Herbalife Ltd. (HLF) · Nov 2, 2026 · Earnings
Beat — Adj. EPS $0.64 vs ~$0.62 consensus; net sales $1.35B vs ~$1.31B consensus
Herbalife’s Q3 earnings beat on sales and adjusted EPS, with five consecutive quarters of growth and expanding margins despite FX pressure.
Herbalife is midway through a transformation aimed at restoring growth, improving its digital and personalized-nutrition platforms, and reducing the burden of its highly leveraged balance sheet. The company had already established a recovery pattern before this report: Q2 was its fourth consecutive quarter of year-over-year sales growth, and management had reaffirmed Q3 guidance in August.
The quarter beat the operating bar. Net sales reached $1.35 billion, ahead of the roughly $1.31 billion published expectation, while adjusted diluted EPS of $0.64 topped the approximately $0.62 consensus. Adjusted EBITDA of $182.4 million also cleared the prior $160 million-$180 million Q3 guidance range, even before removing $11.3 million of year-over-year FX pressure.
| Metric | Q3 2026 | Q3 2025 | Consensus / guidance |
|---|---|---|---|
| Net sales (Financial Highlights) | $1,350.2M (+6.0%) | $1,273.7M | ~$1,310M |
| Adjusted diluted EPS (Adjusted EPS reconciliation) | $0.64 (+28%) | $0.50 | ~$0.62 |
| Adjusted EBITDA (Financial Highlights) | $182.4M (+11.9%) | $163.0M | $160M-$180M guidance |
| Adjusted EBITDA margin (Financial Highlights) | 13.5% (+70 bps) | 12.8% | — |
| Net leverage ratio (Leverage table) | 2.0x | 2.3x at Dec. 31, 2025 | 2.2x at Jun. 30, 2026 |
The growth is becoming more broad-based, not just an FX-adjusted story. Reported sales rose 6.0%, constant-currency sales rose 7.6%, and North America delivered its second consecutive quarter of year-over-year growth. Asia Pacific was the standout region, but the return to growth in North America matters because it signals progress in a historically important but pressured market.
Profitability improved, but the quality of the improvement still has caveats. The 70-basis-point adjusted EBITDA margin expansion and $19.1 million reduction in net interest expense show that both operations and the April refinancing are helping results. However, gross margin slipped to 77.3% from 77.7% because of mix and self-manufacturing costs, while FX remains a meaningful drag. The earnings beat therefore reflects genuine operating progress, but not a clean margin expansion across every layer of the income statement.
The balance sheet is improving, but the strategic transition is not finished. Net leverage fell to 2.0x from 2.2x in the second quarter, helped by stronger cash generation and refinancing savings, and management has begun a three-year, $250 million repurchase authorization. At the same time, the search for a permanent CEO remains open, leaving leadership execution as an unresolved part of the transformation story.
Bottom line: This was a real execution beat, not merely favorable presentation: growth accelerated, margins expanded, cash generation strengthened, and leverage improved. It advances Herbalife’s turnaround story modestly, although management left full-year guidance unchanged and the CEO transition is still unresolved.
Q4 earnings report, early 2027
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