Herbalife Lifts Full-Year Sales Outlook and Authorizes $250M Buyback as Q3 Sales Rise 6% to $1.35B
Asia Pacific and Latin America drove growth while China fell 22%, and net leverage dropped to 2.0 times as leadership changed on Nov. 1.
Herbalife (HLF) reported third-quarter 2026 net sales of $1.35 billion, up 6.0% from a year earlier, or 7.6% in constant currency, and adjusted earnings of $0.64 per share, $0.02 above the $0.62 consensus. Sales were about 3.3% above the $1.31 billion consensus. The company raised its full-year net sales growth outlook, and its board authorized a share repurchase program of up to $250 million over three years. Shares were up $0.25, or about 1.9%, at $13.30 on Monday, Nov. 2.
Q3 results
| Metric | Q3 2026 | Detail |
|---|---|---|
| Net sales | $1.35B | +6.0% reported, +7.6% constant currency |
| Gross margin | 77.3% | vs. 77.7% a year ago |
| Net income | $58.8M | 4.4% margin; diluted EPS $0.55, up $0.13 |
| Adjusted net income | $68.5M | Adjusted diluted EPS $0.64 |
| Adjusted EBITDA | $182.4M | 13.5% margin, up 70 basis points |
The company said growth was driven mainly by higher sales volume. Adjusted EBITDA at constant currency was $193.7 million, above guidance. By our calculation, currency cut about 1.6 percentage points from reported sales growth.
By region
| Region | Reported | Constant currency |
|---|---|---|
| Asia Pacific | +18.4% | +26.1% |
| Latin America | +9.0% | +5.1% |
| North America | +1.7% | +1.7% |
| EMEA | -4.9% | -5.2% |
| China | -22.0% | -26.4% |
Guidance
| Item | New | Prior |
|---|---|---|
| 2026 net sales growth (reported) | +4.9% to +5.9% | +2.5% to +5.5% |
| 2026 adjusted EBITDA (reported) | $670M to $690M | Maintained |
| 2026 adjusted EBITDA (constant currency) | $700M to $720M | $690M to $710M |
| Q4 net sales growth (reported) | +0.5% to +4.5% | New |
| Q4 adjusted EBITDA (reported) | $145M to $165M | New |
| Q4 capital expenditures | $13M to $23M | New |
By our calculation, the full-year adjusted EBITDA midpoint of $680 million less the Q4 midpoint of $155 million implies about $525 million in the first three quarters.
Capital and leadership
- Buyback. The board authorized up to $250 million over three years. No shares were repurchased in Q3, and repurchases are expected to begin in Q4.
- Balance sheet. Cash was $409.2 million and total debt $2.0 billion. Net leverage fell to 2.0 times from 2.2 times in Q2, and net interest expense fell $19.1 million from a year ago.
- Cash flow. Operating cash flow was $151.3 million in the quarter and $298.0 million year to date.
- Management change. John DeSimone became interim CEO and Scott Schaefer became CFO on Nov. 1, 2026. The board is still searching for a permanent CEO.
What to watch
- Fourth quarter. Consensus is about $0.60 in EPS on $1.3 billion in revenue, against guidance for sales growth of 0.5% to 4.5%.
- China and EMEA. Whether the declines in these regions narrow.
- Buyback pace. How quickly Herbalife begins repurchases while paying down debt.
- CEO search. The timing and profile of a permanent chief executive.
- Related coverage. See our reports on Starbucks, IDEXX and Marriott.
Sources: Herbalife's investor relations site and its third-quarter 2026 results release. Consensus figures and the stock move come from FactSet and published reports and may differ by source. Items labeled by our calculation are our own arithmetic. This article is informational only and is not investment advice.
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