Herbalife's 2025 Q2 Earnings Call: Key Contradictions in Pro2col Strategy, Volume Trends, and Subscription Models

Sales and Volume Trends:
- Herbalife reported net sales of $1.3 billion for Q2 2025, down 1.7% year-over-year and flat on a constant currency basis.
- The company experienced a 3.1% decline in volume year-over-year, which was nearly offset by favorable pricing, resulting in flat constant currency net sales.
- The sales and volume trends were influenced by foreign exchange headwinds and increased focus on product innovation and new category entries.

Product Innovation and Launch:
- Herbalife entered a new category with its first healthy lifespan product and launched MultiBurn, a nonpharmaceutical weight loss supplement.
- These launches were part of a strategy to evolve from a weight management company to becoming the #1 active and lifestyle nutrition brand globally.
- The company's transformation involves integrating technology and data-driven solutions to enhance customer experience and distributor engagement.

North American Recovery and Pro2col Beta:
- Herbalife reported the first month of year-over-year volume growth in North America since April 2021 in July 2025.
- The recovery was driven by the beta release of Pro2col, which combines personalized health tracking and coaching with AI-driven wellness tools.
- The Pro2col beta program saw enthusiastic participation from over 7,000 distributors and is expected to create new growth opportunities with targeted digital engagement.

Financial Performance and Debt Reduction:
- Herbalife achieved a solid adjusted EBITDA result that exceeded guidance, contributing to paying down $55 million in debt in Q2.
- The company maintained a total leverage ratio of slightly under 3x with a debt repayment plan aimed at reducing principal outstanding by $1 billion by 2028.
- The financial performance was supported by operational efficiencies and focused capital spending strategies.