Herbalife (NYSE:HLF) Beats Q4 CY2025 Sales Expectations, Stock Jumps 11.7%

Herbalife (NYSE:HLF) Beats Q4 CY2025 Sales Expectations, Stock Jumps 11.7%

Adam Hejl

Thu, February 19, 2026 at 6:41 AM GMT+9 4 min read

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Health and wellness products company Herbalife (NYSE:HLF) reported revenue ahead of Wall Street’s expectations in Q4 CY2025, with sales up 6.3% year on year to $1.28 billion. Guidance for next quarter’s revenue was better than expected at $1.28 billion at the midpoint, 1.4% above analysts’ estimates. Its non-GAAP profit of $0.45 per share was 5.6% below analysts’ consensus estimates.

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Herbalife (HLF) Q4 CY2025 Highlights:

**Revenue:** $1.28 billion vs analyst estimates of $1.24 billion (6.3% year-on-year growth, 3.6% beat)

**Adjusted EPS:** $0.45 vs analyst expectations of $0.48 (5.6% miss)

**Adjusted EBITDA:** $173.4 million vs analyst estimates of $150.2 million (13.5% margin, 15.4% beat)

**Revenue Guidance for Q1 CY2026** is $1.28 billion at the midpoint, above analyst estimates of $1.26 billion

**EBITDA guidance for the upcoming financial year 2026** is $690 million at the midpoint, above analyst estimates of $680.9 million

**Operating Margin:** 7.8%, down from 8.8% in the same quarter last year

**Free Cash Flow Margin:** 6.2%, up from 3.6% in the same quarter last year

**Market Capitalization:** $1.65 billion

“We exited 2025 with solid momentum, delivering Q4 and full‑year net sales growth and adjusted EBITDA1 above guidance. Cristiano Ronaldo’s investment in Pro2col reflects our shared ambition to scale personalized nutrition and wellness globally—uniting science, data, AI, innovation, and community to improve the health and performance of millions.”

Company Overview

With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE:HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.

With $5.04 billion in revenue over the past 12 months, Herbalife carries some recognizable products but is a mid-sized consumer staples company. Its size could bring disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale.

As you can see below, Herbalife’s demand was weak over the last three years. Its sales fell by 1.1% annually as consumers bought less of its products.

Herbalife Quarterly Revenue

This quarter, Herbalife reported year-on-year revenue growth of 6.3%, and its $1.28 billion of revenue exceeded Wall Street’s estimates by 3.6%. Company management is currently guiding for a 5% year-on-year increase in sales next quarter.

Story Continues  

Looking further ahead, sell-side analysts expect revenue to grow 2% over the next 12 months. While this projection implies its newer products will spur better top-line performance, it is still below average for the sector.

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Cash Is King

Although earnings are undoubtedly valuable for assessing company performance, we believe cash is king because you can’t use accounting profits to pay the bills.

Herbalife has shown mediocre cash profitability over the last two years, giving the company limited opportunities to return capital to shareholders. Its free cash flow margin averaged 4.2%, subpar for a consumer staples business.

Taking a step back, an encouraging sign is that Herbalife’s margin expanded by 1.7 percentage points over the last year. We have no doubt shareholders would like to continue seeing its cash conversion rise as it gives the company more optionality.

Herbalife Trailing 12-Month Free Cash Flow Margin

Herbalife’s free cash flow clocked in at $79.8 million in Q4, equivalent to a 6.2% margin. This result was good as its margin was 2.6 percentage points higher than in the same quarter last year, building on its favorable historical trend.

Key Takeaways from Herbalife’s Q4 Results

We were impressed by how significantly Herbalife blew past analysts’ EBITDA expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its EPS missed and its EBITDA guidance for next quarter fell short of Wall Street’s estimates. Overall, this print was mixed but still had some key positives. The stock traded up 11.7% to $18.47 immediately after reporting.

Herbalife put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

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