Herbalife Ltd. Q2 Earnings Call: Mixed Picture, Focus on Innovation and Growth

Herbalife Ltd's Q2 earnings call highlights product innovation, positive momentum in North America, and strong distributor engagement. However, the company faces challenges in EMEA and China with declining net sales and volumes. Herbalife revises its full-year net sales guidance upward, anticipating growth between down 1% to up 3%. The company is focused on its transformation into a data-driven wellness company and plans to launch new products and manage debt and leverage.

Herbalife Ltd. (HLF) reported its Q2 2025 earnings on August 6, 2025, with a mixed bag of results. Net sales declined by 1.7% to $1.3 billion, but on a constant currency basis, sales were flat year over year [1]. The company highlighted strong distributor engagement and product innovation as key drivers of growth, particularly in North America where the company saw the first year-over-year volume growth since April 2021.

However, the company faced challenges in other regions. Net sales in the EMEA region declined by 1% in local currency, while sales in Asia Pacific and China each reported a 2% year-over-year decline [1]. These declines were primarily driven by volume declines, with Asia Pacific and China seeing respective volume declines of 3% and 6% [1].

The company's adjusted EBITDA margin declined by 30 basis points to 13.8%, driven entirely by unfavorable currency impacts [1]. Despite this, the company's adjusted EBITDA of $174 million exceeded the high end of its guidance range [1].

Herbalife Ltd. revised its full-year 2025 net sales guidance upward to a range of down 1% to up 3% (reported) and flat to up 4% (constant currency) [1]. The company also raised its adjusted EBITDA guidance to a range of $640-$660 million (reported) and $685-$705 million (constant currency) [1].

The company's CEO, Stephan Gratziani, highlighted the launch of the protocol app and the debut of the Multiburn weight loss supplement as key initiatives driving the company's transformation into a data-driven wellness company. The protocol app, which integrates digital assessments, AI-driven recommendations, and data-enabled distributor-customer engagement, is set to expand globally in Q4 2025 [1].

The company also emphasized its ongoing shift toward a more scalable, subscription-based business, with the Multiburn supplement and upcoming wellness products expected to play increasing roles in future reported results. Herbalife Ltd. is also focused on managing its debt and leverage, with an explicit strategy to deleverage by $1 billion (from 2024 levels) and no meaningful debt maturities due until 2028 [1].

References:
[1] https://www.fool.com/earnings/call-transcripts/2025/08/06/herbalife-hlf-q2-2025-earnings-call-transcript/