Herbalife Ltd. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Segment Information (Tables)

Segment Information (Tables)

3 Months Ended

Mar. 31, 2026

Reconciliation of Revenue from Segments to Consolidated

Operating information for the two reportable segments is as follows:


	Three Months Ended
	March 31, 2026			March 31, 2025
	(in millions)
Net sales:
Primary Reporting Segment	$	1,260.2		$	1,156.9
China		57.0			64.8
Total net sales	$	1,317.2		$	1,221.7
Significant segment expenses
Cost of Sales (4):
Primary Reporting Segment	$	282.6		$	255.9
China		8.5			9.3
Total cost of sales	$	291.1		$	265.2
Selling expenses (4):
Primary Reporting Segment (2)	$	433.7		$	401.2
China (3)		28.1			32.2
Total selling expenses	$	461.8		$	433.4
Contribution margin(1):
Primary Reporting Segment	$	543.9		$	499.8
China		20.4			23.3
Total contribution margin	$	564.3		$	523.1
General and administrative expenses		431.4			400.3
Other operating income		(5.5	)		—
Interest expense, net		46.8			52.0
Income before income taxes		91.6			70.8
Income taxes		30.4			20.4
Net income	$	61.2		$	50.4

(1)

Contribution margin consists of net sales less cost of sales and selling expenses.

(2)

For the Primary Reporting Segment, selling expenses consists of Member compensation, which was previously presented as Royalty Overrides, as described further in Note 2, Significant Accounting Policies.

(3)

In China, selling expenses primarily consists of service fees to China independent service providers, which totaled $27.4 million and $31.6 million for the three months ended March 31, 2026 and 2025, respectively, as described further in Note 2, Significant Accounting Policies.

(4)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area

The following table sets forth net sales by geographic area:


	Three Months Ended
	March 31, 2026		March 31, 2025
	(in millions)
Net sales:
India	$	275.4	$	209.3
United States		241.3		247.7
Mexico		154.1		126.5
Vietnam		77.5		75.4
China		57.0		64.8
Others		511.9		498.0
Total net sales	$	1,317.2	$	1,221.7