Herbalife (NYSE:HLF) reported third-quarter 2026 net sales of $1.4 billion, up 6% from a year earlier on a reported basis and 7.6% in constant currency, extending its streak of year-over-year sales growth to five consecutive quarters.
Adjusted EBITDA totaled $182 million, exceeding the company’s guidance range of $160 million to $180 million. Adjusted EBITDA margin rose 70 basis points from the prior-year quarter to 13.5%. Net income attributable to Herbalife increased 36% to $59 million, while diluted earnings per share rose $0.13 year over year to $0.55. Adjusted diluted EPS was $0.64, up $0.14 from the prior year.
Interim Chief Executive Officer John DeSimone, who opened the call by thanking former CEO Stephan for his leadership, said the company is focused on building on recent investments in products, personalized nutrition and technology while increasing support for distributors.
India Leads Regional Growth
Chief Financial Officer Scott Schaefer said worldwide volume increased 8.6% during the quarter. Asia Pacific was the company’s strongest region, with constant-currency net sales rising 26%, led by India.
India net sales rose $87 million year over year, or 39% on a reported basis and 52% in local currency, supported by nearly 50% volume growth. Schaefer said a goods and services tax change in the third quarter of 2025 added momentum to a business that had already been growing. The company expects continued growth in India as it laps that change in the fourth quarter.
Latin America delivered 5.1% constant-currency sales growth and 9% reported sales growth. North America sales increased 1.7%, marking the region’s second consecutive quarter of year-over-year growth. Schaefer noted that a revenue-recognition timing shift from the first quarter to the third quarter contributed to North America’s comparison. Growth in those markets was partly offset by results in Europe, the Middle East and Africa and in China.
Foreign exchange reduced quarterly net sales by approximately $21 million, or 160 basis points, and created an approximately $11 million headwind to adjusted EBITDA. Pricing contributed about $36 million to sales, while country mix reduced sales by roughly $47 million.
Nutrition Clubs and Technology Platform Priorities
DeSimone outlined three strategic priorities: creating a dedicated nutrition-club organization, expanding the company’s customer-engagement technology platform and growing the Bioniq brand.
Herbalife has more than 64,000 nutrition clubs globally, including nearly 9,000 in the U.S. U.S. nutrition clubs accounted for 42% of domestic volume in the third quarter, DeSimone said. Club productivity increased more than 10% year over year in each quarter of 2026, while customers visiting clubs rose more than 7% in the third quarter.
The company plans to create an internal nutrition-club organization to provide club-specific products, programs, training, tools and coordinated support. DeSimone said the effort is intended to improve productivity and profitability while allowing distributors and regions to adapt programs to local conditions.
Herbalife also plans to combine currently separate digital tools into a shared, modular technology foundation. The company expects to begin introducing new capabilities in the first quarter of 2027, beginning with its 24 Games team-based fitness events. Additional programs for transformation challenges and nutrition clubs are expected to follow.
The company’s goal is to capture at least 50% of distributors’ global consumer transactions within its technology ecosystem over the next three years. DeSimone said the platform is intended to give distributors tools suited to different business models while providing Herbalife with consumer transaction data that can support engagement, retention and product development.
Bioniq Expansion and GLP-1 Opportunity
DeSimone said Herbalife is expanding Bioniq from a personalized-nutrition business into a premium health and wellness brand covering personalized nutrition, sports performance and healthy lifespan. During 2027, the company plans to introduce more convenient formats, premium offerings and additional personalized-nutrition stock-keeping units.
During the question-and-answer session, DeSimone said Bioniq had sold fewer than 50,000 units since launch but that the brand had generated interest beyond its current sales level. Herbalife plans to incorporate Link BioSciences into Bioniq and introduce sports offerings under the brand. The company also intends to offer entrepreneurs the ability to build businesses around either Herbalife or Bioniq products.
DeSimone also identified consumers using GLP-1 medications as a potential growth opportunity. He said Herbalife is developing a program to position its existing products, including protein offerings, alongside GLP-1 medications rather than relying on newly developed products.
Cash Flow, Leverage and Outlook
Year-to-date operating cash flow totaled $298 million, up $63 million, or about 27%, from the first nine months of 2025. The company generated more than $151 million of operating cash flow in the third quarter and ended the period with $409 million in cash.
Herbalife paid down $88 million of debt during the quarter and had $50 million outstanding under its revolving credit facility. Net leverage declined to 2.0 times from 2.2 times at the end of the second quarter. The company plans to begin repurchasing shares in the fourth quarter under its recently authorized $250 million share-repurchase program.
For the fourth quarter, Herbalife forecast reported net sales growth of 0.5% to 4.5%, including an expected 200-basis-point currency headwind. Constant-currency sales are expected to rise 2.5% to 6.5%. The company projected reported adjusted EBITDA of $145 million to $165 million and constant-currency adjusted EBITDA of $155 million to $175 million.
For the full year, Herbalife raised its reported net sales growth outlook to 4.9% to 5.9% and its constant-currency sales growth outlook to 5.3% to 6.3%. It maintained reported adjusted EBITDA guidance of $670 million to $690 million while raising constant-currency adjusted EBITDA guidance to $700 million to $720 million.
Schaefer said the company expects future margin expansion to be more gradual, with fourth-quarter guidance reflecting a lower margin than the third quarter. He said Herbalife plans to provide three-year margin objectives and discuss its planned measurement framework during its fourth-quarter earnings call.
About Herbalife (NYSE:HLF)
Herbalife Ltd. (NYSE: HLF) is a global nutrition and wellness company that develops and distributes products through a network of independent members and distributors. Its offerings include meal-replacement shakes, protein and other dietary supplements, vitamins, sports nutrition products, and personal-care items.
Founded in 1980 by Mark Hughes, Herbalife sells its products through direct-selling channels rather than primarily through traditional retail stores. Independent distributors market the products, provide product guidance, and may operate nutrition clubs or similar community-based businesses.
The company serves customers across numerous markets in North America, Latin America, Europe, Asia-Pacific, and other regions.
