HIGHBuilt-inProduct / Revenue mix
54.5%
Weight Management
“10-K Item 1: 'Weight Management ... 54.5%'”
HLF · Concentration risk · 10-K extracted
Herbalife (HLF) concentration risks
Updated
The most significant concentration Herbalife discloses is Weight Management at 54.5%, classified HIGH by disclosed size. Below: the full set from the latest 10-K — verbatim quotes, filing references, and a synthesis of what these exposures mean together.
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Source: Herbalife’s SEC Form 10-K filed — view the filing on SEC EDGAR ↗
At a glance
Disclosed-size breakdown · 3 disclosed concentrations
HIGH2
MEDIUM1
LOW0
Disclosed concentrations
Each card carries a disclosed-size chip (HIGH / MEDIUM / LOW — how large the exposure is as a share of revenue, not how dangerous it is) and a nature tag: Built-in(the company’s own model, geography, or products) or Outside party (an external customer, supplier, or distributor it relies on).
HIGHBuilt-inCustomer
independent Members
“10-K Item 1A: 'We distribute our products exclusively to and through our independent Members, and we depend on them directly for substantially all of our sales.'”
MEDIUMBuilt-in & outside partyProduct / Revenue mix
25%
Formula 1 Healthy Meal
“10-K Item 1A: 'Our Formula 1 Healthy Meal, which is our best-selling product line, approximated 25% of our net sales for the year ended December 31, 2025.'”
TrendMatrix Research · concentration synthesis
What these concentrations mean together
updated 2026-06-24The company's concentration profile combines a high-share product-line exposure, a high-share channel dependency, and a moderate single-product exposure. Weight Management represented 54.5% of the product mix, a high-share structural concentration that makes the company's overall revenue and volume sensitive to consumer wellness trends and competitive dynamics in the weight-management category. A sustained shift in consumer preference away from this category would affect a majority of the business. The distribution model compounds this picture: the company distributes products exclusively to and through its independent Members, who are directly responsible for substantially all of sales. This is a high-share structural dependency on a single distribution channel — not on any individual customer but on the entire network of independent distributors. The channel's performance depends on Member recruitment, retention, and activity levels, which can vary with network marketing regulatory conditions and the competitive environment for distributor time and attention. Within the product side, Formula 1 Healthy Meal, the best-selling product line, approximated 25% of net sales in the most recent year, a moderate-share concentration for a single SKU within the broader Weight Management category. A product recall, formulation issue, or sustained competitive loss in this specific product would affect a meaningful portion of sales. Together, the profile shows a business where the top category, the top product within it, and the single distribution channel are all significant; there is no structural diversifier across any of these three dimensions.
For the engine’s reasoning on HLF’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.
Industry peers · Packaged Foods
Peer concentration profile
| Symbol | Name | HIGH | MEDIUM | LOW | Total |
|---|---|---|---|---|---|
| HLF● | Herbalife Ltd. | 2 | 1 | 0 | 3 |
| CENT | Central Garden & Pet Company | 1 | 1 | 2 | 4 |
| CENTA | Central Garden & Pet Company | 1 | 1 | 2 | 4 |
| CPB | The Campbell's Company | 1 | 1 | 1 | 3 |
| CAG | ConAgra Brands, Inc. | 0 | 1 | 0 | 1 |
| BRBR | BellRing Brands, Inc. | 0 | 0 | 0 | 0 |
Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.