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Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<div><ul><li>Multi-year share repurchase program announced. On September 8, 2026, HLF announced its board authorized the repurchase of up to $250M of stock over three years.</li><li>It reflects the company’s confidence in its business strategy, financial outlook, and ability to generate sustainable free cash flow (FCF), while providing an additional avenue to create long-term value for shareholders. </li><li>The program provides HLF with flexibility to opportunistically repurchase shares when management and the board believe doing so represents an attractive use of capital.</li></ul></div>

Multi-year share repurchase program announced. On September 8, 2026, HLF announced its board authorized the repurchase of up to $250M of stock over three years.It reflects the company’s confidence in its business strategy, financial outlook, and ability to generate sustainable free cash flow (FCF), while providing an additional avenue to create long-term value for shareholders. The program provides HLF with flexibility to opportunistically repurchase shares when management and the board believe doing so represents an attractive use of capital.

HLF: Can the Company Repurchase Stock and Still Hit Its 2028 Debt Target?

<ul><li>On August 31, 2026, HLF announced that Stephan Gratziani will step down from the CEO role, effective October 31, 2026. </li><li>Gratziani will continue supporting the company as a consultant focused on strategy and business development.</li><li>He will also return to becoming a distributor, overseeing nearly 700,000 distributors and preferred members.</li></ul>

On August 31, 2026, HLF announced that Stephan Gratziani will step down from the CEO role, effective October 31, 2026. Gratziani will continue supporting the company as a consultant focused on strategy and business development.He will also return to becoming a distributor, overseeing nearly 700,000 distributors and preferred members.

HLF: Stock Recovering After CEO Transition News

<div><ul><li>2QFY26 constant currency sales and EBITDA beat the high end of management’s previous guidance, marking the fourth consecutive quarter of Y/Y volume growth and signaling that the business’ underlying momentum continues to build. </li><li>Reported results were tempered by a more adverse currency impact than expected, while an unusually high tax rate created an additional headwind to adjusted EPS.</li><li>Due primarily to non-operating tax and currency headwinds, adjusted EPS declined 13.6% to $0.51 from $0.59 and was below FactSet consensus of $0.54. </li></ul></div>

2QFY26 constant currency sales and EBITDA beat the high end of management’s previous guidance, marking the fourth consecutive quarter of Y/Y volume growth and signaling that the business’ underlying momentum continues to build. Reported results were tempered by a more adverse currency impact than expected, while an unusually high tax rate created an additional headwind to adjusted EPS.Due primarily to non-operating tax and currency headwinds, adjusted EPS declined 13.6% to $0.51 from $0.59 and was below FactSet consensus of $0.54. 

<div><ul><li>Herbalife hosted its North American Extravaganza in Indianapolis last weekend, with management stating that it launched more new products at this event than at any other in the company’s recent history.</li><li>Life I/O, the company’s healthy lifespan brand, added two products, Helio and Activate, following the 2025 launch of Baseline, the brand’s first product.</li><li>Helio is an all-in-one “super supplement” that builds on Baseline’s cellular health ingredients, including Niagen, PQQ, CoQ10, and methylated B-vitamins, while adding protein, fiber, MCTs, creatine, polyphenols, mushrooms, and turmeric. </li></ul></div>

Herbalife hosted its North American Extravaganza in Indianapolis last weekend, with management stating that it launched more new products at this event than at any other in the company’s recent history.Life I/O, the company’s healthy lifespan brand, added two products, Helio and Activate, following the 2025 launch of Baseline, the brand’s first product.Helio is an all-in-one “super supplement” that builds on Baseline’s cellular health ingredients, including Niagen, PQQ, CoQ10, and methylated B-vitamins, while adding protein, fiber, MCTs, creatine, polyphenols, mushrooms, and turmeric. 

HLF: Innovation Accelerates as Personalized Nutrition Strategy Expands

<ul><li>Herbalife’s updated investor presentation reinforces an evolving thesis focused on the combination of a resilient global distribution infrastructure and an expanding personalized nutrition platform. </li><li>Management highlighted its position as the world’s #1 protein shake brand, supported by ~6.4 million members, ~63,000 Nutrition Clubs, and operations across 95 markets.</li><li>The company continues to view its distributor network and Nutrition Club ecosystem as a durable competitive advantage that is difficult to replicate.</li></ul>

Herbalife’s updated investor presentation reinforces an evolving thesis focused on the combination of a resilient global distribution infrastructure and an expanding personalized nutrition platform. Management highlighted its position as the world’s #1 protein shake brand, supported by ~6.4 million members, ~63,000 Nutrition Clubs, and operations across 95 markets.The company continues to view its distributor network and Nutrition Club ecosystem as a durable competitive advantage that is difficult to replicate.

HLF: Personalized Nutrition Strategy Takes Center Stage

United States

Herbalife Ltd. is a global nutrition company that sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products as well as personal care products. The Company distributes and sells its products through a network of independent distributors, using the direct selling channel.

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Herbalife Ltd (HLF US)

HLF: Can the Company Repurchase Stock and Still Hit Its 2028 Debt Target?

Multi-year share repurchase program announced. On September 8, 2026, HLF announced its board authorized the repurchase of up to $250M of stock...

Water Tower Research

HLF: Stock Recovering After CEO Transition News

Gratziani will continue supporting the company as a consultant focused on strategy and business development. He will also return to becoming a...

Water Tower Research

HLF: Underlying Momentum Builds

Reported results were tempered by a more adverse currency impact than expected, while an unusually high tax rate created an additional headwind to...

Water Tower Research

HLF: Innovation Accelerates as Personalized Nutrition Strategy Expands

Life I/O, the company’s healthy lifespan brand, added two products, Helio and Activate, following the 2025 launch of Baseline, the brand’s first...

Water Tower Research

HLF: Personalized Nutrition Strategy Takes Center Stage

The company continues to view its distributor network and Nutrition Club ecosystem as a durable competitive advantage that is difficult to replicate.

Water Tower Research

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