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Midwest IDEAS Conference August 26, 2026
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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, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures, or share repurchases; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing or other future events. Forward-looking statements may include, among others, the words "may," "will," "estimate," "intend," "continue,“ "believ e," "expect," "anticipate" or any other similar words. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include the following: the potential impacts of current global economic conditions, including inflation, unfavorable foreign exchange rate fluctuations, and tariffs or retaliatory tariffs, on us; our Members, customers, and supply chain; and the world economy; our ability to attract and retain Members; our relationship with, and our ability to influence the actions of, our Members; our noncompliance with, or improper action by our employees or Members in violation of, applicable U.S. and foreign laws, rules, and regulations; adverse publicity associated with our Company or the direct selling industry, including our ability to comfort the marketplace and regulators regarding our compliance with applicable la ws; changing consumer preferences and demands and evolving industry standards, including with respect to climate change, sustainability, and other environmental, social, and governance matters; the competitive nature of our business and industry; legal and regulatory matters, including regulatory actions concerning, or legal challenges to, our products or network marketing program and product liability claims; the Consent Order entered into with the Federal Trade Commission, or FTC, the effects thereof and any failure to comply therewith; risks associated with operating internationally and in China; our ability to execute our growth and other strategic initiatives (such as restructuring efforts, increased market penetration in existing markets, and personalized product and related technology initiatives); the effectiveness and acceptance of new technology-driven initiatives; any material disruption to our business caused by natural disasters, other catastrophic events, acts of war or terrorism, including the wars in Ukraine and the Middle East, cybersecurity incidents, pandemics, and/or other acts by third parties; our ability to adequately source ingredients, packaging materials, and other raw materials and manufacture and distr ibute our products; our reliance on our information technology infrastructure, and our ability to successfully develop, deploy and integrate artificial intelligence into our business; noncompliance by us or our Members with any privacy, artificial intelligence and data protection laws, rules, or regulations or any security breach involving the misappropriation, loss, or other unauthorized use or disclosure of confidential information; contractual limitations on our ability to expand or change our direct selling business model; the sufficiency of our trademarks and other intellectual property; product concentration; our reliance upon, or the loss or departure of any member of, our senior management team; our ability to integrate and capitalize on acquisition transactions; restrictions imposed by covenants in the agreements governing our indebtedness; risks related to our convertible notes; changes in, and uncertainties relating to, the application of transfer pricing, income tax, customs duties, value added taxes, and other tax laws, treaties, and regulations, or their interpretation; our incorporation under the laws of the Cayman Islands; and share price volatility related to, among other things, speculative trading and certain traders shorti ng our common shares. Additional factors and uncertainties that could cause actual results or outcomes to differ materially from our forward-looking statements are set forth in the Company's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission on February 18, 2026, including under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in our Consolidated Financial Statements and the related Notes included therein. In addition, historical, current, and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Forward-looking statements made in this presentation speak only as of the date hereof. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as required by law. Non-GAAP Measures This presentation includes non-GAAP financial measures, including adjusted G&A, adjusted EBITDA, credit agreement EBITDA, adjusted net income, adjusted diluted EPS, adjusted effective tax rate and net debt, as well as net sales, adjusted EBITDA, adjusted net income and adjusted diluted EPS presented on a constant currency ba sis. The Company believes that these non-GAAP measures and presentation, which are defined and discussed in greater detail and reconciled elsewhere in this presentation, provide additional useful infor mation to management and investors for assessing our financial performance, as well as other business trends. These non-GAAP measures and presentation do, however, have certain limitations and should not be considered as an alternative to or in isolation from information calculated in accordance with U.S. GAAP. Refer to the Appendix. 2Midwest IDEAS Conference |
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3Midwest IDEAS Conference | About Herbalife WHAT WE HAVE BUILT 6.4M members1 in a distribution network built over 46 years with a ~70% retention rate2 as of 2025 95 Markets operated, with no single market more than 20% of net sales3 ~144 Unique products as of 2025; #1 globally in protein shake, meal replacement and weight management4 WHAT IT PRODUCES $5.0B net sales in 2025, and quarterly net sales growing year- over-year for four consecutive quarters $658M 2025 adjusted EBITDA5, a 13.1% margin +4.3% average active sales leaders3, a seventh consecutive quarter of year-over-year growth $147M of cash from operating activities in the first half of 2026 $806M of debt retired since 2021; net leverage3,5 of 2.2x ~$45M of annual cash interest removed by the April 2026 refinancing (1) As of Dec 31 ‘25. Members include consumers who purchase products for their own personal use and distributors who wish to resell products or build a sales organization (2) The information set forth should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended Dec 31 ‘25, for further information on sales leader requalification and retention. Our network of independent distributors through which we distribute and market our nutrition products, or Members, must achieve specified sales thresholds based on their own and/or their team’s performance during specified time periods and generally must requalify once each year to retain their status as “Sales Leaders”. Requalification and retention results exclude certain markets for which, due to local operating conditions, sales leaders were not required to requalify for the period presented; such exclusions are not material to the Company’s retention results. (3) As of Jun 30 ’26 (4) Euromonitor; CH2026ed, protein shake as sports protein powder, sports protein RTDs, meal replacement, supplement nutrition drinks & protein supplements; combined % RSP share GBO for 2025 RTD = Ready to Drink; RSP = Retail Selling Price; GBO = Global Brand Owner (5) Non-GAAP Measure. Refer to Appendix for further details and reconciliation to most directly comparable U.S. GAAP measure.
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To be the world’s premier health and wellness company, community and platform. Vision 4Midwest IDEAS Conference |
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Our Competitive Advantage 5Midwest IDEAS Conference |
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$50B of net sales generated over the last 10 years ~63K Nutrition Clubs worldwide1, owned and operated by independent distributors ~49M retail transactions from Clubs in the U.S. alone, across ~3.7M unique customers A Distribution Channel Money Can’t Buy 6Midwest IDEAS Conference |(1) As of Jun 30 ’26 All figures as of 2025, unless otherwise noted
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7Midwest IDEAS Conference | Where the Growth Is Coming From Total Company, percent change versus the prior-year quarter Active Non-Sales Leaders +5.1% Ninth consecutive quarter of growth Q1 2025 Q2 2026 Average Active Sales Leaders +4.3% Seventh consecutive quarter of growth, faster in each one Q1 2025 Q2 2026 Net Sales +5.4% Fourth consecutive quarter of growth Q1 2025 Q2 2026 REGIONAL COMPOSITION OF Q2 2026 RESULTS Asia Pacific LEADING Net sales +15.2% Average active sales leaders +12.1% Latin America GROWING Net sales +16.6% Average active sales leaders +1.9% North America IMPROVING Net sales flat year over year Sales leader decline has narrowed in each of the last six quarters EMEA REBUILDING Net sales (3.5)% Average active sales leaders (2.9)% Global sales leader retention1 (excluding China) of 70.3% | North America highest of any region at 77.8% (1) The information set forth should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended Dec 31 ‘25, for further information on sales leader requalification and retention. Our network of independent distributors through which we distribute and market our nutrition products, or Members, must achieve specified sales thresholds based on their own and/or their team’s performance during specified time periods and generally must requalify once each year to retain their status as “Sales Leaders”. Requalification and retention results exclude certain markets for which, due to local operating conditions, sales leaders were not required to requalify for the period presented; such exclusions are not material to the Company’s retention results.
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• Started in Mexico in the early 2000s; now the most widely adopted go-to-market model in our network • Independently owned, branded and operated by our distributors, powered by Herbalife products and technology • Affordable single-serve pricing expands the addressable customer base • Community programming — weight-loss challenges and fit clubs — brings customers back week after week Nutrition Clubs: A Storefront, Single Serving, and Community 8Midwest IDEAS Conference |
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Excellent Geographic Diversification 9Midwest IDEAS Conference |
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21% North America 34% Asia Pacific 17% Latin America 22% EMEA 6% ChinaLake Forest, CA Winston-Salem, NC Los Angeles, CA 3 Herbalife Manufacturing Facilities as of Dec 31 ‘25 Global Headquarters Regional Percentage of 2025 Net Sales% Suzhou, China Diverse Product Portfolio in 95 Markets
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Global Market Leader Positioned To Capitalize On Emerging Trends 11Midwest IDEAS Conference |
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A Global Market Leader Across Multiple Segments 12Midwest IDEAS Conference | #1 Claims Source: Euromonitor; CH2026ed, Active & Lifestyle Nutrition as weight management & wellbeing, sports nutrition and vitamins & dietary supplements definitions; combined % RSP share GBO for 2025; Weight Management & Wellbeing definition; combined % RSP share GBO for 2025; and Protein Shake as sports protein powder, sports protein RTDs, meal replacement, supplement nutrition drinks & protein supplements; combined % RSP share GBO for 2025. RSP = Retail Selling Price; GBO = Global Brand Owner; RTD = Ready to Drink
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Large, Growing Global TAM with Strong Secular Tailwinds 13Midwest IDEAS Conference | Weight Management Market Size RSV $ billion T argeted Nutrition Market Size RSV $ billion Sports Nutrition Market Size RSV $ billion • Aging population • Obesity epidemic • GLP-1 adoption increasing focus on protein intake and structured nutrition • Increased consumer focus on health and wellness • Growth of health-conscious middle class in emerging markets • Attractive demographics and rise of entrepreneurship Source: Euromonitor. Data as of Jun ‘26. RSV = Retail Value (Retail Selling Price) (1) Weight Management includes: meal replacement, slimming teas, supplement nutrition drinks and weight loss supplements (2) Targeted Nutrition includes: vitamins and dietary supplements 19.5 19.8 20.3 20.9 21.6 22.3 2025A 2026E 2027E 2028E 2029E 2030E 143.6 149.2 157.2 165.4 173.5 181.8 2025A 2026E 2027E 2028E 2029E 2030E 33.0 35.4 38.0 40.6 43.2 45.9 2025A 2026E 2027E 2028E 2029E 2030E Weight Management1 Targeted Nutrition2 Sports Nutrition Secular Tailwinds $143.6B $33.0B$19.5B 1.5% 0.8% 14%
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Product Portfolio Breadth, Quality & Manufacturing Excellence 14Midwest IDEAS Conference |
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Multi-Brand Portfolio 16Midwest IDEAS Conference | Multi-brand nutrition and wellness portfolio spanning four categories: Weight Management; T argeted Nutrition; Energy, Sports, and Fitness; and Outer Nutrition Note: Illustrative selection from Herbalife’s broader product portfolio Herbalife products are not intended to diagnose, treat, cure or prevent any disease. These products have been formulated and registered for consumption by adults.
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Distribution Centers Manufacturing 46% 22% 32% Inner Nutrition Manufacturing Profile Herbalife Manufacturing Facilities Top 3 Contract Manufacturers Other Contract Manufacturers • Quality controlled from ingredient to finished product — traceable sourcing, in- house R&D and manufacturing, and ~46% of inner nutrition products made in our own facilities • One of the industry’s deepest libraries of botanical ingredients, with teas and herbal ingredients self-processed into finished raw materials at Herbalife facilities • Sustained investment in quality assurance, scientific personnel and self- manufacturing, including 7 state-of-the-art quality control laboratories worldwide Ingredient Procurement Product Development Seed-to-Feed: Cornerstone of Herbalife Excellence Note: As of Jun 30 ‘26 17Midwest IDEAS Conference |
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Acquisitions, Partnerships and Sponsorships to Drive Growth 18Midwest IDEAS Conference |
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VISION: To be the world’s premier health and wellness company, community and platform. Executing our Strategy and Building Capabilities Through Acquisitions What to Measure What to Take What to Do Who to Do It With Acquisitions & Strategic Partnerships 2025 2026 CR7
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Input: Collects Personal Signals Guidance: Supports Healthy Habits Personalized Health Operating System What to Measure • Health Metrics • Pro2Score & Pro2Age What to Do • Pro2col Plan • Progress Tracking Who to Do It With • Coaching & Support • Distributor Difference What to Take • Personally Curated Products • Personally Formulated Products The Experience and Intelligence Layer Powering Herbalife Personalization Learning: Adapts & Evolves With You Intelligence: Gives Personalized Insight Advanced Biomarkers Lifestyle Tracking Digital Health Data Wellness Assessments 20Midwest IDEAS Conference |Herbalife products are not intended to diagnose, treat, cure or prevent any disease. These products have been formulated and registered for consumption by adults.
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21 • Acquired 10% equity stake in Pro2col Software • Pro2col Software holds the technology for Herbalife’s personalized health operating system • Investment included: $7.5M cash Commitment to provide services and sponsorship rights to Pro2col Software “A partnership that lasts over a decade is built on trust and a shared vision. For me, the investment in Pro2colwas a natural evolution. It’s more than being an Herbalife-sponsored athlete; it’s about being a partner and an investor, helping to scale a platform that can make a real difference. What we are creating has lasting value, and that is what motivates me at this stage of my career.” • Acquired 10% equity stake in HBL Pro2col Software, LLC (“Pro2col Software”) in February 2026 • Pro2col Software is the Herbalife entity that holds the Pro2col technology • Investment included: $7.5 million Commitment to provide services and sponsorship rights to Pro2col Software Cristiano Ronaldo Invests $7.5 Million in Herbalife’s Pro2col Technology – Cristiano Ronaldo 21Midwest IDEAS Conference |
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Strong Adjusted EBITDA1, Cash Flow Generation, and Continued Deleveraging 23Midwest IDEAS Conference |
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24Midwest IDEAS Conference | The Turnaround, in Numbers FY 2023 FY 2024 FY 2025 TTM JUN 2026 Net sales $5,062M $4,993M $5,038M $5,201M Adjusted EBITDA1 $571M $635M $658M $661M Adjusted EBITDA1 margin 11.3% 12.7% 13.1% 12.7% Operating cash flow $358M $285M $333M $384M2 Total debt $2,581M $2,333M $2,050M $2,040M Total leverage ratio 3.9x 3.2x 2.8x 2.7x Net sales trajectory: from declining to four consecutive quarters of growth (1) Non-GAAP Measure. Refer to Appendix for further details and reconciliation to most directly comparable U.S. GAAP measure. (2) TTM Jun 2026 Operating Cash Flow calculated as operating cash flow Jun 30’26 YTD ($147M) plus FY 2025 less Jun 30’25 YTD ($96M)
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25Midwest IDEAS Conference | The Cash Engine $806M of debt retired since 2021, with an additional $600M expected to be paid by end of 2028 ~$45M reduced annual cash interest through the April 2026 refinancing ~1-2% of net sales spent on capital expenditure $147M of operating cash flow in the first half of 2026 TOTAL DEBT AS CALCULATED UNDER CREDIT AGREEMENT ($ MILLIONS) 2,846 2021 2,717 2022 2,581 2023 2,333 2024 2,050 2025 2,040 Jun '26 Net leverage1 of 2.2x at June 30, targeting below 2.0x by year-end 2026 $149 $133 $154 $206 $206 $185 Interest Expense (net) (1) Non-GAAP Measure. Refer to Appendix for further details and reconciliation to most directly comparable U.S. GAAP measure.
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26Midwest IDEAS Conference | Q2 2026 Financial Highlights
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Q2 2026 Financial Highlights 27Midwest IDEAS Conference |(1) Non-GAAP Measure. Refer to Appendix for further details and reconciliation to most directly comparable U.S. GAAP measure. (2) Non-GAAP Measure. Refer to Appendix for discussion of why the Company believes adjusting for the effects of foreign exchange is useful. $174M at Constant Currency2 $1.3B vs Q2 2025 +5.4% +5.8% YoY at Constant Currency2 Net Sales $11M $8M Capitalized SaaS Implementation Costs Capital Expenditures Adjusted EBITDA1 Margin 12.6% -120 bps vs Q2 2025 Adjusted EBITDA1 vs Q2 2025 (4.0)%$167M • Gross profit margin of 77.7%, down 30 bps YoY • Net loss attributable to Herbalife of $(26M) includes $94.6M loss on extinguishment of debt, adjusted net income1 of $53M • Adjusted diluted EPS1 of $0.51, which includes $0.04 YoY FX headwind • Year-to date net cash provided by operating activities of $147M • Credit Agreement EBITDA1 of $191M 40 bps of FX headwinds vs Q2 2025
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Outlook 28Midwest IDEAS Conference | Third Quarter 2026 Guidance $ million Net Sales Adjusted EBITDA1 CapEx Reported +0.5% to +4.5% YoY 160 – 180 15 – 25 Constant Currency2 +1.5% to +5.5% YoY 165 – 185 Q3 2025 Actuals 1,273.7 163.0 12.8% margin 20.8 Full-Year 2026 Guidance – Revised $ million Net Sales Adjusted EBITDA1 CapEx Reported +2.5% to +5.5% YoY 670 – 690 50 – 70 Previous Guidance (May 6 ‘26) +1.5% to +5.5% YoY 675 – 705 50 – 80 Constant Currency2 +2.5% to +5.5% YoY 690 – 710 Previous Guidance (May 6 ‘26) +1.0% to +5.0% YoY 675 – 705 FY 2025 Actuals 5,037.5 657.6 13.1% margin 80.4 (1) Non-GAAP Measure. Refer to Appendix for further details and reconciliation to most directly comparable U.S. GAAP measure for his torical periods, as applicable, as well as certain information regarding non-GAAP guidance. (2) Non-GAAP Measure. Represents projections using U.S. dollars at Q3 2025 and FY 2025 average FX rates, respectively, and adjusting for other FX related impacts. Refer to Appendix for discussion of why the Company believes adjusting for the effects of foreign exchange is useful , as well as certain information regarding non-GAAP guidance. Guidance Assumptions • Net sales and adjusted EBITDA1 use the average daily exchange rates for the first two weeks of Jul ‘26 to translate local currency projections Additional FY 2026 Expectations • Capitalized SaaS implementation costs of $35M – $55M • D&A and amortization of SaaS implementation costs of $140M – $150M • Adjusted effective tax rate1 of ~35%
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Appendix 29Midwest IDEAS Conference |
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Supplemental Information Non-GAAP Financial Measures (unaudited) Adjusted G&A, Adjusted EBITDA, Credit Agreement EBITDA, Adjusted Net Income, Adjusted Diluted EPS, Adjusted Effective Tax Rate and Net Debt Adjusted Net Income, Adjusted Diluted EPS, Adjusted EBITDA, Credit Agreement EBITDA, Adjusted Effective Tax Rate and Net Debt In addition to its reported results calculated in accordance with U.S. GAAP, the Company has included in this presentation adjusted G&A, adjusted net income, adjusted diluted EPS, adjusted EBITDA and credit agreement EBITDA, performance measures that the Securities and Exchange Commission defines as “non-GAAP financial measures.” Adjusted net income, adjusted diluted EPS, adjusted EBITDA and credit agreement EBITDA are calculated as net income attributable to Herbalife excluding the impact of certain unusua l or non-recurring items such as expenses related to restructuring initiatives, expenses related to the digital technology program, gains or losses from sale of property, gains or losses from extinguishment of debt and certain tax expenses and benefits. Adjusted G&A is general and administrative expenses calculated in accordance with U.S. GAAP excluding the impact of certain unusual or non- recurring items, such as those described above. Refer to the reconciliations included herein for further details. In addition, during the fourth quarter of 2024, the Company recognized $147.3 million of non-cash net deferred income tax benefits related to changes the Company initiated to its corporate entity structure, including intra-entity transfers of intellectual property to one of its European subsidiaries, which was excluded from adjusted net income and adjusted diluted EPS. A portion of these non-cash net deferred income tax benefits will reduce cash taxes paid and result in net deferred tax expense recognized in future periods. Beginning in the first quarter of 2025 and in future periods, the related net deferred tax effects will be excluded from adjusted net income and adjusted diluted EPS. Adjusted EBITDA margin represents adjusted EBITDA divided by net sales. Credit agreement EBITDA represents EBITDA adjusted for items permitted under the Company’s senior s ecured credit facilities. Management believes that such non-GAAP performance measures, when read in conjunction with the Company’s reported results, calculated in accordance with U.S. GAAP, can provide useful supplemental information for investors because they facilitate a period to period comparative assessment of the Company’s operating performance relative to its performance based on reported results under U.S. GAAP, while isolating the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company’s operations and underlying operational performance. Net debt is calculated as the aggregate outstanding principal amount of total debt less cash and cash equivalents. Management believes net debt is useful, when read in conjunction with the Company’s reported balance sheet, because it provides investors with information regarding the Company’s leverage profile, inclu ding its debt obligations that could not be repaid with cash and cash equivalents on hand. This measure is not meant, however, to imply that the Company intends to use all available cash to pay down debt. The Company’s definitions and calculations as set forth in the reconciliations of adjusted G&A, adjusted net income, adjusted diluted EPS, adjusted EBITDA, credit agreement EBITDA and net debt included herein, may not be comparable to similarly titled measures used by other companies because other companies may not c alculate them in the same manner as the Company does and should not be viewed in isolation from, nor as alternatives to, general and administrative expenses, net income attributable to Herbalife, diluted EPS or total debt, as applicable, calculated in accordance with U.S. GAAP. The Company does not provide a reconciliation of forward-looking adjusted EBITDA or constant currency adjusted EBITDA guidance to net income attributable to Herbalife, and adjusted effective tax rate to GAAP tax rate, the comparable U.S. GAAP measures, because, due to the unpredictable or unknown nature of certain signifi cant items, such as income tax expenses or benefits, loss contingencies, and any gains or losses in connection with refinancing transactions, the Company cannot reconcile these non-GAAP projections without unreasonable efforts. The Company expects the variability of these items, which are necessary for a presentation of the reconciliation, could have a significant impact on the Company’s reported U.S. GAAP financial results. 30Midwest IDEAS Conference |
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Supplemental Information Currency Fluctuation The Company’s international operations have provided and will continue to provide a significant portion of its total net sales. As a result, total net sales will continue to be affected by fluctuations in the U.S. dollar against foreign currencies. In order to provide a framework for assessing how the Company’s underlying businesses performed excluding the effect of foreign currency fluctuations, in addition to comparing the percent change in net sales from one period to another in U.S. dollars, the Company also compares the percent change in net sales from one period to another period using “net sales in local currency.” Net sales in local currency is not a measure presented in accordance with U.S. GAAP. Net sales in local currency removes from net sales in U.S. dollars the impact of changes in exchange rates between the U.S. dollar and the local currencies of the Company’s foreign subsidiaries, by translating the current period net sales into U.S. dollars using the same foreign currency exchange rates that were used to translate the net sales for the previous comparable period. The Company believes pr esenting net sales in local currency is useful to investors because it allows a meaningful comparison of net sales of its foreign operations from period to period. In addition, the Company presents adjusted EBITDA, adjusted net income and adjusted diluted EPS on a constant currency basis, which are non-GAAP financial measures, and are calculated by translating the current period adjusted EBITDA, adjusted net income and adjusted diluted EPS into U.S. dollars using the same foreign currency exchange rates that were used to translate such measures for the previous comparable period and adjusting for other FX related impacts. However, net sales in local currency and adjusted EBITDA on a constant currency basis should not be considered in isolation or as an alternative to net sales, adjusted EBITDA, adjusted net income and adjusted diluted EPS, respectively, in U.S. dollar measures that reflect current period exchange rates, or to net sales, net income attributable to Herbalife and diluted EPS calculated and presented in accordance with U.S. GAAP. Reclassifications Effective in the fourth quarter of 2025, the Company retrospectively separated selling expenses from selling, general, and administrative expenses in the consolidated statements of income and combined those selling expenses with royalty overrides in the consolidated statements of income to simplify its financial statement presentation. Specifically, the Company’s Member compensation payments recognized as operating expenses, previously reported as royalty overrides, have been combined with the service fees to China’s independent service providers which were previously reported as selling expense within selling, general, and administrative expenses, and the two categories of expense are now c ollectively being presented in selling expenses within the condensed consolidated statements of income (loss). As a result, $39.4 million and $71.0 million related to service fees to China independent service providers previously presented as selling, general, and administrative expenses and all amounts previously presented as royalty overrides were collectively reclassified to selling e xpenses within the condensed consolidated statements of income (loss) for the three and six months ended June 30, 2025. As a result of the above, the Member compensation previously reported as royalty overrides within the operating activities in the condensed consolidated statements of cash flows is now presented as Member compensation liabilities. In addition, $0.4 million of cash outflows related to service fees to China independent service providers were reclassified from other current liabilities to Member compensation liabilities within the Company’s cash flows from operating activities in the condensed consolidated statements of cash flows for the six months ended June 30, 2025. These reclassifications did not impact the amounts of the prior period total assets, total liabilities, operating income, net (loss) income attributable to Herbalife, and net cash provided by (used in) operating activities, investing activities and financing activities, and did not impact the Company’s condensed consolidated statements of comprehensive income and condensed consolidated statements of changes in shareholders’ deficit. . 31Midwest IDEAS Conference |
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(1) Non-GAAP Measure. Refer to Supplemental Information included herein for discussion of why the Company believes adjusting for the effects of foreign exchange is useful. (2) Prior period amounts were reclassified to conform to current period presentation. Refer to Supplemental Information “Reclassi fications” included herein for additional details. (3) Non-GAAP Measure. . Refer to Supplemental Information included herein for further details and reconciliation to most directly comparable U.S. GAAP measure. $ million 2021 2022 2023 2024 2025 Regional net sales: North America 1,428.9 1,262.2 1,131.4 1,054.4 1,033.0 Latin America 822.9 785.8 820.9 832.5 881.2 EMEA 1,335.4 1,078.5 1,068.8 1,084.8 1,114.4 Asia Pacific 1,586.1 1,686.9 1,713.9 1,723.8 1,729.8 China 629.5 391.0 327.4 297.6 279.1 Worldwide net sales 5,802.8 5,204.4 5,062.4 4,993.1 5,037.5 YoY % change +4.7% (10.3)% (2.7)% (1.4)% +0.9% YoY % change – constant currency1 +3.3% (5.4)% (1.6)% +1.2% +2.5% Gross profit 4,563.5 4,030.8 3,871.4 3,888.8 3,922.9 Gross profit margin 78.6% 77.4% 76.5% 77.9% 77.9% Selling expenses2 2,183.8 1,886.3 1,824.2 1,782.8 1,782.4 Selling expenses2 as a percentage of net sales 37.6% 36.2% 36.0% 35.7% 35.4% General and administrative expenses (G&A)2 1,662.0 1,614.2 1,701.0 1,725.6 1,664.3 G&A2 as a percentage of net sales 28.6% 31.0% 33.6% 34.6% 33.0% Adjusted G&A3 1,635.7 1,580.3 1,606.1 1,620.4 1,630.7 Adjusted G&A3 as a percentage of net sales 28.2% 30.4% 31.7% 32.5% 32.4% Adjusted EBITDA3 873.5 694.5 570.6 634.8 657.6 Adjusted EBITDA3 margin 15.1% 13.3% 11.3% 12.7% 13.1% Credit Agreement EBITDA3 979.1 783.5 670.1 728.8 742.0 Historical Financial Summary 32Midwest IDEAS Conference |
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$ million 2021 2022 2023 2024 2025 Net sales 5,802.8 5,204.4 5,062.4 4,993.1 5,037.5 General and administrative expenses (G&A)1 1,662.0 1,614.2 1,701.0 1,725.6 1,664.3 G&A1 as a percentage of net sales 28.6% 31.0% 33.6% 34.6% 33.0% Expenses related to Technology Realignment Program ― ― ― ― (9.1) Expenses related to Restructuring Program ― ― ― (69.1) (7.0) Expenses related to Transformation Program (12.9) (12.1) (54.2) (13.4) ― Digital technology program costs ― (11.9) (32.1) (26.7) (6.2) Transition charge related to Sep ‘25 India Goods and Services Tax (GST) amendments ― ― ― ― (11.3) Gain on sale of property ― ― ― 4.0 ― Korea tax settlement ― ― (8.6) ― ― Russia-Ukraine conflict charges ― (5.5) ― ― ― Net expenses related to COVID-19 pandemic (8.3) (4.4) ― ― ― Expenses related to regulatory inquiries and legal accruals (12.5) ― ― ― ― Non-income tax items, net 7.4 ― ― ― ― Adjusted G&A 1,635.7 1,580.3 1,606.1 1,620.4 1,630.7 Adjusted G&A as a percentage of net sales 28.2% 30.4% 31.7% 32.5% 32.4% Reconciliation of G&A to Adjusted G&A 33Midwest IDEAS Conference |(1) Prior period amounts were reclassified to conform to current period presentation. Refer to Supplemental Information “Reclassi fications” included herein for additional details.
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$ million 2021 2022 2023 2024 2025 Net sales 5,802.8 5,204.4 5,062.4 4,993.1 5,037.5 Net income attributable to Herbalife 447.2 321.3 142.2 254.3 228.3 Interest expense, net 148.7 133.2 154.4 206.0 205.9 Income taxes 113.6 103.5 60.8 (84.9) 47.3 Depreciation and amortization 107.6 115.4 113.3 121.4 121.2 EBITDA 817.1 673.4 470.7 496.8 602.7 Amortization of SaaS implementation costs ― ― 6.0 22.3 21.3 Expenses related to Technology Realignment Program ― ― ― ― 9.1 Expenses related to Restructuring Program ― ― ― 69.1 7.0 Expenses related to Transformation Program 12.9 12.1 54.2 13.4 ― Digital technology program costs ― 11.9 32.1 26.7 6.2 Transition charge related to Sep ‘25 India GST amendments ― ― ― ― 11.3 Gain on sale of property ― ― ― (4.0) ― Loss (gain) on extinguishment of debt 24.6 (12.8) (1.0) 10.5 ― Korea tax settlement ― ― 8.6 ― ― Russia-Ukraine conflict charges ― 5.5 ― ― ― Net expenses related to COVID-19 pandemic 13.8 4.4 ― ― ― Expenses related to regulatory inquiries and legal accruals 12.5 ― ― ― ― Non-income tax items, net (7.4) ― ― ― ― Adjusted EBITDA 873.5 694.5 570.6 634.8 657.6 Interest income 4.4 6.1 11.5 12.3 8.5 Inventory write-downs 28.8 38.4 28.5 18.9 25.9 Share-based compensation expenses 54.1 44.4 48.0 50.0 44.1 Other expenses1 18.3 0.1 11.5 12.8 5.9 Credit Agreement EBITDA 979.1 783.5 670.1 728.8 742.0 Credit Agreement Total Debt2 2,845.8 2,716.9 2,581.1 2,332.7 2,050.0 Credit Agreement Total Leverage Ratio 2.9x 3.5x 3.9x 3.2x 2.8x Net income margin 7.7% 6.2% 2.8% 5.1% 4.5% Adjusted EBITDA margin 15.1% 13.3% 11.3% 12.7% 13.1% (1) Other expenses include certain non-cash items such as bad debt expense, unrealized foreign currency gains and losses, and other gains and losses (2) Represents the outstanding principal amount of total debt as of the respective period end 34Midwest IDEAS Conference | Reconciliation of Net Income Attributable to Herbalife to EBITDA, Adjusted EBITDA and Credit Agreement EBITDA and Total Leverage Ratio
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Reconciliation of Net Income (Loss) Attributable to Herbalife to EBITDA, Adjusted EBITDA and Credit Agreement EBITDA and Leverage Ratios Quarters TTM Year to Date Full Year $ million Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Jun 2026 Jun 2025 Jun 2026 2025 Net sales 1,259.1 1,273.7 1,283.0 1,317.2 1,326.8 5,200.7 2,480.8 2,644.0 5,037.5 Net income (loss) attributable to Herbalife 49.3 43.2 85.4 61.9 (26.3) 164.2 99.7 35.6 228.3 Interest expense, net 53.6 51.0 49.3 46.8 37.4 184.5 105.6 84.2 205.9 Income taxes 29.8 31.7 (34.6) 30.4 22.8 50.3 50.2 53.2 47.3 Depreciation and amortization 30.5 30.7 29.3 29.4 31.4 120.8 61.2 60.8 121.2 EBITDA 163.2 156.6 129.4 168.5 65.3 519.8 316.7 233.8 602.7 Amortization of SaaS implementation costs 5.7 5.0 4.9 4.8 4.3 19.0 11.4 9.1 21.3 Expenses related to Technology Realignment Program 3.6 0.6 4.9 2.4 1.1 9.0 3.6 3.5 9.1 Expenses related to Optimization Program ― ― ― ― 1.3 1.3 4.0 1.3 ― Expenses related to Restructuring Program 0.7 0.8 2.2 ― ― 3.0 ― ― 7.0 Digital technology program costs 0.4 ― 3.4 ― ― 3.4 2.8 ― 6.2 Transition charge related to Sep ‘25 India Goods and Services Tax amendments ― ― 11.3 ― ― 11.3 ― ― 11.3 Loss (gain) on extinguishment of debt ― ― ― ― 94.6 94.6 ― 94.6 ― Adjusted EBITDA 173.6 163.0 156.1 175.7 166.6 661.4 338.5 342.3 657.6 Interest income 1.8 2.0 2.1 2.7 2.6 9.4 4.4 5.3 8.5 Inventory write-downs 3.5 6.5 4.5 5.9 6.1 23.0 14.9 12.0 25.9 Share-based compensation expenses 10.4 11.2 10.9 10.6 10.1 42.8 22.0 20.7 44.1 Other expenses (income)1 3.1 1.5 (0.2) (0.9) 5.3 5.7 4.6 4.4 5.9 Credit Agreement EBITDA 192.4 184.2 173.4 194.0 190.7 742.3 384.4 384.7 742.0 Credit Agreement total debt2 2,039.6 2,050.0 Less: cash and cash equivalents3 (370.5) (353.1) Net debt 1,669.1 1,696.9 Credit Agreement total leverage ratio4 2.7x 2.8x Net leverage ratio5 2.2x 2.3x Net income margin 3.9% 3.4% 6.7% 4.7% -2.0% 3.2% 4.5% Adjusted EBITDA margin 13.8% 12.8% 12.2% 13.3% 12.6% 12.7% 13.1% 35Midwest IDEAS Conference | (1) Other expenses (income) include certain non-cash items such as bad debt expense, unrealized foreign currency gains and losses, and other gains and losses (2) Represents the aggregate outstanding principal amount of total debt as of the respective period end (3) Represents cash and cash equivalents as of the respective period end (4) Represents the ratio of Credit Agreement total debt to the trailing twelve months of Credit Agreement EBITDA for the respective period as calculated pursuant to the Credit Agreement (5) Represents the ratio of net debt to the trailing twelve months of Credit Agreement EBITDA for the respective period
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Reconciliation of Net (Loss) Income Attributable to Herbalife to Adjusted Net Income $ million Q2 2026 Q2 2025 Net (loss) income attributable to Herbalife (26.3) 49.3 Expenses related to Technology Realignment Program1 1.1 3.5 Expenses related to Restructuring Program1 ― 0.7 Expenses related to Optimization Program1 1.3 ― Digital technology program costs1 ― 0.4 Loss on extinguishment of debt1 94.6 ― Income tax adjustments for above items (details below)1 (20.8) (1.3) Deferred income tax effects, net, related to corporate entity reorganization2 3.3 7.8 Adjusted Net Income3 53.3 60.5 Income tax adjustments: Expenses related to Technology Realignment Program (0.4) (1.0) Expenses related to Restructuring Program ― (0.2) Expenses related to Optimization Program (0.4) ― Digital technology program costs ― (0.1) Loss on extinguishment of debt (20.0) ― Total income tax adjustments (20.8) (1.3) 36Midwest IDEAS Conference | (1) Based on interim income tax reporting rules, these expense items are not considered discrete items. The tax effect of the adj ustments between our U.S. GAAP and non-GAAP results takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). (2) Non-cash net deferred tax effects related to an income tax benefit previously recognized due to changes to corporate entity structure in Q4 2024. Refer to Supplemental Information included herein for further details. (3) Amounts may not total due to rounding. YTD 2026 YTD 2025 35.6 99.7 3.5 3.6 ― 4.0 1.3 ― ― 2.8 94.6 ― (21.5) (2.6) 8.7 12.9 122.3 120.4 (1.1) (1.0) ― (1.1) (0.4) ― ― (0.5) (20.0) ― (21.5) (2.6)
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Reconciliation of Diluted (Loss) EPS to Adjusted Diluted EPS 37Midwest IDEAS Conference | (1) Based on interim income tax reporting rules, these expense items are not considered discrete items. The tax effect of the adj ustments between our U.S. GAAP and non-GAAP results takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). (2) Non-cash net deferred tax effects related to an income tax benefit previously recognized due to changes to corporate entity structure in Q4 2024. Refer to Supplemental Information included herein for further details. (3) Amounts may not total due to rounding $ per share Q2 2026 Q2 2025 Diluted earnings (loss) per share (0.25) 0.48 Expenses related to Technology Realignment Program1 0.01 0.03 Expenses related to Restructuring Program1 ― 0.01 Expenses related to Optimization Program1 0.01 ― Digital technology program costs1 ― ― Loss on extinguishment of debt1 0.91 ― Income tax adjustments for above items (details below)1 (0.20) (0.01) Deferred income tax effects, net, related to corporate entity reorganization2 0.03 0.08 Adjusted Diluted Earnings Per Share3 0.51 0.59 Income tax adjustments: Expenses related to Technology Realignment Program (0.01) Expenses related to Restructuring Program ― ― Digital technology program costs ― ― Loss on extinguishment of debt (0.20) ― Total income tax adjustments (0.20) (0.01) YTD 2026 YTD 2025 0.33 0.97 0.03 0.03 ― 0.04 0.01 ― ― 0.03 0.88 ― (0.20) (0.03) 0.08 0.13 1.13 1.17 (0.01) (0.01) ― (0.01) ― (0.01) (0.19) ― (0.20) (0.03)
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FX Translation Impact 38Midwest IDEAS Conference | (1) Includes items referenced in “Reconciliation of Net Income Attributable to Herbalife to EBITDA, Adjusted EBITDA and Credit Ag reement EBITDA and Leverage Ratios”, “Reconciliation of Net Income Attributable to Herbalife to Adjusted Net Income” and “Reconciliation of Diluted EPS to Adjusted Diluted EPS” included herein (2) Q2 2026 adjusted using U.S. dollars at Q2 2025 average FX rates and adjusting for other FX related impacts $ million, except EPS Net Sales EBITDA Net (Loss) Income Attributable to Herbalife Diluted (Loss) EPS Q2 2026 as reported 1,326.8 65.3 (26.3) (0.25) Non-GAAP adjustments1 ― 101.3 79.5 0.76 Q2 2026 adjusted 1,326.8 166.6 53.2 0.51 FX rate adjustments2 5.4 7.6 4.3 0.04 Q2 2026 FX Adjusted 1,332.2 174.2 57.5 0.55 YTD 2026 as reported 2,644.0 233.9 35.6 0.34 Non-GAAP adjustments1 ― 108.6 86.7 0.80 YTD 2026 adjusted 2,644.0 342.5 122.3 1.13 FX rate adjustments2 (23.7) 12.2 7.7 0.07 YTD 2026 FX Adjusted 2,620.3 354.7 130.0 1.20
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(1) Non-GAAP Measure. Refer to Appendix for further details and reconciliation to most directly comparable U.S. GAAP measure. (2) Literature, Promotional and Other. Product buybacks and returns in all product categories are included in the Literature, Promotional and Other category (3) Euromonitor; CH2026ed, protein shake as sports protein powder, sports protein RTDs, meal replacement, supplement nutrition drinks & protein supplements; combined % RSP share GBO for 2025 RTD = Ready to Drink; RSP = Retail Selling Price; GBO = Global Brand Owner (4) As of Dec 31 ‘25. Members include consumers who purchase products for their own personal use and distributors who wish to resell products or build a sales organization (5) As of Jun 30 ‘26 Herbalife is a premier health and wellness company, community and platform that has been changing people’s lives with science-backed nutrition products and a unique business opportunity since 1980 • ~144 high-quality branded product types primarily in the categories of weight management, targeted nutrition and sports nutrition • Differentiating direct-selling business model to distribute and market our products through a global network of independent members • Scalable and industry-leading infrastructure driven by “Seed-to-Feed” strategy o ~46% of inner nutrition products in 2025 were self-manufactured in our facilities (U.S. and China) • ~8,500 employees worldwide, ~2,200 in U.S. as of Dec 31 ‘25 6.4M Global Members4 Across 95 Markets Nutrition Clubs Worldwide5 ~63K 2025 Net Sales $5.0B 13.1% 2025 Adjusted EBITDA1 Margin in U.S.5 ~8.8K 2025 Net Sales by Geography 2025 Net Sales by Product Category Asia Pacific 34% North America 22% Latin America 16% EMEA 21% China 6% Weight Management 56% Targeted Nutrition 29% Energy, Sports & Fitness 11% North America 21% Latin America 17% EMEA 22% Asia Pacific 34% China 6% Weight Management 54% Targeted Nutrition 30% Energy, Sports & Fitness 12% Outer Nutrition 2% Other 2% 2 #1 Protein Shake in the World3 Herbalife-at-a-Glance 39Midwest IDEAS Conference | Jun 30 ‘26 Total Leverage Ratio 2.7x Net Leverage Ratio1 2.2x