Herbalife’s first quarter saw revenue and non-GAAP earnings per share come in above Wall Street expectations, but the market responded negatively due to concerns highlighted by management. CEO Stephan Paulo Gratziani cited India’s rapid sales gains, driven by a favorable GST tax change, as a key driver. However, he also noted mixed regional trends, with softness in EMEA and North America, and ongoing challenges in China. CFO John G. DeSimone described the quarter as a “strong start,” but acknowledged persistent input cost inflation and unfavorable sales mix impacting margins.
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Herbalife (HLF) Q1 CY2026 Highlights:
- Revenue: $1.32 billion vs analyst estimates of $1.30 billion (7.8% year-on-year growth, 1.4% beat)
- Adjusted EPS: $0.64 vs analyst estimates of $0.61 (5.4% beat)
- Adjusted EBITDA: $164.9 million vs analyst estimates of $167.6 million (12.5% margin, 1.6% miss)
- Revenue Guidance for Q2 CY2026 is $1.30 billion at the midpoint, below analyst estimates of $1.31 billion
- EBITDA guidance for the full year is $690 million at the midpoint, in line with analyst expectations
- Operating Margin: 10.5%, in line with the same quarter last year
- Market Capitalization: $1.41 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Herbalife’s Q1 Earnings Call
- Chasen Louis Bender (Citi) asked about the impact of the Protocol beta on distributor behavior. CEO Stephan Paulo Gratziani said feedback is driving feature development and that revenue from the platform is not yet included in forecasts.
- Karru Martinson (Jefferies) questioned how higher oil prices are affecting North American consumers. CFO John G. DeSimone replied that increased costs are being absorbed by the company, with no direct price increases for customers.
- Nicholas Sherwood (Maxim Group) asked about early results of the packaging redesign. Gratziani responded that while feedback and research are positive, it is too early to draw conclusions from real-world results.
- John Baumgartner (Mizuho Securities) inquired about segmentation and tiering for personalized nutrition. Gratziani explained that the Vionic and Link acquisitions enable Herbalife to reach different price points and demographics, broadening the addressable market.
- Douglas Matthai Lane (Water Tower Research) asked about the exclusivity and branding of Vionic products. Gratziani confirmed they will be available only through Herbalife distributors, with specific branding details to be revealed at an upcoming company event.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be monitoring (1) the scale and customer adoption of Vionic’s personalized supplements in Europe and North America, (2) the effectiveness of the Protocol platform in deepening distributor engagement and driving incremental sales, and (3) whether growth in India remains robust as the GST tailwind subsides. Progress with subscription models and the pace of margin recovery in EMEA will also be critical signposts.
Herbalife currently trades at $13.63, down from $16.44 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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