Herbalife Q3 Net Sales Rise 6.0% to $1.35B, Fifth Straight Gain

Herbalife Ltd. reported third quarter 2026 net sales of $1.35 billion on 2 November 2026, up 6.0% from $1,273.7 million a year earlier, the company's fifth consecutive quarter of year-over-year growth. Adjusted EBITDA reached $182.4 million at a 13.5% margin, 70 basis points higher than the prior-year period, while net use eased to 2.0x from 2.2x at June 30. Diluted EPS came in at $0.55.

Context — why Herbalife's fifth straight quarter of growth matters

The company frames the quarter as evidence that its transformation is working. Net sales grew 6.0% on a reported basis and 7.6% in constant currency, which strips out roughly 160 basis points of foreign exchange headwinds. That gap matters: Herbalife sells in more than 90 markets, so currency swings routinely distort the reported line.

The comparable the report itself supplies is the prior-year quarter and the guidance issued on 5 August 2026. Against that August guidance, Herbalife raised full-year net sales expectations on both a reported and constant currency basis, while holding adjusted EBITDA guidance on a reported basis and lifting it in constant currency.

What triggered the revision is the demand picture the company describes: growth driven primarily by increased sales volume rather than price. Asia Pacific led with a 26.1% constant-currency gain, and Latin America added 5.1%. North America returned 1.7%, its second consecutive quarter of year-over-year growth — a region that had been a drag in prior periods.

The macro backdrop is not benign. Herbalife lists inflation, unfavorable foreign exchange rate fluctuations, and tariffs or retaliatory tariffs among the risks that could affect it, its members, and its supply chain. The quarter's FX headwind of roughly $11.3 million on adjusted EBITDA is the concrete cost of that exposure.

Data — what the numbers show

Third quarter net sales of $1,350.2 million compared with $1,273.7 million a year earlier. Gross profit margin slipped to 77.3% from 77.7%, which the company attributed to sales mix pressure and cost changes tied to self-manufacturing and sourcing, partly offset by pricing benefits.

Net income attributable to Herbalife was $58.8 million, a 4.4% margin, against $43.2 million in the prior-year quarter. Adjusted net income was $68.5 million at a 5.1% margin. Adjusted diluted EPS of $0.64 rose $0.14 year over year and included a $0.06 FX headwind.

Metric	Q3 2026	Q3 2025
Net sales	$1,350.2M	$1,273.7M
Gross margin	77.3%	77.7%
Adjusted EBITDA	$182.4M	—
Diluted EPS	$0.55	$0.42

On a constant-currency basis, adjusted EBITDA was $193.4 million, which the company said exceeded guidance. Credit Agreement EBITDA, a separate covenant-linked measure, was $198.9 million.

Regionally, the dispersion was wide. Asia Pacific contributed $517.9 million, up 18.4% reported and 26.1% in constant currency. EMEA fell 4.9% to $259.0 million and China dropped 22.0% to $55.6 million. The company did not disclose a cause for the China decline in this report.

Analysis — what it means for markets and tickers

The headline growth rate understates the operating story. Constant-currency growth of 7.6% against reported 6.0% means currency alone removed about 1.6 percentage points from the top line. For a company with $2.0 billion of total debt, that translation drag flows directly into reported use and earnings.

The April refinancing is the quiet driver. Net interest expense fell $19.1 million year over year in the quarter, from $51.0 million to $31.9 million on the condensed income statement. That savings lands almost entirely in earnings and cash generation, which is why net use improved to 2.0x from 2.2x in a single quarter even as gross debt stayed near $2.0 billion.

Cash generation supports the capital allocation shift. Year-to-date net cash provided by operating activities was $298.0 million, up $63.0 million from $235.0 million in the prior-year period. Capital expenditures were $40.7 million year to date, with a further $32.5 million of capitalized and prepaid SaaS implementation costs that sit outside that figure.

The counter-argument is the regional mix. Asia Pacific is carrying the growth, and a 26.1% constant-currency gain in one region can mask weakness elsewhere. EMEA and China both contracted, and gross margin compressed 40 basis points. If Asia Pacific decelerates before EMEA and China stabilize, the consolidated growth rate narrows quickly. China's 22.0% reported decline is the single largest regional swing in the table.

Positioning follows the cash. The board authorized a buyback of up to $250 million over three years, to be executed systematically and opportunistically beginning in the fourth quarter. No shares were repurchased under the program during the third quarter. The company said the plan supports continued debt reduction alongside shareholder returns.

Outlook — what to watch next

For the fourth quarter, Herbalife guided net sales to reported growth of 0.5% to 4.5% year over year, or 2.5% to 6.5% in constant currency. Adjusted EBITDA guidance is $145 million to $165 million reported and $155 million to $175 million in constant currency, against $156.1 million actual in the fourth quarter of 2025. Capital expenditures are guided at $13 million to $23 million.

For the full year, revised guidance puts reported net sales growth at 4.9% to 5.9%, up from the prior range, with constant currency at 5.3% to 6.3%. Adjusted EBITDA is maintained at $670 million to $690 million reported and raised to $700 million to $720 million in constant currency. The company assumes average daily exchange rates from the first two weeks of October 2026.

Watch the CFO transition. Scott Schaefer became Chief Financial Officer effective 1 November 2026, and John DeSimone took over as interim CEO the same day. The board committee overseeing succession, supported by an executive search firm, continues its search for a permanent CEO. Guidance assumes an adjusted effective tax rate of approximately 35%.

Frequently Asked Questions

What does Herbalife's Q3 2026 result mean for retail investors?

It shows a company growing sales while cutting interest costs. Net sales rose 6.0% to $1.35 billion, and the April refinancing cut net interest expense by $19.1 million year over year. Net use improved to 2.0x from 2.2x. The board authorized a buyback of up to $250 million, though no shares were repurchased in the third quarter.

Why did Herbalife's China net sales fall 22.0% in Q3 2026?

China net sales were $55.6 million, down 22.0% reported and 26.4% in constant currency from $71.3 million a year earlier. The report does not state a reason for the decline. It is the weakest regional line in the quarter and contrasts with Asia Pacific, which grew 26.1% in constant currency. Year to date, China is down 19.9%.

What happens next for Herbalife's share buyback program?

The board authorized repurchases of up to $250 million over three years. The company said execution will be both systematic and opportunistic, beginning in the fourth quarter of 2026. No shares were bought under the program during the third quarter. Management tied the plan to continued debt reduction, so buyback pace depends on cash generation.

Bottom Line

Herbalife's fifth straight quarter of sales growth and $19.1 million interest savings show the refinancing is converting into earnings, but Asia Pacific is carrying the result.

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