A maker of weight-management and nutrition shakes, teas, and supplements sold by independent distributors in dozens of markets, Herbalife's best-known product is its Formula 1 Nutritional Shake Mix. Founder Mark Hughes started the company in 1980 after his mother died from an overdose of prescription diet pills, selling his first shakes from the trunk of his car. The name blends "herbal" and "life."
Herbalife swung to a $26.3M net loss in Q2 2026 after a $94.6M debt extinguishment charge, even as revenue rose 5.4% on the strongest volume growth in years.
Volume rose 5.8%, the fastest quarterly increase since 2021, but a refinancing loss erased the operating gain. rose 5.4% to $1.33 billion and was $128.3 million, yet a $94.6 million charge on debt extinguishment pushed the to a net loss of $26.3 million. The refinancing resets the capital structure, but the core business is growing again.
Key takeaways
A $94.6 million from the April 2026 refinancing was the primary driver of the $26.3 million net loss, compared to $49.3 million in a year earlier.
Worldwide volume rose 5.8%, the largest quarterly volume increase since Q2 2021, combining with a 3.0% price benefit to lift 5.4% to $1,326.8 million.
narrowed 0.3 points to 77.7% as unfavorable sales mix and higher write-downs more than offset benefits from price increases.
Section summaries
Management's Discussion and Analysis
Q2 2026 net sales rose 5.4% to $1.33B driven by volume and price, but a $94.6M debt extinguishment loss swung results to a net loss.
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Worldwide increased 5.4% to $1,326.8M, driven by a 5.8% volume increase and 3.0% from price hikes, partially offset by unfavorable .
The grew 7.4%, led by 15.2% growth in Asia Pacific and 16.6% in Latin America, while China net sales fell 24.5% to $60.4 million on a 28.7% volume drop.
General and administrative expenses rose $27.7 million, driven by higher non-income taxes, mainly India GST, and increased labor and benefits costs.
fell 65.7% to $32.9 million and fell 70.5% to $21.6 million, as the prior-year quarter benefited from favorable timing.
What changed
The Q1 2026 volume increase of 4.1% accelerated to 5.8% in Q2, confirming the return to volume growth flagged as a key watch item after FY2025.
narrowed to 77.7% from 77.9% in Q1 2026, as higher self-manufacturing costs and foreign exchange headwinds flagged last quarter continued to offset price increases.
North America , which fell 2.7% in Q1 2026 partly on weather-related delays, were not called out as a driver in Q2, while Asia Pacific growth accelerated from 17.3% to 15.2%.
China declined 24.5% after several quarters without a reported figure, showing the 's contraction has deepened rather than reversed.
The $94.6 million debt extinguishment loss and the April 2026 refinancing replace the prior capital structure, addressing the watch item on debt compliance with a new and secured notes.
What to watch
Q3 2026 to see whether unfavorable sales mix and write-downs continue to erode the 77.7% level as volume grows.
Q3 2026 China and volume to determine whether the 24.5% decline represents a new run rate or a one-quarter acceleration of the long-running contraction.
Q3 2026 recovery after the $32.9 million quarter, given the Q1 2026 improvement was driven by timing rather than higher .
Full-year 2026 under the new 2026 , with a 1% rate change moving annual interest by approximately $3.6 million.
The (ex-China) grew 7.4%, led by 15.2% growth in Asia Pacific (notably India up 32.9%) and 16.6% in Latin America, while EMEA fell 3.5%.
China declined 24.5% to $60.4M on a 28.7% volume drop, and its fell 25.9% due to lower volume and higher self-manufacturing costs.
margin contracted 34 to 77.7% as unfavorable and higher write-downs more than offset benefits from price increases.
A $94.6M from the April 2026 refinancing was the primary driver of the $26.3M net loss, compared to $49.3M in Q2 2025.
General and administrative expenses rose $27.7M, driven by higher non-income taxes (mainly India GST) and increased labor and benefits costs.
Quantitative and Qualitative Disclosures About Market Risk
The company faces foreign exchange and interest rate risks, using derivatives and fixed-rate debt to manage exposures.
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Foreign exchange risk arises from global operations, and the company uses short-term forward and option contracts to hedge intercompany transactions, local-currency earnings translation, and purchases.
As of June 30, 2026, total foreign currency forward contracts had an aggregate of $929.8 million and a net loss of $7.0 million.
Cash flow hedges for forecasted and intercompany management fees had a of $114.1 million, with $0.2 million in assets and $5.5 million in liabilities at .
Interest rate risk stems from the variable-rate 2026 ; a hypothetical 1% change in rates would alter annual by approximately $3.6 million.
Fixed-rate notes (2033 Secured Notes, ) carry fair-value sensitivity to rate changes but no income-statement impact, while the also bear fixed interest.
See discussion under Note 5, Contingencies, to the Condensed Consolidated Financial Statements included in Part I, Item 1, Financial Statements, of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
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See discussion under Note 5, Contingencies, to the Condensed Consolidated Financial Statements included in Part I, Item 1, Financial Statements, of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
No material changes to risk factors except updated debt references following the April 2026 refinancing.
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The company states there have been no material changes to risk factors from the 2025 10-K.
The sole updated risk factor highlights that the 2026 and 2033 Secured Notes contain restrictive limiting dividends, additional debt, asset sales, and liens.
The 2026 also imposes financial ratio and condition requirements that could constrain growth and operational flexibility.
Failure to comply with these could trigger an , leading to accelerated repayment and potential foreclosure on secured assets.