Herbalife 2025 Q3 Earnings EPS Decline 10.6% Despite 2.7% Revenue Growth

Herbalife (HLF) reported fiscal 2025 Q3 earnings on Nov 6, 2025, with revenue rising 2.7% year-over-year to $1.27 billion, slightly above expectations. The results, however, were tempered by a 10.6% decline in EPS to $0.42 and a 9.1% drop in net income to $43.1 million. Guidance for Q4 revenue and adjusted EBITDA aligned with analyst estimates, while full-year net sales forecasts remained within a narrow range.

Revenue

Herbalife’s total revenue grew to $1.27 billion in Q3 2025, reflecting a 2.7% increase from $1.24 billion in the prior year. Weight Management remained the largest contributor, generating $699.30 million, while Targeted Nutrition added $376.30 million. Energy, Sports, and Fitness segments totaled $158.70 million, and Outer Nutrition and Literature, Promotional, and Other segments contributed $19.50 million and $19.90 million, respectively. The performance was driven by North America’s return to growth and disciplined operational execution.

Earnings/Net Income

The company’s earnings per share (EPS) fell 10.6% to $0.42 in Q3 2025, down from $0.47 in the same period the previous year. Net income declined to $43.10 million, a 9.1% decrease from $47.40 million in Q3 2024. The EPS decline and net income reduction indicate a challenging quarter for profitability, with margin pressures and operational costs weighing on results.

Price Action

Herbalife’s stock price edged up 2.36% during the latest trading day and 2.74% over the past week, though it dropped 6.26% month-to-date. The post-earnings strategy of purchasing shares and holding for 30 days showed moderate returns but significant volatility, with an annualized return of ~10% and a maximum drawdown of ~20%. Investors are advised to consider market sentiment and risk tolerance before adopting this approach.

The strategy of purchasing Herbalife (HLF) shares upon quarterly earnings releases and holding for 30 days delivered moderate returns but came with significant volatility. The annualized return was approximately 10%, with a maximum drawdown of about 20% during periods of negative market sentiment. This approach capitalized on the company's growth momentum but was susceptible to broader market fluctuations. Investors should consider their risk tolerance and market outlook before adopting such a strategy.

CEO Commentary

CEO Stephan Gratziani highlighted progress in Herbalife’s transformation strategy, emphasizing disciplined execution and North America’s return to growth. He noted the Pro2col digital health platform’s beta testing success, with distributors logging 32 million steps and 200,000 product uses, as a key enabler of personalized wellness. Gratziani also underscored the launch of HL/Skin in EMEA and the acquisition of Link BioScience to advance personalized nutrition. The tone was cautiously optimistic, balancing growth initiatives with cost management and debt reduction.

Guidance

Herbalife provided Q4 2025 revenue guidance of $1.25 billion at the midpoint, in line with analyst expectations. Full-year adjusted EBITDA is projected at $650 million, matching estimates. The company also narrowed its full-year net sales forecast to a range of -0.3% to +0.7% growth, with constant currency guidance at 1.2% to 2.2%. Capital expenditures for Q4 are expected to fall between $18 million and $28 million.

Additional News

Recent non-earnings developments include CEO Stephan Gratziani’s leadership transition from Michael Johnson, who becomes Executive Chairman. Herbalife expanded its Pro2col Beta 2.0 program in the U.S. and Puerto Rico, with plans for global rollout in 2026. The company also launched HL/Skin, a South Korean-inspired skincare line in EMEA, and acquired Link BioScience to develop personalized supplements. These moves underscore Herbalife’s focus on digital engagement, innovation, and localized market strategies.