Herbalife’s fourth quarter results were shaped by a combination of robust product innovation, regional sales momentum, and continued investment in its distributor network. Management highlighted India’s record quarterly net sales, attributed to the recent reduction in goods and services tax rates, and noted that enhanced digital tools and tailored training supported distributor engagement. CEO Stephan Gratziani credited ongoing product launches, such as MultiBurn and HL/Skin, and improved distributor retention for creating what he described as a “strong close to the year.”
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Herbalife (HLF) Q4 CY2025 Highlights:
- Revenue: $1.28 billion vs analyst estimates of $1.24 billion (6.3% year-on-year growth, 3.6% beat)
- Adjusted EPS: $0.45 vs analyst expectations of $0.48 (5.6% miss)
- Adjusted EBITDA: $156.1 million vs analyst estimates of $150.2 million (12.2% margin, 3.9% beat)
- Revenue Guidance for Q1 CY2026 is $1.28 billion at the midpoint, above analyst estimates of $1.26 billion
- EBITDA guidance for the upcoming financial year 2026 is $690 million at the midpoint, above analyst estimates of $680.9 million
- Operating Margin: 7.8%, down from 8.8% in the same quarter last year
- Market Capitalization: $2.03 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Herbalife’s Q4 Earnings Call
- Chasen Bender (Citi) asked about sales expectations by region and the GST impact in India. CFO John DeSimone clarified that all regions except China are expected to grow and the GST tax cut remains a near-term tailwind.
- Bender (Citi) also questioned the revenue contribution assumed for Pro2col and margin expansion assumptions. DeSimone explained Pro2col’s revenue is limited in guidance but has more upside, and noted GST in India creates a $16 million incremental cost, impacting margins.
- Nicholas Sherwood (Maxim Group) inquired about the drivers behind energy, sports, and fitness category growth. CEO Stephan Gratziani cited product launches like Liftoff and expanding sales in India as key contributors.
- Sherwood (Maxim Group) asked about Nutrition Club expansion in EMEA. Gratziani described the spread of the Breakfast Budget Clubs model and increased distributor training as drivers for broader adoption.
- John Baumgartner (Mizuho Securities) probed the strategy for targeting higher-income and more engaged supplement users. Gratziani explained the goal is to both expand into new segments with personalized products and deepen engagement with existing customers.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will be watching (1) the pace of adoption and monetization for Pro2col and personalized supplement offerings, (2) sustained distributor network growth and engagement, especially in North America and Latin America, and (3) the durability of India’s sales momentum as GST-driven benefits begin to normalize. Developments in strategic partnerships and the rollout of new product categories will also be key signposts for long-term growth.
Herbalife currently trades at $19.60, up from $16.54 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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