year 2025 net sales were
Full-year 2025 net income attributable to Herbalife was
Net cash provided by operating activities was
In accordance with the terms of the Pro2col Health LLC asset purchase agreement entered into in April 2025, the Company made a contingency payment of
As of December 31, 2025, the Company’s revolving credit facility was undrawn, compared to
“Our results reflect strong operational and financial momentum,” said Chief Financial Officer John DeSimone. “For the full year, we delivered our second consecutive year of adjusted EBITDA1 and adjusted EBITDA1 margin expansion, generated strong operating cash flows, reduced debt, and ended 2025 with a total leverage ratio of 2.8x.”
For the fourth quarter, the Company’s
In December, the Company hosted a virtual distributor event introducing the next phase of its strategic beta program for Pro2col, Herbalife’s personalized health and wellness operating system. As part of the event, the Company released Pro2col Beta 2.0, expanding the availability of beta access to distributors and customers in the
The ongoing beta phases are strategically designed to further advance platform development and innovation by incorporating in‑market user insights to inform personalization capabilities, prioritize new features, and guide the timing and scope of future rollout phases. Building on these learnings, the Company expects to expand beta access to additional international markets, beginning with select EMEA markets in 2026.
Recent Developments
As announced in a separate press release today, in February 2026, global sports icon Cristiano Ronaldo, acquired a
“For more than 45 years, Herbalife’s distributor network has supported millions of customers on their health journeys,” said Chief Executive Officer Stephan Gratziani. “Today, we are building on that legacy—combining science, data, AI, innovation, and community to bring the next generation of personalized nutrition and wellness to more people around the world. With Cristiano Ronaldo’s investment in Pro2col, our 2025 acquisitions, and continued investments in product and digital innovation, we are strengthening our platform and expanding our global impact.”
Fourth Quarter and Full-Year 2025 Key Metrics
Regional Net Sales and FX Impact
|
Reported Net Sales |
|
YoY Growth (Decline) |
|||||
$ million |
Q4 ‘25 |
Q4 ‘24 |
|
including FX |
excluding FX2 |
|||
|
243.1 |
245.0 |
|
(0.8 |
)% |
(0.8 |
)% |
|
|
234.7 |
199.5 |
|
17.6 |
% |
11.0 |
% |
|
EMEA |
280.9 |
257.2 |
|
9.2 |
% |
4.7 |
% |
|
|
461.3 |
439.8 |
|
4.9 |
% |
8.6 |
% |
|
|
63.0 |
65.9 |
|
(4.4 |
)% |
(5.6 |
)% |
|
Worldwide |
1,283.0 |
1,207.4 |
|
6.3 |
% |
5.5 |
% |
|
|
Reported Net Sales |
|
YoY Growth (Decline) |
|||||
$ million |
FY ‘25 |
FY ‘24 |
|
including FX |
excluding FX2 |
|||
|
1,033.0 |
1,054.4 |
|
(2.0 |
)% |
(2.0 |
)% |
|
|
881.2 |
832.5 |
|
5.8 |
% |
10.5 |
% |
|
EMEA |
1,114.4 |
1,084.8 |
|
2.7 |
% |
2.3 |
% |
|
|
1,729.8 |
1,723.8 |
|
0.3 |
% |
3.0 |
% |
|
|
279.1 |
297.6 |
|
(6.2 |
)% |
(6.3 |
)% |
|
Worldwide |
5,037.5 |
4,993.1 |
|
0.9 |
% |
2.5 |
% |
|
Outlook
First Quarter 2026 Guidance
$ million |
Net Sales |
Adjusted EBITDA1 |
CapEx |
Reported |
+ |
155 – 175 |
10 – 20 |
Constant Currency(a) |
+ |
155 – 175 |
|
Q1 ‘25 Actuals |
1,221.7 |
164.9
|
18.3 |
Full-Year 2026 Guidance
$ million |
Net Sales |
Adjusted EBITDA1 |
CapEx |
Reported |
+ |
670 – 710 |
50 – 80 |
Constant Currency(a) |
+ |
665 – 705 |
|
FY ‘25 Actuals |
5,037.5 |
657.6
|
80.4 |
(a) |
Non-GAAP Measure. Represents projections using |
Guidance Assumptions
- Net sales and adjusted EBITDA1 use the average daily exchange rates for the first three weeks of January 2026 to translate local currency projections
- Outlook includes preliminary estimates of the impact of incremental tariffs enacted as of February 17, 2026
Additional FY 2026 Expectations
-
Capitalized SaaS implementation costs of
$40 million $60 million -
Depreciation and amortization, and amortization of SaaS implementation costs, of
$140 million $150 million -
Adjusted effective tax rate of approximately
30%
Earnings Webcast and Conference Call
Herbalife’s senior management team will host an audio webcast and conference call to discuss its fourth quarter and full-year 2025 financial results on Wednesday, February 18, 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/si6puiij
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/BId0031ecb02c540ffb397af168e0c357d
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 theMiddle 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 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
| Herbalife Ltd. and Subsidiaries | ||||||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||||||
| (in millions, except per share amounts) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2025 |
2024 |
2025 |
2024 |
|||||||||||||
(unaudited) |
||||||||||||||||
| Net sales | $ |
1,283.0 |
|
$ |
1,207.4 |
|
$ |
5,037.5 |
|
$ |
4,993.1 |
|
||||
| Cost of sales |
|
288.3 |
|
|
267.5 |
|
|
1,114.6 |
|
|
1,104.3 |
|
||||
| Gross profit |
|
994.7 |
|
|
939.9 |
|
|
3,922.9 |
|
|
3,888.8 |
|
||||
| Selling expenses (1) |
|
452.4 |
|
|
430.6 |
|
|
1,782.4 |
|
|
1,782.8 |
|
||||
| General and administrative expenses (1) |
|
442.5 |
|
|
403.3 |
|
|
1,664.3 |
|
|
1,725.6 |
|
||||
| Other operating income (2) |
|
- |
|
|
(0.5 |
) |
|
(4.8 |
) |
|
(5.5 |
) |
||||
| Operating income |
|
99.8 |
|
|
106.5 |
|
|
481.0 |
|
|
385.9 |
|
||||
| Interest expense, net |
|
49.3 |
|
|
53.9 |
|
|
205.9 |
|
|
206.0 |
|
||||
| Other expense, net (3) |
|
- |
|
|
- |
|
|
- |
|
|
10.5 |
|
||||
| Income before income taxes |
|
50.5 |
|
|
52.6 |
|
|
275.1 |
|
|
169.4 |
|
||||
| Income taxes |
|
(34.6 |
) |
|
(125.3 |
) |
|
47.3 |
|
|
(84.9 |
) |
||||
| Net income |
|
85.1 |
|
|
177.9 |
|
|
227.8 |
|
|
254.3 |
|
||||
| Net loss attributable to noncontrolling interest |
|
(0.3 |
) |
|
- |
|
|
(0.5 |
) |
|
- |
|
||||
| Net income attributable to Herbalife | $ |
85.4 |
|
$ |
177.9 |
|
$ |
228.3 |
|
$ |
254.3 |
|
||||
| Earnings per share attributable to Herbalife: | ||||||||||||||||
| Basic | $ |
0.83 |
|
$ |
1.76 |
|
$ |
2.22 |
|
$ |
2.53 |
|
||||
| Diluted | $ |
0.81 |
|
$ |
1.74 |
|
$ |
2.20 |
|
$ |
2.50 |
|
||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic |
|
103.5 |
|
|
101.1 |
|
|
102.8 |
|
|
100.6 |
|
||||
| Diluted |
|
105.0 |
|
|
102.0 |
|
|
103.6 |
|
|
101.6 |
|
||||
| (1) Prior period amounts were reclassified to conform to current period presentation. Refer to Schedule B – “Reclassifications” for additional details. |
| (2) Other operating income for the year ended December 31, 2025 and the three months and year ended December 31, 2024 relates to certain |
| (3) Other expense, net for the year ended December 31, 2024 relates to loss on extinguishment of 2018 Credit Facility, as well as partial redemption and private repurchase of 2025 Notes |
| Herbalife Ltd. and Subsidiaries | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in millions) | ||||||||
December 31, |
December 31, |
|||||||
2025 |
2024 |
|||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
353.1 |
|
$ |
415.3 |
|
||
| Receivables, net |
|
91.9 |
|
|
68.9 |
|
||
| Inventories |
|
511.7 |
|
|
475.4 |
|
||
| Prepaid expenses and other current assets |
|
188.0 |
|
|
184.1 |
|
||
| Total current assets |
|
1,144.7 |
|
|
1,143.7 |
|
||
| Property, plant and equipment, net |
|
447.7 |
|
|
460.2 |
|
||
| Operating lease right-of-use assets |
|
168.3 |
|
|
185.7 |
|
||
| Marketing-related intangibles and other intangible assets, net |
|
315.1 |
|
|
312.3 |
|
||
| Goodwill |
|
100.5 |
|
|
87.7 |
|
||
| Deferred income tax assets |
|
464.3 |
|
|
398.6 |
|
||
| Other assets |
|
145.3 |
|
|
139.9 |
|
||
| Total assets | $ |
2,785.9 |
|
$ |
2,728.1 |
|
||
| LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
99.8 |
|
$ |
70.0 |
|
||
| Member compensation liabilities (1) |
|
402.4 |
|
|
359.9 |
|
||
| Current portion of long-term debt |
|
20.9 |
|
|
283.5 |
|
||
| Other current liabilities (1) |
|
489.8 |
|
|
517.0 |
|
||
| Total current liabilities |
|
1,012.9 |
|
|
1,230.4 |
|
||
| Non-current liabilities: | ||||||||
| Long-term debt, net of current portion |
|
1,971.7 |
|
|
1,976.6 |
|
||
| Non-current operating lease liabilities |
|
155.7 |
|
|
169.5 |
|
||
| Other non-current liabilities |
|
155.0 |
|
|
152.7 |
|
||
| Total liabilities |
|
3,295.3 |
|
|
3,529.2 |
|
||
| Commitments and contingencies | ||||||||
| Shareholders' deficit: | ||||||||
| Common shares |
|
0.1 |
|
|
0.1 |
|
||
| Paid-in capital in excess of par value |
|
316.0 |
|
|
278.2 |
|
||
| Accumulated other comprehensive loss |
|
(251.5 |
) |
|
(271.4 |
) |
||
| Accumulated deficit |
|
(579.7 |
) |
|
(808.0 |
) |
||
| Total Herbalife shareholders' deficit |
|
(515.1 |
) |
|
(801.1 |
) |
||
| Noncontrolling interest |
|
5.7 |
|
|
- |
|
||
| Total shareholders' deficit |
|
(509.4 |
) |
|
(801.1 |
) |
||
| Total liabilities and shareholders' deficit | $ |
2,785.9 |
|
$ |
2,728.1 |
|
||
| (1) Prior period amounts were reclassified to conform to current period presentation. Refer to Schedule B – “Reclassifications” for additional details. |
| Herbalife Ltd. and Subsidiaries | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (in millions) | ||||||||
Year Ended December 31, |
||||||||
2025 |
2024 |
|||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ |
227.8 |
|
$ |
254.3 |
|
||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization |
|
121.2 |
|
|
121.4 |
|
||
| Share-based compensation expenses |
|
44.1 |
|
|
50.0 |
|
||
| Non-cash interest expense |
|
16.4 |
|
|
13.4 |
|
||
| Deferred income taxes |
|
(64.2 |
) |
|
(229.6 |
) |
||
| Inventory write-downs |
|
25.9 |
|
|
18.9 |
|
||
| Foreign exchange transaction loss |
|
0.8 |
|
|
7.6 |
|
||
| Loss on extinguishment of debt |
|
- |
|
|
10.5 |
|
||
| Other |
|
(3.2 |
) |
|
6.4 |
|
||
| Changes in operating assets and liabilities: | ||||||||
| Receivables |
|
(19.7 |
) |
|
5.9 |
|
||
| Inventories |
|
(27.9 |
) |
|
(30.4 |
) |
||
| Prepaid expenses and other current assets |
|
13.0 |
|
|
43.1 |
|
||
| Accounts payable |
|
24.1 |
|
|
(14.6 |
) |
||
| Member compensation liabilities (1) |
|
23.5 |
|
|
6.5 |
|
||
| Other current liabilities (1) |
|
(36.2 |
) |
|
45.0 |
|
||
| Other |
|
(12.3 |
) |
|
(23.0 |
) |
||
| Net cash provided by operating activities |
|
333.3 |
|
|
285.4 |
|
||
| Cash flows from investing activities: | ||||||||
| Purchases of property, plant and equipment |
|
(80.4 |
) |
|
(122.0 |
) |
||
| Acquisition of business and assets |
|
(25.5 |
) |
|
- |
|
||
| Proceeds from sale and leaseback transaction, net of related expenses |
|
- |
|
|
37.9 |
|
||
| Other |
|
(2.8 |
) |
|
(0.5 |
) |
||
| Net cash used in investing activities |
|
(108.7 |
) |
|
(84.6 |
) |
||
| Cash flows from financing activities: | ||||||||
| Borrowings from senior secured credit facility and other debt, net of discount |
|
724.8 |
|
|
1,394.4 |
|
||
| Principal payments on senior secured credit facility and other debt |
|
(746.6 |
) |
|
(1,937.0 |
) |
||
| Repayment of convertible senior notes |
|
- |
|
|
(197.0 |
) |
||
| Proceeds from senior secured notes, net of discount |
|
- |
|
|
778.4 |
|
||
| Repayment of senior notes |
|
(262.3 |
) |
|
(344.3 |
) |
||
| Debt issuance costs |
|
(0.1 |
) |
|
(24.0 |
) |
||
| Share repurchases |
|
(8.2 |
) |
|
(8.3 |
) |
||
| Other |
|
(3.1 |
) |
|
2.5 |
|
||
| Net cash used in financing activities |
|
(295.5 |
) |
|
(335.3 |
) |
||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
8.1 |
|
|
(22.9 |
) |
||
| Net change in cash, cash equivalents, and restricted cash |
|
(62.8 |
) |
|
(157.4 |
) |
||
| Cash, cash equivalents, and restricted cash, beginning of period |
|
438.1 |
|
|
595.5 |
|
||
| Cash, cash equivalents, and restricted cash, end of period | $ |
375.3 |
|
$ |
438.1 |
|
||
| Cash paid during the year: | ||||||||
| Interest paid | $ |
205.7 |
|
$ |
194.4 |
|
||
| (1) Prior period amounts were reclassified to conform to current period presentation. Refer to Schedule B – “Reclassifications” for additional details. |
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
Management believes that such non-GAAP performance measures, when read in conjunction with the Company’s reported results, calculated in accordance with
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
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
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
The following is a reconciliation of net income attributable to Herbalife to adjusted net income:
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| $ million | 2025 |
2024 |
2025 |
2024 |
||||||||||||
| Net income attributable to Herbalife | $ |
85.4 |
|
$ |
177.9 |
|
$ |
228.3 |
|
$ |
254.3 |
|
||||
| Expenses related to Technology Realignment Program (1) |
|
4.9 |
|
|
- |
|
|
9.1 |
|
|
- |
|
||||
| Expenses related to Restructuring Program (1) |
|
2.2 |
|
|
0.9 |
|
|
7.0 |
|
|
69.1 |
|
||||
| Expenses related to Transformation Program (1) |
|
- |
|
|
4.0 |
|
|
- |
|
|
13.4 |
|
||||
| Digital technology program costs (1) |
|
3.4 |
|
|
4.6 |
|
|
6.2 |
|
|
26.7 |
|
||||
| Transition charge related to Sep ‘25 India Goods and Services Tax (GST) amendments (1) |
|
11.3 |
|
|
- |
|
|
11.3 |
|
|
- |
|
||||
| Gain on sale of property (1) |
|
- |
|
|
- |
|
|
- |
|
|
(4.0 |
) |
||||
| Loss on extinguishment of debt (1) |
|
- |
|
|
- |
|
|
- |
|
|
10.5 |
|
||||
| Income tax adjustments for above items (1) |
|
(4.2 |
) |
|
(3.3 |
) |
|
(6.2 |
) |
|
(23.8 |
) |
||||
| Deferred income tax effects, net, related to corporate entity reorganization (2) |
|
(55.5 |
) |
|
(147.3 |
) |
|
(36.3 |
) |
|
(147.3 |
) |
||||
| Adjusted net income | $ |
47.5 |
|
$ |
36.8 |
|
$ |
219.4 |
|
$ |
198.9 |
|
||||
The following is a reconciliation of diluted earnings per share to adjusted diluted earnings per share:
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| $ per share | 2025 |
2024 |
2025 |
2024 |
||||||||||||
| Diluted earnings per share | $ |
0.81 |
|
$ |
1.74 |
|
$ |
2.20 |
|
$ |
2.50 |
|
||||
| Expenses related to Technology Realignment Program (1) |
|
0.05 |
|
|
- |
|
|
0.09 |
|
|
- |
|
||||
| Expenses related to Restructuring Program (1) |
|
0.02 |
|
|
0.01 |
|
|
0.07 |
|
|
0.68 |
|
||||
| Expenses related to Transformation Program (1) |
|
- |
|
|
0.04 |
|
|
- |
|
|
0.13 |
|
||||
| Digital technology program costs (1) |
|
0.03 |
|
|
0.05 |
|
|
0.06 |
|
|
0.26 |
|
||||
| Transition charge related to Sep ‘25 India GST amendments (1) |
|
0.11 |
|
|
- |
|
|
0.11 |
|
|
- |
|
||||
| Gain on sale of property (1) |
|
- |
|
|
- |
|
|
- |
|
|
(0.04 |
) |
||||
| Loss on extinguishment of debt (1) |
|
- |
|
|
- |
|
|
- |
|
|
0.10 |
|
||||
| Income tax adjustments for above items (1) |
|
(0.04 |
) |
|
(0.03 |
) |
|
(0.06 |
) |
|
(0.23 |
) |
||||
| Deferred income tax effects, net, related to corporate entity reorganization (2) |
|
(0.53 |
) |
|
(1.44 |
) |
|
(0.35 |
) |
|
(1.45 |
) |
||||
| Adjusted diluted earnings per share (3) | $ |
0.45 |
|
$ |
0.36 |
|
$ |
2.12 |
|
$ |
1.96 |
|
||||
| (1) Based on interim income tax reporting rules, these expense items are not considered discrete items. The tax effect of the adjustments between our |
Excludes tax (benefit)/expense as follows:
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| $ million | 2025 |
2024 |
2025 |
2024 |
||||||||||
| Expenses related to Technology Realignment Program | $ |
0.8 |
$ |
- |
|
$ |
1.6 |
$ |
- |
|
||||
| Expenses related to Restructuring Program |
|
0.2 |
|
(2.6 |
) |
|
1.1 |
|
(17.5 |
) |
||||
| Expenses related to Transformation Program |
|
- |
|
(1.2 |
) |
|
- |
|
(3.1 |
) |
||||
| Digital technology program costs |
|
0.4 |
|
0.7 |
|
|
0.7 |
|
(1.8 |
) |
||||
| Transition charge related to Sep ‘25 India GST amendments |
|
2.8 |
|
- |
|
|
2.8 |
|
- |
|
||||
| Gain on sale of property |
|
- |
|
- |
|
|
- |
|
0.9 |
|
||||
| Loss on extinguishment of debt |
|
- |
|
(0.2 |
) |
|
- |
|
(2.3 |
) |
||||
| Total income tax adjustments | $ |
4.2 |
$ |
(3.3 |
) |
$ |
6.2 |
$ |
(23.8 |
) |
||||
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||||
| $ per share | 2025 |
2024 |
2025 |
2024 |
||||||||||||
| Expenses related to Technology Realignment Program | $ |
(0.01 |
) |
$ |
- |
|
$ |
(0.01 |
) |
$ |
- |
|
||||
| Expenses related to Restructuring Program |
|
- |
|
|
(0.03 |
) |
|
(0.01 |
) |
|
(0.17 |
) |
||||
| Expenses related to Transformation Program |
|
- |
|
|
(0.01 |
) |
|
- |
|
|
(0.03 |
) |
||||
| Digital technology program costs |
|
- |
|
|
0.01 |
|
|
(0.01 |
) |
|
(0.02 |
) |
||||
| Transition charge related to Sep ‘25 India GST amendments |
|
(0.03 |
) |
|
- |
|
|
(0.03 |
) |
|
- |
|
||||
| Gain on sale of property |
|
- |
|
|
- |
|
|
- |
|
|
0.01 |
|
||||
| Loss on extinguishment of debt |
|
- |
|
|
- |
|
|
- |
|
|
(0.02 |
) |
||||
| Total income tax adjustments | $ |
(0.04 |
) |
$ |
(0.03 |
) |
$ |
(0.06 |
) |
$ |
(0.23 |
) |
||||
| (2) Non-cash net deferred tax effects related to an income tax benefit previously recognized due to changes to corporate entity structure in the fourth quarter of 2024. Refer to Supplemental Information included herein for further details. |
| (3) Amounts may not total due to rounding |
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:
Three Months Ended |
Year Ended December 31, |
|||||||||||||||||||||||
| $ million | Dec 31 '24 |
Mar 31 '25 |
Jun 30 '25 |
Sep 30 '25 |
Dec 31 '25 |
2025 |
2024 |
|||||||||||||||||
| Net sales | $ |
1,207.4 |
|
$ |
1,221.7 |
|
$ |
1,259.1 |
|
$ |
1,273.7 |
|
$ |
1,283.0 |
|
$ |
5,037.5 |
|
$ |
4,993.1 |
|
|||
| Net income attributable to Herbalife | $ |
177.9 |
|
$ |
50.4 |
|
$ |
49.3 |
|
$ |
43.2 |
|
$ |
85.4 |
|
$ |
228.3 |
|
$ |
254.3 |
|
|||
| Interest expense, net |
|
53.9 |
|
|
52.0 |
|
|
53.6 |
|
|
51.0 |
|
|
49.3 |
|
|
205.9 |
|
|
206.0 |
|
|||
| Income taxes |
|
(125.3 |
) |
|
20.4 |
|
|
29.8 |
|
|
31.7 |
|
|
(34.6 |
) |
|
47.3 |
|
|
(84.9 |
) |
|||
| Depreciation and amortization |
|
29.0 |
|
|
30.7 |
|
|
30.5 |
|
|
30.7 |
|
|
29.3 |
|
|
121.2 |
|
|
121.4 |
|
|||
| EBITDA |
|
135.5 |
|
|
153.5 |
|
|
163.2 |
|
|
156.6 |
|
|
129.4 |
|
|
602.7 |
|
|
496.8 |
|
|||
| Amortization of SaaS implementation costs |
|
5.0 |
|
|
5.7 |
|
|
5.7 |
|
|
5.0 |
|
|
4.9 |
|
|
21.3 |
|
|
22.3 |
|
|||
| Expenses related to Technology Realignment Program |
|
- |
|
|
- |
|
|
3.6 |
|
|
0.6 |
|
|
4.9 |
|
|
9.1 |
|
|
- |
|
|||
| Expenses related to Restructuring Program |
|
0.9 |
|
|
3.3 |
|
|
0.7 |
|
|
0.8 |
|
|
2.2 |
|
|
7.0 |
|
|
69.1 |
|
|||
| Expenses related to Transformation Program |
|
4.0 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
13.4 |
|
|||
| Digital technology program costs |
|
4.6 |
|
|
2.4 |
|
|
0.4 |
|
|
- |
|
|
3.4 |
|
|
6.2 |
|
|
26.7 |
|
|||
| Transition charge related to Sep ‘25 India GST amendments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
11.3 |
|
|
11.3 |
|
|
- |
|
|||
| Gain on sale of property |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(4.0 |
) |
|||
| Loss on extinguishment of debt |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
10.5 |
|
|||
| Adjusted EBITDA |
|
150.0 |
|
|
164.9 |
|
|
173.6 |
|
|
163.0 |
|
|
156.1 |
|
|
657.6 |
|
|
634.8 |
|
|||
| Interest income |
|
3.0 |
|
|
2.6 |
|
|
1.8 |
|
|
2.0 |
|
|
2.1 |
|
|
8.5 |
|
|
12.3 |
|
|||
| Inventory write-downs |
|
1.9 |
|
|
11.4 |
|
|
3.5 |
|
|
6.5 |
|
|
4.5 |
|
|
25.9 |
|
|
18.9 |
|
|||
| Share-based compensation expenses |
|
13.3 |
|
|
11.6 |
|
|
10.4 |
|
|
11.2 |
|
|
10.9 |
|
|
44.1 |
|
|
50.0 |
|
|||
| Other expenses (income) (1) |
|
(4.1 |
) |
|
1.5 |
|
|
3.1 |
|
|
1.5 |
|
|
(0.2 |
) |
|
5.9 |
|
|
12.8 |
|
|||
| Credit Agreement EBITDA | $ |
164.1 |
|
$ |
192.0 |
|
$ |
192.4 |
|
$ |
184.2 |
|
$ |
173.4 |
|
$ |
742.0 |
|
$ |
728.8 |
|
|||
| Credit Agreement Total Debt (2) | $ |
2,050.0 |
|
$ |
2,332.7 |
|
||||||||||||||||||
| Credit Agreement Total Leverage Ratio | 2.8x | 3.2x | ||||||||||||||||||||||
| Net income margin |
|
14.7 |
% |
|
4.1 |
% |
|
3.9 |
% |
|
3.4 |
% |
|
6.7 |
% |
|
4.5 |
% |
|
5.1 |
% |
|||
| Adjusted EBITDA margin |
|
12.4 |
% |
|
13.5 |
% |
|
13.8 |
% |
|
12.8 |
% |
|
12.2 |
% |
|
13.1 |
% |
|
12.7 |
% |
|||
| (1) Other expenses (income) include certain non-cash items such as bad debt expense, unrealized foreign currency gains and losses, and other gains and losses |
| (2) Represents the outstanding principal amount of total debt as of the respective period end |
SCHEDULE B: 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 consolidated statements of income. As a result,
As a result of the above, the accrued Member compensation liabilities previously reported as royalty overrides within the consolidated balance sheets are now presented as Member compensation liabilities. In addition,
Also, as a result of the above, the Member compensation previously reported as royalty overrides within the operating activities in the consolidated statements of cash flows is now presented as Member compensation liabilities. In addition,
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 (used in) operating activities, investing activities and financing activities, and did not impact the Company’s accompanying consolidated statements of comprehensive income and consolidated statements of changes in shareholders’ deficit.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260218518159/en/
Media Contact:
Miguel Lopez-Najera
Director, Global Corporate Communications
miguellope@herbalife.com
Investor Contact:
Erin Banyas
Vice President, Head of Investor Relations
erinba@herbalife.com
Source: Herbalife Ltd.
