Carolyn Popelka

Carolyn Popelka from Barclays inquired about the relationship between Herbalife's distributor growth and Preferred Member growth, particularly given the outsized distributor growth on a two-year stack. She asked if there was a potential mismatch due to people seeking extra income versus having less discretionary income for health and wellness.

Answer

Stephan Gratziani, CEO, clarified that both financial opportunity and health/wellness goals remain strong attractions. He explained that the "Herbalife Premier League" program initially focused more on distributor recruiting but was adjusted in 2025 to also account for Preferred Customers, as many markets lead with preferred customers in their models. Gratziani noted that the balance between distributor and Preferred Member growth depends on regional distributor models, citing India's growth being driven significantly by Preferred Customers.

Carolyn Popelka from Barclays asked about the relationship between Herbalife's distributor growth and Preferred Member growth, particularly in light of the significant distributor growth on a two-year stack. She questioned if there's a potential mismatch, considering both the financial opportunity sought by distributors and consumers' discretionary income for health and wellness.

Answer

CEO Stephan Gratziani clarified that both financial opportunity and health/wellness goals remain strong attractions. He explained that the Herbalife Premier League program, initially focused on distributor recruiting, was adjusted in 2025 to also account for Preferred Customers, which can influence the reported numbers. Gratziani noted that the balance between distributor and Preferred Member growth depends on regional distributor models, citing India where Preferred Customers drive significant growth. He concluded that both segments remain highly interested and attractive, and distributors focus on both.