HERBALIFE LTD. (HLF) Earnings History

HERBALIFE LTD. - Q4 FY2025 EarningsBeat

Filed at: Feb 18, 2026, 4:31 PM EST|Read from source

EXECUTIVE SUMMARY

Herbalife reported fourth quarter and full-year 2025 results with net sales growth exceeding guidance, driven by strong performance in Latin America and EMEA, and maintained adjusted EBITDA margins. The company also announced a strategic investment from Cristiano Ronaldo in its Pro2col technology, signaling a focus on innovation and personalized wellness platforms.

POSITIVE HIGHLIGHTS

  • •

    Fourth quarter net sales increased 6.3% year-over-year to $1.3 billion, exceeding guidance.

    positive
  • •

    Full-year 2025 net sales increased 0.9% to $5.0 billion, exceeding guidance.

    positive
  • •

    Adjusted EBITDA margin for the full year 2025 was 13.1%, an expansion of 40 basis points compared to 2024.

    positive
  • •

    Net cash provided by operating activities was $333.3 million for the full year 2025.

    positive

CONCERNS & RISKS

  • •

    Fourth quarter gross profit margin decreased by 30 basis points year-over-year to 77.5%, primarily due to unfavorable sales mix and input cost inflation.

    attention
  • •

    Fourth quarter adjusted EBITDA margin decreased by 20 basis points year-over-year to 12.2%, impacted by approximately $12 million of FX headwinds.

    attention
  • •

    Full-year 2025 net sales growth of 0.9% was impacted by 160 basis points of foreign currency headwinds.

    attention
  • •

    China region net sales declined 4.4% in Q4 2025 and 6.2% for FY 2025.

    attention
  • •

    Inventories increased to $511.7 million as of December 31, 2025, from $475.4 million as of December 31, 2024.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$1.28B
+6.3%
Prior year: $1.21B
Annual (YTD)
$5.04B
N/A
Prior year: $4.99B
Net Income
Quarterly
$85.40M
-52.0%
Prior year: $177.90M
Annual (YTD)
$228.30M
N/A
Prior year: $254.30M
EPS (Diluted)
Quarterly
$0.81
-53.4%
Prior year: $1.74
Operating Income
Quarterly
$99.80M
-6.3%
Prior year: $106.50M
Annual (YTD)
$481.00M
N/A
Prior year: $385.90M
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Gross Margin
Current Quarter
77.5%
Prior Year
77.8%
YoY Change
-30 bps
Operating Margin
Current Quarter
7.8%
Prior Year
8.8%
YoY Change
-100 bps
Net Margin
Current Quarter
6.7%
Prior Year
14.7%
YoY Change
-800 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
North America
0.0%
N/A
CC: -0.8%
Latin America
0.0%
N/A
CC: +10.5%
EMEA
0.0%
N/A
CC: +2.3%
Asia Pacific
0.0%
N/A
CC: +3.0%
China
0.0%
N/A
CC: -6.3%

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% TotalCC
North America
N/A———-0.8%
Latin America
N/A———+10.5%
EMEA
N/A———+2.3%
Asia Pacific
N/A———+3.0%
China
N/A———-6.3%
Total Revenue$0.00M——100.0%—

Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.

MANAGEMENT GUIDANCE

FY2026

Net Sales
$5087900.0B—$5300000.0B
Mid-point: $5193950.0B
"Reported +1.0% to +6.0% YoY; Constant Currency +0.0% to +5.0% YoY"
Adjusted EBITDA
670,000,000—710,000,000
Mid-point: 690,000,000

Q1 2026

Net Sales
$1258000.0B—$1306000.0B
Mid-point: $1282000.0B
"Reported +3.0% to +7.0% YoY; Constant Currency +0.5% to +4.5% YoY"
Adjusted EBITDA
155,000,000—175,000,000
Mid-point: 165,000,000

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Expenses related to Technology Realignment Program
+$4.9M
$0.05 per share
Q4 2025
Expenses related to Restructuring Program
+$2.2M
$0.02 per share
Q4 2025
Digital technology program costs
+$3.4M
$0.03 per share
Q4 2025
Transition charge related to Sep ‘25 India Goods and Services Tax (GST) amendments
+$11.3M
$0.11 per share
FY 2025
Expenses related to Technology Realignment Program
+$9.1M
$0.09 per share
FY 2025
Expenses related to Restructuring Program
+$7M
$0.07 per share
FY 2025
Digital technology program costs
+$6.2M
$0.06 per share
FY 2025
Transition charge related to Sep ‘25 India Goods and Services Tax (GST) amendments
+$11.3M
$0.11 per share
FY 2024
Expenses related to Restructuring Program
+$69.1M
$0.68 per share
FY 2024
Expenses related to Transformation Program
+$13.4M
$0.13 per share
FY 2024
Digital technology program costs
+$26.7M
$0.26 per share
FY 2024
Gain on sale of property
$4M
$0.04 per share
FY 2024
Loss on extinguishment of debt
+$10.5M
$0.10 per share
Total Impact
+$171.1M$1.67 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Our results reflect strong operational and financial momentum.

— HERBALIFE LTD., Q4 FY2025 2025 Earnings Call

For the full year, we delivered our second consecutive year of adjusted EBITDA and adjusted EBITDA margin expansion, generated strong operating cash flows, reduced debt, and ended 2025 with a total leverage ratio of 2.8x.

— HERBALIFE LTD., Q4 FY2025 2025 Earnings Call

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.

— HERBALIFE LTD., Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

New Distributor Growth North America
19
percent
New Distributor Growth Worldwide
-5
percent

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.