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Herbalife Q1 2025 Earnings Report
Herbalife reported Q1 2025 net sales at the midpoint of guidance, with net sales growth excluding FX headwinds, and adjusted EBITDA exceeding guidance.
Key Takeaways
Herbalife reported strong first quarter 2025 results, with net sales of $1.2 billion at the midpoint of guidance and adjusted EBITDA of $164.9 million, exceeding expectations. The company also raised its full-year 2025 adjusted EBITDA expectations and reduced its total leverage ratio to 3.0x.
Net sales reached $1.2 billion, aligning with the midpoint of guidance, despite a 3.4% year-over-year decrease, which includes 480 basis points of FX headwinds.
Adjusted EBITDA was $164.9 million, surpassing guidance, with the adjusted EBITDA margin increasing by 260 basis points compared to Q1 2024.
Diluted EPS was $0.49, and adjusted diluted EPS was $0.59, reflecting a $0.13 year-over-year foreign currency headwind.
The company completed strategic acquisitions of Pro2col Health LLC and Pruvit Ventures, Inc., and formed a 51% ownership interest in HBL Link Bioscience LLC, aiming to strengthen its health and wellness offerings.
Revenue by Geographic Location
Forward Guidance
Herbalife provided second quarter 2025 guidance and revised its full-year 2025 guidance, narrowing the net sales range, raising adjusted EBITDA, and reducing capital expenditures.
Positive Outlook
- Full-year 2025 adjusted EBITDA guidance raised to $625-$655 million from $600-$640 million.
- Full-year 2025 adjusted EBITDA at constant currency raised to $690-$720 million from $670-$710 million.
- Full-year 2025 capital expenditures reduced to $90-$120 million from $100-$130 million.
- Second quarter 2025 adjusted EBITDA guidance of $160-$170 million.
- Second quarter 2025 adjusted EBITDA at constant currency guidance of $177-$187 million.
Challenges Ahead
- Second quarter 2025 reported net sales expected to be down 3.5% to up 0.5% year-over-year.
- Second quarter 2025 net sales at constant currency expected to be down 0.5% to up 3.5% year-over-year.
- Full-year 2025 reported net sales expected to be down 2.5% to up 2.5% year-over-year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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