Herbalife Ltd

herbalife.com

What Do They Do?

Sells meal-replacement shakes, protein drinks and weight-loss supplements to consumers through independent members who provide coaching.

How Do They Make Money?

Members generally pay cash or by card when buying products from Herbalife at a discount; sales are counted when products are delivered, except for most China service-provider sales, which are counted when the provider sells them.

revenue

Segment	Share	How money arrives
Weight Management Sold outright	55% FY2022: 57%	Sold outright
Targeted Nutrition Sold outright	30% FY2022: 29%	Sold outright
Energy, Sports, and Fitness Sold outright	12% FY2022: 11%	Sold outright
Outer Nutrition Sold outright	1.7% FY2022: 1.7%	Sold outright
Literature, Promotional and Other Sold outright	1.6% FY2022: 1.9%	Sold outright

Who Are Their Customers?

Consumers typically buy through independent Members, who provide coaching; Members can also buy directly from Herbalife at a discount to use or resell products. In China, sales representatives and independent service providers sell to customers, with company-operated retail platforms used when needed.

Do Revenues Turn Into Profits?

Yes. It kept 5 cents of every revenue dollar as net income in FY2025 and turned 5 cents into free cash flow.

Operating income, FY2025

10% of revenue

▲ +25% vs FY2024 ($385.9M, 8%)

Net income, FY2025

5% of revenue

▼ −10% vs FY2024 ($254.3M, 5%)

Free cash flow, FY2025

5% of revenue

▲ +55% vs FY2024 ($163.4M, 3%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +5%; vs $1.3B in Q2 FY2025
Net income: ▼ Now a loss; vs $49.3M in Q2 FY2025

Aug 31, 2026 Stephan Gratziani to transition out of the CEO role He is scheduled to transition from the role effective October 31, 2026.
Aug 5, 2026 CFO John DeSimone plans to retire; successor named Scott Schaefer is set to become CFO when the retirement takes effect.
May 6, 2026 Acquired Bioniq’s core personalized nutrition business It acquired substantially all assets of Bioniq’s core personalized nutrition business and raised full-year constant-currency sales and earnings guidance midpoints.

Shrinking. Revenue fell 13% in 4 years, from $5.8B in FY2021 to $5B in FY2025, about 3% a year.

Revenue over time

Weight Management Targeted Nutrition Energy, Sports, and Fitness Outer Nutrition Literature, Promotional and Other

$10B$5B$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with BellRing Brands, The Hain Celestial Group, Nestlé, The Simply Good Foods, Medifast, Nu Skin Enterprises, USANA Health Sciences, and Amway

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