Herbalife Delivers Q3 Net Sales Increase Above Guidance Midpoint, North America Returns to Growth; Q3 Adjusted EBITDA¹ Exceeds Guidance; Tightens Full-Year Guidance Ranges
“Herbalife’s third-quarter performance reflects continued progress in our transformation strategy, as well as disciplined financial and operational execution. With
- Stephan Gratziani, CEO
Highlights
Third Quarter 2025
-
Net sales of
$1.3 billion -
Up
2.7% vs. Q3 ‘24 - Includes 50 basis points of foreign currency (“FX”) headwinds
-
Up
3.2% year-over-year on constant currency basis2; toward upper end of guidance range
-
Up
-
North America net sales increased by1.0% year-over-year, marking the region’s first quarterly gain since Q2 ‘21 -
Net income attributable to Herbalife of
$43.2 million $51.5 million -
Adjusted EBITDA1 of
$163.0 million -
Adjusted EBITDA1 at constant currency2 of
$175.1 million -
Credit Agreement EBITDA1 of
$184.2 million
-
Adjusted EBITDA1 at constant currency2 of
-
Diluted EPS of
$0.42 $0.50 -
Net cash provided by operating activities of
$138.8 million $20.8 million -
Repaid
$147.3 million
Recent Developments
- Expanded access to beta version of Pro2col™ app to retail customers of beta group on Oct 30; introduced enhanced and expanded features within Pro2col digital experience
Outlook
- Fourth quarter 2025 guidance provided
- Full-year 2025 guidance revised: ranges tightened for net sales, adjusted EBITDA1 and capital expenditures
| __________________________________ | ||
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 third quarter 2025 net sales of
Gross profit margin was
For the quarter, net income attributable to Herbalife was
Net cash provided by operating activities was
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
In September 2025, the Company repaid the remaining outstanding principal balance of
“The third quarter demonstrated clear progress, with a return to growth in both
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
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
This momentum is further reflected in the strong attendance at the Company’s September Extravaganza training events, where approximately 57,200 attendees gathered in
During the EMEA Extravaganza in
Recent Developments
On October 30, the Company expanded beta access to the Pro2col app to retail customers in the
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
“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 FX2 |
||
|
263.1 |
260.4 |
|
1.0 |
% |
1.1 |
% |
|
229.6 |
207.1 |
|
10.9 |
% |
10.7 |
% |
EMEA |
272.3 |
261.9 |
|
4.0 |
% |
2.3 |
% |
|
437.4 |
436.1 |
|
0.3 |
% |
2.8 |
% |
|
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 FX2 |
||
|
789.9 |
809.4 |
|
(2.4 |
)% |
(2.3 |
)% |
|
646.5 |
633.0 |
|
2.1 |
% |
10.3 |
% |
EMEA |
833.5 |
827.6 |
|
0.7 |
% |
1.5 |
% |
|
1,268.5 |
1,284.0 |
|
(1.2 |
)% |
1.1 |
% |
|
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 EBITDA1 |
CapEx |
Reported |
+ |
144 – 154 |
18 – 28 |
Constant Currency(a) |
+ |
154 – 164 |
|
Q4 ‘24 Actuals |
1,207.4 |
150.0
|
25.7 |
Full-Year 2025 Guidance – REVISED |
|||
$ million |
Net Sales |
Adjusted EBITDA1 |
CapEx |
Reported |
(0.3)% to + |
645 – 655 |
80 – 90 |
Previous Guidance (Aug 6 ‘25) |
(1.0)% to + |
640 – 660 |
75 – 95 |
Constant Currency(a) |
+ |
700 – 710 |
|
Previous Guidance (Aug 6 ‘25) |
|
685 – 705 |
|
FY ‘24 Actuals |
4,993.1 |
634.8
|
122.0 |
(a) |
Non-GAAP Measure. Represents projections using |
Guidance Assumptions
- Net sales and adjusted EBITDA1 use the average daily exchange rates for the first two weeks of October 2025 to translate local currency projections
- Outlook includes preliminary estimates of the impact of incremental tariffs enacted as of November 4, 2025
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:
- 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 and increased market penetration in existing markets);
- 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, 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
| Herbalife Ltd. and Subsidiaries | |||||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||||
(unaudited) |
|||||||||||||||
| Net sales | $ |
1,273.7 |
|
$ |
1,240.3 |
|
$ |
3,754.5 |
|
$ |
3,785.7 |
|
|||
| Cost of sales |
|
284.2 |
|
|
268.7 |
|
|
826.3 |
|
|
836.8 |
|
|||
| Gross profit |
|
989.5 |
|
|
971.6 |
|
|
2,928.2 |
|
|
2,948.9 |
|
|||
| Royalty overrides |
|
416.1 |
|
|
405.5 |
|
|
1,224.4 |
|
|
1,236.0 |
|
|||
| Selling, general, and administrative expenses |
|
447.6 |
|
|
444.0 |
|
|
1,327.4 |
|
|
1,438.5 |
|
|||
| Other operating income (1) |
|
- |
|
|
(5.0 |
) |
|
(4.8 |
) |
|
(5.0 |
) |
|||
| Operating income |
|
125.8 |
|
|
127.1 |
|
|
381.2 |
|
|
279.4 |
|
|||
| Interest expense, net |
|
51.0 |
|
|
56.5 |
|
|
156.6 |
|
|
152.1 |
|
|||
| Other expense, net (2) |
|
- |
|
|
- |
|
|
- |
|
|
10.5 |
|
|||
| Income before income taxes |
|
74.8 |
|
|
70.6 |
|
|
224.6 |
|
|
116.8 |
|
|||
| Income taxes |
|
31.7 |
|
|
23.2 |
|
|
81.9 |
|
|
40.4 |
|
|||
| Net income |
|
43.1 |
|
|
47.4 |
|
|
142.7 |
|
|
76.4 |
|
|||
| Net loss attributable to noncontrolling interest |
|
(0.1 |
) |
|
- |
|
|
(0.2 |
) |
|
- |
|
|||
| Net income attributable to Herbalife | $ |
43.2 |
|
$ |
47.4 |
|
$ |
142.9 |
|
$ |
76.4 |
|
|||
| Earnings per share attributable to Herbalife: | |||||||||||||||
| Basic | $ |
0.42 |
|
$ |
0.47 |
|
$ |
1.39 |
|
$ |
0.76 |
|
|||
| Diluted | $ |
0.42 |
|
$ |
0.46 |
|
$ |
1.38 |
|
$ |
0.75 |
|
|||
| Weighted-average shares outstanding: | |||||||||||||||
| Basic |
|
103.3 |
|
|
100.9 |
|
|
102.6 |
|
|
100.4 |
|
|||
| Diluted |
|
104.0 |
|
|
101.9 |
|
|
103.2 |
|
|
101.4 |
|
|||
(1) |
Other operating income for the nine months ended September 30, 2025 and three and nine months ended September 30, 2024 relates to certain |
||||||||
(2) |
Other expense, net for the nine months ended September 30, 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) | |||||||
September 30, |
|
December 31, |
|||||
2025 |
|
2024 |
|||||
(unaudited) |
|
|
|||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ |
305.5 |
|
$ |
415.3 |
|
|
| Receivables, net |
|
97.8 |
|
|
68.9 |
|
|
| Inventories |
|
512.5 |
|
|
475.4 |
|
|
| Prepaid expenses and other current assets |
|
190.4 |
|
|
184.1 |
|
|
| Total current assets |
|
1,106.2 |
|
|
1,143.7 |
|
|
| Property, plant and equipment, net |
|
456.7 |
|
|
460.2 |
|
|
| Operating lease right-of-use assets |
|
171.7 |
|
|
185.7 |
|
|
| Marketing-related intangibles and other intangible assets, net |
|
315.7 |
|
|
312.3 |
|
|
| Goodwill |
|
101.0 |
|
|
87.7 |
|
|
| Deferred income tax assets |
|
401.7 |
|
|
398.6 |
|
|
| Other assets |
|
144.2 |
|
|
139.9 |
|
|
| Total assets | $ |
2,697.2 |
|
$ |
2,728.1 |
|
|
| LIABILITIES AND SHAREHOLDERS' DEFICIT | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ |
88.1 |
|
$ |
70.0 |
|
|
| Royalty overrides |
|
345.8 |
|
|
334.1 |
|
|
| Current portion of long-term debt |
|
20.7 |
|
|
283.5 |
|
|
| Other current liabilities |
|
545.3 |
|
|
542.8 |
|
|
| Total current liabilities |
|
999.9 |
|
|
1,230.4 |
|
|
| Non-current liabilities: | |||||||
| Long-term debt, net of current portion |
|
1,997.2 |
|
|
1,976.6 |
|
|
| Non-current operating lease liabilities |
|
157.0 |
|
|
169.5 |
|
|
| Other non-current liabilities |
|
149.1 |
|
|
152.7 |
|
|
| Total liabilities |
|
3,303.2 |
|
|
3,529.2 |
|
|
| Commitments and contingencies | |||||||
| Shareholders' deficit: | |||||||
| Common shares |
|
0.1 |
|
|
0.1 |
|
|
| Paid-in capital in excess of par value |
|
304.6 |
|
|
278.2 |
|
|
| Accumulated other comprehensive loss |
|
(251.6 |
) |
|
(271.4 |
) |
|
| Accumulated deficit |
|
(665.1 |
) |
|
(808.0 |
) |
|
| Total Herbalife shareholders' deficit |
|
(612.0 |
) |
|
(801.1 |
) |
|
| Noncontrolling interest |
|
6.0 |
|
|
- |
|
|
| Total shareholders' deficit |
|
(606.0 |
) |
|
(801.1 |
) |
|
| Total liabilities and shareholders' deficit | $ |
2,697.2 |
|
$ |
2,728.1 |
|
|
| Herbalife Ltd. and Subsidiaries | |||||||
| Condensed Consolidated Statements of Cash Flows | |||||||
| (in millions) | |||||||
Nine Months Ended September 30, |
|||||||
2025 |
|
2024 |
|||||
(unaudited) |
|||||||
| Cash flows from operating activities: | |||||||
| Net income | $ |
142.7 |
|
$ |
76.4 |
|
|
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization |
|
91.9 |
|
|
92.4 |
|
|
| Share-based compensation expenses |
|
33.2 |
|
|
36.7 |
|
|
| Non-cash interest expense |
|
12.3 |
|
|
9.4 |
|
|
| Deferred income taxes |
|
5.3 |
|
|
(52.7 |
) |
|
| Inventory write-downs |
|
21.4 |
|
|
17.0 |
|
|
| Foreign exchange transaction loss |
|
1.6 |
|
|
11.9 |
|
|
| Loss on extinguishment of debt |
|
- |
|
|
10.5 |
|
|
| Other |
|
(1.2 |
) |
|
3.8 |
|
|
| Changes in operating assets and liabilities: | |||||||
| Receivables |
|
(25.6 |
) |
|
(3.6 |
) |
|
| Inventories |
|
(29.8 |
) |
|
(41.7 |
) |
|
| Prepaid expenses and other current assets |
|
8.9 |
|
|
(3.7 |
) |
|
| Accounts payable |
|
12.4 |
|
|
0.9 |
|
|
| Royalty overrides |
|
(4.3 |
) |
|
(2.3 |
) |
|
| Other current liabilities |
|
(13.8 |
) |
|
62.1 |
|
|
| Other |
|
(20.0 |
) |
|
(1.3 |
) |
|
| Net cash provided by operating activities |
|
235.0 |
|
|
215.8 |
|
|
| Cash flows from investing activities: | |||||||
| Purchases of property, plant and equipment |
|
(61.9 |
) |
|
(96.3 |
) |
|
| Acquisition of business and assets |
|
(25.5 |
) |
|
- |
|
|
| Proceeds from sale and leaseback transaction, net of related expenses |
|
- |
|
|
37.9 |
|
|
| Other |
|
(2.6 |
) |
|
(0.6 |
) |
|
| Net cash used in investing activities |
|
(90.0 |
) |
|
(59.0 |
) |
|
| Cash flows from financing activities: | |||||||
| Borrowings from senior secured credit facility and other debt, net of discount |
|
552.3 |
|
|
1,117.7 |
|
|
| Principal payments on senior secured credit facility and other debt |
|
(543.9 |
) |
|
(1,655.0 |
) |
|
| 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 |
) |
|
(22.4 |
) |
|
| Share repurchases |
|
(8.1 |
) |
|
(5.7 |
) |
|
| Other |
|
(0.7 |
) |
|
2.0 |
|
|
| Net cash used in financing activities |
|
(262.8 |
) |
|
(326.3 |
) |
|
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
7.7 |
|
|
(8.1 |
) |
|
| Net change in cash, cash equivalents, and restricted cash |
|
(110.1 |
) |
|
(177.6 |
) |
|
| Cash, cash equivalents, and restricted cash, beginning of period |
|
438.1 |
|
|
595.5 |
|
|
| Cash, cash equivalents, and restricted cash, end of period | $ |
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
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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
| $ million | 2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||
| Net income attributable to Herbalife | $ |
43.2 |
$ |
47.4 |
|
$ |
142.9 |
|
$ |
76.4 |
|
|||
| Expenses related to Technology Realignment Program (1) |
|
0.6 |
|
- |
|
|
4.2 |
|
|
- |
|
|||
| Expenses related to Restructuring Program (1) |
|
0.8 |
|
2.7 |
|
|
4.8 |
|
|
68.2 |
|
|||
| Expenses related to Transformation Program (1) |
|
- |
|
- |
|
|
- |
|
|
9.4 |
|
|||
| Digital technology program costs (1) |
|
- |
|
5.1 |
|
|
2.8 |
|
|
22.1 |
|
|||
| Gain on sale of property (1) |
|
- |
|
(4.0 |
) |
|
- |
|
|
(4.0 |
) |
|||
| Loss on extinguishment of debt (1) |
|
- |
|
- |
|
|
- |
|
|
10.5 |
|
|||
| Income tax adjustments for above items (1) |
|
0.6 |
|
6.8 |
|
|
(2.0 |
) |
|
(20.5 |
) |
|||
| Deferred income tax effects, net, related to corporate entity reorganization (2) |
|
6.3 |
|
- |
|
|
19.2 |
|
|
- |
|
|||
| Adjusted net income | $ |
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, |
||||||||||||
| $ per share | 2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||
| Diluted earnings per share | $ |
0.42 |
$ |
0.46 |
|
$ |
1.38 |
|
$ |
0.75 |
|
|||
| Expenses related to Technology Realignment Program (1) |
|
0.01 |
|
- |
|
|
0.04 |
|
|
- |
|
|||
| Expenses related to Restructuring Program (1) |
|
0.01 |
|
0.03 |
|
|
0.05 |
|
|
0.68 |
|
|||
| Expenses related to Transformation Program (1) |
|
- |
|
- |
|
|
- |
|
|
0.10 |
|
|||
| Digital technology program costs (1) |
|
- |
|
0.05 |
|
|
0.03 |
|
|
0.22 |
|
|||
| Gain on sale of property (1) |
|
- |
|
(0.04 |
) |
|
- |
|
|
(0.04 |
) |
|||
| Loss on extinguishment of debt (1) |
|
- |
|
- |
|
|
- |
|
|
0.10 |
|
|||
| Income tax adjustments for above items (1) |
|
0.01 |
|
0.07 |
|
|
(0.02 |
) |
|
(0.20 |
) |
|||
| Deferred income tax effects, net, related to corporate entity reorganization (2) |
|
0.06 |
|
- |
|
|
0.19 |
|
|
- |
|
|||
| Adjusted diluted earnings per share (3) | $ |
0.50 |
$ |
0.57 |
|
$ |
1.67 |
|
$ |
1.61 |
|
|||
(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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
| $ million | 2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||
| Expenses related to Technology Realignment Program | $ |
0.2 |
$ |
- |
|
$ |
(0.8 |
) |
$ |
- |
|
|||
| Expenses related to Restructuring Program |
|
0.2 |
|
5.3 |
|
|
(0.9 |
) |
|
(14.9 |
) |
|||
| Expenses related to Transformation Program |
|
- |
|
0.6 |
|
|
- |
|
|
(1.9 |
) |
|||
| Digital technology program costs |
|
0.2 |
|
(0.5 |
) |
|
(0.3 |
) |
|
(2.5 |
) |
|||
| Gain on sale of property |
|
- |
|
0.9 |
|
|
- |
|
|
0.9 |
|
|||
| Loss on extinguishment of debt |
|
- |
|
0.5 |
|
|
- |
|
|
(2.1 |
) |
|||
| Total income tax adjustments | $ |
0.6 |
$ |
6.8 |
|
$ |
(2.0 |
) |
$ |
(20.5 |
) |
|||
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
| $ per share | 2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||
| Expenses related to Technology Realignment Program | $ |
- |
$ |
- |
|
$ |
(0.01 |
) |
$ |
- |
|
|||
| Expenses related to Restructuring Program |
|
- |
|
0.05 |
|
|
(0.01 |
) |
|
(0.15 |
) |
|||
| Expenses related to Transformation Program |
|
- |
|
- |
|
|
- |
|
|
(0.02 |
) |
|||
| Digital technology program costs |
|
0.01 |
|
(0.01 |
) |
|
- |
|
|
(0.02 |
) |
|||
| Gain on sale of property |
|
- |
|
0.01 |
|
|
- |
|
|
0.01 |
|
|||
| Loss on extinguishment of debt |
|
- |
|
0.01 |
|
|
- |
|
|
(0.02 |
) |
|||
| Total income tax adjustments (3) | $ |
0.01 |
$ |
0.07 |
|
$ |
(0.02 |
) |
$ |
(0.20 |
) |
|||
(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 | TTM | ||||||||||||||||||||||
| $ million | Sep 30 '24 | Dec 31 '24 | Mar 31 '25 | Jun 30 '25 | Sep 30 '25 | Sep 30 '25 | |||||||||||||||||
| Net sales | $ |
1,240.3 |
|
$ |
1,207.4 |
|
$ |
1,221.7 |
|
$ |
1,259.1 |
|
$ |
1,273.7 |
|
$ |
4,961.9 |
|
|||||
| Net income attributable to Herbalife | $ |
47.4 |
|
$ |
177.9 |
|
$ |
50.4 |
|
$ |
49.3 |
|
$ |
43.2 |
|
$ |
320.8 |
|
|||||
| Interest expense, net |
|
56.5 |
|
|
53.9 |
|
|
52.0 |
|
|
53.6 |
|
|
51.0 |
|
|
210.5 |
|
|||||
| Income taxes |
|
23.2 |
|
|
(125.3 |
) |
|
20.4 |
|
|
29.8 |
|
|
31.7 |
|
|
(43.4 |
) |
|||||
| Depreciation and amortization |
|
30.6 |
|
|
29.0 |
|
|
30.7 |
|
|
30.5 |
|
|
30.7 |
|
|
120.9 |
|
|||||
| EBITDA |
|
157.7 |
|
|
135.5 |
|
|
153.5 |
|
|
163.2 |
|
|
156.6 |
|
|
608.8 |
|
|||||
| Amortization of SaaS implementation costs |
|
5.0 |
|
|
5.0 |
|
|
5.7 |
|
|
5.7 |
|
|
5.0 |
|
|
21.4 |
|
|||||
| Expenses related to Technology Realignment Program |
|
- |
|
|
- |
|
|
- |
|
|
3.6 |
|
|
0.6 |
|
|
4.2 |
|
|||||
| Expenses related to Restructuring Program |
|
2.7 |
|
|
0.9 |
|
|
3.3 |
|
|
0.7 |
|
|
0.8 |
|
|
5.7 |
|
|||||
| Expenses related to Transformation Program |
|
- |
|
|
4.0 |
|
|
- |
|
|
- |
|
|
- |
|
|
4.0 |
|
|||||
| Digital technology program costs |
|
5.1 |
|
|
4.6 |
|
|
2.4 |
|
|
0.4 |
|
|
- |
|
|
7.4 |
|
|||||
| Gain on sale of property |
|
(4.0 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Loss on extinguishment of debt |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Adjusted EBITDA |
|
166.5 |
|
|
150.0 |
|
|
164.9 |
|
|
173.6 |
|
|
163.0 |
|
|
651.5 |
|
|||||
| Interest income |
|
2.8 |
|
|
3.0 |
|
|
2.6 |
|
|
1.8 |
|
|
2.0 |
|
|
9.4 |
|
|||||
| Inventory write-downs |
|
5.6 |
|
|
1.9 |
|
|
11.4 |
|
|
3.5 |
|
|
6.5 |
|
|
23.3 |
|
|||||
| Share-based compensation expenses |
|
13.0 |
|
|
13.3 |
|
|
11.6 |
|
|
10.4 |
|
|
11.2 |
|
|
46.5 |
|
|||||
| Other expenses (income) (1) |
|
9.3 |
|
|
(4.1 |
) |
|
1.5 |
|
|
3.1 |
|
|
1.5 |
|
|
2.0 |
|
|||||
| Credit Agreement EBITDA | $ |
197.2 |
|
$ |
164.1 |
|
$ |
192.0 |
|
$ |
192.4 |
|
$ |
184.2 |
|
$ |
732.7 |
|
|||||
| Credit Agreement Total Debt (2) | $ |
2,079.1 |
|
||||||||||||||||||||
| Credit Agreement Total Leverage Ratio | 2.8x | ||||||||||||||||||||||
| Net income margin |
|
3.8 |
% |
|
14.7 |
% |
|
4.1 |
% |
|
3.9 |
% |
|
3.4 |
% |
|
6.5 |
% |
|||||
| Adjusted EBITDA margin |
|
13.4 |
% |
|
12.4 |
% |
|
13.5 |
% |
|
13.8 |
% |
|
12.8 |
% |
|
13.1 |
% |
|||||
| Nine Months Ended September 30, | Year Ended December 31, | ||||||||||
| $ million | 2025 |
2024 |
2024 |
||||||||
| Net sales | $ |
3,754.5 |
|
$ |
3,785.7 |
|
$ |
4,993.1 |
|
||
| Net income attributable to Herbalife | $ |
142.9 |
|
$ |
76.4 |
|
$ |
254.3 |
|
||
| Interest expense, net |
|
156.6 |
|
|
152.1 |
|
|
206.0 |
|
||
| Income taxes |
|
81.9 |
|
|
40.4 |
|
|
(84.9 |
) |
||
| Depreciation and amortization |
|
91.9 |
|
|
92.4 |
|
|
121.4 |
|
||
| EBITDA |
|
473.3 |
|
|
361.3 |
|
|
496.8 |
|
||
| Amortization of SaaS implementation costs |
|
16.4 |
|
|
17.3 |
|
|
22.3 |
|
||
| Expenses related to Technology Realignment Program |
|
4.2 |
|
|
- |
|
|
- |
|
||
| Expenses related to Restructuring Program |
|
4.8 |
|
|
68.2 |
|
|
69.1 |
|
||
| Expenses related to Transformation Program |
|
- |
|
|
9.4 |
|
|
13.4 |
|
||
| Digital technology program costs |
|
2.8 |
|
|
22.1 |
|
|
26.7 |
|
||
| Gain on sale of property |
|
- |
|
|
(4.0 |
) |
|
(4.0 |
) |
||
| Loss on extinguishment of debt |
|
- |
|
|
10.5 |
|
|
10.5 |
|
||
| Adjusted EBITDA |
|
501.5 |
|
|
484.8 |
|
|
634.8 |
|
||
| Interest income |
|
6.4 |
|
|
9.3 |
|
|
12.3 |
|
||
| Inventory write-downs |
|
21.4 |
|
|
17.0 |
|
|
18.9 |
|
||
| Share-based compensation expenses |
|
33.2 |
|
|
36.7 |
|
|
50.0 |
|
||
| Other expenses (income) (1) |
|
6.1 |
|
|
16.9 |
|
|
12.8 |
|
||
| Credit Agreement EBITDA | $ |
568.6 |
|
$ |
564.7 |
|
$ |
728.8 |
|
||
| Credit Agreement Total Debt (2) | $ |
2,332.7 |
|
||||||||
| Credit Agreement Total Leverage Ratio | 3.2x | ||||||||||
| Net income margin |
|
3.8 |
% |
|
2.0 |
% |
|
5.1 |
% |
||
| Adjusted EBITDA margin |
|
13.4 |
% |
|
12.8 |
% |
|
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 | ||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20251105093751/en/
Media Contact:
Thien Ho
Vice President, Global Corporate Communications
thienh@herbalife.com
Investor Contact:
Erin Banyas
Vice President, Head of Investor Relations
erinba@herbalife.com
Source: Herbalife Ltd.
