revenue growth
0.5–4.5 pct
Q3 2026
official guidance
HERBALIFE LTD.
Last · NYSE$14.57+0.38 (+2.68%)live · yahoo · 1h ago
Market cap$1.53B104.8M sh
P/E · TTM9.3fwd 4.7 · eps 1.57
Beta0.79vs S&P 500
Div yield0.00%annual · TTM
52w range
$7.56$20.40
Volume1.5Msession
| Revenue | $5.1B |
|---|---|
| Operating income | $356.4M |
| Net income | $142.2M |
| Free cash flow | $222.5M |
| Operating margin | 7.0% |
| Net margin | 2.8% |
| Period | 2023 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Improving growth and cash flow are offset by regional concentration, execution uncertainty, leverage, and limited proof of the new strategy.
Herbalife delivered solid execution with Q2 net sales of $1.3 billion, up 5.4% year over year, volume up 5.8%, and adjusted EBITDA of $167 million near the top of guidance.
However, growth remains uneven—India and APAC are surging while China volume fell 29% and EMEA volume fell 12%—and the new Bioniq, Pro2col, and Life I/O initiatives remain unquantified; with a CFO transition ahead, the risk/reward is balanced rather than a clean buy.
Themes
- Q2 2026 Earnings
- Personalized Nutrition
- Bioniq Go
- Pro2col
- India Growth
- China Decline
Near term
Q3 reported net sales guidance is growth of 0.5% to 4.5%, with a 100-basis-point currency headwind; constant-currency guidance is 1.5% to 5.5%.
Q3 adjusted EBITDA guidance is $160 million to $180 million reported and $165 million to $185 million constant currency.
Investors need evidence that July launches of Helio, Activate Energy, and Life I/O are generating incremental demand beyond distributor enthusiasm.
India's 33% reported sales growth and 45% volume growth must persist without causing distributor retention or service-quality problems.
Whey, packaging, and freight inflation could pressure margins, although management expects to recover costs through normal pricing.
Longer term
The distributor network remains a potential moat for scaling personalized nutrition, but Pro2col adoption is staged through 2027 and has not yet demonstrated material revenue or productivity impact.
Bioniq GO expands Herbalife into personalized supplements, while the potential Bioniq LAB call option adds peptide-category exposure; regulatory and scientific diligence remain important.
Management is targeting net leverage below 2.0 times by year-end and repayment of more than $600 million of debt by the end of 2028, supporting equity value if cash generation holds.
A new CFO, Scott Schaefer, takes over at the start of 2027; the planned five-month transition reduces near-term disruption risk, but capital allocation and execution should be monitored.
Premium nutrition competition is intensifying as larger consumer companies enter the category, potentially challenging Herbalife's ability to convert its brand and distributor relationships into consumer growth.
Red flags
Management repeatedly described Bioniq GO, Pro2col, biomarker testing, and Life I/O as opportunities but provided no launch metrics, revenue contribution, adoption rates, or return targets.
North America achieved only 0.2% sales growth with volume down 2%, while China sales declined 25% and EMEA sales declined 3.5%; the headline growth rate is therefore dependent on a narrow set of markets.
Management acknowledged that Herbalife has never experienced growth like India's current expansion, leaving distributor retention and the durability of the growth model unproven.
The 23% trailing free-cash-flow yield is attractive but partly reflects a depressed market capitalization; leverage remains 2.2 times net despite refinancing and debt reduction.
Competitive Q&A was met mainly with strategic validation claims rather than evidence that Herbalife can differentiate against premium brands, digital health platforms, and biomarker-testing providers.
Forward outlook
revenue growth
1.5–5.5 pct
Q3 2026
official guidance
ebitda
160–180 $million
Q3 2026
official guidance
ebitda
165–185 $million
Q3 2026
official guidance
revenue growth
2.5–5.5 pct
FY 2026
official guidance
ebitda
670–690 $million
FY 2026
official guidance
ebitda
690–710 $million
FY 2026
official guidance
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
9:00 PM UTC+1
Period
Sep 2026
Est. EPS
$0.62
Est. revenue
1.3B
Earnings transcripts
Documents
FormReporting forFiledFlags