Herbalife Announces $250M Share Buyback Amid Mixed Financial Performance
On September 8, Herbalife Ltd. (NYSE:HLF) announced a new $250 million share buyback program over the next three years, signaling management's confidence in its undervalued stock despite ongoing financial challenges. The company reported strong second-quarter results with net sales of $1.3 billion and four consecutive quarters of year-over-year growth across several regions like Latin America and Asia Pacific. However, Herbalife also posted a net loss due to debt extinguishment costs from refinancing in April 2026. Gross margin declined slightly, while EBITDA margins dropped by over one percentage point. The company narrowed its full-year adjusted EBITDA guidance citing foreign exchange headwinds and reported sales declines in China and the EMEA region. Despite management's optimism, market sentiment remains skeptical: hedge fund ownership has decreased, short interest is high at 9.72% of float, and Herbalife trades at a low forward P/E ratio of just 3.88.
Tickers: $HLF
Topics: EBITDA free cash flow quarterly results stock buybacks