Key Highlights

  • Net sales rose 6.0% to USD 1,350.2 million, driven by an 8.6% increase in Volume and a 2.8% price benefit.
  • Operating income rose to USD 138.5 million, and net interest expense fell to USD 31.9 million from USD 51.0 million.
  • Net income attributable to the company rose to USD 58.8 million, or USD 0.55 per diluted share, from USD 0.42.
  • Adjusted EBITDA was USD 182 million, a Margin of 13.5% that improved 70 basis points year over year.

Quarter in Numbers

Herbalife Ltd. (NYSE:HLF), a nutrition and direct selling company, reported third-quarter 2026 net sales of USD 1,350.2 million, up 6.0% from USD 1,273.7 million. The company attributed the increase to an 8.6% rise in sales volume and a 2.8% benefit from price increases, partly offset by a 3.8% unfavorable sales mix and a 1.6% currency headwind. On a constant currency basis, net sales rose 7.6%, which the company said exceeded its guidance range of an increase of 1.5% to 5.5% by about 210 basis points, and it marked the fifth consecutive quarter of net sales growth.

Gross profit was USD 1,044.1 million versus USD 989.5 million, equal to a gross margin of 77.3% by our calculation versus 77.7%. Selling expenses rose to USD 473.5 million from USD 450.7 million, and general and administrative expenses rose to USD 432.1 million from USD 413.0 million. Operating Income was USD 138.5 million versus USD 125.8 million.

Interest, Taxes and Earnings

Interest expense, net, fell to USD 31.9 million from USD 51.0 million, so income before income taxes rose to USD 106.6 million from USD 74.8 million. Income taxes were USD 49.5 million versus USD 31.7 million, an effective rate of about 46% by our calculation versus about 42%. Net Income was USD 57.1 million versus USD 43.1 million, and net income attributable to the company was USD 58.8 million versus USD 43.2 million, or USD 0.55 per diluted share versus USD 0.42. Diluted shares were 107.3 million versus 104.0 million.

For the nine months, net sales were USD 3,994.2 million versus USD 3,754.5 million, operating income was USD 405.2 million versus USD 381.2 million, and net income attributable to the company was USD 94.4 million versus USD 142.9 million, or USD 0.88 per diluted share versus USD 1.38. The nine-month decline reflects other expense, net, of USD 94.6 million and higher income taxes of USD 102.7 million.

Management Commentary

Management said adjusted EBITDA was USD 182 million, exceeding guidance, with the adjusted EBITDA margin improving 70 basis points to 13.5%. It described encouragement about performance and progress while recognizing more work is needed to accelerate growth. The company has delivered constant currency growth in 10 of the last 12 quarters, and currency was a 160 basis point headwind in the quarter.

North America's sales volume decreased in the quarter, even as total company volume increased, which indicates that growth was concentrated in other regions. One region's contribution margin increased 7.8% while another's decreased 27.7% on lower sales volume and cost changes tied to self-manufacturing and sourcing.

Liquidity and Tax Indicators

Cash and cash equivalents were USD 284.6 million, and the 10-Q discloses that a portion of that balance is held outside the parent. Items to track include the sales mix effect, North America volumes, regional contribution margins, the lower interest burden and the elevated tax rate.