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

Quarterly report [Sections 13 or 15(d)]

Segment Information (Tables)

Segment Information (Tables)

6 Months Ended

Jun. 30, 2026

Reconciliation of Revenue from Segments to Consolidated

Operating information for the two reportable segments is as follows:


	Three Months Ended						Six Months Ended
	June 30, 2026			June 30, 2025			June 30, 2026			June 30, 2025
	(in millions)
Net sales:
Primary Reporting Segment	$	1,266.4		$	1,179.1		$	2,526.6		$	2,336.0
China		60.4			80.0			117.4			144.8
Total net sales	$	1,326.8		$	1,259.1		$	2,644.0		$	2,480.8
Significant segment expenses
Cost of Sales (4):
Primary Reporting Segment	$	287.6		$	265.5		$	570.2		$	521.4
China		8.7			11.4			17.2			20.7
Total cost of sales	$	296.3		$	276.9		$	587.4		$	542.1
Selling expenses (4):
Primary Reporting Segment (2)	$	435.5		$	405.9		$	869.2		$	807.1
China (3)		30.5			40.0			58.6			72.2
Total selling expenses	$	466.0		$	445.9		$	927.8		$	879.3
Contribution margin(1):
Primary Reporting Segment	$	543.3		$	507.7		$	1,087.2		$	1,007.5
China		21.2			28.6			41.6			51.9
Total contribution margin	$	564.5		$	536.3		$	1,128.8		$	1,059.4
General and administrative expenses		436.2			408.5			867.6			808.8
Other operating income		—			(4.8	)		(5.5	)		(4.8	)
Interest expense, net		37.4			53.6			84.2			105.6
Other expense, net		94.6			—			94.6			—
(Loss) Income before income taxes		(3.7	)		79.0			87.9			149.8
Income taxes		22.8			29.8			53.2			50.2
Net (loss) income	$	(26.5	)	$	49.2		$	34.7		$	99.6

(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 $30.0 million and $39.4 million for the three months ended June 30, 2026 and 2025, respectively, and $57.4 million and $71.0 million for the six months ended June 30, 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				Six Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
	(in millions)
Net sales:
India	$	270.6	$	203.6	$	546.0	$	412.9
United States		266.3		265.3		507.6		513.0
Mexico		161.0		137.2		315.1		263.7
Vietnam		64.6		60.2		142.1		135.6
China		60.4		80.0		117.4		144.8
Others		503.9		512.8		1,015.8		1,010.8
Total net sales	$	1,326.8	$	1,259.1	$	2,644.0	$	2,480.8