Q2 2026 Herbalife Ltd Earnings Call Transcript

Aug 5, 2026 / 09:30 PM GMT

Release Date Price: €10.86 (-1.90%)

Transcript 8-K10-Q

Key Points

Positve

Herbalife Ltd (HLF) delivered its fourth consecutive quarter of year-over-year net sales growth, with Q2 net sales up 5.4% reported and 5.8% on a constant currency basis, exceeding guidance.
The company saw strong performance in key regions, with India posting a 47% constant currency net sales increase and Latin America delivering its fourth consecutive quarter of double-digit growth.
Herbalife Ltd (HLF) is expanding its personalized nutrition portfolio with new product launches like Bionic Go and Life IO, positioning itself in high-growth markets such as AI-powered nutrition and longevity.
The company generated robust cash flow, with first-half operating cash flow up 52% year-over-year, and reduced net interest expense to $37 million from $54 million in the prior year.
Herbalife Ltd (HLF) successfully refinanced its debt in April, reducing leverage and lowering borrowing costs, while maintaining a strong free cash flow yield of over 23%.
The company is investing in technology, including the Protocol platform and blood testing beta, to enhance distributor capabilities and customer engagement, which could drive future growth.

Negative

Herbalife Ltd (HLF) reported a GAAP net loss of $26 million in Q2, primarily due to a $95 million pre-tax loss on debt extinguishment from the April refinancing.
The company faces ongoing foreign exchange headwinds, with FX negatively impacting net sales by 40 basis points in Q2 and expected to be a 100 basis point headwind in Q3.
China, the company's smallest region, saw a significant decline, with reported net sales down 25% and constant currency net sales down 29% due to a 29% volume decrease.
EMEA region experienced a decline in net sales, with reported sales down 3.5% and constant currency sales down 5.6%, driven by a 12% volume drop.
Gross profit margin decreased by 30 basis points year-over-year, impacted by unfavorable country mix, higher other costs, and increased inventory reserves.
The adjusted effective tax rate rose to 43.2% in Q2 from 27.7% in the prior year, negatively impacting adjusted diluted EPS by approximately $0.14.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

HLF.N - Herbalife Ltd
Q2 2026 Herbalife Ltd Earnings Call
Aug 05, 2026 / 09:30PM GMT

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Presentation
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Unidentified_1 [1]
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Order 26 earnings conference call for Herbal Life Limited.

During the company's opening remarks, all participants will be in a listen-only mode.

Following the opening remarks, we will conduct a question-and-answer session.

As a reminder, today's conference call is being recorded.

I would now like to turn the call over to Samantha Hollway, Vice President.

And head of investor relations to begin today's call.

You may begin.

Thank you and welcome to everyone joining us.

With us today are Stefan Graziani, our Chief Executive Officer, and John De Simone, our Chief Financial Officer.

Before we begin today's call, I would like to direct you to the cautionary statement

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