moneyheap
HLF · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Herbalife Ltd. (HLF) stock moving?
Herbalife reported a beat on Nov 2: Q3 net sales of $1.35B (+6.0% y/y, +7.6% in constant currency) versus a $1.307B estimate, and adjusted EPS of $0.64 versus $0.62. Adjusted EBITDA was $182.4M (13.5% margin, up 70bp), and year-to-date operating cash flow reached $298.0M. Management raised full-year 2026 sales guidance to $5.285B-$5.335B, above the $5.255B consensus, and kept adjusted EBITDA guidance unchanged on a reported basis. Q4 sales guidance of $1.289B-$1.341B brackets the $1.304B estimate. The board authorized up to $250M in buybacks over three years, and Scott Schaefer took over as CFO on Nov 1. Growth is uneven: Asia Pacific rose 26.1% and Latin America 5.1%, while North America grew only 1.7%. Gross margin slipped to 77.3% from 77.7%, and FX cost about 160bp of reported growth. Market data fits the news. Shares rose from a $13.28 close on Nov 2 to $15.31 on Nov 4 on 3.2-3.3M volume, roughly double the late-October average of about 1.4M. They then pulled back to $14.90 and recovered to $15.59 on Nov 10, with volume normalizing to 1.3M. The stock is about 20% above its Oct 29 low of $12.93 and trades near the $15.87 intraday high from Nov 10. The earnings catalyst is about a week old and the buyback has not yet been executed, so the evidence is solid but not fresh.
News behind the analysis
- Herbalife Ltd. Reports Q3 2026 Financial ResultsHerbalife reported Q3 2026 revenue of $1.35 billion and adjusted EPS of $0.64, both above analyst expectations.
- Herbalife Raises FY2026 Sales Guidance from $5.164B-$5.315B to $5.285B-$5.335B vs $5.255B EstFull-year 2026 net sales guidance was raised to $5.285B-$5.335B, above the $5.255B consensus. Adjusted EBITDA guidance was maintained on a reported basis.
- Herbalife Sees Q4 Sales $1.289B-$1.341B vs $1.304B EstQ4 2026 sales guidance of $1.289B-$1.341B brackets the $1.304B consensus, with a midpoint of about $1.315B.
- Herbalife Q3 Adj. EPS $0.64 Beats $0.62 Estimate, Sales $1.350B Beat $1.307B EstimateQ3 adjusted EPS of $0.64 beat the $0.62 estimate, and sales of $1.350B beat the $1.307B estimate.
- Herbalife Q3 2026 Earnings Call TranscriptTranscript of the Q3 2026 earnings call, where management discussed the quarterly results and outlook.
- Herbalife Achieves Third Quarter Net Sales Growth of 6.0%; Strong Profitability and Robust Operating Cash Flow; Fifth Consecutive Quarter of ExpansionPress release in the 8-K: Q3 net sales up 6.0%, adjusted EBITDA of $182.4M, YTD operating cash flow of $298.0M, a new $250M buyback over three years, and Scott Schaefer appointed CFO effective Nov 1.
About Herbalife Ltd.
Herbalife is a Los Angeles-based nutrition company, incorporated in the Cayman Islands, that sells meal-replacement shakes, protein products, supplements, and personal-care items in roughly 90+ countries. Instead of selling through stores, it sells through a multi-level marketing network of independent distributors. Its reported quarterly net sales have grown year over year for five quarters in a row, reaching about $1.35 billion in Q3 2026.
How it makes money
Almost all revenue comes from selling its products to independent distributors, who use them themselves or resell them to customers, often through local nutrition clubs. Weight-management products like Formula 1 shakes make up the largest share, followed by targeted nutrition, energy and sports drinks, and outer nutrition. Sales are spread across regions, with Asia Pacific, North America, EMEA, Latin America and China all contributing. Gross margins are high, about 75%. The company carries a lot of debt, roughly $2 billion at the start of 2026, and is paying it down while starting a $250 million share buyback.
What usually moves HLF
- Distributor recruitment and retention trends
- Sales volume growth by region, especially North America and Asia
- Debt reduction and refinancing costs
- Foreign currency swings
- Regulatory scrutiny of multi-level marketing