Herbalife Ltd.

Welcome and thank you for joining the second quarter 2026 earnings conference call for Herbalife Ltd. During the company's opening remarks, all participants will be in a listen-only mode. Following the opening remarks, we will conduct a question and answer session. As a reminder, today's conference call is being recorded. I would now like to turn the call over to Samantha Hallway, Vice President and Head of Investor Relations to begin today's call. You may begin.

Thank you, and welcome to everyone joining us. With us today are Stephan Gratziani, our Chief Executive Officer, and John DeSimone, our Chief Financial Officer. Before we begin today's call, I would like to direct you to the cautionary statement regarding forward-looking statements on page 2 of our presentation and in our earnings release issued earlier today, which are both available under the Investor Relations section of our website. The presentation and earnings release include a discussion of some of the more important factors that could cause results to differ from those expressed in any forward-looking statement within the meaning of the Private Securities Litigation Reform Act of 1995. As is customary, the content of today's call and presentation will be governed by this language. In addition, during today's call, we will be discussing certain non-GAAP financial measures Thank you, Sam, and thank you all for joining us today. Before we begin,

I'd like to welcome Samantha Hallway, our new Vice President of Investor Relations. Sam brings more than a decade of experience across finance, strategy, and most recently as the Head of Sales of North America at Herbalife, and we're excited to have her in this role. Over the past year, we've made strategic investments to build capabilities that will drive Herbalife's next phase of growth. This quarter marks an important milestone as those investments began translating into tangible execution, bringing new innovations to market, expanding our addressable audience, and creating new opportunities for our distributors. Today, I'd like to share how those investments are beginning to take shape across our business. But first, let's review some financial highlights. We delivered net sales of $1.3 billion, up 5.4% year-over-year and at the top end of our guidance range. On a constant currency basis, net sales were up 5.8%, which exceeded guidance. This was our fourth consecutive quarter of year-over-year net sales growth on both a reported and constant currency basis, demonstrating the resilience of our business. Net sales in North America were up 0.2%, and while nominal, This marks the second quarter of growth in the last four quarters. Adjusted EBITDA was $167 million and near the top end of our guidance range. We entered 2026 with momentum and a clear set of priorities. Throughout the second quarter, we focused on translating our growing capabilities into execution across the business, expanding how we take personalized nutrition to market. Personalized nutrition has evolved into one of the fastest-growing segments in health and wellness. According to Grandview Research, the category extends well beyond supplements to include personalized recommendations, digital technology, health data, individualized formulations, and ongoing engagement. Today, it represents a $34 billion growing global market. But while the category is being defined and given a name, personalization isn't new to Herbalife. and while many companies are focused on individual segments, we believe our unique opportunity comes from combining technology, science and human connection. For more than 45 years, Herbalife has been at the forefront of personalized nutrition, supported by decades of experience, global scale and the strength of our distributor community. Every day, our distributors personalize the customer experience, helping them understand what to measure, what to take, what to do and who to do it with. These four W's have always been at the heart of our business. What's evolving is how technology is helping to amplify that experience for both customers and distributors. We are working to bring together AI-assisted technology, biomarker insights, and individualized formulations while strengthening the human connection that has always set Herbalife apart. It's the reason we believe Herbalife is uniquely positioned to lead the next generation of personalized nutrition, beginning with our most recent launch. Bionic Go is the first product we've brought to market following our acquisition of Bionic in April. It is a personalized daily supplement that provides a simple, consumer-friendly entry point into personalized nutrition. Customers complete a digital wellness assessment and are matched to one of 40 personalized supplement formulas based on their individual profile and wellness goals. Supplements are the largest segment of the personalized nutrition market, accounting for nearly half of the category. and BionicGo represents the next generation of personalized nutrition for Herbalife. We launched BionicGo at our Europe and Africa extravaganza in June across 11 markets, followed by the US launch at our North America extravaganza in July. Additional market launches are planned for the second half of the year. In conjunction with the BionicGo launch in the European markets, we introduced new digital commerce and subscription capabilities like those recently made available in the US. These capabilities make it even easier for distributors to do business and for customers to incorporate products into their daily routines and maintain consistency. While we're excited about the opportunities Bionic Go creates today, we're also looking ahead. Our acquisition agreement includes a call option for Bionic Lab, a peptide distribution business, giving us the flexibility to evaluate that category over time. As always, we'll take a disciplined approach, continuing to assess the science, Bionic Go advances the what-to-take element of our personalized nutrition strategy. At the center of that strategy is protocol, our personalized health operating system. Through AI-assisted recommendations and connected digital tools, it brings every element of our personalized nutrition approach together in one experience for distributors and customers. AI is one of the most powerful forces transforming personalized nutrition and consumer engagement. According to Grandview Research, the AI-powered personalization nutrition market includes AI-enabled nutrition apps and test-based solutions that deliver individualized recommendations, with nutrition apps representing the largest segment. The market is projected to grow from approximately $1.9 billion in 2026 to more than $10 billion by 2033. A 27% annual growth rate. Developed in partnership with our distributors, Protocol is how we'll bring these capabilities together in a single, personalized health platform, combining AI-assisted support across what to measure, what to take, what to do, and who to do it with. We believe our distribution model gives us a distinct advantage to extend these capabilities through already established, trusted relationships. The protocol is currently in expanded beta as we're building it out as a platform rather than a single product launch. Our focus during this phase is on developing capabilities that will make the platform an integral part of our distributors' daily methods of operations. We expect it to be adopted in stages as new modules and capabilities are introduced through next year, creating value incrementally and driving broader adoption over time. At our North America extravaganza, we introduced a significant update based on distributor feedback. The update included an overhauled user experience and enhanced features. In the second half of the year, we plan to introduce features like smart device integrations and evolved biomarker support, while also building out distributor-specific business model capabilities. We also introduced a beta program for blood testing and platform integration. At this stage, we're focused on validating the end-to-end experience, from ordering and self-administering the blood test to external lab processing and delivery of results through protocol. Beyond protocol, we're also expanding our personalized health and wellness portfolio in North America through Life.io, our healthy lifespan brand, giving our distributors the opportunity to serve a broader and growing consumer audience. According to McKinsey, longevity is one of the fastest growing wellness categories with more than 60% of consumers globally prioritizing products and services that support long-term health, Life.io is focused on this growing, digitally engaged customer segment that takes a proactive approach to wellness and invests in long-term health. The Life.io brand portfolio includes Baseline, which was launched last year and features Niagen to increase NAD plus levels and support cellular health. Helio, a daily all-in-one super shake, combining foundational nutrition with many of the functional ingredients consumers commonly purchase separately. Each serving delivers 30 grams of protein and beneficial fats for sustained energy, 6 grams of diverse fibers to support the microbiome, 20 plus vitamins and minerals, and a range of premium wellness ingredients like adaptogens and polyphenol blends. These unique ingredients all come together in a single product designed to simplify consumers' daily routine without compromising on taste. Helio launched in July at our North America extravaganza alongside Activate Energies. Activate Energy is our channel-exclusive entry into the exogenous ketone category following our acquisition of Prove-It last year. It features D-BHB ketone technology, as well as caffeine, B vitamins, and electrolytes to support sustained energy, mental focus, hydration, and metabolic health. Together, Life.io offerings broaden our product portfolio, strengthen our position in the healthy lifespan market, and extend our reach to a broader consumer audience. While technology and science are essential for personalized nutrition, it's our distributors who have always made it meaningful. AI-assisted technology can provide data, insights, and recommendations to help customers understand what to measure, what to take, and what to do. But it's our distributors who turn those recommendations into action through encouragement, accountability, and trusted relationships that foster human connection, build community, and help customers stay motivated to achieve long-lasting results. That same philosophy guides how we train, educate and support our distributors through extravaganza events around the world. So far this year, more than 110,000 distributors have come together at extravaganza events in India, Uzbekistan, China, Panama, Singapore, Poland and the United States to learn, connect and share best practices. That level of engagement is a powerful reminder that our distributors are deeply invested in Herbalife, committing their time and resources to develop their skills and build relationships that help them strengthen their businesses and better serve their customers. Our greatest competitive advantage is our distributor network and investing in the Herbalife brand they bring to life is an investment in their success. Through global campaigns and strategic partnerships, we increase brand awareness, reinforce our nutrition expertise and strengthen Herbalife's relevance with consumers around the world. One example is our Fuel Like Rinaldo campaign, which builds on our longstanding relationship with our global nutrition partner, Cristiano Ronaldo. Centered around the daily personalized nutrition habits that fuel his performance, the campaign took place around one of the year's biggest global sporting events. It brought our personalized nutrition story to life across 45 markets through social, digital, traditional media, and immersive fan experiences, helping deepen engagement with existing audiences while introducing Herbalife to new consumers around the world. Personalized nutrition is transforming our industry, and it's creating an opportunity that plays directly to our strengths. What makes us different is that we're bringing every element of personalized nutrition together in one ecosystem. Science-backed products, digital technology, AI-assisted insights, health data, and personal recommendations. We're building on our vast network of entrepreneurs and customers to deliver the next generation of personalization, and we're just getting started. Everything I've talked about today is possible because we've built a strong company, one with a clear strategy, a solid financial foundation, and a long-term vision of where we're headed. That foundation has been strengthened by John DeSimone's leadership over nearly two decades at Herbalife. As we announced today, John will begin his well-earned retirement at the end of the year. Through his roles as President, Chief Strategic Officer, and Chief Financial Officer, John has helped navigate a number of transformational periods for the company, all while maintaining a disciplined focus on our financial strength. His leadership has had lasting impact on Herbalife and helped position the company for its next chapter. I look forward to continuing to work alongside him through the remainder of this year. Scott Schaefer, our Senior Vice President of Finance and Transformation, will succeed John as Chief Financial Officer at the start of 2027. Scott joined Herbalife in 2025 after 16 years at Zappos, where he most recently served as President and CEO. Among other accomplishments over his tenure, he spearheaded a digital-first growth agenda that enhanced customer engagement, optimized and scaled operations, and delivered significant bottom-line improvements. Since joining Herbalife last year, he has become an important member of our leadership team, and I'm confident he'll provide the financial leadership and strategic perspective to help guide our next chapter. Over the next five months, John and Scott will continue to work closely together to ensure a seamless transition. Now I'd like to turn it over to John.