Herbalife Ltd. reported fourth‑quarter 2025 net sales of $1.283 billion, a 6.3% year‑over‑year increase, and diluted earnings per share of $0.81, surpassing the consensus estimate of $0.79. Adjusted diluted EPS for the quarter was $0.45, slightly below the consensus estimate of $0.48, a miss of $0.03 or 6.6%.
Full‑year 2025 results showed net sales of $5.037 billion, up 0.9% year‑over‑year, and adjusted net income of $219.4 million, translating to an adjusted EPS of $2.12. The company’s adjusted EBITDA for the year was $657.6 million, a 13.1% margin, up 40 basis points from the prior year. Management highlighted continued momentum in North America and Latin America, while noting a 4% decline in China sales but margin expansion.
Segment performance was uneven: Latin America reported net sales that rose 18% in Q4, whereas North America sales declined by less than 1%. China sales fell 4%, reflecting ongoing headwinds in that market. Gross profit margin for the quarter was 77.5%, slightly lower than 77.8% in the prior year, a drop attributed to input cost inflation and an unfavorable sales mix. A $16 million negative impact on the bottom line was recorded due to changes in India’s GST regime.
Adjusted EBITDA margin expanded to 13.1% from 12.7% in 2024, driven by higher pricing power in core segments and disciplined cost management. The company also reported a total leverage ratio of 2.8x, down from 3.9x in 2023, underscoring progress in debt reduction.
For the first quarter of 2026, Herbalife provided a sales outlook of $1.258 billion to $1.307 billion, a 3% to 7% growth range, and adjusted EBITDA guidance of $155 million to $175 million. Full‑year 2026 guidance was set at $5.088 billion to $5.340 billion in sales and $657 million to $710 million in adjusted EBITDA. The company reiterated its debt‑reduction target and emphasized the ongoing rollout of its Pro2col platform as a key growth driver.
"We exited 2025 with solid momentum, delivering Q4 and full‑year net sales growth and adjusted EBITDA above guidance. Cristiano Ronaldo’s investment in Pro2col reflects our shared ambition to scale personalized nutrition and wellness globally—uniting science, data, AI, innovation, and community to improve the health and performance of millions," said CEO Stephan Gratziani. "Net sales for the fourth quarter were $1.3 billion, with 6.3% growth versus Q4 of 2024 and exceeding the high end of our guidance of 1.5% to 5.5% year‑over‑year growth."
Investors reacted positively to the earnings release, citing the revenue beat, strong guidance for 2026, and the strategic partnership with Cristiano Ronaldo as key drivers of confidence in Herbalife’s growth trajectory.
The results reinforce Herbalife’s focus on debt reduction, with $283 million repaid in 2025, and highlight the company’s ability to navigate regional headwinds while expanding its product portfolio through initiatives such as Pro2col. The combination of solid top‑line growth, margin expansion, and a disciplined balance sheet positions Herbalife to capitalize on emerging opportunities in personalized nutrition and global market expansion.
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