Herbalife (HLF) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales reached $1.3 billion, up 7.8% year-over-year, exceeding guidance and driven by strong growth in Asia Pacific and Latin America.

• Adjusted EBITDA was $176 million, above guidance, with a margin of 13.3%.

• Net income attributable to shareholders was $61.9 million; adjusted net income was $69 million.

• Strategic actions included the acquisition of Bioniq's personalized nutrition business and a $1.45 billion senior secured debt refinancing, reducing annual cash interest by ~$45 million.

• Distributor network engagement, new product launches, and technology investments support ongoing growth and innovation.

Financial highlights

• Net sales: $1.3 billion, up 7.8% year-over-year and 5.4% on a constant currency basis.

• Adjusted EBITDA: $176 million, margin at 13.3%, down 20 bps YoY but up 240 bps on a two-year basis.

• Gross profit margin: 77.9%, down 40 bps YoY due to input cost inflation, sales mix, and FX headwinds.

• Net income: $61.9 million; adjusted diluted EPS: $0.64, including a $0.03 FX headwind.

• Operating cash flow: $113.8 million, a significant improvement from prior year.

Outlook and guidance

• Q2 2026 net sales expected to grow 1.5%-5.5% YoY; adjusted EBITDA guidance: $150M-$170M.

• Full-year 2026 net sales guidance raised at midpoint: 1.5%-5.5% YoY; adjusted EBITDA: $675M-$705M.

• Net leverage targeted below 2x by year-end 2026; debt reduction to ~$1.4B by end of 2028.

• Capital expenditures for 2026 expected at $50M-$80M; SaaS/cloud implementation costs: $35M-$55M.

• Adjusted effective tax rate for 2026 expected at ~30%.