HLF earnings analysis
What we found in HLF's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- EPS Growth
- Reported EPS of $0.57, up 22.8% from $0.49 in Q1 2025.
- Positive Operating Cash Flow
- Operating cash flow significantly improved to $113.8 million from $0.2 million in Q1 2025.
- Improved Interest Expenses
- Interest expenses decreased to $46.8 million, down from $52.0 million in Q1 2025.
- Segment Performance
- Latin America net sales grew 17.1%, reaching $242.0 million, while Asia Pacific increased 17.3%, totaling $495.8 million.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Sales Decline in China
- Net sales in China decreased by 12.0% to $57.0 million, indicating ongoing challenges in the region.
- Regulatory and Compliance Risks
- Management emphasized the potential risks from FTC compliance and global inflationary pressures affecting operations.
- Debt Servicing Risks
- The company faces risks related to its variable interest rate debt, particularly in a rising interest rate environment.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.57
- Gross margin
- 77.9%
- Operating margin
- 10.5%
- Segment
- North America
- Segment
- Latin America
- Segment
- EMEA
- Segment
- Asia Pacific
- Segment
- China
What they said about what is next.
Guidance for Q2 2026 indicates expected revenue between $1.25 and $1.35 billion, and EPS between $0.60 and $0.70.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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