Revenue: As of FY2026 Q2, the actual value is USD 1.327 B, beating the estimate of USD 1.308 B.

EPS: As of FY2026 Q2, the actual value is USD -0.25, missing the estimate of USD 0.22.

EBIT: As of FY2026 Q2, the actual value is USD 130.9 M.

Chief Financial Officer Transition

Herbalife Ltd. announced that John DeSimone will retire as Chief Financial Officer effective December 31, 2026. Scott Schaefer, Senior Vice President, Finance and Transformation, will succeed him, effective January 1, 2027.

Scott Schaefer’s compensation arrangements, effective January 1, 2027, include an annual base salary of $650,000, eligibility for an annual cash incentive program with a target bonus opportunity equal to 80% of his base salary (approximately $520,000), and a long-term incentive award with an aggregate grant date fair value of approximately $1,700,000.

Second Quarter 2026 Financial Highlights

Net Sales

Herbalife Ltd. reported net sales of $1.3 billion for the second quarter ended June 30, 2026, a 5.4% increase compared to the second quarter of 2025, or 5.8% on a constant currency basis. Foreign currency headwinds impacted reported net sales by 40 basis points.

• North America: Net sales increased by 0.2% on both a reported and constant currency basis to $273.0 million.
• Latin America: Net sales were $245.0 million, up 16.6% (8.2% excluding FX).
• EMEA: Net sales decreased by -3.5% (-5.6% excluding FX) to $277.8 million.
• Asia Pacific: Net sales rose to $470.6 million, an increase of 15.2% (23.1% excluding FX).
• China: Net sales were $60.4 million, down -24.5% (-29.0% excluding FX).

For the six months ended June 30, 2026, worldwide net sales were $2,644.0 million, an increase of 6.6% (5.6% excluding FX) compared to $2,480.8 million in the prior year period.

Profitability

The gross profit margin for the second quarter was 77.7%, a slight decrease from 78.0% in the prior year period. Net loss attributable to Herbalife Ltd. was - $26.3 million, resulting in a net loss margin of -2.0%. Adjusted net income was $53.3 million. Adjusted EBITDA reached $166.6 million, including approximately $7.6 million of FX headwinds year-over-year, with an adjusted EBITDA margin of 12.6%, down 120 basis points versus the second quarter of 2025. Adjusted EBITDA at constant currency was $174.4 million. Credit Agreement EBITDA was $190.7 million.

The net loss attributable to Herbalife Ltd. for the three and six months ended June 30, 2026, was - $26.3 million and - $35.6 million, respectively, compared to net income of $49.3 million and $99.7 million for the same periods in 2025. Operating income for the second quarter was $128.3 million, down from $132.6 million in Q2 2025. For the six months ended June 30, 2026, operating income was $266.7 million, up from $255.4 million in the prior year period.

Operational Costs and Other Expenses

Cost of sales for Q2 2026 was $296.3 million, up from $276.9 million in Q2 2025. Selling expenses were $466.0 million, compared to $445.9 million in Q2 2025. General and administrative expenses were $436.2 million, up from $408.5 million in Q2 2025. Other operating income was - $0.0 million in Q2 2026, compared to - $4.8 million in Q2 2025. Interest expense, net, was $37.4 million in Q2 2026, down from $53.6 million in Q2 2025. A loss on extinguishment of debt of $94.6 million was recorded in Q2 2026. Income taxes were $22.8 million in Q2 2026, down from $29.8 million in Q2 2025. Capitalized SaaS implementation costs were approximately $8 million for the three months and $18 million for the six months ended June 30, 2026.

Cash Flow and Capital Expenditures

Net cash provided by operating activities was $32.9 million for the three months ended June 30, 2026, and $146.7 million for the six months ended June 30, 2026, compared to $96.2 million for the six months ended June 30, 2025. Capital expenditures were $11.3 million for the three months and $22.2 million for the six months ended June 30, 2026. Net cash used in investing activities was - $32.8 million for the six months ended June 30, 2026, compared to - $69.4 million in the prior year period. Net cash used in financing activities was - $80.7 million for the six months ended June 30, 2026, compared to - $132.4 million in the prior year period. Cash and cash equivalents stood at $370.5 million as of June 30, 2026, compared to $353.1 million as of December 31, 2025. Total liabilities were $3,324.6 million as of June 30, 2026, up from $3,295.3 million as of December 31, 2025. Net debt was $1,669.1 million as of June 30, 2026.

Operational Metrics and Recent Developments

Herbalife Ltd. launched the next generation of personalized products with Bioniq GO in eleven EMEA markets in June and North America in July, and introduced two new products, Helio and Activate Energy, under its healthy lifespan brand, Life I/O. The company also delivered a significant update to the Pro2col™ platform, featuring a new user experience, enhanced features, and blood-test diagnostic integration, and unveiled an early beta version of an at-home blood test diagnostic to select distributors in North America. Extravaganza events in various regions attracted over 110,000 attendees.

Outlook and Guidance

For the third quarter of 2026, Herbalife Ltd. projects net sales growth of +0.5% to +4.5% year-over-year (reported) and +1.5% to +5.5% year-over-year (constant currency), with Adjusted EBITDA expected to be between $160 million and $180 million (reported) or $165 million and $185 million (constant currency). Capital expenditures are anticipated to be between $15 million and $25 million.

For the full year 2026, the company tightened its net sales guidance to +2.5% to +5.5% year-over-year (reported) and raised constant currency guidance to +2.5% to +5.5% year-over-year, while narrowing the Adjusted EBITDA range to $670 million to $690 million (reported) due to FX headwinds. Total capitalized SaaS implementation costs are expected to be between $35 million and $55 million, with depreciation and amortization, including SaaS implementation costs, projected at $140 million to $150 million, and an adjusted effective tax rate of approximately 35%.