10-K · February 18, 2026
Herbalife describes a stable, member-driven direct-selling strategy centered on daily-consumption nutrition products (Formula 1 ≈ 25% of net sales) and a 6.4 million Member base. Financially, revenue was roughly…
Earnings analysis · 10-Q
HLF earnings analysis
Filed May 6, 2026 · Our reading of the company's report
The latest report
Herbalife Ltd. reported a strong Q1 2026 performance, surpassing earnings expectations with EPS of $0.57, but falling short on revenue at $1.317 billion. This was a 7.8% increase in revenue year-over-year, driven by…
Read full summary
Herbalife Ltd. reported a strong Q1 2026 performance, surpassing earnings expectations with EPS of $0.57, but falling short on revenue at $1.317 billion. This was a 7.8% increase in revenue year-over-year, driven by higher sales volumes and price increases despite significant global inflation pressures. The company provided cautious guidance for Q2 2026, projecting revenue between $1.25 billion and $1.35 billion and EPS between $0.60 and $0.70.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.57
- Segment
- North America
- Segment
- Latin America
- Segment
- EMEA
- Segment
- Asia Pacific
- Segment
- China
What stood out
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Net Sales Growth
Net sales increased to $1,317.2 million for Q1 2026, up 7.8% from $1,221.7 million in Q1 2025.
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EPS Growth
Reported EPS of $0.57, up 22.8% from $0.49 in Q1 2025.
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Positive Operating Cash Flow
Operating cash flow significantly improved to $113.8 million from $0.2 million in Q1 2025.
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Improved Interest Expenses
Interest expenses decreased to $46.8 million, down from $52.0 million in Q1 2025.
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Segment Performance
Latin America net sales grew 17.1%, reaching $242.0 million, while Asia Pacific increased 17.3%, totaling $495.8 million.
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Strong Contribution Margin
The Primary Reporting Segment's contribution margin rose to $543.9 million, or 43.2% of net sales, reflecting strong pricing power.
What to watch
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Sales Decline in China
Net sales in China decreased by 12.0% to $57.0 million, indicating ongoing challenges in the region.
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Regulatory and Compliance Risks
Management emphasized the potential risks from FTC compliance and global inflationary pressures affecting operations.
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Debt Servicing Risks
The company faces risks related to its variable interest rate debt, particularly in a rising interest rate environment.
Management's outlook
Guidance for Q2 2026 indicates expected revenue between $1.25 and $1.35 billion, and EPS between $0.60 and $0.70.
Earlier filings 4
10-Q · November 5, 2025
Herbalife reported Q3 net sales of $1,273.7 million (up from $1,240.3 million in Q3 2024) with gross profit of $989.5 million (≈77.7% gross margin) and operating income of $125.8 million (roughly flat versus $127.1…
10-Q · August 6, 2025
Herbalife reported Q2 net sales of $1,259.1 million and diluted EPS of $0.48 for the three months ended June 30, 2025, with operating income of $132.6 million vs $80.4 million a year earlier. Gross profit remained…
10-Q · April 30, 2025
Herbalife reported Q1 net sales of $1,221.7 million (down from $1,264.3 million a year earlier) with gross profit of $956.5 million and operating income of $122.8 million, driving diluted EPS of $0.49 (vs. $0.24 prior…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.