Herbalife (HLF) Q4 2025 earnings summary

Executive summary

• Q4 2025 net sales reached $1.3 billion, up 6.3% year-over-year, exceeding guidance, with adjusted EBITDA at $156 million and adjusted diluted EPS of $0.45, despite FX headwinds.

• Full-year 2025 net sales were $5.0 billion, up 0.9% (2.5% ex-FX), with adjusted EBITDA of $658 million (13.1% margin) and adjusted diluted EPS of $2.12, including a $0.39 FX headwind.

• Net cash from operating activities was $333 million for FY 2025 and $98 million for Q4; $283 million in debt was repaid during the year, reducing leverage to 2.8x.

• Cristiano Ronaldo invested $7.5 million for a 10% equity stake in Pro2col Software, supporting global personalized nutrition initiatives and providing sponsorship rights.

• Q4 new distributor growth rose 16% on a two-year stack, with increases in 4 of 5 regions.

Financial highlights

• Q4 2025 gross profit margin was 77.5%, down 30 bps year-over-year due to FX, sales mix, and input cost inflation, partially offset by pricing.

• Q4 adjusted EBITDA margin was 12.2%, down 20 bps; full-year adjusted EBITDA margin was 13.1%, up 40 bps year-over-year.

• Q4 net income attributable to shareholders was $85 million; adjusted net income was $48 million.

• FY 2025 net income attributable to shareholders was $228 million; adjusted net income was $219 million.

• Capital expenditures were $80 million for FY 2025, including $25 million in capitalized SaaS implementation costs.

Outlook and guidance

• Q1 2026 net sales growth expected at 3%-7% YoY (reported), with a 250 bps FX tailwind; constant currency growth of 0.5%-4.5%.

• Full-year 2026 net sales growth expected at 1%-6% (reported), flat to 5% (constant currency); adjusted EBITDA guidance of $670-$710 million.

• CapEx for 2026 projected at $50-$80 million, with additional $40-$60 million in capitalized SaaS costs.

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

• Net sales growth anticipated in all regions except China, which is expected to recover in 2027.