Key Highlights

  • HLF reported third quarter 2026 net sales of $1,350.2 million, up 6.0% and 7.6% in constant currency.
  • Net income attributable to Herbalife rose 36.1% to $58.8 million, or $0.55 per diluted share.
  • Adjusted EBITDA was $182 million, a 13.5% margin, up 70 basis points from a year earlier.
  • India net sales rose $87 million, or 39%, while EMEA net sales fell 4.9%.
  • Full year net sales guidance was raised to growth of 4.9% to 5.9% on a reported basis.

Net Sales Rise 6.0% on 8.6% Volume Growth and Strength in India

Herbalife (NYSE:HLF) reported third quarter results for the period ended Sep 30, 2026 on Nov 2, 2026, with net sales of $1,350.2 million, up $76.5 million or 6.0% year over year. In local currency, sales grew 7.6%, above the company's guided range of 1.5% to 5.5%. It was the fifth consecutive quarter of sales growth.

Herbalife sells nutrition, weight management and wellness products through independent distributors, with more than 3 million entrepreneurs in over 90 markets. Volume rose 8.6% and price increases added 2.8%, while sales mix subtracted 3.8% and currency subtracted 1.6%.

India was the largest driver, with net sales up $87 million, or 39%, on nearly 50% volume growth. Latin America rose 9.0% and North America rose 1.7%. EMEA fell 4.9% on a 10.2% volume decline.

Profit Up 36.1% as Lower Interest Expense Offsets Higher G&A

Net income attributable to Herbalife was $58.8 million, or $0.55 per diluted share, up $15.6 million from a year earlier. Adjusted diluted EPS was $0.64, up $0.14, including a $0.06 currency headwind. Gross Profit rose $54.6 million, and net interest expense fell $19.1 million after the April 2026 refinancing.

Those gains were partly offset by $22.8 million of higher selling expenses and $19.1 million of higher general and administrative costs, driven by labor and benefits and non-income taxes, mainly India GST. Income taxes rose $17.8 million.

Adjusted EBITDA of $182 million beat the guided range of $160 million to $180 million. Gross Margin was 77.3%, down 40 basis points, as country mix and Manufacturing and sourcing costs outweighed pricing.

Cash Flow, 2.0x Leverage and a $250 Million Buyback Starting in Q4

Operating Cash Flow was more than $151 million in the quarter and $298 million for the first nine months, up 27%. Herbalife ended September with $409 million of cash after repaying $88 million of debt, with $50 million outstanding on its revolver.

Net leverage reached 2.0x, down from 2.2x at the end of the second quarter. The company plans to begin repurchases under a newly authorized $250 million program in the fourth quarter.

Management outlined three priorities under its interim chief executive: a dedicated Nutrition Club organization, a common technology platform targeted to start rolling out in the first quarter of 2027, and expansion of the Bioniq brand.

Fourth Quarter Margin Step-Down Frames the Raised Full Year Outlook

For the fourth quarter, Herbalife expects net sales growth of 0.5% to 4.5% on a reported basis and adjusted EBITDA of $145 million to $165 million, below the third quarter level. Management said margin expansion will be more gradual and that it is monitoring input costs. Part of the third quarter benefit came from distributor event timing, with those events falling in the fourth quarter this year.

Full year reported net sales growth is now seen at 4.9% to 5.9%, while adjusted EBITDA of $670 million to $690 million was maintained. The next checkpoint is the fourth quarter call, where the CFO plans to present three-year margin objectives.