Herbalife Lifts 2026 Sales Outlook as Q3 Revenue Rises 6%

Herbalife (HLF) lifted and narrowed its full-year 2026 net sales outlook after third-quarter revenue increased 6.0%, marking a fifth consecutive quarter of sales growth. Asia Pacific and Latin America led the gains, more than offsetting declines in China and EMEA, while foreign exchange reduced reported growth.

Net sales rose to $1.35 billion from $1.27 billion a year earlier and increased 7.6% on a constant-currency basis. Herbalife said the result exceeded its third-quarter guidance range, as did adjusted EBITDA.

Volume contributed $109.5 million to the year-over-year sales increase and pricing added $36.1 million. Those gains were partly offset by a $46.7 million negative country-mix impact and a $20.8 million foreign-exchange headwind.

Adjusted EBITDA increased 12.0% to $182.4 million, or $193.7 million at constant currency. The adjusted EBITDA margin expanded by 70 basis points to 13.5%, even as gross margin declined 40 basis points to 77.3%. Currency represented a 160-basis-point headwind to adjusted EBITDA growth.

GAAP net income attributable to Herbalife rose to $58.8 million from $43.2 million. Adjusted net income increased to $68.5 million from $51.5 million, while adjusted diluted earnings per share advanced to $0.64 from $0.50. The company said foreign exchange reduced adjusted diluted EPS by $0.06.

Net interest expense fell by $19 million year over year, reflecting an April refinancing and continued debt reduction. Capital expenditures totaled $19 million, while capitalized software-as-a-service implementation costs were $15 million. Net cash provided by operating activities reached $298 million for the first nine months of 2026.

Asia Pacific drives regional growth

Asia Pacific was Herbalife’s strongest region in the quarter, with net sales rising 18.4% to $517.9 million and 26.1% in local currency. Latin America sales increased 9.0% to $250.2 million, or 5.1% in local currency, while North America posted a 1.7% gain to $267.5 million.

Those increases were partly offset by continued weakness elsewhere. EMEA sales fell 4.9% to $259.0 million and declined 5.2% in local currency. China sales dropped 22.0% to $55.6 million, with a 26.4% decrease in local currency.

For the first nine months of 2026, worldwide net sales increased 6.4% to $3.99 billion and rose 6.3% at constant currency. Adjusted EBITDA grew 4.6% to $524.7 million, although the adjusted margin contracted 30 basis points to 13.1%. Year-to-date adjusted net income was $190.8 million and adjusted diluted EPS was $1.77.

Full-year sales outlook revised

Herbalife now expects full-year reported net sales growth of 4.9% to 5.9%, compared with its previous range of 2.5% to 5.5%. The company forecasts constant-currency sales growth of 5.3% to 6.3%, up from the prior 2.5% to 5.5% range.

The reported adjusted EBITDA forecast remains $670 million to $690 million. On a constant-currency basis, Herbalife now projects adjusted EBITDA of $700 million to $720 million, compared with its previous forecast of $690 million to $710 million. Full-year capital expenditures are expected to be $55 million to $65 million, versus the earlier range of $50 million to $70 million.

For the fourth quarter, the company expects reported net sales growth of 0.5% to 4.5% and constant-currency growth of 2.5% to 6.5%. Adjusted EBITDA is projected at $145 million to $165 million as reported, or $155 million to $175 million at constant currency. Capital expenditures are expected to range from $13 million to $23 million.

Herbalife’s guidance uses average daily exchange rates from the first two weeks of October 2026. The company also expects full-year capitalized and prepaid SaaS implementation costs of $35 million to $45 million, depreciation and amortization including SaaS implementation-cost amortization of $135 million to $145 million, and an adjusted effective tax rate of about 35%.

The company said its capital-allocation priorities remain investment in distributors, products and digital tools, continued debt reduction, and share repurchases. Herbalife had achieved its target net leverage ratio of 2.0 times or lower by quarter-end and continues to target total debt of $1.4 billion and net debt of $1.0 billion. Its board has authorized up to $250 million of share repurchases over three years.

Herbalife cautioned that its outlook remains exposed to foreign-exchange movements, inflation, tariffs, distributor recruitment and retention, legal and regulatory matters, changing consumer preferences, international and China-related operating risks, supply-chain disruptions, cybersecurity threats, and execution risks tied to restructuring and technology initiatives.