Herbalife (HLF) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales reached $1.33 billion, up 5.4% year-over-year, marking the fourth consecutive quarter of growth.

• Adjusted EBITDA was $167 million (12.6% margin), near the top end of guidance, with adjusted net income of $53 million, despite a net loss of $26.3 million due to a $94.6 million debt extinguishment loss.

• Major product launches included Bioniq GO in EMEA and North America and new Life I/O products, supporting innovation and growth.

• Over 111,000 attendees participated in global distributor events, and the 'Fuel Like Ronaldo' campaign generated 1.2 billion impressions.

• CFO John DeSimone to retire at year-end, succeeded by Scott Schaefer effective January 1, 2027.

Financial highlights

• Net sales grew 5.4% year-over-year to $1.33 billion; constant currency growth was 5.8%.

• Adjusted EBITDA was $167 million (12.6% margin), down 120 basis points year-over-year; gross profit margin was 77.7%, down 30 basis points.

• Net loss attributable to shareholders was $26.3 million, primarily due to a $94.6 million debt extinguishment loss; adjusted net income was $53 million.

• Adjusted diluted EPS was $0.51, including a $0.04 FX headwind; diluted loss per share was $(0.25).

• Operating cash flow for the first half was $147 million, up 52% year-over-year.

Outlook and guidance

• Q3 2026 net sales guidance: +0.5% to +4.5% year-over-year reported; +1.5% to +5.5% constant currency.

• Q3 adjusted EBITDA guidance: $160–$180 million reported; $165–$185 million constant currency.

• Full-year 2026 net sales guidance revised to +2.5% to +5.5% year-over-year; adjusted EBITDA range narrowed to $670–$690 million.

• Capital expenditures for 2026 expected at $50–$70 million; SaaS implementation costs $35–$55 million.

• Target net leverage ratio below 2.0x by year-end.