Herbalife (NYSE:HLF) executives used the company’s fourth-quarter and full-year 2025 earnings call to highlight a return to sales growth, continued debt reduction, and a strategy centered on product innovation and a more digitally enabled distributor experience anchored by the Pro2col platform.
Fourth-quarter results show second straight quarter of sales growth
Chief Executive Officer Stephan Gratziani said the company entered 2026 with “momentum,” pointing to fourth-quarter net sales of $1.3 billion, up 6.3% year over year. The quarter marked the company’s second consecutive quarter of year-over-year net sales growth. Chief Financial Officer John DeSimone added that fourth-quarter growth exceeded the company’s guidance range of 1.5% to 5.5% and was Herbalife’s strongest year-over-year increase since the second quarter of 2021.
Adjusted EBITDA for the quarter was $156 million, above the high end of the company’s guidance range of $144 million to $154 million. Adjusted EBITDA margin was 12.2%, down 20 basis points year over year, which management attributed primarily to foreign exchange headwinds and higher employee bonus accruals versus the prior-year period.
Full-year 2025: modest sales growth, margin expansion, and cash generation
For the full year, Gratziani said net sales rose nearly 1% to “just over $5 billion,” while excluding foreign exchange, net sales increased 2.5% compared to 2024. Full-year adjusted EBITDA was $658 million, with a 13.1% margin, which the CEO characterized as the company’s second consecutive year of adjusted EBITDA and margin expansion.
Herbalife generated $333 million in operating cash flow in 2025, and Gratziani said the company repaid $283 million of debt during the year. DeSimone added that fourth-quarter operating cash flow was $98 million, up 41% year over year, and that the company repaid $30 million of debt in the quarter while increasing its cash balance by about $50 million sequentially.
Management emphasized balance sheet progress, with Gratziani noting the company reduced its total leverage ratio to 2.8x in 2025, down from 3.9x at the end of 2023.
India’s record quarter and regional performance
DeSimone said fourth-quarter results were driven by a “record quarter” in India, where net sales reached $250 million, up nearly 15% year over year (and up 21% in local currency). He attributed the outperformance to stronger demand following a reduction in India’s Goods and Services Tax (GST) rate on the majority of Herbalife products in late September 2025. He also said that even without India’s upside, fourth-quarter net sales growth would have been above the midpoint of guidance.
Regionally, management reported that three of five regions delivered year-over-year net sales growth on both a reported and local-currency basis. DeSimone highlighted the following fourth-quarter regional results:
- Latin America: Reported net sales up 18% (local currency up 11%), with roughly 3% volume growth and a 660-basis-point FX tailwind. Mexico reported net sales rose 19% (local currency up 9%).
- EMEA: Reported net sales up 9% (local currency up 5%), with higher pricing and favorable mix partially offset by a volume decline of less than 2%.
- Asia Pacific: Reported net sales up 5% (local currency up 9%), driven by about 9% volume growth.
- North America: Sales down less than 1% year over year, with volume down less than 2%; management said this was consistent with expectations and said it anticipates full-year net sales growth in North America in 2026.
- China: Net sales down 4% reported (down 6% local currency), driven primarily by an 11% volume decline, partially offset by impacts tied to the customer loyalty program and favorable FX.
Distributor trends, Nutrition Clubs, and product launches
Gratziani said distributor engagement remained central to Herbalife’s strategy. In the fourth quarter, North America posted its second consecutive quarter of double-digit growth in new distributors, up 19% year over year. Latin America achieved its seventh consecutive quarter of year-over-year growth in new distributors. Worldwide, new distributors were down 5% versus a strong prior-year period, but on a two-year basis new distributors were up 16%, with four of five regions reporting increases.
Management also pointed to product innovation as a driver of distributor success. Gratziani cited several 2025 launches, including MultiBurn (weight management, launched in July), HL/Skin in EMEA (a skincare line supported by an AI-powered facial analysis tool, launched in September), and Life I/O Baseline (healthy lifespan category, launched in December). In Q&A, Gratziani also referenced “Liftoff” as a popular product helping energy-related momentum within Nutrition Clubs.
On Nutrition Clubs, Gratziani discussed what he called the “Breakfast Budget Clubs” model originating in the U.K., describing it as a grassroots format with daily customer participation and community interaction, and said the model is beginning to take root in other markets.
Pro2col platform rollout and Cristiano Ronaldo investment
A major theme of the call was Herbalife’s focus on personalization and digital enablement through Pro2col, which Gratziani described as a “health and wellness operating system.” He said Herbalife acquired the Pro2col technology in April 2025 and has been executing a phased beta rollout. In December, the company launched “Pro2col Beta 2.0,” including enhancements to distributor marketing pages and the Coach Dashboard, and expanded beta access across the U.S., Canada, and Puerto Rico, with plans to extend to select EMEA markets in 2026.
DeSimone said the company has built “very little” Pro2col top-line contribution into 2026 guidance, characterizing the effort as having “more upside than risk” given its current beta stage. Gratziani added that U.S. distributors in the initial beta group are expected to have first access to personalized nutritional supplements by the end of the first half of 2026.
Gratziani also highlighted an announcement made earlier in the day: Cristiano Ronaldo acquired a 10% equity stake in HBL Pro2col Software, the Herbalife subsidiary holding the Pro2col technology, investing $7.5 million along with a commitment to provide services and sponsorship rights. Management said it expects Ronaldo’s involvement to increase visibility and adoption of Pro2col.
Looking ahead, DeSimone guided to first-quarter 2026 reported net sales growth of 3% to 7% (0.5% to 4.5% constant currency) and adjusted EBITDA of $155 million to $175 million. For full-year 2026, Herbalife expects reported net sales growth of 1% to 6% (flat to up 5% constant currency) and adjusted EBITDA of $670 million to $710 million (or $665 million to $705 million constant currency). DeSimone said China is the key regional exception to expected growth, with recovery framed more as a “2027 event.”
About Herbalife (NYSE:HLF)
Herbalife Nutrition Ltd. (NYSE: HLF) operates as a global multi-level marketing company specializing in weight-management, nutritional supplement, sports nutrition and personal care products. Its portfolio includes protein shakes, vitamins, energy and fitness supplements, hydration products and skin and hair care items, all formulated to support wellness, performance and healthy living. Products are manufactured in GMP-certified facilities to ensure consistent quality and safety standards.
Founded in 1980 by Mark R.
