On this page of StockholderLetter.com we present the latest annual shareholder letter from HERBALIFE LTD. — ticker symbol HLF. Reading current and past HLF letters to shareholders can bring important insights into the investment thesis.

To Our Shareholders, When I stepped into the role of CEO in May of 2025, I shared my belief that Herbalife s next chapter would honor our 45-year legacy while redefining what s possible for our future. Since then, the progress we ve made has only strengthened my conviction that Herbalife is uniquely positioned to lead in global health and wellness in ways we believe no other company can replicate. Our vision is to be the world s premier health and wellness company, community and platform; and in 2025, we took deliberate actions to establish a strong and resilient foundation for our vision sharpening how we operate, engage, and create value. We exited the year with solid momentum. We returned to net sales growth, delivering full-year net sales of just over $5.0 billion and, driving year-over-year growth in adjusted EBITDA and adjusted EBITDA margin expansion. We generated strong operating cash flows, reduced debt and further strengthened our balance sheet. With this, we enter 2026 from a position of strength, continuing to advance our strategy to build a more innovative and digitally enabled Herbalife. Herbalife has always been a distributor-led nutrition company, and our strength lies in the one-to-one relationships our distributors build with customers to provide them with personal support. While this personalized support is not changing, we see a future of health and wellness that is even more personalized, data-driven, proactive, and accessible. To advance this vision, we acquired certain assets of Pro2col Health LLC and Pruvit Ventures, Inc. ( Pruvit ), and obtained a 51% ownership interest in HBL Link Bioscience LLC ( Link Bioscience ). Together, these acquisitions represent a strategic expansion of our platform and capabilities. Pro2col is Herbalife s next-generation, digital, personalized health and wellness operating system. By integrating data, personalization, coaching and community, Pro2col gives customers greater insight into their health, empowers distributors with smarter tools, and amplifies the connection between them. By combining Pro2col s data and technology with our recently acquired proprietary manufacturing capabilities through Link Bioscience, we are positioned to deliver precision-made nutritional supplements, tailored to an individual s needs and goals, at scale. These tools are only as powerful as the people who deliver them, and at Herbalife, our distributors remain at the center of everything we do. We continued to invest in their development with enhanced training and improved tools to better support their growth. In 2025, our Extravaganza events drew nearly 142,000 participants, up 5% year over year. On a two-year stacked basis, new distributor growth reached 16%, with four of our five regions reporting increases demonstrating sustained, multi-year momentum. We will continue expanding our distributor network and equipping them with innovative products and effective tools to drive engagement and long-term customer value. Herbalife s commitment to high quality, science-backed products remains a cornerstone of our strategy. In 2025, we opened our new state-of-the-art Center of Excellence in Torrance, California one of seven such facilities globally integrating quality control, R&D, and sensory labs in a single, collaborative environment. Supported by more than 40 scientists and specialists, the facility strengthens our Seed-to-Feed quality management system and reinforces our focus on innovation and the highest quality standards. Our commitment to innovation and quality is evident in the strength of our product portfolio. During 2025, we advanced our weight management offering with MultiBurn , expanded into healthy lifespan with the launch of Life I/O Baseline, and broadened our skincare portfolio in EMEA with H/L Skin, which is supported by an AI-powered facial analysis tool. We also continued to optimize our global product portfolio to align with evolving consumer trends and preferences, while tailoring our offerings to resonate with local markets. In addition, intellectual property acquired from Pruvit provides the opportunity to expand our health and wellness offerings with a channel-exclusive ketone product category, further extending our innovation pipeline and growth opportunities. Our products also fuel the performance of our sponsored athletes and teams worldwide, including our long-standing partner, Cristiano Ronaldo, and the LA Galaxy, where we hold the longest-running jersey sponsorship in Major League Soccer (MLS) history. Ronaldo has also become an investor, acquiring a 10% equity stake in HBL Pro2col 1
Software, LLC with a $7.5 million investment and a commitment to provide services and sponsorship rights. His investment reflects our shared commitment to the future of personalized wellness, and we believe his involvement will elevate the visibility of Herbalife and Pro2col, expanding awareness and supporting broader engagement and adoption. Herbalife s purpose goes beyond our business. In 2025, the Herbalife Family Foundation awarded over $5 million in Casa Herbalife program grants to more than 165 nonprofits across 60 countries and territories, earning the Direct Selling Association s Vision for Tomorrow award. After visiting Casa Herbalife programs in Chile and the U.S., I m inspired to further elevate the Foundation s impact in 2026 and beyond. As I reflect on my first year as CEO, I want to share something personal. As a distributor for over 30 years, Herbalife empowered me to build a business beyond what I imagined. I ve seen firsthand Herbalife s ability to transform lives my own included. For me, this role is about more than leading a company. It s about fulfilling a mission that has shaped my life: the belief that health is the greatest gift we can offer humanity. This is not just about products or platforms. It s about creating real, lasting impact. We are building a future where Herbalife is not just a company people believe in, but a movement they are proud to be part of. We are aligning vision with execution, passion with performance, and innovation with discipline to create long-term value for our shareholders, our distributors, and the millions of customers who trust us every day. Thank you for your belief in Herbalife. We appreciate your continued support. Sincerely, Stephan Gratziani Chief Executive Officer This letter includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are qualified in their entirety by cautionary statements and risk factor disclosures contained in the Company s Securities and Exchange Commission ( SEC ) filings, including the Company s Annual Report on Form 10-K filed with the SEC on February 18, 2026 and subsequent filings with the SEC. The Company wishes to caution readers that certain important factors may have affected and could in the future affect the Company s actual results and could cause the Company s actual results for subsequent periods to differ materially from those expressed in any forward-looking statements made by or on behalf of the Company, including as a result of the potential impacts of current global economic conditions, including inflation, unfavorable foreign exchange rate fluctuations, and tariffs or retaliatory tariffs, on us, our Members, customers, and supply chain, and the world economy; our ability to attract and retain Members; and our relationship with, and our ability to influence the actions of, our Members. New risks emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risks on the Company s business. Forward-looking statements in this letter speak only as of March 17, 2026. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after such date or to reflect the occurrence of unanticipated events, except as required by law. 2
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HLF Shareholder/Stockholder Letter Transcript:


To Our Shareholders,
When I stepped into the role of CEO in May of 2025, I shared my belief that Herbalife   s next chapter would honor
our 45-year legacy while redefining what   s possible for our future. Since then, the progress we   ve made has only
strengthened my conviction that Herbalife is uniquely positioned to lead in global health and wellness in ways we
believe no other company can replicate.
Our vision is to be the world   s premier health and wellness company, community and platform; and in 2025, we
took deliberate actions to establish a strong and resilient foundation for our vision     sharpening how we operate,
engage, and create value.
We exited the year with solid momentum. We returned to net sales growth, delivering full-year net sales of just
over $5.0 billion and, driving year-over-year growth in adjusted EBITDA and adjusted EBITDA margin expansion.
We generated strong operating cash flows, reduced debt and further strengthened our balance sheet. With this, we
enter 2026 from a position of strength, continuing to advance our strategy to build a more innovative and digitally
enabled Herbalife.
Herbalife has always been a distributor-led nutrition company, and our strength lies in the one-to-one relationships
our distributors build with customers to provide them with personal support. While this personalized support is
not changing, we see a future of health and wellness that is even more personalized, data-driven, proactive, and
accessible. To advance this vision, we acquired certain assets of Pro2col Health LLC and Pruvit Ventures, Inc.
(   Pruvit   ), and obtained a 51% ownership interest in HBL Link Bioscience LLC (   Link Bioscience   ). Together,
these acquisitions represent a strategic expansion of our platform and capabilities.
Pro2col    is Herbalife   s next-generation, digital, personalized health and wellness operating system. By integrating
data, personalization, coaching and community, Pro2col gives customers greater insight into their health, empowers
distributors with smarter tools, and amplifies the connection between them. By combining Pro2col   s data and
technology with our recently acquired proprietary manufacturing capabilities through Link Bioscience, we are
positioned to deliver precision-made nutritional supplements, tailored to an individual   s needs and goals, at scale.
These tools are only as powerful as the people who deliver them, and at Herbalife, our distributors remain at the
center of everything we do. We continued to invest in their development with enhanced training and improved tools
to better support their growth. In 2025, our Extravaganza events drew nearly 142,000 participants, up 5% year over
year. On a two-year stacked basis, new distributor growth reached 16%, with four of our five regions reporting
increases     demonstrating sustained, multi-year momentum. We will continue expanding our distributor network
and equipping them with innovative products and effective tools to drive engagement and long-term customer value.
Herbalife   s commitment to high quality, science-backed products remains a cornerstone of our strategy. In 2025,
we opened our new state-of-the-art Center of Excellence in Torrance, California     one of seven such facilities
globally     integrating quality control, R&D, and sensory labs in a single, collaborative environment. Supported by
more than 40 scientists and specialists, the facility strengthens our Seed-to-Feed quality management system and
reinforces our focus on innovation and the highest quality standards.
Our commitment to innovation and quality is evident in the strength of our product portfolio. During 2025, we
advanced our weight management offering with MultiBurn   , expanded into healthy lifespan with the launch
of Life I/O Baseline, and broadened our skincare portfolio in EMEA with H/L Skin, which is supported by an
AI-powered facial analysis tool. We also continued to optimize our global product portfolio to align with evolving
consumer trends and preferences, while tailoring our offerings to resonate with local markets. In addition,
intellectual property acquired from Pruvit provides the opportunity to expand our health and wellness offerings with
a channel-exclusive ketone product category, further extending our innovation pipeline and growth opportunities.
Our products also fuel the performance of our sponsored athletes and teams worldwide, including our long-standing
partner, Cristiano Ronaldo, and the LA Galaxy, where we hold the longest-running jersey sponsorship in Major
League Soccer (MLS) history. Ronaldo has also become an investor, acquiring a 10% equity stake in HBL Pro2col
1

Software, LLC with a $7.5 million investment and a commitment to provide services and sponsorship rights. His
investment reflects our shared commitment to the future of personalized wellness, and we believe his involvement
will elevate the visibility of Herbalife and Pro2col, expanding awareness and supporting broader engagement and
adoption.
Herbalife   s purpose goes beyond our business. In 2025, the Herbalife Family Foundation awarded over $5 million in
Casa Herbalife program grants to more than 165 nonprofits across 60 countries and territories, earning the Direct
Selling Association   s Vision for Tomorrow award. After visiting Casa Herbalife programs in Chile and the U.S., I   m
inspired to further elevate the Foundation   s impact in 2026 and beyond.
As I reflect on my first year as CEO, I want to share something personal.
As a distributor for over 30 years, Herbalife empowered me to build a business beyond what I imagined. I   ve seen
firsthand Herbalife   s ability to transform lives     my own included. For me, this role is about more than leading
a company. It   s about fulfilling a mission that has shaped my life: the belief that health is the greatest gift we can
offer humanity.
This is not just about products or platforms. It   s about creating real, lasting impact. We are building a future where
Herbalife is not just a company people believe in, but a movement they are proud to be part of. We are aligning
vision with execution, passion with performance, and innovation with discipline to create long-term value for our
shareholders, our distributors, and the millions of customers who trust us every day.
Thank you for your belief in Herbalife. We appreciate your continued support.
Sincerely,
Stephan Gratziani
Chief Executive Officer
This letter includes    forward-looking statements    within the meaning of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are qualified in their entirety by
cautionary statements and risk factor disclosures contained in the Company   s Securities and Exchange Commission
(   SEC   ) filings, including the Company   s Annual Report on Form 10-K filed with the SEC on February 18, 2026
and subsequent filings with the SEC. The Company wishes to caution readers that certain important factors may
have affected and could in the future affect the Company   s actual results and could cause the Company   s actual
results for subsequent periods to differ materially from those expressed in any forward-looking statements made by
or on behalf of the Company, including as a result of the potential impacts of current global economic conditions,
including inflation, unfavorable foreign exchange rate fluctuations, and tariffs or retaliatory tariffs, on us, our
Members, customers, and supply chain, and the world economy; our ability to attract and retain Members; and
our relationship with, and our ability to influence the actions of, our Members. New risks emerge from time to
time and it is not possible for management to predict all such risk factors or to assess the impact of such risks on
the Company   s business. Forward-looking statements in this letter speak only as of March 17, 2026. We do not
undertake any obligation to update or release any revisions to any forward-looking statement or to report any events
or circumstances after such date or to reflect the occurrence of unanticipated events, except as required by law.
2


shareholder letter icon 3/17/2026 Letter Continued (Full PDF)
 

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