Group 1 - Herbalife has renewed its partnership with the LA Galaxy Special Olympics Unified Team for the 2026 season, continuing its role as the Official Nutrition Partner for over 20 years [1] - The partnership provides Special Olympics athletes aged 16 to 25 access to high-quality resources, including nutrition education, elite training, and exclusive experiences [1] - A signing ceremony was held on March 9, 2026, where 24 athletes officially joined the team, receiving a pro-team experience including a stadium tour and personalized uniforms [1] Group 2 - The LA Galaxy Special Olympics Unified Team will participate in various scrimmages and games throughout the season, highlighting inclusivity and teamwork [1] - The initiative aligns with Herbalife's mission to promote health and wellness through balanced nutrition and active lifestyles [1] - The support for the Unified Team is facilitated by the Joint Community Partnership Fund, a collaboration between Herbalife and the LA Galaxy [1]

Financial Data and Key Metrics Changes - In Q4 2025, net sales reached $1.3 billion, reflecting a year-over-year growth of 6.3% [6][18] - For the full year, net sales increased nearly 1% to just over $5 billion, with an adjusted EBITDA of $658 million and a margin of 13.1% [8][18] - The total leverage ratio improved to 2.8x, down from 3.9x at the end of 2023, indicating stronger financial health [5][33] Business Line Data and Key Metrics Changes - North America experienced a 19% increase in new distributors in Q4, marking its second consecutive quarter of double-digit growth [9] - Latin America achieved its seventh consecutive quarter of year-over-year growth, with reported net sales up 18% [26] - The Asia Pacific region saw a 5% increase in reported net sales, driven by approximately 9% volume growth [27] Market Data and Key Metrics Changes - India delivered its highest quarterly net sales in Q4, with a 15% year-over-year increase, attributed to a reduction in the goods and services tax [19][27] - North America sales declined by less than 1% year-over-year, consistent with prior expectations [27] - China reported a 4% decline in net sales year-over-year, primarily due to an 11% decrease in volume [28] Company Strategy and Development Direction - The company aims to be the world's premier health and wellness platform, focusing on innovation and digital engagement [5][11] - Plans include launching personalized nutritional supplements and enhancing the distributor experience through digital tools [12][15] - The partnership with Cristiano Ronaldo is expected to elevate brand visibility and expand market reach [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and ability to execute, highlighting a strong foundation for future growth [17][38] - The company anticipates net sales growth in all regions except China for 2026, with a focus on leveraging the GST benefits in India [43][46] - Adjusted EBITDA guidance for Q1 2026 is set between $155 million to $175 million, with full-year expectations of $670 million to $710 million [35] Other Important Information - The company has repaid $283 million of debt in 2025, contributing to a stronger balance sheet [8][33] - A presentation change was made to better align distributor-related compensation reporting, with no impact on prior period results [31] Q&A Session Summary Question: Guidance on sales for different geographic segments in 2026 - Management expects net sales growth in every region except China, which is anticipated to improve in 2027 [42][43] Question: Expectations for Pro2col sales contribution - Minimal top-line contribution is built into guidance, with more upside potential as the program is in beta phase [44][45] Question: Growth in energy, sports, and fitness product categories - This category has historically outpaced overall performance, with successful launches contributing to growth [51] Question: Expansion of nutrition club infrastructure - The Breakfast Budget Clubs model is gaining traction in the UK and is being introduced in other markets [53][54] Question: Distributor retention rates and training programs - Improved retention is attributed to various support programs, enhancing distributor education and strategy [55][56] Question: Contribution of new products to sales growth - Successful product launches, including MultiBurn and HL Skin, have significantly contributed to sales [61] Question: Plans for distributor events in 2026 - The company plans to increase the number of events, with costs expected to rise slightly more than sales [62][64] Question: Strategy for evolving product offerings and customer base - The company aims to attract a more sophisticated customer base while deepening engagement with existing customers [71][73] Question: Impact of GST changes in India on sales - The reduced GST is expected to provide a tailwind until it laps in late September 2026 [77][78] Question: Relationship between distributor growth and member growth - Both distributor and preferred member growth are important, with adjustments made to focus on preferred customers [83][86]

Financial Data and Key Metrics Changes - In Q4 2025, net sales reached $1.3 billion, reflecting a year-over-year growth of 6.3% [6][18] - For the full year 2025, net sales increased nearly 1% to just over $5 billion, with an adjusted EBITDA of $658 million and a margin of 13.1% [8][18] - The total leverage ratio improved to 2.8x from 3.9x at the end of 2023, indicating stronger cash generation [5][33] Business Line Data and Key Metrics Changes - North America experienced a 19% increase in new distributors in Q4, marking its second consecutive quarter of double-digit growth [9] - Latin America achieved its seventh consecutive quarter of year-over-year growth, with reported net sales up 18% [26] - The Asia Pacific region saw reported net sales increase by 5% year-over-year, driven by volume growth [27] Market Data and Key Metrics Changes - India delivered its highest quarterly net sales in Q4, with a 15% increase year-over-year, attributed to a reduction in the Goods and Services Tax [19][27] - North America sales declined slightly by less than 1% year-over-year, consistent with prior expectations [27] - China reported a 4% decline in net sales year-over-year, primarily due to an 11% decrease in volume [28] Company Strategy and Development Direction - The company aims to be the world's premier health and wellness platform, focusing on innovation and digital engagement [5][11] - Plans include launching personalized nutritional supplements and enhancing the distributor experience through the Pro2col technology [12][15] - The partnership with Cristiano Ronaldo is expected to elevate brand visibility and expand customer engagement [16][74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and ability to execute, highlighting a strong foundation for long-term growth [17][37] - The company anticipates net sales growth in all regions except China for 2026, with a focus on leveraging the GST benefits in India [43][46] - The adjusted effective tax rate is expected to be approximately 30% for 2026, aligning with 2025 [36] Other Important Information - The company repaid $283 million of debt in 2025, contributing to a stronger financial profile [8][33] - Adjusted net income for Q4 was $48 million, with an adjusted diluted EPS of $0.45 [22][23] - The company has implemented a strategic phased beta rollout for Pro2col, enhancing distributor engagement [12][13] Q&A Session Summary Question: Guidance on sales for different geographic segments in 2026 - Management expects net sales growth in every region except China, which is anticipated to be a 2027 event [43] Question: Expectations for Pro2col's sales contribution - Very little top-line contribution is built into the current guidance, with more upside than risk anticipated [44] Question: Contribution of product categories to sales growth - The energy, sports, and fitness category has outpaced overall company performance, with successful product launches contributing to growth [51] Question: Expansion of Nutrition Clubs in Europe - The Breakfast Budget Clubs model is gaining interest, with training programs being conducted to support distributors [53] Question: Retention rates of Sales Leaders - Improved retention is attributed to better education and support programs for distributors [55] Question: Future distributor events and spending - The company plans to increase the number of events, with costs expected to rise slightly more than sales [62][64] Question: Strategy for evolving product offerings and customer base - The company aims to attract a more sophisticated customer base while deepening engagement with existing customers [71][73]

Financial Data and Key Metrics Changes - In Q4 2025, net sales reached $1.3 billion, reflecting a year-over-year growth of 6.3% and marking the second consecutive quarter of growth [5][17] - For the full year, net sales increased nearly 1% to just over $5 billion, with an adjusted EBITDA of $658 million and a margin of 13.1%, indicating expansion for the second consecutive year [6][35] - The total leverage ratio improved to 2.8x from 3.9x at the end of 2023, highlighting a stronger financial foundation [4][31] Business Line Data and Key Metrics Changes - North America experienced a 19% increase in new distributors year-over-year, while Latin America achieved its seventh consecutive quarter of growth [7][8] - The energy, sports, and fitness product category was the fastest-growing segment in 2025, driven by successful product launches [51][62] Market Data and Key Metrics Changes - India reported its highest quarterly net sales in Q4, with a 15% increase year-over-year, attributed to a reduction in the goods and services tax rate [18][26] - Latin America saw reported net sales growth of 18%, with local currency results up 11%, driven by favorable pricing and volume growth [25][26] - In Asia Pacific, reported net sales increased by 5% year-over-year, with a 9% volume growth [26] Company Strategy and Development Direction - The company aims to be the world's premier health and wellness platform, focusing on innovation and digital engagement to enhance distributor success [4][10] - Plans for 2026 include launching new products and modernizing the digital ecosystem to improve customer engagement and personalization [10][11] - The partnership with Cristiano Ronaldo, who acquired a 10% equity stake in Pro2col Software, is expected to elevate brand visibility and expand market reach [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and ability to execute, anticipating net sales growth in all regions except China for 2026 [40][41] - The reduction in GST in India is expected to provide a tailwind for sales until late 2026, despite some margin pressures from increased costs [46][79] - The company is committed to reducing gross debt to $1.4 billion by the end of 2028 while continuing to explore small acquisitions to enhance its core business [31][92] Other Important Information - Adjusted EBITDA for Q4 was $156 million, exceeding guidance, while the adjusted net income for the quarter was $48 million [19][20] - The company has implemented a strategic phased beta rollout of its health and wellness operating system, Pro2col, to enhance distributor engagement [12][13] Q&A Session Summary Question: Can you provide guidance on sales for different geographic segments in 2026? - Management expects net sales growth in every region except China, which is anticipated to be a 2027 event [40] Question: What are the expectations for sales contribution from Pro2col? - Very little top-line contribution is built into the current guidance, with more upside than risk anticipated from the Pro2col program [41][42] Question: How did the energy, sports, and fitness category perform in 2025? - This category has consistently outpaced overall company performance, with successful product launches contributing to growth [51] Question: What is the strategy for expanding the nutrition club infrastructure? - The company is conducting training in various regions, including Europe, to expand the nutrition club model [53][54] Question: What factors contributed to improved Sales Leaders retention rates in 2025? - Various training programs and support initiatives have contributed to the retention of Sales Leaders [56][57] Question: How does the company plan to approach product-customer fit with evolving offerings? - The company aims to attract a more sophisticated customer base while deepening engagement with existing customers [70][73]

Q4 2025 Earnings Presentation February 18, 2026 Xandra Velzeboer Netherlands Short Track Speed Skating Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any projections of earnings, re ...

Core Insights - Herbalife Ltd. announced that global sports icon Cristiano Ronaldo has acquired a 10% equity interest in HBL Pro2col Software, LLC, which is an indirect wholly-owned subsidiary of Herbalife [1] - Pro2col technology is described as Herbalife's next-generation, digital, personalized health and wellness operating system [1] - The Pro2col system aims to drive daily engagement, sustainable behavior change, and measurable outcomes in health and wellness [1]

Financial Performance - Q3 2025 net sales reached $1.3 billion, a 2.7% year-over-year increase, exceeding the guidance midpoint[12] - At constant currency, Q3 2025 net sales increased by 3.2% year-over-year[12] - Adjusted EBITDA for Q3 2025 was $163 million, surpassing guidance[12] - Adjusted EBITDA at constant currency was $175 million, also exceeding guidance[12] - Adjusted diluted EPS was $0.50, including a $0.08 year-over-year foreign exchange headwind[25] Regional Performance - North America returned to net sales growth, marking the first year-over-year quarterly increase since Q2 2021[12] - Latin America net sales increased by 11% year-over-year[29] - EMEA net sales increased by 4% year-over-year[29] - Asia Pacific net sales increased by 0% year-over-year[29] - China net sales decreased by 5% year-over-year[29] Capital Structure and Debt - The company fully repaid $147 million of remaining principal on 2025 Notes at maturity[12] - The total leverage ratio was reduced to 2.8x at September 30, exceeding the 3.0x commitment[12] - The company remains on track to reduce outstanding debt to $1.4 billion by the end of 2028[36]

Financial Performance - Q2 2025 net sales reached $1.3 billion, aligning closely with the midpoint of the company's guidance range[12] - Adjusted EBITDA for Q2 2025 was $174 million, surpassing the company's guidance[12] - The company repaid $55 million in debt, including $50 million of 2025 Notes[12] - The company's gross profit margin increased by 10 bps year-over-year to 78%[31] - Adjusted diluted EPS was $0.59, which includes an $0.11 year-over-year foreign exchange headwind[31] Regional Performance - New distributor growth occurred in 4 out of 5 regions year-over-year, with Latin America leading at a 16% increase[12] - Worldwide net sales decreased by 1.7% year-over-year, but remained flat on a constant currency basis[34] - Latin America experienced a 9% increase in local currency net sales[34] Product Launches and Initiatives - The company launched the Herbalife Flex45 Challenge globally[12] - The company expanded the Diamond Development Mastermind Program to South and Central America[12] - The company launched MultiBurn, a multifunctional weight-loss supplement[12] - The company unveiled the beta version of the Pro2col digital platform[12] Future Outlook - The company projects net sales to increase between 0.5% and 4.5% year-over-year for Q3 2025[42] - The company anticipates adjusted EBITDA between $150 million and $160 million for Q3 2025[42] - The company expects full-year 2025 net sales to range from a decrease of 1% to an increase of 3% year-over-year[42]