NYSE:HLF
HERBALIFE LTD.
A global direct-selling leader offering nutritional supplements and weight management products with a distributed sales force generating over $5 billion in annual revenue.
Key Metrics
Investment Thesis
Bull Case
Investors might consider this stock due to Herbalife's consistent ability to generate positive operating cash flow despite high leverage, its dominant market position in the weight loss category, and a potential for share price appreciation if regulatory headwinds ease or international growth accelerates.
Bear Case
Caution is warranted given the company's negative shareholders' equity of -$509.4M and substantial interest expense of $214.4M which compresses net margins, alongside ongoing risks to its direct sales model that could impact future revenue stability and liquidity if growth stalls.
About HERBALIFE LTD.
Herbalife Ltd. is a global direct selling company that markets nutritional supplements, weight management solutions, and personal care products through independent distributors worldwide. The company operates primarily in the health and wellness sector, leveraging its extensive distribution network to serve consumers seeking natural lifestyle products. Revenue generation is driven by sales of proprietary brands such as Shred, Super Greens, and Formula 1 across more than 100 countries.
Analysis
Management Discussion
In 2025, Herbalife generated $5.04B in revenue and $227.8M in net profit, showing resilience despite a slight dip from the previous year's $254.3M earnings. The firm maintained healthy operating cash flow of $333.3M, though it utilized significant financing cash outflows of $295.5M, likely related to debt refinancing or strategic investments given its total liabilities exceeding assets.
Industry Overview
The global health and wellness industry is expanding rapidly as consumers prioritize preventative care and natural ingredients, creating a lucrative environment for established players like Herbalife while intensifying competition from traditional retail brands and digital-native startups.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $5.20B | $5.06B | $4.99B | $5.04B |
| Cost of Revenue | $1.17B | $1.19B | $1.10B | $1.11B |
| Gross Profit | $4.03B | $3.87B | $3.89B | $3.92B |
| Operating Expenses | $3.49B | $3.52B | $3.50B | $3.44B |
| Operating Income | $545.2M | $356.4M | $385.9M | $481.0M |
| G&A | $1.81B | $1.87B | $1.88B | $1.66B |
| Stock-Based Comp | $44.4M | $48.0M | $50.0M | $44.1M |
| D&A | $115.4M | $113.3M | $121.4M | $121.2M |
| Depreciation | $94.3M | $88.9M | $96.5M | $99.4M |
| Other OpEx | $1.68B | $1.65B | $1.63B | $1.78B |
| Non-Operating Income | $-120.4M | $-153.4M | $-216.5M | $-205.9M |
| Interest Expense | $139.3M | $165.9M | $218.3M | $214.4M |
| Pre-Tax Income | $424.8M | $203.0M | $169.4M | $275.1M |
| Income Tax | $103.5M | $60.8M | $-84.9M | $47.3M |
| Continuing Ops | $321.3M | $142.2M | $254.3M | $227.8M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $321.3M | $142.2M | $254.3M | $227.8M |
| Minority Interest | $0 | $0 | $0 | $-500.0K |
| Net to Common | $321.3M | $142.2M | $254.3M | $228.3M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.36B | $1.40B | $1.14B | $1.14B |
| Cash & Equivalents | $508.0M | $575.2M | $415.3M | $353.1M |
| Inventory | $580.7M | $505.2M | $475.4M | $511.7M |
| Prepaid Expenses | $196.8M | $237.7M | $184.1M | $188.0M |
| Other Current Assets | $70.6M | $81.2M | $68.9M | $91.9M |
| Long-Term Assets | $1.38B | $1.41B | $1.58B | $1.64B |
| PP&E (Net) | $486.3M | $506.5M | $460.2M | $447.7M |
| Intangibles | $315.7M | $314.0M | $312.3M | $315.1M |
| Goodwill | $93.2M | $95.4M | $87.7M | $100.5M |
| Operating Leases | $207.1M | $185.8M | $185.7M | $168.3M |
| Other LT Assets | $273.6M | $308.4M | $538.5M | $609.6M |
| Total Assets | $2.73B | $2.81B | $2.73B | $2.79B |
| Current Liabilities | $976.6M | $1.28B | $1.23B | $1.01B |
| Accounts Payable | $89.8M | $84.0M | $70.0M | $99.8M |
| Current Debt | $29.5M | $309.5M | $283.5M | $20.9M |
| Current Leases | $37.4M | $39.5M | $39.7M | $35.5M |
| Taxes Payable | $12.5M | $12.2M | $12.6M | $20.6M |
| Other Current Liab | $807.4M | $832.4M | $824.6M | $836.1M |
| Long-Term Liabilities | $3.02B | $2.59B | $2.30B | $2.28B |
| Long-Term Debt | $2.66B | $2.25B | $1.98B | $1.97B |
| LT Operating Leases | $192.4M | $167.6M | $169.5M | $155.7M |
| Other LT Liab | $166.4M | $171.6M | $152.7M | $155.0M |
| Total Liabilities | $4.00B | $3.87B | $3.53B | $3.30B |
| Shareholders' Equity | $-1.27B | $-1.06B | $-801.1M | $-509.4M |
| Retained Earnings | $-1.20B | $-1.06B | $-808.0M | $-579.7M |
| AOCI | $-250.2M | $-232.0M | $-271.4M | $-251.5M |
| Treasury Stock | $0 | — | — | — |
| Total L&E | $2.73B | $2.81B | $2.73B | $2.79B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $321.3M | $142.2M | $254.3M | $227.8M |
| Non-Cash Adjustments | $27.1M | $236.7M | $900.0K | $70.7M |
| Working Capital Changes | $4.1M | $-21.4M | $30.2M | $34.8M |
| Cash from Operations | $352.5M | $357.5M | $285.4M | $333.3M |
| Capital Expenditures | $156.4M | $135.0M | $122.0M | $80.4M |
| Cash from Investing | $-156.2M | $-134.8M | $-84.6M | $-108.7M |
| Share Buybacks | $146.7M | $11.0M | $8.3M | $8.2M |
| Cash from Financing | $-264.7M | $-148.3M | $-335.3M | $-295.5M |
| FX Effect | $-25.7M | $4.8M | $-22.9M | $8.1M |
| Net Change in Cash | $-94.1M | $79.2M | $-157.4M | $-62.8M |
| Beginning Cash | $610.4M | $516.3M | $595.5M | $438.1M |
| Ending Cash | $516.3M | $595.5M | $438.1M | $375.3M |
Frequently Asked Questions
How does HERBALIFE LTD. make money?
The company's financials reflect a diversified product portfolio including nutritional supplements, meal replacement shakes, weight loss systems, and personal care items sold through a massive network of independent distributors.
What are the main risks for HLF?
The company faces significant risk from regulatory scrutiny regarding its multi-level marketing (MLM) business model in key markets like the US, potential shifts in consumer preference toward plant-based or vegan alternatives, and exposure to foreign exchange volatility affecting international sales reported in USD.
What is HLF's competitive advantage?
Herbalife possesses a deeply entrenched global distribution network with over 100 countries represented, high brand loyalty among its distributor base, and proprietary formulations that command strong gross margins relative to competitors.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.