Short answer
HERBALIFE LTD. (HLF) filed its fiscal 2025 10-K annual report with the SEC on Feb 18, 2026. It reported revenue of $5.0B (+0.9% year over year) and net income of $228M.
- Top risk flagged: Regulatory risk: Compliance with FTC Consent Order, failure could materially harm business and financial results
FY2025 key financial metrics · XBRL
- Revenue
- $5.0B
- +0.9% YoY
- Net income
- $228M
- −10.2% YoY
- Operating margin
- 9.5%
- +1.8 pp YoY
- Gross margin
- 77.9%
- −0.0 pp YoY
- EPS (diluted)
- $2.20
- −12.0% YoY
- ROE
- -44.3%
- −12.6 pp YoY
- Operating cash flow
- $333M
- +16.8% YoY
Source: XBRL data from the HERBALIFE LTD. (HLF) FY2025 10-K on SEC EDGAR. USD.
HERBALIFE LTD. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Global health and wellness company using direct-selling model with independent Members distributing nutrition and lifestyle products in 95 markets
- New products: Launched HL/Skin skincare line in Europe/Africa, Protein Gelato in Brazil, MultiBurn metabolic supplement and Life I/O™ healthy lifespan brand in North America
- Strategic shift: Expanded targeted "daily consumption" models like Nutrition Clubs and Member-led wellness programs to increase customer engagement and loyalty
- Quantitative metric: 6.4 million total Members worldwide with approx. 750,000 sales leaders as of Dec 31, 2025; 70.3% sales leader retention rate for 2026 re-qualification
- Noteworthy fact: Unique China business model employing independent service providers due to regulatory restrictions on multi-level marketing, with tailored compensation system
Management Discussion & Analysis
- Revenue $5,037.5M, up 0.9% YoY (+$44.4M); local currency sales up 2.5%
- Operating margin 9.6% in 2025 vs 7.7% in 2024; net income $228.3M, down 10.2% YoY due to $132.2M higher income taxes
- Best segment: Primary Reporting Segment net sales $4,758.4M (+1.3%), contribution margin 42.8%; worst: China net sales down 6.2% to $279.1M, contribution margin +1.6%
- No explicit cash flow or capital allocation $ disclosed in excerpt; prior year included $10.5M loss on debt extinguishment
- Management outlook highlights ongoing inflation, FX risk, geopolitical conflicts impacting costs/pricing; focus on Member tools, new product launches, and digital platform rollout (Pro2col) in 2026
Risk Factors
- Regulatory risk: Compliance with FTC Consent Order, failure could materially harm business and financial results
- Geopolitical risk: China market requires modified business model amid political and legal uncertainties
- Supply chain risk: Dependence on manufacturing facilities and third-party suppliers for quality and timely product supply
- Competitive risk: Competition from more resourceful direct-selling organizations and emerging weight management drug technologies
- Financial risk: Obligations under convertible notes could dilute shares and depress share price upon conversion
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