Herbalife Nutrition Ltd.

First quarter net sales were $1.3 billion, up 7.8% year over year and up 5.4% in constant currency. Adjusted EBITDA was $176 million, above the high end of guidance, with adjusted EBITDA margin at 13.3% (down 20 bps year over year). Gross profit margin was 77.9%, down 40 bps year over year. Adjusted diluted EPS was $0.64, including a $0.03 FX headwind, and net income attributable to Herbalife Nutrition Ltd. was $62 million. For Q2 2026, the company guided to net sales up 1.5% to 5.5% reported and 1% to 5% constant currency, with adjusted EBITDA of $150 million to $170 million. For full year 2026, it guided to net sales up 1.5% to 5.5% reported and 1% to 5% constant currency, adjusted EBITDA of $675 million to $705 million, capex of $50 million to $80 million, capitalized SaaS implementation costs of $35 million to $55 million, and an adjusted effective tax rate of about 30%.

Stephan Paulo Gratziani framed the quarter as evidence that Herbalife is becoming a more connected, personalized health-and-wellness platform rather than just a product seller. He emphasized the combination of distributor relationships, data, AI-enabled tools, and personalized products, saying the acquisitions and Protocol are meant to make the business more precise and scalable. His tone was upbeat and confident, repeatedly pointing to momentum, a stronger capital structure, and the upcoming launch of next-generation personalized supplements.

John G. DeSimone focused on the company’s outperformance versus guidance and the mechanics behind it. He cited Q1 net sales of $1.3 billion, adjusted EBITDA of $176 million, gross margin of 77.9%, adjusted diluted EPS of $0.64, and operating cash flow of $114 million, while noting Q1 cash of $451 million and leverage of 2.7x total / 2.1x net. He also detailed the April refinancing of $1.45 billion of debt, the $45 million annualized cash interest savings expectation, no material maturities until 2028, and reiterated the priority of getting gross debt to about $1.4 billion by 2028 and net leverage below 2x by year-end.

Analysts focused heavily on Protocol, India, China, EMEA, pricing, oil costs, and the new acquisitions. Management said Protocol is still in beta, has not been modeled into forecasted revenue, and is mainly about learning and product refinement for distributor workflows and customer engagement. On India, they said the GST-driven lift has been strong and should carry into later quarters even if growth rates moderate; on China, they described the business as under 5% of sales, still a long-term opportunity, and not yet something they are baking into forecasted upside.