Herbalife 2025 Q2 Earnings Surging Net Income Despite Revenue Decline

Herbalife's Q2 2025 earnings report showcased a significant surge in net income despite a slight revenue decline. The company raised and narrowed its full-year net sales guidance, reflecting optimism in its strategic initiatives and product innovations. Herbalife's performance exceeded expectations in terms of profitability, with a substantial increase in net income.

Revenue for Herbalife declined by 1.7% to $1.26 billion in Q2 2025, compared to $1.28 billion in Q2 2024. This decline can be attributed to a 3.1% decrease in volume, partially offset by favorable pricing adjustments. Segment-wise, the Weight Management segment reported revenue of $690.90 million, followed by Targeted Nutrition at $374.20 million, Energy, Sports, and Fitness at $154.60 million, Outer Nutrition at $19 million, and Literature, Promotional, and Other at $20.40 million.

Herbalife's earnings and net income experienced significant growth in Q2 2025. The company's EPS surged by 860% to $0.48, compared to $0.05 in Q2 2024. Net income reached $49.20 million, marking a 946.8% increase from $4.70 million in the same period last year. This impressive earnings growth indicates improved profitability and efficient cost management.

Herbalife's stock price has faced a downturn in recent trading sessions. The stock dropped 3.25% during the latest trading day, 6.30% during the most recent full trading week, and 13.97% month-to-date. This decline raises concerns about investor sentiment and market demand for the company's shares.

The post-earnings price action review revealed a negative performance for Herbalife. The strategy of buying shares after a revenue increase and holding for 30 days resulted in a return of -56.92%, significantly below the benchmark return of 48.58%. This underperformance indicates that the market did not react favorably to Herbalife's earnings report.

CEO Stephan Gratziani highlighted Herbalife's strategic shift towards a data-driven, personalized wellness platform. The launch of the Protocol app and a healthy lifespan supplement is expected to drive innovation and growth. Gratziani expressed confidence in Herbalife's ability to lead in the $5.8 trillion wellness market by 2028 through scalable, subscription-based models and AI-driven tools.

Herbalife revised its full-year 2025 net sales guidance to a decrease of 1% to an increase of 3% (reported) and flat to up 4% (constant currency). The company also raised its adjusted EBITDA guidance to $640–660 million (reported) and $685–705 million (constant currency). These adjustments reflect Herbalife's confidence in its strategic initiatives and their impact on future sales and profitability.

In additional news, Herbalife announced the acquisition of certain assets from Pruvit and Link Biosciences. These acquisitions are expected to enhance Herbalife's product offerings and technological capabilities. The company also highlighted its commitment to deleveraging by reducing debt to $1.4 billion by 2028. These strategic moves demonstrate Herbalife's focus on long-term growth and financial stability.