Free cash flow remains highly volatile, with margins fluctuating between -1.5% and 9.3% over the last ten quarters, further complicated by an erratic OCF/NI ratio that reached 21.81 in 2024Q2.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 |
|---|
| Cash from Operations | 446.9M | 333.3M | 285.4M | 357.5M | 352.5M | 460.3M | 628.6M | 457.5M | 648.4M | 590.8M | 367.3M | 628.7M | 511.4M | 772.88M | 567.78M | 509.33M | 380.4M | 285.06M | 272.99M | 270.81M | 184.45M | 143.35M | 80.22M | 94.65M |
| Operating CF Margin % | - | 6.62% | 5.72% | 7.06% | 6.77% | 7.93% | 11.34% | 9.38% | 13.25% | 13.34% | 8.18% | 14.07% | 10.31% | 16.02% | 13.94% | 14.74% | 13.91% | 12.26% | 11.57% | 12.62% | 9.78% | 9.15% | 6.13% | 8.16% |
| Operating CF Growth % | 56874.39% | 16.78% | -20.17% | 1.42% | -23.42% | -26.77% | 37.4% | -29.44% | 9.75% | 60.85% | -41.58% | 22.94% | -33.83% | 36.12% | 11.48% | 33.89% | 33.45% | 4.42% | 0.8% | 46.82% | 28.67% | 78.69% | -15.24% | - |
| Net Income | 239.8M | 227.8M | 254.3M | 142.2M | 321.3M | 447.2M | 372.6M | 311M | 296.6M | 213.9M | 260M | 339.1M | 308.7M | 527.52M | 477.19M | 412.58M | 290.53M | 203.35M | 221.19M | 191.45M | 143.14M | 93.14M | -14.31M | 36.85M |
| Depreciation & Amortization | 119.9M | 121.2M | 121.4M | 113.3M | 115.4M | 107.6M | 100.3M | 97.7M | 100.4M | 99.8M | 98.3M | 98M | 93.2M | 84.74M | 74.38M | 71.85M | 68.62M | 62.44M | 49.21M | 35.45M | 30.34M | 36.83M | 50.75M | 62.64M |
| Stock-Based Compensation | 32.5M | 44.1M | 50M | 48M | 44.4M | 54.1M | 51M | 38.6M | 35.5M | 42.1M | 40.2M | 44.9M | 45.7M | 29.49M | 27.91M | 24.13M | 22.97M | 20.91M | 17.79M | 12.9B | 11.3B | 0 | 32.51T | 0 |
| Deferred Taxes | -50.8M | -64.2M | -229.6M | -41.1M | -29.9M | -33.3M | 2M | 15.4M | -8.1M | 97.8M | -36.4M | -38.2M | -84.8M | -24.91M | -9.05M | -12.98M | -24.63M | -11.23M | -4.1M | 3.34M | -19.54M | -12.46M | 3.62M | -12.16M |
| Other Non-Cash Items | 42.5M | 39.9M | 56.8M | 47.4M | 24.4M | 103M | 62.5M | 57M | 144.8M | 85.2M | 63.1M | 114.8M | 285.3M | 23.3M | -25.23M | -13.92M | -5.39M | 2.37M | 2.6M | -12.92B | -11.3B | 5.34M | -32.51T | 8.51M |
| Working Capital Changes | 63.5M | -35.5M | 32.5M | 47.7M | -123.1M | -218.3M | 40.2M | -62.2M | 79.2M | 52M | -57.9M | 70.1M | -136.7M | 132.73M | 22.59M | 27.67M | 28.3M | 7.22M | -13.7M | 58.52M | 37.05M | 20.49M | 5.08M | -1.19M |
| Change in Receivables | -14M | -19.7M | 5.9M | -9.1M | -9.1M | 9.6M | 121.1M | 19.9M | 127.3M | -22.2M | 23.1M | -6.2M | 6M | 9.22B | -28.19B | -9.69B | -7.59B | 2.36B | -18.53B | -2.38B | -12.23B | 0 | 4T | 0 |
| Change in Inventory | -7M | -27.9M | -30.4M | 57.5M | -68.4M | -129.1M | -76.6M | -68.6M | -83.3M | 37.9M | -71.6M | -30.5M | -99.4M | -39.88M | -82.18M | -84.88M | -31.52M | -1.74M | -27.57M | 26.77M | -29.94M | -40.25M | -7.57M | 592K |
| Change in Payables | 500K | 24.1M | -14.6M | -7.4M | -1.1M | 6.9M | 5.5M | 100K | 21.7M | -5M | -1.3M | 6M | -5.2M | 10.84M | 17.03M | 15.43M | 6.65M | -9.5M | 8.92M | -7.59B | -1.89B | 0 | 449B | 0 |
| Cash from Investing | -101.1M | -108.7M | -84.6M | -134.8M | -156.2M | -156.4M | -123.2M | -108M | -83.9M | -97.8M | -141.3M | -73.4M | -201.3M | -150.82M | -125M | -92.09M | -69.14M | -71.32M | -84.96M | -43.39M | -66.81M | -32.53M | -9.38M | 2.85M |
| Capital Expenditures | -73M | -80.4M | -122M | -135M | -156.4M | -151.4M | -112M | -106.1M | -84M | -95.5M | -143.4M | -79M | -173.7M | -146.96M | -121.52M | -90.41M | -68.13M | -59.77M | -88.6M | -41.94M | -62.46M | -31.54M | -23.08M | -13.6M |
| CapEx % of Revenue | 1.42% | 1.6% | 2.44% | 2.67% | 3.01% | 2.61% | 2.02% | 2.18% | 1.72% | 2.16% | 3.19% | 1.77% | 3.5% | 3.05% | 2.98% | 2.62% | 2.49% | 2.57% | 3.76% | 1.95% | 3.31% | 2.01% | 1.76% | 1.17% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 400K | 0 | 0 | 0 | 0 | 0 | -10M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -28.1M | -28.3M | 37.4M | 200K | 200K | -5M | -11.2M | -1.9M | 100K | -2.3M | 2.1M | 5.7M | -15M | 186K | -3.48M | 297K | -1.01M | -1.55M | 3.64M | -1.45M | -4.35M | -990K | 13.7M | 15.19M |
| Cash from Financing | -221.3M | -295.5M | -335.3M | -148.3M | -264.7M | -728.6M | -320.9M | -713M | -593.1M | -85.2M | -252.3M | -250M | -389.5M | 30.74M | -371.24M | -337.8M | -254.48M | -213.33M | -205.07M | -203.51M | -55.04M | -225.89M | -21.98M | -18.83M |
| Debt Issued (Net) | 100K | -284.2M | -305.5M | -138.7M | -115M | 286.9M | 607M | -699.5M | 128.2M | 779.5M | -238.8M | -227.6M | 1.07B | 443.7M | 284.1M | 25.34M | -72.45M | -101.11M | -49.56M | 170.61M | -87M | -227.44M | 142.56M | -23.04M |
| Equity Issued (Net) | 1.5M | -8.2M | -8.3M | -11M | -146.7M | -1.01B | -923.5M | -16.7M | -750.3M | -844.2M | -13.2M | -16.6M | -1.29B | -306.5M | -545.35M | -299.38M | -160.01M | -74.64M | -138.92M | -365.78M | 11.77M | 2.13M | 203.11M | 4.21M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -30.4M | -123.06M | -135.09M | -85.49M | -53.74M | -48.72M | -50.7M | -41.53M | 0 | 0 | -184.54M | 0 |
| Share Repurchases | 1.5M | -8.2M | -8.3M | -11M | -146.7M | -1.01B | -923.5M | -16.7M | -750.3M | -844.2M | -13.2M | -16.6M | -1.29B | -306.5M | -556.8M | -321.64M | -160.01M | -74.64M | -138.92M | -365.78M | 0 | 0 | 0 | 0 |
| Other Financing | -222.9M | -3.1M | -21.5M | 1.4M | -3M | -4.2M | -4.4M | 3.2M | 29M | -20.5M | -300K | -5.8M | -135.9M | 16.6M | 25.1M | 21.73M | 31.72M | 11.15M | 34.11M | 33.19M | 20.18M | -586K | -183.12M | 0 |
| Net Change in Cash | 121.9M | -62.8M | -157.4M | 79.2M | -94.1M | -443.6M | 206.5M | -367.5M | -80.5M | 434.8M | -45.8M | 244.4M | -327.6M | 639.44M | 74.76M | 68.22M | 39.75M | -46K | -36.56M | 33.08M | 66.08M | -113.33M | 50.9M | 86.48M |
| Free Cash Flow | 373.9M | 252.9M | 163.4M | 222.5M | 196.1M | 308.9M | 516.6M | 351.4M | 564.4M | 495.3M | 223.9M | 549.7M | 337.7M | 625.92M | 446.26M | 418.92M | 312.28M | 225.29M | 184.39M | 228.87M | 121.99M | 111.82M | 57.14M | 81.05M |
| FCF Margin % | 7.28% | 5.02% | 3.27% | 4.4% | 3.77% | 5.32% | 9.32% | 7.21% | 11.54% | 11.19% | 4.99% | 12.3% | 6.81% | 12.97% | 10.96% | 12.13% | 11.42% | 9.69% | 7.82% | 10.67% | 6.47% | 7.14% | 4.36% | 6.99% |
| FCF Growth % | 127.43% | 54.77% | -26.56% | 13.46% | -36.52% | -40.21% | 47.01% | -37.74% | 13.95% | 121.21% | -59.27% | 62.78% | -46.05% | 40.26% | 6.53% | 34.15% | 38.61% | 22.18% | -19.44% | 87.62% | 9.1% | 95.68% | -29.5% | - |
| FCF per Share | 3.45 | 2.44 | 1.61 | 2.22 | 1.97 | 2.85 | 3.84 | 2.48 | 3.78 | 2.99 | 1.30 | 3.22 | 1.86 | 2.91 | 1.89 | 1.68 | 1.23 | 0.89 | 0.70 | 0.79 | 0.41 | 0.39 | 0.27 | 0.38 |
| FCF Conversion (FCF/Net Income) | 1.56x | 1.46x | 1.12x | 2.51x | 1.10x | 1.03x | 1.69x | 1.47x | 2.19x | 2.76x | 1.41x | 1.85x | 1.66x | 1.47x | 1.19x | 1.23x | 1.31x | 1.40x | 1.23x | 1.41x | 1.29x | 1.54x | -5.61x | 2.57x |
| Interest Paid | 0 | 0 | 194.4M | 159.1M | 133.5M | 143.5M | 78.9M | 114.3M | 106.1M | 100.7M | 45.4M | 50.5M | 39.2M | 23M | 14.3M | 8.8M | 9.29M | 10.01M | 17.73M | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 146.5M | 133.1M | 144.9M | 156.3M | 138.2M | 147.9M | 158.9M | 158.8M | 162.9M | 168.4M | 180.8M | 197.1M | 169.7M | 118.91M | 111.5M | 95.14M | 73.94M | 0 | 0 | 0 | 0 | 0 |
Distributor network sustainability
According to quarterly financial data, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from 0.39 to 21.81, suggesting that reported net income is a poor proxy for the actual cash-generating capacity of the underlying business model.
The extreme volatility in the conversion of earnings to cash indicates that working capital swings and non-cash adjustments frequently obscure the core operational performance. Investors should monitor whether this divergence stems from aggressive revenue recognition timing or the inherent lumpiness of distributor-driven inventory cycles.
As reported in recent filings, HLF's free cash flow trajectory remains inconsistent, with margins fluctuating between -1.5% and 9.3% over the last ten quarters, reflecting a business that struggles to maintain a stable cash surplus amidst stagnant revenue growth and high operational overhead.
The inability to generate consistent positive free cash flow suggests that the company's capital requirements are disproportionately high relative to its current scale. This pattern warrants further investigation into whether the business can sustain its current operational footprint without further straining its liquidity position.
Based on historical cash flow statements, HLF's capital expenditure as a percentage of revenue has trended downward from 2.9% in 2023Q4 to 0.8% in 2026Q1, which may indicate a strategic reduction in infrastructure investment or a potential deferral of necessary asset maintenance.
While lower capital intensity can temporarily boost free cash flow, it may also signal a lack of investment in the digital or logistical upgrades required to modernize the distributor experience. Analysts should assess whether this decline in spending is sustainable or if it risks long-term operational degradation.
Data from recent quarterly reports reveals significant swings in working capital, including a notable $94.9 million outflow in 2025Q1, highlighting the company's vulnerability to inventory build-ups and the timing of distributor payments within its complex, multi-level marketing distribution network.
These working capital fluctuations suggest that the company's cash flow is highly sensitive to the purchasing behavior of its sales leaders. The lack of a predictable cash conversion cycle implies that liquidity management remains a primary challenge for the firm's financial controllers.
Quick answers to the most common questions about buying HLF stock.
Herbalife Nutrition Ltd. (HLF) generated $333.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Herbalife Nutrition Ltd. (HLF) generated $252.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Herbalife Nutrition Ltd. (HLF) spent $80.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Herbalife Nutrition Ltd. (HLF) spent $8.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.