HERBALIFE LTD.

Herbalife Ltd. (NYSE: HLF) is a global health and wellness company operating through a direct-selling business model that distributes nutrition products to a network of independent members across 95 markets worldwide. The company has operated for 46 years and positions itself as the number one active and lifestyle nutrition brand globally, selling the number one protein shake in the world.

The company's product portfolio comprises 144 product types organized into four categories: weight management products representing 54.5 percent of net sales, including meal replacements and protein shakes; targeted nutrition products at 30.0 percent of sales, featuring functional beverages and dietary supplements; energy, sports, and fitness products at 12.2 percent of sales; and outer nutrition products at 1.7 percent of sales. Formula 1 Healthy Meal Shake Mix is the flagship product, accounting for approximately 25 percent of total net sales. The company maintains its own manufacturing facilities known as Herbalife Innovation and Manufacturing Facilities located in Lake Forest and Winston-Salem in the United States and in Suzhou, China, which collectively produce approximately 46 percent of inner nutrition products sold worldwide.

As of December 31, 2025, Herbalife had approximately 6.4 million total members globally, segmented into preferred members who purchase for personal use and distributors who resell products and build sales organizations. The company operates approximately 900 distribution points and partner retail locations worldwide. Approximately 750,000 members have attained sales leader status, with the highest concentration in Asia Pacific at 257,725 sales leaders.

The company's business model emphasizes direct personal contact between members and customers, supported by training, education, and community engagement. Members earn compensation through retail profits and, for sales leaders, through commissions and bonuses based on team sales activity. The company operates under a Consent Order with the Federal Trade Commission entered in 2016, which requires specific member categorization and compensation structures in the United States. The business model in China differs substantially due to local regulatory requirements, utilizing independent service providers and sales representatives instead of the traditional marketing plan structure.