Despite maintaining a consistent gross margin of 77.9% in 2026Q1, the company's operating margin has deteriorated to -0.4%, reflecting significant overhead pressure on core profitability.
| 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 |
|---|
| Sales/Revenue | 5.13B | 5.04B | 4.99B | 5.06B | 5.2B | 5.8B | 5.54B | 4.88B | 4.89B | 4.43B | 4.49B | 4.47B | 4.96B | 4.83B | 4.07B | 3.45B | 2.73B | 2.32B | 2.36B | 2.15B | 1.89B | 1.57B | 1.31B | 1.16B |
| Revenue Growth % | 3.69% | 0.89% | -1.37% | -2.73% | -10.31% | 4.71% | 13.63% | -0.3% | 10.48% | -1.35% | 0.43% | -9.87% | 2.76% | 18.49% | 17.88% | 26.34% | 17.62% | -1.47% | 9.94% | 13.81% | 20.35% | 19.63% | 12.96% | - |
| Cost of Goods Sold | 1.21B | 1.23B | 1.1B | 1.19B | 1.17B | 1.24B | 1.15B | 958M | 919.3M | 848.6M | 854.6M | 856M | 982.9M | 963.42M | 812.58M | 680.08M | 558.81M | 493.13M | 458.4M | 438.38M | 380.34M | 315.75M | 269.91M | 235.78M |
| COGS % of Revenue | - | 24.39% | 22.12% | 23.53% | 22.55% | 21.36% | 20.76% | 19.64% | 18.79% | 19.17% | 19.04% | 19.15% | 19.82% | 19.97% | 19.95% | 19.69% | 20.44% | 21.21% | 19.43% | 20.43% | 20.17% | 20.15% | 20.61% | 20.34% |
| Gross Profit | 3.93B | 3.81B | 3.89B | 3.87B | 4.03B | 4.56B | 4.39B | 3.92B | 3.97B | 3.58B | 3.63B | 3.61B | 3.98B | 3.86B | 3.26B | 2.77B | 2.18B | 1.83B | 1.9B | 1.71B | 1.51B | 1.25B | 1.04B | 923.65M |
| Gross Margin % | 76.51% | 75.61% | 77.88% | 76.47% | 77.45% | 78.64% | 79.24% | 80.36% | 81.21% | 80.83% | 80.96% | 80.85% | 80.18% | 80.03% | 80.05% | 80.31% | 79.56% | 78.79% | 80.57% | 79.57% | 79.83% | 79.85% | 79.39% | 79.66% |
| Gross Profit Growth % | - | -2.05% | 0.45% | -3.95% | -11.67% | 3.92% | 12.05% | -1.34% | 10.99% | -1.51% | 0.58% | -9.12% | 2.95% | 18.47% | 17.49% | 27.54% | 18.78% | -3.65% | 11.32% | 13.44% | 20.32% | 20.32% | 12.57% | - |
| Operating Expenses | 3.46B | 3.37B | 3.5B | 3.52B | 3.49B | 3.83B | 3.75B | 3.35B | 3.29B | 2.96B | 3.18B | 3.03B | 3.46B | 3.13B | 2.6B | 1.07B | 887.65M | 1.54B | 1.57B | 1.39B | 1.25B | 1.03B | 901.03M | 816.61M |
| OpEx % of Revenue | - | 66.85% | 70.15% | 69.43% | 66.97% | 65.99% | 67.68% | 68.71% | 67.24% | 66.9% | 70.75% | 67.79% | 69.82% | 64.8% | 63.8% | 31.11% | 32.46% | 66.05% | 66.49% | 64.98% | 66.2% | 65.86% | 68.8% | 70.43% |
| Selling, General & Admin | 3.06B | 3.45B | 1.79B | 1.87B | 1.81B | 2.01B | 2.08B | 1.94B | 1.96B | 1.76B | 1.97B | 1.78B | 1.99B | 1.63B | 1.26B | 1.07B | 887.65M | 1.54B | 771.85M | 1.39B | 1.25B | 1.03B | 901.03M | 816.61M |
| SG&A % of Revenue | - | 68.42% | 35.91% | 36.86% | 34.79% | 34.67% | 37.44% | 39.78% | 39.97% | 39.72% | 43.82% | 39.79% | 40.15% | 33.76% | 30.93% | 31.11% | 32.46% | 66.05% | 32.72% | 64.98% | 66.2% | 65.86% | 68.8% | 70.43% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | -79.3M | 1.71B | 1.65B | 1.68B | 1.82B | 1.68B | 1.41B | -57.3M | 400K | 1.21B | -2.3M | -13M | 1.5B | 1.34B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 326.3M | 441.5M | 385.9M | 356.4M | 545.2M | 734.1M | 640.6M | 568.1M | 683.1M | 617.1M | 458.1M | 583.6M | 513.5M | 735.28M | 661.45M | 562.27M | 387.51M | 296.03M | 332.25M | 313.16M | 256.95M | 219.07M | 138.72M | 107.04M |
| Operating Margin % | 6.36% | 8.76% | 7.73% | 7.04% | 10.48% | 12.65% | 11.56% | 11.65% | 13.96% | 13.94% | 10.21% | 13.06% | 10.36% | 15.24% | 16.24% | 16.28% | 14.17% | 12.73% | 14.08% | 14.59% | 13.63% | 13.98% | 10.59% | 9.23% |
| Operating Income Growth % | - | 14.41% | 8.28% | -34.63% | -25.73% | 14.6% | 12.76% | -16.84% | 10.7% | 34.71% | -21.5% | 13.65% | -30.16% | 11.16% | 17.64% | 45.1% | 30.9% | -10.9% | 6.1% | 21.88% | 17.29% | 57.92% | 29.6% | - |
| EBITDA | 416.8M | 562.7M | 507.3M | 469.7M | 660.6M | 841.7M | 740.9M | 665.8M | 783.5M | 716.9M | 556.4M | 681.6M | 606.7M | 820.02M | 735.83M | 634.12M | 456.13M | 358.47M | 381.46M | 348.61M | 287.28M | 255.9M | 189.47M | 169.68M |
| EBITDA Margin % | 8.12% | 11.17% | 10.16% | 9.28% | 12.69% | 14.51% | 13.37% | 13.65% | 16.02% | 16.19% | 12.4% | 15.25% | 12.24% | 16.99% | 18.07% | 18.36% | 16.68% | 15.42% | 16.17% | 16.25% | 15.24% | 16.33% | 14.47% | 14.63% |
| EBITDA Growth % | -25.53% | 10.92% | 8.01% | -28.9% | -21.52% | 13.61% | 11.28% | -15.02% | 9.29% | 28.85% | -18.37% | 12.35% | -26.01% | 11.44% | 16.04% | 39.02% | 27.25% | -6.03% | 9.43% | 21.35% | 12.26% | 35.06% | 11.66% | - |
| D&A (Non-Cash Add-back) | 90.5M | 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 |
| EBIT | 338.6M | 441.5M | 387.7M | 368.9M | 564.1M | 713.9M | 649.4M | 581.1M | 683.1M | 617.1M | 428.4M | 586.9M | 538M | 741.27M | 667.64M | 569.64M | 389.76M | 300.54M | 332.25M | 313.16M | 256.95M | 219.07M | 138.72M | 107.04M |
| Net Interest Income | -200.7M | -205.9M | -206M | -154.4M | -133.2M | -148.7M | -124.2M | -132.4M | -161.6M | -146.3M | -93.4M | -94.9M | -79.2M | -18.6M | -10.5M | -2.49M | -7.42M | -5.1M | -13.22M | -10.57M | 0 | 0 | 0 | 0 |
| Interest Income | 5.9M | 8.5M | 12.3M | 11.5M | 6.1M | 4.4M | 8.8M | 20.6M | 19.4M | 14.5M | 5.9M | 5.6M | 12.5M | 7.99M | 6.2M | 7.37M | 2.25M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 206.6M | 214.4M | 218.3M | 165.9M | 139.3M | 153.1M | 133M | 153M | 181M | 160.8M | 99.3M | 100.5M | 91.7M | 26.55M | 16.74M | 9.86M | 9.66M | 5.1M | 13.22M | 10.57B | 0 | 0 | 123.31T | 0 |
| Other Income/Expense | -30.4M | -166.4M | -216.5M | -153.4M | -120.4M | -173.3M | -124.2M | -116.7M | -218.9M | -145.9M | -93.4M | -97.2M | -92.2M | -18.58M | -10.54M | -2.49M | -7.42M | -5.1M | -13.22M | -10.57M | -39.54M | -43.92M | -123.31M | -41.47M |
| Pretax Income | 295.9M | 275.1M | 169.4M | 203M | 424.8M | 560.8M | 516.4M | 451.4M | 464.2M | 471.2M | 364.7M | 486.4M | 421.3M | 716.72M | 650.91M | 559.78M | 380.1M | 290.93M | 319.03M | 302.58M | 217.41M | 175.15M | 15.41M | 65.57M |
| Pretax Margin % | 5.76% | 5.46% | 3.39% | 4.01% | 8.16% | 9.66% | 9.32% | 9.26% | 9.49% | 10.64% | 8.13% | 10.88% | 8.5% | 14.85% | 15.98% | 16.2% | 13.9% | 12.52% | 13.52% | 14.1% | 11.53% | 11.18% | 1.18% | 5.66% |
| Income Tax | 56.1M | 46.8M | -84.9M | 60.8M | 103.5M | 113.6M | 143.8M | 140.4M | 167.6M | 257.3M | 104.7M | 147.3M | 112.6M | 189.19M | 173.72M | 147.2M | 89.56M | 87.58M | 97.84M | 111.13M | 74.27M | 82.01M | 29.73M | 28.72M |
| Effective Tax Rate % | 18.96% | 17.01% | -50.12% | 29.95% | 24.36% | 20.26% | 27.85% | 31.1% | 36.11% | 54.61% | 28.71% | 30.28% | 26.73% | 26.4% | 26.69% | 26.3% | 23.56% | 30.1% | 30.67% | 36.73% | 34.16% | 46.82% | 192.84% | 43.8% |
| Net Income | 239.8M | 228.3M | 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 |
| Net Margin % | 4.67% | 4.53% | 5.09% | 2.81% | 6.17% | 7.71% | 6.72% | 6.38% | 6.06% | 4.83% | 5.79% | 7.59% | 6.23% | 10.93% | 11.72% | 11.94% | 10.63% | 8.75% | 9.38% | 8.92% | 7.59% | 5.94% | -1.09% | 3.18% |
| Net Income Growth % | -14.48% | -10.22% | 78.83% | -55.74% | -28.15% | 20.02% | 19.81% | 4.86% | 38.66% | -17.73% | -23.33% | 9.85% | -41.48% | 10.55% | 15.66% | 42.01% | 42.88% | -8.07% | 15.53% | 33.75% | 53.68% | 750.83% | -138.84% | - |
| Net Income (Continuing) | 239.8M | 228.3M | 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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 7.3M | 5.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.21 | 2.20 | 2.50 | 1.42 | 3.23 | 4.13 | 2.77 | 2.20 | 1.98 | 1.29 | 1.51 | 1.99 | 1.70 | 2.46 | 1.97 | 1.66 | 1.16 | 0.81 | 0.84 | 0.66 | 0.48 | 0.32 | -0.07 | 0.17 |
| EPS Growth % | -16.79% | -12% | 76.06% | -56.04% | -21.79% | 49.1% | 25.91% | 11.11% | 53.49% | -14.57% | -24.12% | 17.06% | -30.89% | 24.87% | 18.67% | 43.1% | 43.21% | -3.57% | 27.27% | 37.5% | 50% | 573.37% | -139.76% | - |
| EPS (Basic) | - | 2.22 | 2.53 | 1.44 | 3.26 | 4.22 | 2.83 | 2.26 | 1.98 | 1.35 | 1.57 | 2.06 | 1.79 | 2.57 | 2.07 | 1.77 | 1.23 | 0.83 | 0.87 | 0.69 | 0.51 | 0.34 | -0.07 | 0.17 |
| Diluted Shares Outstanding | 108.4M | 103.6M | 101.6M | 100.2M | 99.5M | 108.3M | 134.5M | 141.6M | 149.5M | 165.7M | 172.2M | 170.6M | 181.6M | 214.8M | 235.8M | 249.69M | 252.99M | 252.39M | 263.08M | 290.86M | 298.04M | 289.96M | 211.64M | 213.78M |
| Basic Shares Outstanding | 103.8M | 102.8M | 100.6M | 99M | 98.5M | 105.9M | 131.5M | 137.4M | 149.5M | 158.5M | 166.1M | 165.2M | 172.6M | 205.2M | 224.8M | 235.08M | 238.01M | 244.88M | 255.14M | 277.99M | 283.26M | 275.89M | 211.64M | 213.78M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | 9.85% | 23.33% | 28.31% | 20.72% | 18.5% | 23.96% | 22.92% | 21.69% | - | - | - | - |
Regulatory and distributor attrition
As reported in recent financial filings, HLF's revenue growth has fluctuated within a narrow band, with the most recent quarterly figures showing a 7.8% year-over-year increase that masks a broader trend of stagnation across core weight management segments in mature, highly competitive global wellness markets.
The inconsistent revenue trajectory suggests that the company is struggling to find new volume drivers, likely due to the saturation of its direct-selling model in key regions. Investors should monitor whether this recent uptick represents a sustainable recovery or merely a temporary deviation from the long-term trend of flat-to-declining top-line performance.
Based on historical income statement data, HLF maintains a robust gross margin profile, consistently hovering near 77-78%, which reflects the inherent pricing power of its specialized nutritional product portfolio despite the broader challenges facing the company's multi-level marketing distribution infrastructure and overall operational efficiency.
The stability of these gross margins indicates that the company retains significant control over its manufacturing costs and pricing, even as top-line growth remains elusive. However, the disconnect between these high gross margins and the significantly lower operating margins suggests that the cost of maintaining the distributor network is a persistent drag on profitability.
According to quarterly income statements, HLF's operating income has failed to scale proportionally with gross profit, as evidenced by the recent dip to a -0.4% operating margin in 2026Q1, highlighting the heavy burden of administrative and distributor-related expenses on the company's bottom-line performance.
The inability to achieve meaningful operating leverage suggests that the current cost structure is highly rigid, with SG&A expenses consuming the vast majority of gross profit. This lack of scalability warrants investigation into whether management can effectively streamline operations without undermining the incentive structures that drive the core sales force.
As indicated by the significant variance in net income across the last ten quarters, HLF's bottom-line results appear heavily influenced by non-operating items and tax fluctuations, which complicates the assessment of true underlying profitability and the quality of reported earnings for long-term investors.
The sharp swings in net income, such as the $177.9 million reported in 2024Q4 compared to much lower figures in adjacent periods, suggest that headline EPS may not accurately reflect core operational health. Analysts should focus on normalized earnings metrics to strip away the noise created by these periodic accounting adjustments.
Based on reported figures, the persistent gap between gross and operating margins suggests that the company's reliance on a complex, incentive-heavy distribution model may be reaching a point of diminishing returns, posing a significant risk to future profitability if distributor recruitment and retention rates continue to falter.
Short-sellers would likely focus on the potential for margin compression if regulatory pressures force a restructuring of the compensation model or if the cost of acquiring new distributors continues to rise. The current operational model appears increasingly vulnerable to shifts in the gig economy landscape, where alternative income opportunities may be more attractive.
Quick answers to the most common questions about buying HLF stock.
For fiscal year 2025, Herbalife Nutrition Ltd. (HLF) reported total revenue of $5.04B. This represents a 334.5% increase compared to $1.16B in 2003.
Herbalife Nutrition Ltd. (HLF) is profitable, generating $228.3M in net income for the fiscal year ending 2025 with a net profit margin of 4.5%.
Herbalife Nutrition Ltd. (HLF) reported an operating income of $441.5M, resulting in an operating profit margin of 8.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Herbalife Nutrition Ltd. (HLF) generated $3.81B in gross profit for the year, representing a gross profit margin of 75.6%. This demonstrates the company's core pricing power and production efficiency.