Herbalife Ltd. (NYSE: HLF)

Herbalife Ltd. is a global health and wellness company that empowers individuals to achieve nutrition health and wellness goals through science based products and personalized coaching from its network of independent members. The company holds the position of the number 1 active and lifestyle nutrition brand worldwide and sells the number 1 protein shake globally. It offers weight management targeted nutrition energy sports and fitness and outer nutrition products in 95 markets around the world. Herbalife Ltd. distributes and markets its nutrition products via a direct selling business model through its global member network.

Herbalife Ltd. generates revenue primarily from the sale of its nutrition products which are grouped into 4 main categories. Weight management products accounted for 54.5% of net sales in 2025 and include meal replacement shakes protein powders drink mixes weight loss supplements healthy snacks and metabolism boosting teas. Targeted nutrition products contributed 30.0% of net sales and consist of functional beverages dietary supplements containing herbs vitamins minerals and other natural ingredients. Energy sports and fitness products represented 12.2% of net sales and comprise the Herbalife24 line N R G Tea and Liftoff energy drink. Outer nutrition products made up 1.7% of net sales and include facial skin care body care and hair care items. The company also derives revenue from promotional and other items such as start up kits sales tools and educational materials which represented 1.6% of net sales. Its best selling product line Formula 1 Nutritional Shake Mix approximated 25% of net sales for the year ended December 31 2025.

Herbalife Ltd. operates through the following segments: preferred members and distributors.

• Preferred Members: This segment consists of consumers who purchase Herbalife products for personal household use and receive a discount but do not have the right to resell products or build a sales organization.

• Distributors: This segment includes members who buy products for personal use and also have the authority to resell items and develop a sales organization earning compensation based on their own sales and the sales of their recruited team.

Herbalife Ltd. holds a leading position in the global nutrition industry as the number 1 active and lifestyle nutrition brand and the seller of the number 1 protein shake worldwide. Its main competitors in the broader nutrition market are BellRing Brands Inc. The Hain Celestial Group Inc. Nestle S. A. and The Simply Good Foods Company. In the direct selling space the company competes with Medifast Inc. Nu Skin Enterprises Inc. USANA Health Sciences Inc. and Amway Corp. Herbalife Ltd. differentiates itself through science based product innovation a strong member driven coaching model and initiatives that promote daily consumption such as nutrition clubs weight loss challenges fitness camps and wellness evaluations which increase member engagement and customer loyalty.

Herbalife Ltd. serves individual consumers who seek nutrition weight management energy sports and personal care products as well as independent members who act as distributors to resell products and build sales organizations. The company’s customer base includes people of various ages and backgrounds who participate in its nutrition clubs and other community based programs aimed at improving health and wellness.