Herbalife (NYSE:HLF) reported second-quarter net sales of $1.3 billion, up 5.4% from a year earlier and at the high end of its guidance range, as the nutrition company recorded its fourth consecutive quarter of year-over-year sales growth.
On a constant-currency basis, net sales rose 5.8%, exceeding the company’s outlook. Adjusted EBITDA was $167 million, also near the top of Herbalife’s guided range of $150 million to $170 million.
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Chief Executive Officer Stephan Gratziani said the quarter reflected progress in turning the company’s investments in technology, product development and distributor capabilities into execution. He emphasized Herbalife’s strategy to expand its presence in personalized nutrition, combining digital tools, biomarker data, individualized products and distributor-led customer support.
Regional growth led by India and North America
Three of Herbalife’s five regions posted year-over-year net sales growth on both a reported and constant-currency basis. Asia Pacific was a major contributor, with reported sales increasing 15% and constant-currency sales rising 23%. India posted reported sales growth of 33% and constant-currency growth of 47%, driven by a 45% increase in volume and favorable sales mix.
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Latin America recorded its fourth consecutive quarter of double-digit reported growth, with sales up 17%. Constant-currency sales in the region rose 8%, supported by pricing, sales mix and approximately 2% volume growth. Mexico’s reported sales rose 17%, while local-currency sales increased 5%.
North America returned to growth, with sales increasing 20% year over year, though management described the increase as nominal. The result reflected higher pricing, partly offset by a 2% volume decline. Chief Financial Officer John DeSimone said distributor productivity has increased in North America, including at nutrition clubs.
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Meanwhile, Europe, Middle East and Africa sales declined 3.5% on a reported basis and 5.6% in constant currency, reflecting a 12% volume decline. China, which Herbalife said represented less than 5% of worldwide sales, posted a 25% reported decline and a 29% constant-currency decline, primarily due to lower volume.
Personalized nutrition launches expand portfolio
Gratziani highlighted the June European launch and July U.S. launch of Bioniq GO, a personalized daily supplement introduced following Herbalife’s April acquisition of Bioniq. Customers complete a digital wellness assessment and are matched with one of 40 supplement formulas based on their wellness profile and goals. The product debuted across 11 markets in Europe and Africa, with further market launches planned in the second half of 2026.
Herbalife also continues to expand beta testing of Pro2col, its personalized health operating system. The platform is intended to bring together AI-assisted recommendations, digital tools, wellness data and distributor support. The company plans to introduce smart-device integrations, expanded biomarker support and distributor-focused business capabilities in the second half of the year.
In North America, Herbalife introduced a beta program for at-home blood testing and integration of results into the Pro2col platform. Gratziani said the company is evaluating the full customer experience, including ordering, self-administration, laboratory processing and delivery of results through the platform.
The company also launched Helio, an all-in-one nutrition shake under its Life I/O healthy-lifespan brand, in July. Helio contains 30 grams of protein per serving, fibers, vitamins, minerals and other wellness ingredients. In addition, Herbalife introduced Activate Energy, an exogenous ketone product featuring D-BHB ketone technology, caffeine, B vitamins and electrolytes.
Profitability, cash flow and debt reduction
Herbalife reported a second-quarter net loss attributable to the company of $26 million, or a diluted loss of $0.25 per share. The loss was primarily due to a nearly $95 million pretax loss on debt extinguishment associated with the company’s April refinancing, DeSimone said.
On an adjusted basis, net income was approximately $53 million and adjusted diluted earnings per share were $0.51. The company’s adjusted effective tax rate was 43.2%, compared with 27.7% a year earlier, resulting in an approximately $0.14 unfavorable impact to adjusted diluted EPS. Herbalife expects its full-year adjusted tax rate to be about 35%.
Operating cash flow for the first half of 2026 was $147 million, up 52% from the prior-year period. Herbalife ended the quarter with $370 million in cash, $135 million outstanding on its revolving credit facility, a total leverage ratio of 2.7 times and a net leverage ratio of 2.2 times. The company continues to target a net leverage ratio below two times by year-end and remains committed to repaying more than $600 million of debt by the end of 2028.
Second-quarter net interest expense fell to $37 million from $54 million a year earlier, reflecting the benefit of the refinancing.
Updated outlook and finance leadership transition
For the third quarter, Herbalife expects reported net sales growth of 0.5% to 4.5%, including an estimated 100-basis-point currency headwind. Constant-currency sales are expected to increase 1.5% to 5.5%. The company forecast adjusted EBITDA of $160 million to $180 million on a reported basis and $165 million to $185 million in constant currency.
For the full year, Herbalife narrowed its sales outlook and raised the midpoint of its constant-currency sales guidance. It now expects both reported and constant-currency net sales to increase 2.5% to 5.5%. Full-year adjusted EBITDA is projected at $670 million to $690 million on a reported basis and $690 million to $710 million on a constant-currency basis.
The company reduced its expected 2026 capital expenditures range to $50 million to $70 million. DeSimone said the lower outlook reflected disciplined project prioritization and timing rather than cash constraints.
Herbalife also announced that DeSimone will retire at the end of 2026. Scott Schaefer, currently senior vice president of finance and transformation, is scheduled to succeed him as CFO at the beginning of 2027. Gratziani said DeSimone and Schaefer will work together over the next five months to support the transition.
About Herbalife (NYSE:HLF)
Herbalife Nutrition Ltd. (NYSE: HLF) operates as a global multi-level marketing company specializing in weight-management, nutritional supplement, sports nutrition and personal care products. Its portfolio includes protein shakes, vitamins, energy and fitness supplements, hydration products and skin and hair care items, all formulated to support wellness, performance and healthy living. Products are manufactured in GMP-certified facilities to ensure consistent quality and safety standards.
Founded in 1980 by Mark R.
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