WW

WeightWatchers’ second quarter drew a positive market response, with management citing a deliberate shift toward higher-value membership tiers and clinical offerings as key drivers of performance. The company highlighted growth in its Core+ and Med+ subscriber bases, which offset declines in its traditional core behavioral segment. Interim Chief Operations Officer Jonathan Volkmann emphasized, “Our approach combines access to effective FDA-approved GLP-1 medications with expert guidance, setting us apart in an evolving industry landscape.” Is now the time to buy WW? Find out in our full research report (it’s free). Revenue: $162.3 million vs analyst estimates of $159.1 million (14.2% year-on-year decline, 2% beat) EPS (GAAP): $1.41 vs analyst estimates of $0.67 (significant beat) Adjusted EBITDA: $39.76 million vs analyst estimates of $43.82 million (24.5% margin, 9.2% miss) The company reconfirmed its revenue guidance for the full year of $627.5 million at the midpoint EBITDA guidance for the full year is $110 million at the midpoint, above analyst estimates of $107.9 million Operating Margin: 8.1%, down from 28.1% in the same quarter last year Market Capitalization: $150.1 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. There were no analyst questions on the call because the Q&A session did not occur. Looking ahead, the StockStory team will focus on (1) further progress in shifting subscribers toward higher-value Core+ and clinical tiers, (2) the sustainability of gross margins amid evolving business mix and cost structure, and (3) the effectiveness of partnerships like the Medicare GLP-1 bridge and Sam’s Club in attracting and retaining members. Execution in technology upgrades and continued debt reduction will also be closely monitored. WeightWatchers currently trades at $14.99, down from $15.41 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5 p.m. ET Investor Relations - Anna Kate Heller Member of the Interim Office of the Chief Executive and Chief Operations Officer - Jonathan Volkmann Member of the Interim Office of the Chief Executive and Chief Financial Officer - Felicia DellaFortuna Operator: WeightWatchers Second Quarter 26 Earnings Conference Call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Anna Kate Heller from Investor Relations. Please go ahead. Thank you for joining us today for the WeightWatchers second quarter 2026 earnings conference call. Also released a shareholder letter and press release on our second quarter 2026 results which are available on the company's corporate website located at corporate.ww.com. The purpose of this call is to provide investors with some further details regarding the company's results, as well as to provide a general update on the company's progress. Reconciliations of non-GAAP measures disclosed on this conference call to those directly comparable GAAP financial measures are also available as part of the shareholder letter and press release. Before we begin, let me remind everyone that this call will contain forward-looking statements. Investors should be aware that any forward-looking statements are subject to various risks and uncertainties could cause actual results to differ materially from those discussed here today. These risk factors are explained in detail in the company's latest annual report on Form 10-K, quarterly reports on Form 10-Q, earnings release, the shareholder letter, and as updated by the company's other filings with the Securities and Exchange Commission. Please refer to these filings for a more detailed discussion of forward-looking statements and the risks and uncertainties of such statements. All forward-looking statements are made as of today, and except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise. Joining today's call are Felicia DellaFortuna, chief financial officer and Jonathan Volkmann, chief operations officer. Both are members of the interim office of the chief executive. Jonathan Volkmann: Thanks, Anna Kate. Good afternoon, everyone. Thank you all for joining us. Before we get started, I encourage everyone to look at our shareholder letter which we posted on our corporate website. While the market today is increasingly filled with companies offering prescription without expert guidance and support, WeightWatchers provides the best of both worlds. Not only do our members have access to the most effective FDA approved GLP-1 medications, they also benefit from the backing of an extraordinary team of experts who can guide them at every step along the way. That includes clinicians trained to support people with obesity, who are actively helping members understand and navigate the benefits and challenges of GLP-1 therapy. It includes registered dietitians, who help members build tailored nutrition plans that balance caloric goals with protein, fiber, and healthy muscle preservation. And it includes expert coaches who lead workshops and experiences where members learn from 1 another on topics like dining out while on a GLP-1, and exchange practical advice, like the best healthy midnight snacks. And perhaps most important of all, they remind each other they are not in this alone. Underscoring all of this human guidance is a reimagined digital experience that combines decades of science led expertise with new technology to give members a clearer, more personalized view of their weight health and help them be more successful in reaching and sustaining their goals. With more than 1 in 10 Americans currently taking GLP-1 medications for weight loss, These therapies have fundamentally redefined our industry and transformed what is possible in obesity care. And we are continuing to evolve our offering help expand medication access and remove friction for those eligible for clinical weight loss. Patients can now access WeightWatchers Med+ seamlessly through Libby creating another meaningful channel for prospective members to discover our offering. In addition, WeightWatchers Med+ now supports eligible members through the new Medicare GLP-1 bridge program. Unlocking $50 per month branded GLP-1 medication coverage through late 2027. And we recently launched a new strategic collaboration with Sam's Club. Bringing WeightWatchers, 1 of America's most trusted brands. These initiatives build on our broader commitment to help members find the best medication for them whether they are using insurance or paying out of pocket. But while medication is a powerful tool, for many, it is not the whole answer. Even with these medications, people still need to eat nutritious foods. They still need to move their bodies. And they still benefit from community, accountability, and education to support progress and sustain results. We believe WeightWatchers' people first technology powered offering is more relevant than ever as we support those navigating their journey with medication. WeightWatchers Med+ members prescribe GLP-1 medications reported over 30% more body weight loss on average at 12 months than select industry competitors. In addition, WeightWatchers Med+ members who are prescribed GLP-1 medication and also regularly engage with our GLP-1 success program shows 29% more body weight at 12 months on average than those who use medication without engaging with our structured behavioral support program. And studies indicate that WeightWatchers members reduce their calories from ultra processed foods by 29%. A tangible marker of the real behavioral shifts from our approach. These powerful results reinforce our position as the most trusted brand in weight loss. This foundation has enabled us to create an integrated ecosystem that supports members at every stage of their journey on or off medication. For members looking for our proven behavioral program, we offer Core, our base behavioral offering anchored by WeightWatchers signature points program. For members who want more guidance, we offer Core+, our higher value behavioral offering, that adds unlimited workshops coaching, and our GLP-1 success program. Which is available to members prescribed GLP ones through an outside provider. And for members who qualify for clinical care, we offer Med+, our clinical offering that combines the above tools including our GLP-1 success program, with access to clinicians and GLP-1 prescriptions for qualified members. The important point is this. People's needs change over time. And we have built a platform that enables our members to move seamlessly between levels of support. Choosing the program that best fits their lives at any given time. WeightWatchers' unique combination of clinical care, behavioral support, and user friendly technology, all guided by actual people who are experts in the field, becoming an even stronger competitive advantage in this rapidly growing market. We are seeing compelling evidence that this approach is building momentum within our business. And as we look ahead, our opportunity has never been clearer. Losing weight is deeply personal, and it rarely follows a straight line. People need expertise, They need accountability. They need encouragement. And that is why we are confident in our ability to create lasting value for both our members and our shareholders. We will continue to invest thoughtfully to make sure that every person who comes to WeightWatchers gets something that is becoming harder and harder to find elsewhere. Real people real expertise, real support,, and a partner for the entire journey. With that, I will turn it over to Felicia to cover the financials. Felicia DellaFortuna: Thanks, Jon. Our financial performance in the second quarter demonstrated ongoing progress against our multiyear transformation. Our financial footing continues to improve, as 2 of our 3 subscription tiers showed either stable or growing subscriber basis. The company also generated positive meaningful operating cash flow and delivered on last quarter's commitment to reduce our debt load. These results demonstrate the earnings power of our more disciplined operating model and give us confidence in our ability to deliver against our full year guidance. As we build for the future of Weight Watchers, we are reaffirming our full year guidance for both revenue and adjusted EBITDA. Now let's take a closer look at the numbers starting with subscribers. Total end of period subscribers were 2.5 million. Core+, our higher value behavioral tier, ended the quarter at 541 thousand subscribers. An increase of 13.9% year over year. That is our third consecutive quarter of sequential growth in the tier, a trend we have only seen occur 1 other time in the past 15 years, which offers encouraging signs that our approach is resonating with consumers. We closed Q2 with 2.3 million end of period behavioral subscribers, which reflects a 24.6% decline year over year with the decline concentrated in our core tier. However, we continue to see progress towards the higher value mix shift we have been targeting. End of period clinical subscribers were 197 thousand up 55.7% year over year compared to a 127 thousand in the second quarter of 2025. This number held steady from Q1 following a significant reduction in marketing spend coming out of peak when this spend was more heavily focused on our clinical offering. In Q2, we deliberately recalibrated our investment allocation across our portfolio. ARPU increased 10.2% year over year reflecting a mix shift in our subscriber base to clinical and Core+ membership tiers. Revenue in Q2 was $162.3 million compared to $189.2 million in the second quarter of 2025. Foreign exchange was about a $1 million benefit in the quarter compared with the $4 million benefit in Q1. Clinical subscription revenue grew 30.4% to $39.9 million compared to $30.6 million in the second quarter of 2025 despite Q2 2025 reflecting significant contributions from our former compounded semaglutide offering. Clinical accounted for 24.6% of total revenue for Q2 2026, an increase from 15.9% for full year 2025 revenue. Behavioral subscription revenue was $121.5 million, down 22.7% compared to $157.3 million a year ago, with the decline concentrated in our core tier. Q2 gross margin was 70.3% and adjusted margin was 73.6%, both of which are on par with Q1 and remain near record highs. We are particularly encouraged to hold adjusted gross margins steady despite a shift in revenue mix toward clinical, which requires higher staffing costs. This success is the result of structural work in both businesses including workflow automation and operational efficiency. Marketing expense in Q2 2026 was $47.9 million or 29.5% of revenue, which is higher than Q2 2025 as the year ago quarter reflected an intentional pullback in marketing spend during our Chapter 11 financial reorganization. Q2 2026 also reflects a significant decrease from the $92.9 million in Q1 2026 during peak season. In addition to reducing our total investment, we also deliberately recalibrated our spend across our portfolio following elevated clinical investment in Q1 to coincide with the Wegovy Pill launch. Adjusted SG&A was $25.7 million or 15.8% of revenue, consistent with the prior year period in absolute dollars. Adjusted SG&A includes the benefit of our exit from the corporate headquarters lease. On a GAAP basis, SG&A was 31% of revenue, primarily driven by higher depreciation and amortization related to fresh start accounting. Product development expense was $6.4 million or 4% of revenue as we continue to execute on our technology road map with a more focused investment profile. Net income for the quarter was $14.1 million That includes a $4.6 million gain on the extinguishment of debt related to the voluntary prepayment of a portion of our term loan at 68.5% of par. And it absorbs $25.9 million of depreciation and amortization the majority of which relates to fresh start accounting. Adjusted EBITDA was $39.8 million, a 24.5% margin compared with a loss of $1.8 million in Q1 26 as marketing spend normalized following peak season. The decline from $65.3 million adjusted EBITDA in the second quarter of 25 reflects lower revenue and higher marketing investment as a percentage of revenue. Now turning to cash and the balance sheet. We ended the quarter with $101.5 million in cash and cash equivalents compared with $120.9 million at the end of Q1 2026. Operations generated approximately $24.3 million of cash in the quarter, reflecting the cash generative nature of our business and our continued commitment to maintaining a solid liquidity position as we execute our long term strategic priorities. We deployed $36.8 million to pay down the term loan and $6.1 million to capitalize software and development. On the debt pay down itself, the $36.8 million was made up of $26.8 million from our annual cash sweep and $10 million from the previously announced voluntary solicitation which was fully subscribed at 68.5% of par. That reduced principal by $41.4 million generated the $4.6 million gain I mentioned, and lowers our annual interest expense by approximately $4 million. Our term loan now stands at $423.6 million, a reduction of more than 70% from the $1.6 billion we carried before our financial reorganization. Even as we continue to proactively pay down this loan, we retain the liquidity to invest in the strategic priorities that will define the company's future. Now to our outlook. We are reaffirming our previously provided 2026 guidance for revenue. Of $620 million to $635 million and adjusted EBITDA of $105 million to $115 million We continue to expect clinical subscription revenue to represent 25% to 30% of 2026 total revenue, up from 15.9% for the full year 2025. This growth incorporates moderate declines in clinical subscribers in the remaining quarters. Primarily due to lower marketing spend levels, a more balanced allocation of marketing resources across our lines of business, following the more concentrated clinical focus in Q1 2026. And the lapping of our 12-month long term commitment plan introductions. Q3 is our lowest quarter in terms of marketing spend, and spending will ramp up in Q4 ahead of peak season consistent with our typical seasonal cadence. Within behavioral, we expect continued year over year growth in Core+ subscribers and continued moderation in the year over year rate of behavioral end of period subscriber decline. On gross margin, we continue to expect a modest adjusted gross margin decline in 2026 versus 2025, and we expect to remain above 72%. On operating expenses, we expect 2026 marketing expense as a percentage of revenue to increase modestly compared to 2025, with second half spend below first half levels. We expect product development to remain near the Q2 quarterly run rate. On cash, with peak marketing investment behind us, we are very confident that we will generate cash and expect positive operating cash flow for the full year 2026. We expect approximately $45 million to $50 million of interest costs for the full year. Reflecting lower quarterly interest following the Q2 prepayment, quarterly capitalized software and development in line with Q2 run rate, and 2026 cash taxes of between $5 million and $10 million Our second quarter results demonstrate the earnings power of our more disciplined operating model. We are seeing clear signs of progress towards the higher value mix shift we have been targeting, with Core+ delivering third consecutive quarter of sequential subscriber growth and clinical continuing to grow as a share of total revenue. As Core+ and clinical become a larger share of our business, we see a company built on a stronger financial foundation, with a meaningfully smaller debt load and positive operating cash flow supporting strategic investment in our transformation, We head into the second half with confidence in the multiyear plan we have laid out and then the team executing upon it. I will now turn it over to the operator to open it up for Q&A. Operator: If you are using a speakerphone, please pick up your handset before pressing the keys. At this time, we will pause momentarily to assemble our roster. At this time, there are no questions. I would like to hand it back over to Felicia for closing remarks. Felicia DellaFortuna: Thank you all for joining us today. WeightWatchers exists to ensure that no 1 has to navigate their weight health journey alone. And we remain singularly focused on executing against that mission. We look forward to continuing to update you on our progress. Thank you. Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. WW (WW) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in WW International, Inc.? Here are five stocks we like better. Revenue fell 14.2% year over year to $162.3 million, but net income reached $14.1 million and adjusted EBITDA was $39.8 million, or a 24.5% margin. Average revenue per user rose 10.2% as the company shifted toward higher-value offerings. Membership is increasingly centered on clinical and premium tiers: clinical subscribers surged 55.7% to 197,000, while Core+ subscribers grew 13.9% to 541,000. Overall behavioral subscribers declined 24.6%, primarily because of losses in the lower-tier Core plan. WW expanded GLP-1 medication access through LillyDirect, the Medicare GLP-1 Bridge Program and a Sam’s Club collaboration, while reducing term-loan principal by $41.4 million. The company reaffirmed 2026 guidance for revenue of $620 million to $635 million and adjusted EBITDA of $105 million to $115 million. 3 "Tollbooth" Stocks With Hidden Monopolies in Their Industries WW International (NASDAQ:WW), the parent company of Weight Watchers, reported second-quarter 2026 revenue of $162.3 million, down from $189.2 million a year earlier, while highlighting growth in its clinical and higher-value behavioral membership tiers and reaffirming its full-year financial outlook. The company said its second-quarter performance reflected progress in a multiyear transformation toward a business with a greater mix of clinical weight-loss services and premium behavioral offerings. Net income totaled $14.1 million, while adjusted EBITDA was $39.8 million, representing a 24.5% margin. → 3 Drone Stocks That Should Soar After the Summer Slump Palantir and Woodward Jumped on Earnings Beats—Here Are 3 More Setups to Watch Total end-of-period subscribers were 2.5 million. Behavioral subscribers totaled 2.3 million, down 24.6% year over year, with the decline concentrated in the company’s Core tier. However, the higher-value Core+ behavioral tier ended the quarter with 541,000 subscribers, a 13.9% increase from the prior-year period. Chief Financial Officer Felicia DellaFortuna said this marked the third consecutive quarter of sequential subscriber growth for Core+, a pattern the company said it had seen only once previously in the past 15 years. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Woodward: Delivering Critical Components for the Aerospace Boom Clinical subscribers reached 197,000, up 55.7% from 127,000 in the second quarter of 2025. The clinical subscriber total was unchanged from the first quarter, which DellaFortuna attributed to a significant reduction in marketing spending after the peak season and a recalibration of investment across the company’s portfolio. Average revenue per user increased 10.2% year over year, reflecting the growing contribution from clinical and Core+ memberships. Clinical subscription revenue rose 30.4% to $39.9 million. Behavioral subscription revenue fell 22.7% to $121.5 million. Clinical represented 24.6% of total second-quarter revenue, compared with 15.9% of revenue for full-year 2025. → Jersey Mike's Serves Fresh Gains After IPO Stumble Chief Operating Officer Jon Volkmann said the company is positioning its Med+ clinical offering as a combination of access to FDA-approved GLP-1 medications, clinician support, registered dietitians, coaching, workshops and digital tools. During the quarter, Weight Watchers expanded access to Med+ through LillyDirect and said the offering now supports eligible beneficiaries through the Medicare GLP-1 Bridge Program. According to Volkmann, the program provides $50-per-month branded GLP-1 medication coverage through late 2027 for eligible participants. The company also announced a strategic collaboration with Sam’s Club. Volkmann said these initiatives are intended to help prospective members access medication whether they use insurance or pay out of pocket. Weight Watchers offers three principal tiers: Core, its behavioral program centered on the company’s points system; Core+, which adds unlimited workshops, coaching and the GLP-1 Success Program for members receiving GLP-1 prescriptions through outside providers; and Med+, which includes clinical access and prescriptions for qualified members. Volkmann said Weight Watchers Med+ members prescribed GLP-1 medications reported more than 30% more average body-weight loss at 12 months than select industry competitors. He also said Med+ members who regularly engage with the GLP-1 Success Program lost 29% more body weight on average at 12 months than medication users who did not engage with the structured behavioral support program. Second-quarter gross margin was 70.3%, while adjusted gross margin was 73.6%, both roughly in line with the first quarter. DellaFortuna said the company maintained its adjusted gross margin despite a greater revenue mix from clinical services, which carry higher staffing costs, citing workflow automation and operational efficiencies. Marketing expense was $47.9 million, or 29.5% of revenue. That was below the $92.9 million spent in the first quarter during the seasonal peak period, but above the year-earlier quarter, when the company had intentionally pulled back on marketing during its Chapter 11 financial reorganization. Adjusted selling, general and administrative expense was $25.7 million, or 15.8% of revenue, while product development spending was $6.4 million. The company said adjusted SG&A benefited from its exit from the corporate headquarters lease. Second-quarter net income included a $4.6 million gain on debt extinguishment related to a voluntary prepayment of part of its term loan at 68.5% of par. The company also recorded $25.9 million in depreciation and amortization, most of which it said was related to fresh-start accounting. WW International ended the quarter with $101.5 million in cash and cash equivalents, down from $120.9 million at the end of the first quarter. Operations generated about $24.3 million of cash during the quarter. The company used $36.8 million to repay its term loan and $6.1 million for capitalized software and development. The debt repayment reduced term-loan principal by $41.4 million, including the impact of the discounted voluntary solicitation, and is expected to lower annual interest expense by about $4 million. The term loan stood at $423.6 million at quarter-end, down more than 70% from the $1.6 billion the company carried before its financial reorganization, according to DellaFortuna. The company reaffirmed its 2026 guidance for revenue of $620 million to $635 million and adjusted EBITDA of $105 million to $115 million. It expects clinical subscription revenue to represent 25% to 30% of total revenue for the year and said it anticipates positive operating cash flow for the full year. Weight Watchers expects marketing spending to be lowest in the third quarter before increasing in the fourth quarter ahead of the next peak season. The company also expects continued year-over-year Core+ subscriber growth and moderation in the rate of behavioral subscriber declines. WW International, Inc (NASDAQ: WW) is a global wellness and weight management company that provides a range of subscription-based programs, digital tools and personalized coaching services. Originally founded in 1963 by Jean Nidetch as a small support group in New York City, the company grew into the well-known Weight Watchers brand before rebranding as WW in 2018 to reflect an expanded focus on overall health, fitness and nutrition. Over the years, WW has introduced innovations such as the SmartPoints® system, which assigns values to foods based on their nutritional composition, and the MyWW® personalized wellness plan, which tailors recommendations to individual lifestyles and goals. WW's offerings span digital and in-person channels. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "WW International Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is executing a multiyear transformation focused on shifting the subscriber mix toward higher-value tiers, specifically Core+ and clinical Med+ offerings. The 13.9% year-over-year growth in Core+ subscribers marks the third consecutive quarter of sequential growth, a trend seen only once before in the last 15 years. Clinical revenue grew 30.4% year-over-year despite the absence of former compounded semaglutide offerings, reflecting strong demand for the new Med+ clinical care model. Operational efficiency and workflow automation allowed the company to maintain a 73.6% adjusted gross margin even as the revenue mix shifted toward the more labor-intensive clinical segment. The decline in total behavioral subscribers was concentrated in the legacy Core tier, which management views as part of a deliberate transition toward higher-engagement, higher-ARPU programs. Strategic partnerships, including a Medicare GLP-1 bridge program and a collaboration with Sam's Club, are being used to remove friction and expand medication access for members. Management emphasized that their 'people-first' approach, combining clinical care with behavioral support, resulted in over 30% more weight loss for Med+ members compared to select competitors. Full-year 2026 revenue guidance of $620 million to $635 million is reaffirmed, with clinical revenue expected to reach 25% to 30% of the total mix. Management anticipates moderate declines in clinical subscribers for the remainder of the year due to a more balanced marketing allocation and the lapping of 12-month commitment plans. The company expects to generate positive operating cash flow for the full year 2026., supported by the normalization of marketing spend following the Q1 peak season. Interest costs are projected at $45 million to $50 million for the year, benefiting from the recent $41.4 million reduction in principal debt. Marketing spend is expected to ramp up in Q4 ahead of the 2027 peak season, following a planned seasonal low in Q3. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The company reduced its term loan principal by $41.4 million through a combination of an annual cash sweep and a voluntary solicitation fully subscribed at 68.5% of par. Total debt has been reduced by more than 70% from the $1.6 billion carried prior to the Chapter 11 financial reorganization. A $4.6 million gain on the extinguishment of debt was recognized in Q2, contributing to the quarterly net income of $14.1 million. GAAP SG&A expenses were impacted by $25.9 million in depreciation and amortization, primarily stemming from fresh start accounting requirements.

This article first appeared on GuruFocus. Revenue: $162.3 million in Q2 2026, down from $189.2 million in Q2 2025. Clinical Subscription Revenue: $39.9 million, up 30.4% year over year, representing 24.6% of total revenue. Behavioral Subscription Revenue: $121.5 million, down 22.7% year over year, with declines concentrated in the Core tier. Gross Margin: 70.3% on a GAAP basis; adjusted gross margin was 73.6%, near record highs. Net Income: $14.1 million for the quarter, including a $4.6 million gain on debt extinguishment. Adjusted EBITDA: $39.8 million, a 24.5% margin, compared with a loss of $1.8 million in Q1 2026. Marketing Expense: $47.9 million, or 29.5% of revenue. Adjusted SG&A: $25.7 million, or 15.8% of revenue. Product Development Expense: $6.4 million, or 4% of revenue. Cash Flow: Operations generated approximately $24.3 million of cash in the quarter. Cash Position: Ended the quarter with $101.5 million in cash and cash equivalents. Subscribers: Total end-of-period subscribers were 2.5 million; Clinical subscribers were 197,000, up 55.7% year over year; Behavioral subscribers were 2.3 million, down 24.6% year over year. Core+ Subscribers: 541,000, up 13.9% year over year, marking the third consecutive quarter of sequential growth. ARPU: Increased 10.2% year over year, reflecting a mix shift toward Clinical and Core+ tiers. Debt: Term loan reduced to $423.6 million, down more than 70% from $1.6 billion before financial reorganization. Warning! GuruFocus has detected 6 Warning Signs with OSUR. Is WW fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Core+ subscribers grew 13.9% year-over-year, marking the third consecutive quarter of sequential growth, a trend seen only once in the past 15 years. Clinical subscribers increased 55.7% year-over-year to 197,000, with Clinical subscription revenue up 30.4% to $39.9 million. Adjusted gross margin remained near record highs at 73.6%, despite a shift toward the higher-cost Clinical business. Generated $24.3 million in operating cash flow and reduced term loan debt by $36.8 million, lowering annual interest expense by approximately $4 million. Reaffirmed full-year 2026 guidance for revenue of $620-$635 million and adjusted EBITDA of $105-$115 million, reflecting confidence in the business outlook. Total end-of-period subscribers declined 24.6% year-over-year to 2.3 million, driven by continued weakness in the Core tier. Revenue fell 14.2% year-over-year to $162.3 million, with Behavioral subscription revenue down 22.7% to $121.5 million. Marketing expense as a percentage of revenue increased to 29.5%, up from the prior-year quarter, pressuring profitability. Clinical subscriber numbers held steady sequentially, but management expects moderate declines in the remaining quarters due to lower marketing spend. Adjusted EBITDA declined significantly from $65.3 million in Q2 2025 to $39.8 million, reflecting lower revenue and higher marketing investment. Q: What were the key financial results for Q2 2026, and how do they impact the full-year outlook?A: Felicia DellaFortuna, CFO, reported revenue of $162.3 million, down from $189.2 million in Q2 2025, and adjusted EBITDA of $39.8 million, a 24.5% margin. The company generated $24.3 million in operating cash flow and reduced its term loan to $423.6 million, a 70% reduction from pre-reorganization levels. Despite the revenue decline, the company reaffirmed its full-year 2026 guidance for revenue of $620 million to $635 million and adjusted EBITDA of $105 million to $115 million, citing confidence in its disciplined operating model. Q: How is the subscriber mix shifting across the company's different tiers?A: CFO Felicia DellaFortuna noted that Core+, the higher-value Behavioral tier, grew 13.9% year-over-year to 541,000 subscribers, marking its third consecutive quarter of sequential growth. Clinical subscribers rose 55.7% year-over-year to 197,000, though they held steady from Q1 due to reduced marketing spend. Total Behavioral subscribers declined 24.6% year-over-year to 2.3 million, with the decline concentrated in the Core tier. This mix shift drove a 10.2% increase in ARPU. Q: What is the company's strategy for expanding access to GLP-1 medications?A: Jon Volkmann, COO, highlighted new partnerships and programs, including a collaboration with LillyDirect for seamless access to Weight Watchers Med+, and the new Medicare GLP-1 Bridge Program, which provides $50 per month branded GLP-1 medication coverage through late 2027. He also mentioned a new strategic collaboration with Sam's Club to bring Weight Watchers to a broader audience, reinforcing the company's commitment to helping members find the best medication for their needs. Q: How is Weight Watchers differentiating itself in the increasingly competitive GLP-1 market?A: COO Jon Volkmann emphasized that Weight Watchers offers a unique combination of clinical care, behavioral support, and technology, all guided by human experts. He cited data showing that Med+ members prescribed GLP-1s lost over 30% more body weight at 12 months than industry competitors, and those who engaged with the GLP-1 Success program lost 29% more weight than those using medication alone. This people-first approach is a key competitive advantage. Q: What drove the improvement in adjusted EBITDA from Q1 to Q2 2026?A: CFO Felicia DellaFortuna explained that adjusted EBITDA swung from a loss of $1.8 million in Q1 to a profit of $39.8 million in Q2, as marketing spend normalized following the peak season. Q1 had elevated marketing investment, particularly for the Wegovy pill launch, while Q2 saw a deliberate recalibration of spend across the portfolio. The company also maintained strong adjusted gross margins of 73.6%, near record highs, despite the shift toward Clinical revenue. Q: How is the company managing its debt and liquidity position?A: CFO Felicia DellaFortuna detailed that the company deployed $36.8 million to pay down its term loan, including $26.8 million from an annual cash sweep and $10 million from a voluntary solicitation at 68.5% of par. This reduced principal by $41.4 million and lowers annual interest expense by approximately $4 million. The company ended Q2 with $101.5 million in cash and cash equivalents, maintaining a solid liquidity position while proactively reducing debt. Q: What are the expectations for Clinical subscriber trends in the second half of 2026?A: CFO Felicia DellaFortuna expects moderate declines in Clinical subscribers in the remaining quarters, primarily due to lower marketing spend levels and a more balanced allocation of marketing resources across lines of business. This follows the concentrated Clinical focus in Q1 2026 and the lapping of the 12-month long-term commitment plan introduction. Despite this, Clinical subscription revenue is still expected to represent 25% to 30% of total 2026 revenue, up from 15.9% in 2025. Q: How is the company's marketing spend expected to evolve in the second half of 2026?A: CFO Felicia DellaFortuna stated that Q3 is the lowest quarter for marketing spend, with spending ramping up in Q4 ahead of peak season, consistent with seasonal cadence. She expects 2026 marketing expense as a percentage of revenue to increase modestly compared to 2025, with second-half spend below first-half levels. This disciplined approach supports the company's cash generation and profitability goals. Q: What are the key drivers of the company's gross margin performance?A: CFO Felicia DellaFortuna noted that Q2 gross margin was 70.3% and adjusted gross margin was 73.6%, both on par with Q1 and near record highs. She attributed this to structural work in both the Behavioral and Clinical businesses, including workflow automation and operational efficiency, which helped offset the higher staffing costs associated with the Clinical offering. The company expects a modest adjusted gross margin decline in 2026 versus 2025 but remains above 72%. Q: What is the company's outlook for cash flow and capital expenditures in 2026?A: CFO Felicia DellaFortuna expressed confidence in generating positive operating cash flow for the full year, with peak marketing investment behind. She expects approximately $45 million to $50 million in interest costs, quarterly capitalized software and development in line with Q2 run rate, and 2026 cash taxes between $5 million and $10 million. The company's cash-generative business model supports strategic investment in its transformation. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Total End of Period Subscribers of 2.5 million; End of Period Clinical Subscribers of 197 thousand, up 55.7% year-over-year Core+ End of Period Subscribers of 541 thousand, up 13.9% year-over-year, reflecting third consecutive quarter of sequential growth Revenue of $162.3 million; Clinical Subscription Revenue of $39.9 million, up 30.4% year-over-year Reaffirms Full Year 2026 Financial Guidance NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- WW International, Inc. (Nasdaq: WW) (“Weight Watchers” or the “Company”), the global leader in science-backed weight management, today announced its results for the second quarter of 2026 ended June 30, 20261 in this Earnings Press Release and a Shareholder Letter issued today and posted on the Company’s Corporate Website. “We view 2026 as a year of focused transition for Weight Watchers, and our Q2 results reflect that work taking hold across the business,” said Jon Volkmann, Chief Operations Officer and member of the Company’s Interim Office of the Chief Executive. “Core+, our high-value Behavioral tier delivering tailored expert coaching and integrated weight health support, posted sequential subscriber growth for the third consecutive quarter, underscoring that members continue to embrace our holistic approach.” “We are pleased with the continued momentum in Core+, which saw subscriber count grow 13.9% year-over-year and represents a clear signal that interest in our Behavioral business is stabilizing while our Clinical business continues to grow,” said Felicia DellaFortuna, Chief Financial Officer and member of the Company’s Interim Office of the Chief Executive. “End of Period Clinical Subscribers grew 55.7% year-over-year, and the sequential stability we saw in subscribers from Q1 to Q2 2026 reflects a deliberate recalibration of marketing investment following elevated peak season spend. We are reaffirming our full-year 2026 Revenue and Adjusted EBITDA2 guidance. With a business that remains cash accretive and generated positive operating cash flow in Q2, we have confidence in our ability to continue building momentum into 2027 and beyond.” Q2 Business Updates Q2 2026 Clinical Subscription Revenue grew 30.4% year-over-year and End of Period Clinical Subscribers grew 55.7% year-over-year, despite lapping significant prior-year growth in Q2 2025 from the Company’s former compounded semaglutide offering. End of Period Clinical Subscribers were flat compared to Q1 2026, as the Company strategically recalibrated its Clinical marketing investment following elevated spend in Q1 2026. Core+ represented 541 thousand End of Period Subscribers at the end of Q2 2026, up 13.9% from Q2 2025, representing the third consecutive quarter of sequential growth in the Company’s higher-value Behavioral tier. Q2 Monthly Subscription Revenue Per Average Subscriber (ARPU) increased 10.2% year-over-year, driven by the continued mix shift towards Clinical. Q2 Gross Margin was 70.3%. Q2 Adjusted Gross Margin2 was 73.6%, which remained near record highs, reflecting continued operational discipline across the Company’s portfolio. Marketing expense was $47.9 million or 29.5% of Revenue, declining from $92.9 million in Q1 2026 as the Company moved past peak season and rebalanced investment across its business lines. Q2 Net Income was $14.1 million, which reflects higher depreciation and amortization related to Fresh Start Accounting1. Q2 Adjusted EBITDA2 was $39.8 million. Balance Sheet and Liquidity Updates Cash and Cash Equivalents balance as of June 30, 2026 was $101.5 million. Operating activities generated $24.3 million of cash in Q2 2026, reflecting the cash-generative nature of the Weight Watchers business and continued commitment to maintaining a strong liquidity position as the Company executes its strategic priorities. In Q2 2026, the Company prepaid $36.8 million in cash to reduce the principal amount of its outstanding term loan. The prepayment was comprised of the following two components: As a result of these actions, the Company reduced the aggregate principal amount of its outstanding term loan by $41.4 million and reduced its annualized interest expense by approximately $4 million3. 2026 Guidance The Company reaffirms its previously provided guidance for the year ending December 31, 2026. Revenue guidance of $620 million to $635 million. Adjusted EBITDA2 guidance of $105 million to $115 million. Second Quarter 2026 Conference Call and Webcast The Company has scheduled a conference call today at 5:00 p.m. ET to discuss results. The webcast of the conference call will be available on the Company’s corporate website, corporate.ww.com, under Events and Presentations. A replay of the webcast will be available on this site for at least 90 days. 1Fresh Start Accounting and Predecessor and Successor Periods In connection with the Company’s emergence from its financial reorganization process on June 24, 2025, the Company applied fresh start accounting which resulted in Successor and Predecessor financial statement presentation. References to “Successor” relate to the Company’s operations for the three and six months ended June 30, 2026 and the period from June 25, 2025 through December 31, 2025. References to “Predecessor” relate to the Company’s operations for the periods from March 30, 2025 through June 24, 2025 and December 29, 2024 through June 24, 2025. Accordingly, the consolidated financial statements after June 24, 2025 are not comparable with the consolidated financial statements as of or prior to that date. 2Statement regarding Non-GAAP Financial Measures To supplement the Company’s consolidated results presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company has disclosed non-GAAP financial measures of operating results that exclude or adjust certain items. The Company presents in this release non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization expenses and share-based compensation expense (“EBITDA”); and for each period presented, EBITDA adjusted, as applicable, for (a) goodwill and other indefinite-lived intangible asset impairments, (b) reorganization items, net related to the Company’s emergence from its Chapter 11 financial reorganization, (c) gain on extinguishment of debt, (d) transaction costs related to strategic alternatives and the Company’s Chapter 11 financial reorganization, (e) net restructuring charges associated with the previously disclosed 2025, 2024, and 2023 restructuring plans, (f) non-recurring expenses in connection with the management of certain executive matters, and (g) other items such as the impact of foreign exchange gains and losses as indicated in the reconciliations below that management believes are not indicative of ongoing operations (“Adjusted EBITDA”). The Company also presents gross profit, gross margin, marketing expenses, selling, general and administrative expenses, and product development expenses on a non-GAAP basis that adjusts for similar items, as further indicated in the reconciliations below. As exchange rates are an important factor in understanding period-to-period comparisons, the Company believes in certain cases the presentation of results on a constant currency basis in addition to reported results helps improve investors’ ability to understand the Company’s operating results and evaluate the Company’s performance in comparison to prior periods. Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. The Company uses results on a constant currency basis as one measure to evaluate the Company’s performance. In this press release, the Company calculates constant currency by calculating current-year results using prior-year foreign currency exchange rates. The Company generally refers to such amounts calculated on a constant currency basis as excluding or adjusting for the impact of foreign currency or being on a constant currency basis. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP and are not meant to be considered in isolation. Results on a constant currency basis, as the Company presents them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP. Management believes these non-GAAP financial measures provide useful supplemental information to investors regarding the performance of the Company’s business and are useful for period-over-period comparisons of the performance of the Company’s business. While the Company believes that these non-GAAP financial measures are useful in evaluating the Company’s business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies. See “Reconciliation of Non-GAAP Financial Measures” in this release and reconciliations, if any, included elsewhere in this release for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures. A reconciliation of the forward-looking full year Adjusted EBITDA outlook to net income cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of the Company’s control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results. 3The interest rate in effect for the term loan as of June 30, 2026 was 10.53%. Definitions “Behavioral” business refers to providing subscriptions to the Company’s digital product offerings with the option to add on unlimited access to the Company’s workshops. “Clinical” business refers to providing subscriptions to the Company’s clinical product offerings provided by Weight Watchers Clinic and third parties combined with the Company’s digital subscription product offerings and unlimited access to the Company’s workshops. “Revenue” - “Subscription Revenue” consists of the aggregate of: (a) “Behavioral Subscription Revenue”, the fees associated with subscriptions for the Company’s Behavioral offerings; and (b) “Clinical Subscription Revenue”, the fees associated with subscriptions for the Company’s Clinical offerings. In addition, “Other Revenue” consists of revenue from licensing, franchise fees with respect to commitment plans and royalties, publishing and other revenue. “Revenue” consists of the aggregate of Subscription Revenue and Other Revenue. “Incoming Subscribers” - “Subscribers” refer to Behavioral subscribers and Clinical subscribers who participate in recurring bill programs in Company-owned operations. The “Incoming Subscribers” metric reports Subscribers in Company-owned operations at a given period start. Recruitment and retention are key drivers for this metric. Management utilizes this metric to monitor changes in the subscriber base which directly impacts the Company’s revenue growth and trends. “End of Period Subscribers” - The “End of Period Subscribers” metric reports Subscribers in Company-owned operations at a given period end. Recruitment and retention are key drivers for this metric. Management utilizes this metric to monitor changes in the subscriber base which directly impacts the Company’s revenue growth and trends. “Monthly Subscription Revenue Per Average Subscriber” (“ARPU”) - The “Monthly Subscription Revenue Per Average Subscriber” metric reports the monthly fees associated with subscriptions for the Company’s offerings divided by the Average Subscriber for its businesses. Monthly Subscription Revenue for both quarterly and year-to-date periods for each respective business are calculated as Subscription Revenue divided by the number of months in the respective quarterly or year-to-date period. The “Average Subscriber” for quarterly periods for each respective business is the average of its Incoming Subscribers and End of Period Subscribers for the respective quarterly period. The “Average Subscriber” for year-to-date periods for each respective business is the average of its Incoming Subscribers at the beginning of the fiscal year and its End of Period Subscribers for each quarter end within the respective year-to-date period. Management utilizes this metric to consider revenue growth and trends on a per subscriber basis. About Weight WatchersWeight Watchers is the global leader in science-backed weight management, offering an integrated support system built for the GLP-1 era that combines scientific expertise, medication, cutting-edge technology, and human connection. With more than 60 years of experience, Weight Watchers is the most studied commercial weight management program in the world, delivered through its No. 1 U.S. doctor-recommended weight-loss program. Its holistic, personalized approach also includes U.S.-based clinical interventions and access to GLP-1 medications when clinically appropriate, and a global network of coaches and community support. Since 1963, the company has led with science to deliver its members the personalized support they need to reach and sustain their goals. Members can access these solutions directly, or through Weight Watchers for Business’ full-spectrum platform for employers, health plans, and payers. In a landscape crowded with contradictory advice, isolating apps, and one-size-fits-all solutions, Weight Watchers offers a proven path forward that is rooted in research, grounded in empathy and designed to help every member feel better in their body and live a longer, healthier life. For more information, visit weightwatchers.com. This press release includes “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, any statements about the Company’s plans, strategies, objectives, initiatives, and prospects. The Company generally uses the words “may,” “will,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “aim” and similar expressions in this press release to identify forward-looking statements. The Company bases these forward-looking statements on its current views with respect to future events and financial performance. Actual results could differ materially from those projected in the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things: the Company's recent emergence from bankruptcy, which could adversely affect its business and relationships and subjects us to risks and uncertainties; competition from other weight management and health and wellness industry participants or the development of more effective or more favorably perceived weight management methods; the Company's failure to continue to retain and grow its subscriber base; the Company's ability to be a leader in the rapidly evolving and increasingly competitive clinical weight management and weight loss market; the Company's ability to continue to develop new, innovative services and products and enhance its existing services and products or the failure of its services, products or brands to continue to appeal to the market, or its ability to successfully expand into new channels of distribution or respond to consumer trends or sentiment; the Company's ability to successfully implement strategic initiatives; the effectiveness and efficiency of its advertising and marketing programs across multiple platforms, including digital marketing and social media platforms; the impact on the Company's reputation of actions taken by its franchisees, licensees, suppliers, affiliated provider entities, PCs’ healthcare professionals, and other partners; the recognition of asset impairment charges; the loss of key personnel, strategic partners or consultants or failure to effectively manage and motivate the Company's workforce; the Company’s chief executive officer transition, and its ability to appoint a new chief executive officer with the required level of experience and expertise in a timely manner; the Company's ability to successfully make acquisitions or enter into collaborations or joint ventures, including its ability to successfully integrate, operate or realize the anticipated benefits of such businesses; uncertainties related to a downturn in general economic conditions or consumer confidence, including as a result of the existing inflationary environment, changes in tariffs and escalating trade tensions, rising interest rates, the potential impact of political and social unrest and increased volatility in the credit and capital markets; the seasonal nature of the Company's business; the Company's failure to maintain effective internal control over financial reporting; the impact of events that impede accessing resources or discourage or impede people from gathering with others; the early termination by us of leases; the inability to renew certain of the Company's licenses, or the inability to do so on terms that are favorable to us; the dependence of the Company's payments system on third-party service providers; the impact of the Company's exposure to variable rate indebtedness; the ability to generate sufficient cash to service the Company's debt and satisfy its other liquidity requirements; uncertainties regarding the satisfactory operation of the Company's technology or systems; the impact of data security breaches and other malicious acts or privacy concerns, including the costs of compliance with evolving privacy laws and regulations; the Company's ability to successfully integrate and use artificial intelligence in its business; the Company's ability to enforce its intellectual property rights both domestically and internationally, as well as the impact of its involvement in any claims related to intellectual property rights; the impact of existing and future laws and regulations; risks related to the Company's exposure to extensive and complex healthcare laws and regulations; the outcomes of litigation or regulatory actions; risks and uncertainties associated with the Company's international operations, including regulatory, economic, political, social, intellectual property, and foreign currency risks, which risks may be exacerbated as a result of war and terrorism; the Company's ability to engage in share repurchases and pay cash dividends in the foreseeable future; risks related to the actions of activist shareholders and anti-takeover provisions in the Company's articles of incorporation and bylaws; risks related to the actions of the Company's shareholders and the exclusive forum provisions in its articles of incorporation; the possibility that the Company could fail to maintain the listing of the Company's common stock on Nasdaq; and other risks and uncertainties, including those included in this press release and those detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission (the “SEC”) (which are available on the SEC’s EDGAR database at www.sec.gov and via the Company’s website at corporate.ww.com). You should not put undue reliance on any forward-looking statements. You should understand that many important factors, including those discussed herein, could cause the Company’s results to differ materially from those expressed or suggested in any forward-looking statement. Except as required by law, the Company does not undertake any obligation to update or revise these forward-looking statements to reflect new information or events or circumstances that occur after the date of this press release or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review the Company’s filings with the SEC (which are available on the SEC’s EDGAR database at www.sec.gov and via the Company’s website at corporate.ww.com). For investor inquiries, please contact:Anna Kate Heller [email protected] For media inquiries, please contact:Melissa [email protected]

NEW YORK, July 23, 2026 (GLOBE NEWSWIRE) -- WW International, Inc. (NASDAQ: WW) (“Weight Watchers” or the “Company”) will release its results for the second quarter 2026 ended June 30, 2026, after market close on Wednesday, August 5, 2026. Weight Watchers will host a conference call to discuss results at 5:00 p.m. ET the same day. The webcast of the conference call will be available on the Company’s corporate website, corporate.ww.com, under Events and Presentations. A replay of the webcast will be available on this site for at least 90 days. About Weight WatchersWeight Watchers is the global leader in science-backed weight management, offering an integrated support system built for the GLP-1 era that combines scientific expertise, medication, cutting-edge technology, and human connection. With more than 60 years of experience, Weight Watchers is the most studied commercial weight management program in the world, delivered through its No. 1 U.S. doctor-recommended weight-loss program. Its holistic, personalized approach also includes U.S.-based clinical interventions and access to GLP-1 medications when clinically appropriate, and a global network of coaches and community support. Since 1963, the company has led with science to deliver its members the personalized support they need to reach and sustain their goals. Members can access these solutions directly, or through Weight Watchers for Business’ full-spectrum platform for employers, health plans, and payers. In a landscape crowded with contradictory advice, isolating apps, and one-size-fits-all solutions, Weight Watchers offers a proven path forward that is rooted in research, grounded in empathy and designed to help every member feel better in their body and live a longer, healthier life. For more information, visit weightwatchers.com. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and beliefs, as well as a number of assumptions concerning future events. These statements are subject to risks, uncertainties, assumptions and other important factors. Readers are cautioned not to put undue reliance on such forward-looking statements because actual results may vary materially from those expressed or implied. The reports filed by the Company pursuant to United States securities laws contain discussions of these risks and uncertainties. The Company assumes no obligation to, and expressly disclaims any obligation to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are advised to review the Company's filings with the United States Securities and Exchange Commission (which are available on the SEC's EDGAR database at www.sec.gov and via the Company's website at corporate.ww.com). For investor inquiries, please contact:Anna Kate Heller [email protected] For media inquiries, please contact:Melissa [email protected]

WeightWatchers has gotten torched over the last six months - since January 2026, its stock price has dropped 50.3% to $15.13 per share. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in WeightWatchers, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free. Even with the cheaper entry price, we’re cautious about WeightWatchers. Here are three reasons we avoid WW, plus one stock we’d rather own. Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, WeightWatchers’s demand was weak and its revenue declined by 12% per year. This was below our standards and is a sign of poor business quality. Free cash flow isn’t a prominently featured metric in company financials and earnings releases, but we think it’s telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Over the last two years, WeightWatchers’s demanding reinvestments to stay relevant have drained its resources, putting it in a pinch and limiting its ability to return capital to investors. Its free cash flow margin averaged negative 3.6%, meaning it lit $3.64 of cash on fire for every $100 in revenue. A company’s ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity). Over the last few years, WeightWatchers’s ROIC has unfortunately decreased significantly. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. We see the value of companies helping consumers, but in the case of WeightWatchers, we’re out. After the recent drawdown, the stock trades at 4.7× forward EV-to-EBITDA (or $15.13 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better stocks to buy right now. We’d recommend looking at one of our top software and edge computing picks. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

Image source: The Motley Fool. March 16, 2026, at 8:30 a.m. ET President and Chief Executive Officer — Tara Comonte Chief Financial Officer — Felicia DellaFortuna Chief Operations Officer — Jon Volkmann Need a quote from a Motley Fool analyst? Email [email protected] Tara Comonte, President and Chief Executive Officer; and Felicia DellaFortuna, Chief Financial Officer; Jon Volkmann, Chief Operations Officer, will also join for the Q&A. Tara Comonte: Thanks, David. Before we get started, I encourage everyone to read our shareholder letter, which we posted on our Investor Relations site earlier this morning. In there, we share our progress against our strategic priorities latest exciting efficacy claims and unique differentiators for the company and our programs. We also share key financial trends, including 2025 results, where we were pleased to beat previously provided revenue and adjusted EBITDA guidance. Felicia will also provide more color on our results later in our call. Two quarters ago, we emerged from Chapter 11 financial reorganization with a mandate to transform our company to lead in a GLP-1 world. There were many legitimate questions to answer at the time, perhaps the loudest of which where the WeightWatchers a brand known the world over, could reinvent itself and successfully compete? As we sit here today, reflecting on how we exited 2025 and have started 2026. We answered that question with the resounding, yes. Our fourth quarter results and the momentum we've experienced already in the first quarter of 2026, provide us with exciting and additional conviction in our future and all that's possible for WeightWatchers in the years ahead. Over the last year or so, more dramatically in the month since exiting Chapter 11, WeightWatchers is beginning to feel different, look different and sound different. We've reduced our legacy debt by more than 70%, freeing capital for investment in the future. We've completely rebuilt the leadership team. We've repositioned and clearly defined our go-forward strategy, refreshed and reintroduced the WeightWatchers brand reset our product and pricing architecture and started the extensive execution against our technology modernization road map. All of this in service of supporting and growing our member base while returning to sustainable profitable growth. In our call last quarter, I shared that we were entering a transformative new era in Weight Health. In the months since as adoption of GLP-1s continues to accelerate, it's clearer than ever that our sector is undergoing massive generational change. GLP-1 medications represent a permanent structural shift in how the world understands weight, obesity and metabolic health. Today, about 10 million Americans are estimated to be on GLP-1. By 2030, McKinsey estimates that number will be between 25 million and 50 million. Already, calorie consumption patterns are changing. Cardiovascular risks are declining. And entire industries from food to alcohol to, airlines, to apparel are recalibrating in real time. This is not a continuation of anything we've seen in our past. This is a category being rebuilt from the inside out. WeightWatchers is being rebuilt too. We're fast evolving from a primarily behavioral subscription business that originally grew from in-person meetings to pairing and personal connections with the digital behavioral subscription and now into an integrated weight health ecosystem that includes medication access and clinical care. But we're about so much more than just a prescription. We are building out decades of providing real human comprehensive weight health support wherever our members need it. That commitment doesn't go away with GLP-1s. Far from it, it becomes all the more important. Guidance from leading health authorities like the World Health Organization emphasize that medication alone will not solve the global obesity problem and the GLP-1s works best in combination with healthy habits and community support. In fact, data we recently published showed that members who regularly engage with the unique behavioral support delivered by our WeightWatchers GLP-1 Success program, whose 29% more body weight at 12 months on average than those who use medication without the structured behavioral support. Additionally, when we look at the results published by competition in our field, our WeightWatchers Med+ members prescribed GLP-1 medications, reported over 30% more body weight loss on average at 12 months from those competitors. We published these and other exciting results in the GLP-1 report and press release last week, which you can also find on our site, and I encourage you to take a read. Taking a step back, though, the data is plain as day. GLP-1 work better with WeightWatchers. And as a result, we have a unique opportunity as we embark on this next chapter. Over the last year or so, and particularly in the few quarters since exiting Chapter 11, we've been focused on reinventing nearly every aspect of our company to execute on our strategic priorities. We're creating a deeply engaging end-to-end member experience, innovating to capitalize on new technologies that can continue to support better results and deliver a broad range of solutions to our members. On an increasingly personalized basis to meet them wherever they are in their journey. We're growing our new and emerging medical offerings and diversifying our revenue streams, scaling our clinical business, growing our GLP-1 success program our recently launched menopause program, making registered dietitians more widely accessible and expanding through other channels such as B2B as we work to grow access to new and expanded audiences. We're revisiting and refreshing our brand shows up, leaning into the trust and scientific credibility for which we've been known for decades, but in a modern, relevant way for today's consumer. Including with a focus on our role in the medication-led space. And after decades lacking sufficient technology investments, we're modernizing our tools. systems and platforms to ensure we are building on a robust foundation from which growth and innovation can be both nimble and efficient moving forward. Those are our areas of strategic focus today and moving through this year. Let's talk about how they show up in our product offerings. We're working to build a connected ecosystem of solutions, one that increasingly facilitates a member's ability to transition across our portfolio based on their specific goals and needs at any point in time. In terms of our programs, members can subscribe to our base level behavioral core program in order to access our tried and true points tracking system within our mobile app, along with new digital tools launched earlier this year. Core+ is our premium behavioral offering that provides additional human connection, expert coaching and community support through in-person and virtual workshops as well as our newer GLP-1 success in menopause programs. Our GLP-1 success program allows us to support members on GLP-1 to get their medications outside of WeightWatchers, which typically via their primary care or other specialist physicians. And Med+ is our clinical offering, that combines all of our behavioral programming and expertise plus access to board certified clinicians who can provide specialist care, including GLP-1 and HRT prescriptions for eligible members in the U.S. This program takes our decades of expertise in behavioral science, lifestyle change and community support and curate it for those on medication. It does say by providing a unique wrap-around system to help guide a member be most successful on their medically guided weight loss journey. Each of these offerings builds on the other. There are foundations for creating an engaged and increasingly retended member base with higher average revenue per member and importantly, the opportunity for superior health outcomes. The work ahead of us is to continue to strengthen and enrich each of these experiences while raising awareness in the marketplace. In just a few short weeks this year, we saw clear proof points that our brand repositioning and awareness efforts were resonating. Our priority this peak season was to drive a reconsideration of WeightWatchers as a modern relevant leader in the medical weight loss space. And yes, one has survived an extensively reported bankruptcy process. Our assets also targeted a simple and important message that is central to our go-forward strategy. That among many other things we are known for that WeightWatchers also now provides access to clinicians who can prescribe GLP-1 medications. Awareness that we even have this offering is low and therefore, represents a significant opportunity ahead. The results from our January campaign were exciting. Delivering an increase in awareness of our Med+ offering of 8 points to 30% while improving our brand modernization perception by 9 points. Completely repositioning a 60-year-old brand takes more than a few weeks. So to see such material shifts in the space in a relatively short time gives us immense confidence in the leadership role, this powerful, trusted global brand can play in this new world moving forward. We also relaunched our mobile experience in January. It's the first iteration of our app on a newly rebuilt foundational infrastructure and modern code base, one that brought with it new tools and programs to market for our members. Like any release of this scale, we moved quickly to incorporate member feedback and address ad hoc performance issues. As we sit here in March, we've shipped numerous releases since the beginning of the year centered on removing points of friction in the user experience as well as showcasing exciting new additions. These include the new AI body scanner, new personalized modes to support different phases of the weight loss journey, a proprietary weight health score and expanded coach-led virtual meetings among other ongoing innovations. Nowhere has our commitment to constant improvement been more evident than in the future digital road map we've laid out for the rest of this year. Our driving motivation is to help members successfully achieve their weight health goals with a build fast iterate mindset. We're fortunate to have attracted incredibly accomplished and proven new leaders to help lead us through this transformation. In science and clinical innovation, technology, marketing, brand, community and so much more. In the last few weeks, we've also filled more specialist in critically important areas such as data, AI, product and user experience among others. Turnarounds always take time, but they happen faster and more successfully with the right team in place. And I could not be more proud of the leaders who are overseeing this next chapter for the company. In the run-up to our critical peak season, we executed across the company to reintroduce our brand, rebuild our websites and acquisition funnels and relaunched this mobile experience in time for January. The market is taking note and our strategy is working. We're seeing a level of momentum in our Med+ offering that is both validating and energizing with member acquisitions reaching accelerated levels as we exited 2025 and new highs as we scaled into the first quarter of 2026. Our marketing efforts to reposition the WeightWatchers brand and shift consumer perception are also helping us reach an entirely new audience. In January, the proportion of first-time WeightWatchers members in the U.S. increased to 35% across all programs and reached even higher levels in Med+, where 50% of all new Med+ members were new to the WeightWatchers brand. We're also successfully reengaging prior WeightWatchers members, many of whom are returning with clear interest in our newer clinically focused offerings. Of course, we are clear eyed that this opportunity and associated pace of change does not come without challenges, particularly to a 10-year established business like us. As GLP-1 adoption continues to grow, clinically focused solutions will continue to disrupt stand-alone behavioral alternatives. Which is exactly why both our strategy and competitive advantage involves adapting our behavioral business for today's consumers and integrating this curated, tailored programming into our fast scaling clinical capabilities, again, engaging members wherever they are on our weight health journey, whether they are new, existing or returning. Speaking of engagement, in January, we were very pleased to see virtual workshop attendance among Core+ members in the U.S., increasing nearly 30% year-over-year. And notably, when our affiliated physician leads sessions, attendance more than doubled. These metrics represent clear and exciting signals for our business, validating the extent to which our members value the unique integration of medical expertise with human connections. Through our supportive one-of-a-kind WeightWatchers community. As GLP-1s mature, the question is quickly shifting from how do I access these medications? To how do I live on them? Industry data indicates nearly 1 in 5 patients discontinued use of GLP-1 medication within the first few months, largely due to side effects. We offer the support that can best help our members succeed on these medications, and it shows. In fact, 72% of our Med+ numbers reported that our GLP-1 success program helps them minimize their side effects. What's more, Med+ members guided by one of our registered dietitians during their first 12 weeks or 30% less likely to discontinue their treatment plan. These are just a couple of clear yet powerful data points that demonstrate the measurable impact the programs and support systems we are building can have on all our members' ability to be successful. They, together with an increasing number of additional proof points give us confidence in the power and unique value of our model as we move forward. This expansive progress across so many parts of our business is without question deeply encouraging and serves as our belief in the sizable opportunity ahead but also realistic knowing that we're in the early days of this work. As is the case with any generational business reinvention, the transition requires both time and careful management. This is all the more critical when managing the balance between exciting and significant growth of new and emerging business lines with ongoing headwinds in a high-margin legacy revenue stream. WeightWatchers exit the first quarter with high levels of conviction in our future. As we deploy capital against our strategic priorities in this fast-evolving market, we will continue to proactively manage the balance between the relative maturities and margin profiles of our different lines of business. We stand at an inflection point. The industry we helped create is going through mammoth of life-affirming change, and we do not plan to stand on the sidelines watching. Our WeightWatchers team has both energy and belief in the large-scale opportunity before us. We have never been more confident in our ability to succeed. But most importantly, we have never been more committed to our mission to help our members the world over live longer, happier and healthier lives. And with that, I'll turn it to Felicia to cover the financials. Felicia DellaFortuna: Thanks, Tara. Q4 marked the end of one of the most significant financial years in the company's history. Our capital structure was reset through a financial reorganization that eliminated over $1.1 billion of debt, allowing the company to refocus on investment and execution for the future. Q4 results were consistent with our strategic and financial objectives, and we are proud to have over delivered on our previously provided 2025 guidance. We maintained strong adjusted gross margins with disciplined cost actions while also strategically reinvesting to support targeted growth initiatives. Note that the year-over-year adjusted EBITDA comparison was impacted by a change in our fiscal reporting calendar end. These additional calendar days included about $10 million of marketing spend from the start of peak season. End-of-period clinical subscribers were 130,000 at the end of Q4, returning to sequential growth following the completion of our transition from our former compounded semaglutide offering. This momentum strengthens further into Q1, even while lapping strong growth from that offering in Q1 2025. We are expecting to end Q1 with approximately 200,000 end-of-period clinical subscribers, which when adjusted for compounded semaglutide last year would be roughly 100% year-over-year growth. In Q1, we leaned into marketing to solidify our Med+ positioning and drive member acquisition during peak season, which was also timed with the Wegovy pill entering the market. While we expect sequential growth for clinical subscribers in the remaining quarters of the year, we also anticipate seasonally lower demand following peak season, lower levels of overall marketing spend and a rebalancing of our spend allocation across behavioral and clinical for the remainder of the year. End of period behavioral subscribers were $2.6 million at the end of Q4 2025. Our behavioral business is further defined by two increasingly different trajectories. Core faces multiyear ongoing secular headwinds and incremental customer acquisition pressure following our financial reorganization. While this line of business saw further pressure in Q1 2026. This was due in part to our strategic decision to prioritize awareness and acquisition efforts for a Med+ offering in the U.S. during peak season. We were encouraged, however, with improvements in increasing signs of stabilization in Core+ including member engagement and acquisition trends as we work to position this as our premium behavioral offering. This is particularly true as we increase focus over time on our medically-centric life stage programs, including GLP-1 success, as our data continues to show such encouraging superior health outcomes associated with this offering. We are expecting to end Q1 with approximately 2.45 million end-of-period behavioral subscribers which would be a decline of approximately 26% year-over-year. An important part of our strategy involves increasing levels of existing member migration across our portfolio alongside reengagement of lapsed behavioral members into Core+ and Med+. Over 2025, we saw approximately 30% of our clinical sign-ups transitioning directly from our behavioral base. A trend that continued into the first quarter, albeit at slightly lower levels within larger overall new member volumes. Additionally, in Q4, we saw approximately 30% of our Core+ sign-ups transitioning directly from Core+. While these dynamics create a further subscriber and revenue headwinds for the core behavioral business, they represent a high-value transition to an accretive ARPU profile and increased lifetime member value. Monthly subscription revenue per average subscriber or ARPU increased 8% year-over-year to $18.73 in Q4. This growth is anchored by the significant premium of our clinical business, where ARPU remains over 4x higher than our behavioral business. Additionally, within the behavioral business, we expect to see the benefit of Core+ which commands a price point nearly 2x higher than our standard Core offering and represents around 20% of our behavioral subscriber base. The sequential ARPU improvement was further supported by the normalization of pricing following a clinical promotional period designed to transition our remaining compounded semaglutide members. Total revenue in Q4 was $163 million, down 12% year-over-year, reflecting the varying dynamics between our lines of business. A 32% growth in clinical revenue and a 17% decline in behavioral revenue. Foreign exchange provided a $3 million benefit in the quarter and fiscal Q4 2025 included one extra day compared to fiscal Q4 2024. Adjusted gross margin remained near record highs at 74.4% in Q4, but declined slightly compared to Q3, which reflected both the seasonal staffing of clinicians ahead of peak season and the accelerating mix shift towards clinical. While clinical carries a higher cost of service due to physician staffing, clinical is highly accretive because of its higher ARPU. Marketing expense in Q4 was 40% of revenue, which increased year-over-year, primarily due to the inclusion of 3 calendar days of peak season marketing spend as a result of the change in our fiscal reporting calendar end. Additionally, Q4 2025 reflects our accelerated efforts to raise awareness of our Med+ offering and start of the peak season. Adjusted product development expense in Q4 and which primarily includes personnel costs for engineering, product, design and data teams was 5% of revenue. Adjusted SG&A in Q4 was 18% of revenue remaining relatively flat despite revenue declines, a result of structural cost actions and continued expense discipline. Q4 adjusted EBITDA was $18 million, reflecting an adjusted EBITDA margin of 11.1%. Our profitability remains supported by the structural cost actions we have taken over the past years, which, along with financial restructuring, have allowed us to fund strategic growth initiatives while maintaining a disciplined margin profile. Now shifting to cash on the balance sheet. We ended Q4 with $160 million in cash and cash equivalents compared to $170 million at the end of Q3. The sequential change primarily reflects Q4 adjusted EBITDA and quarterly interest on our term loan of $13 million, capital expenditures of $7 million and prepayments associated with Q1 marketing commitments. For the full year 2025, net cash taxes were $10 million, which was lower than full year 2024, reflecting transaction-related deductions from our financial reorganization and the current benefits of tax legislation. Following our Q2 2025 financial reorganization, we have fundamentally transformed our balance sheet. Our GAAP profile consists of a term loan of $465 million with an interest rate of SOFR plus 680 basis points, with the maturity of June 24, 2030. Now shifting to our 2026 outlook. We enter 2026 managing two distinct realities. Our performance reflects a deliberate evolution of our model as we move from a collection of stand-alone behavior offerings toward a fully integrated wait health ecosystem that includes clinical care, allowing us to proactively support member migration and recapture lapsed behavioral subscribers. This involves advancing the significant momentum of our clinical Med+ offering while recalibrating our behavioral business across core and core plus offerings following multiyear secular headwinds and the commercial impact of our 2025 Chapter 11 reorganization. Our 2025 end-of-period behavioral subscribers translates into an opening subscription revenue headwinds in 2026 of approximately $50 million. Within clinical, 2025 included approximately $20 million of revenue from our former compounded semaglutide offering, which we exited in full compliance with FDA guidance following the end of medication shortages. As we focus on a mix shift toward clinical, we also remain focused on our long-term margin profile by leveraging workflow automation, technology enablement and cost discipline to drive further efficiency as we scale. Turning to operating expenses. We expect 2026 marketing expense as a percentage of revenue to increase modestly compared to 2025. We front-loaded approximately 40% to 45% of our full year marketing spend into Q1 as discussed earlier, which results in lower levels of overall marketing spend for the remaining quarters of the year. It will also see a reallocation across our behavioral and clinical lines business. Due to the subscription nature of our model, this means the impact of this reallocation of spend may not be fully visible in the 2026 P&L. On product development expenses for 2026, we expect to remain at a similar quarterly run rate to the second half of 2025 as we continue to execute on our multiyear technology road map. We expect modest SG&A savings in 2026, primarily driven by the exit from our corporate headquarters lease and ongoing operational discipline. With these components in mind, for fiscal year 2026, we expect revenue to be in the range of $620 million to $635 million and we expect adjusted EBITDA to be in the range of $105 million to $115 million. With regard to our Q1 cash flow expectations, as is typical for the business, we expect a meaningful use of cash in the first quarter. A deliberate investment fees aligned with our strategic priorities. Q1 represents our peak marketing investment period, and this year includes additional spend to support our brand relaunch and evolving member experience. with Q1 capital expenditures and interest payments expected to remain consistent with Q4 levels. Per our credit agreement, there are annual prepayments to be made for excess cash above $100 million, based on the last 10 calendar days of the first quarter. In the case of 2026, any excess cash payment would be due on June 24, 2026. We do not expect Q1 cash usage to be indicative of full year trends. As marketing spend moderates significantly following peak season, we will continue to manage liquidity and capital allocation with a focus on durable cash generation. We expect 2026 capital expenditures to begin to return towards historical levels as we continue to invest in product innovation, technology, infrastructure and growth initiatives. We expect 2026 net cash taxes to be between $5 million and $10 million. We view 2026 as an important inflection year, unlocking the potential for sustainable future growth. With that, I will now turn it over to the operator to open it up for Q&A. Operator: [Operator Instructions]. The first question today comes from Alex Fuhrman with Lucid Capital Markets. Alex Fuhrman: Congratulations on all you accomplished in 2025. Wanted to ask about some of the changes you're seeing in demand for weight loss medication, it seems like you guys really took the long-term approach you're betting on FDA-approved medications, and that really seems to be paying off now, especially with the lower-priced oral medications coming out. Can you talk about what demand has looked like for the week OV pill and just how we should think about the next 3, 6 months now that you're kind of lapping the last of when you had compounded GLP-1s back when that was allowed per FDA rules. Tara Comonte: Alex, it's Tara. Thanks for the question. Listen, I think we are seeing a consistent trend of increasing consumer interest increasing consumer openness and increasing consumer adoption of GLP-1 medication. Sure the price comes down, but also more and more people are seeing incredible results on these medications and as new forms come to market. So we are definitely very focused there, as you rightly point out, and as you can see in our Q1, both strategy and subscriber estimates and expectations. But again, just to reinforce that with this increased demand for medication, our position is not to shift this business to be a prescription-only telehealth business. Our strategy here is very much to lean into this part of the weight loss ecosystem and this part of innovation in the field, but to be building on and integrating everything we've spent 6 years building. Our focus, #1, 2 and 3 is driving superior long-term member outcomes. And so the more we see data around we've had some of it in the call and then the prepared documents today and in our white paper last week, if you saw the more we have conviction in the power of this model. So yes, leaning in the clinic, yes, we're seeing the consumer do the same thing. But really, our unique positioning is in the form of the power of the integration. But Jon, maybe you want to just touch on [indiscernible]. Jon Volkmann: Yes. Yes. Thanks, Tara. Regarding the [indiscernible], I mean we're incredibly pleased with the launch. So as we previously highlighted, our platform empowers trained obesity clinicians to work directly with patients to identify the treatment path that's right for them. And thus, the addition of a new option and particularly one with such clear clinical differentiation is a significant tailwind for our business. And demand has exceeded our initial projections. And more importantly, we're seeing as expanding our total addressable market. We're seeing a higher percentage of patients who are entirely new to obesity medicine interested in this treatment option. And this confirms our thesis that a needle-free oral option significantly lowers the psychological barrier to entry for millions of prospective members. And from an operations standpoint, with the launch, we were ready on day 1. So through our integration with Novo Care we were able to onboard interested patients to this new format seamlessly. And then regarding patient access, the market at launch was primarily cash pay, and that was supported by those lower cash paid prices than previous branded GLP-1 launches that you mentioned. However, we have seen in subsequent weeks a steady increase in prior authorization approval rates as more formularies adopt and our dual track ability to support members, whether they want to cash pay or utilize insurance remains a core competitive advantage of ours. And so overall, we really view this launch as validating our position as the leader in the wait health space. Our clinical infrastructure is medication agnostic. So we're built to evolve alongside the science. We view moments like these when new medications and new form factors come to market as an opportunity to truly shine in an increasingly complex landscape. Consumers are looking for a trusted authority to help them navigate treatment options safely and effectively. And to bring it back to member outcomes, as Tara said, our real-world data where we've demonstrated 19.4% weight loss at 12 months is significantly higher than competitors. And this proves that the combination of our high-quality clinical support when paired with behavioral support nutritional guidance is really a long-term winning strategy. Felicia DellaFortuna: I would also just add a couple of points on the first part of your question as well. So, as you know, our ARPU on the clinic is 4x higher than that of behavioral. And last year, in the first half of 2025, we were seeing approximately 50% growth in end-of-period subscribers when we were compounding. If you strip out that impact of compounding in Q1 2025, our estimate for Q1 2026 is showing 100% growth year-over-year. Alex Fuhrman: Okay. That's really helpful. All three of you for that. And then -- Sorry, you mentioned in your prepared remarks that about 50% of the Med+ members that have been joining lately are new to the brand. That sounds pretty high. How does that compare to the last couple of years of growth for clinical and curious how that compares to your new subs on the behavioral side? And what's driving the new interest in the brand from those that are new to it. Tara Comonte: Yes. Great question. I mean, 50% is certainly a number that we're pleased about, particularly as we think about this brand coming back to market. We also are bringing more lapsed members back into the Med+ offering, which is really interesting to see. So just continued increases there. And I think, again, some of that goes to here sort of multiple factors. The strength and awareness of the WeightWatchers brand generally. And we have a lot of people around the world who know this brand. However, we have less who know that we are in the clinical space. and that we offer access to physicians who can prescribe these medications. So as we really think about peak and sort of some of those success metrics repositioning this brand for people who have not engaged before, repositioning this brand as a leader, not just in wait health, but in medically centric weight health. Repositioning this brand is not one that is either behavioral of the past or medication only of the future but really one that is an integrated whole-person support platform that can help you throughout your entire journey and building on everything that we've always sort of led within the market is how we're approaching this sort of next chapter for the company. So it's really twofold. Yes, we need to be bringing new members to the brand, and that's where things like brand relevance modernization perceptions, all these types of metrics are really important leading indicators and signals, for our conviction that the brands can play and lead in this next chapter, but also the reconsideration of people who have members who have been with us in the past, but it's exciting to see them coming back, but coming back into some of these newer offerings. So early days, but very positive trends across all signs of this of this brand and the shift that we're very intentionally trying to make. But again, as I also said in my prepared remarks, you don't reposition a 63-year-old brands over 4 weeks in January. So this is just the beginning of this, but Q1 gives us a lot of conviction in our ability to be successful over the long term. Operator: The next question comes from Justin Ages with CJS Securities. Justin Ages: Good morning. So clearly, it looks like the marketing spend is working with the 2000 clinical members. Just wanted to see if we could dig in a little bit and see if the profile of the ads is changing. So is the demographic of new people coming to WeightWatchers. Is that different than the demographic that's been in the past? Tara Comonte: It's getting there. Thanks for the question. I mean I think as we talked about -- we are seeing new members come back. We're seeing lapsed members come back. We're also seeing younger members start to come into the brand. So, yes, I think slowly but surely, we are seeing that expand. But again, we're talking about a pretty short period of time here. So I would expect demographics to continue to expand over time as we really continue in these efforts to make this a brand that can truly meet you where you are, whether you are thinking about medication, whether you are on medication but getting it from your physician, whether you are looking for access to medication from one of our clinicians or will come off -- ramp off medication but maintain the weight or none of the above, but do that in an environment where you have human connection, real-life support and all the behavioral and additional tools that can support you. So I think that we would expect to see demographics continue to widen as time goes on, but some interesting early signs. Felicia DellaFortuna: I would also add this is, as you could see in our Q1 marketing spend, this was us very much focusing on a full funnel marketing strategy. And so we were across a spectrum of offerings as across television and out-of-home as a way of very much expanding our reach with the intent to improve customer acquisition costs overall in the future. Justin Ages: All right. Very helpful. I appreciate that. And then along similar lines and obviously, early days of the whole reorganization. But are you seeing any indications in how members are signing up in terms of length of contract? Are you seeing more longer term? Or is it shifting month-to-month? Felicia DellaFortuna: I mean, we've mentioned in our previous calls, specifically with clinics that we were seeing greater adoption of 12-month LTCs relative to the other plans. We are also seeing a similar trend in our behavioral business with folks adopting longer plans. So all positive trends as it relates to looking out past 2026. Tara Comonte: And just to remind -- yes, we're also sort of in the early stages is going to be a common theme of we reset our pricing product architecture for peak. And you should expect us to continue to test and learn there as it relates to how that product architecture continues to evolve. So as Felicia said, we are continuing to evolve not just the product offerings, but the payment structures, the subscription models to meet those needs in the marketplace. But again, I would just I would just say expect us to continue to be testing and learning as we go. Jon Volkmann: Yes. And if you're looking specifically at the clinical business, we see both retention and adherence very significantly across the individual patient level. And it's well documented that there are a number of reasons that folks might discontinue or cycle off medication from side effects to cost considerations to just reaching their goals. And that's why we've really taken the approach of providing a high-quality holistic care system. As mentioned, we have 72% of our Med+ members reported that the GLP-1 success program helped them minimize their side effects, which is critical to maintain the adherence. So we view our goal as supporting people wherever they are in their way health journey. And we don't see that journey ending, particularly when the prescription stops. So our model is built to help members when appropriate. Transition seamlessly from medication-assisted treatment back to our core and behavioral programs to ensure that we can support their long-term health goals and weight management, even if they stop clinical therapy. Operator: The next question comes from William Reuter with Bank of America. William Reuter: I have two questions. The first, on your general pricing strategy, where are you at this point and thoughts on how promotional you may be in 2026, whether you're going to be pulsing different offerings throughout the year and thoughts upon the importance of average revenue per user versus increased numbers. Felicia DellaFortuna: Yes. So as we look out to kind of 2026 and specifically as it relates to our pricing and promotional structure, one of the big shifts that we have made kind of leading into the 2026 year was allowing members to renew from a long-term commitment to another long-term commitment. Historically, once the long-term commitment had ended, members would have to wait until the next big promotion to rejoin WeightWatchers. And so we are very excited about giving folks the opportunity specifically on our behavioral offering to renew from an LTC to LTC. This is one of kind of the first steps. We do anticipate that this has a slight impact to ARPU overall because what we -- as I just mentioned before, do see folks joining the 12-month LTC, which is at a lower price than our 1-month. However, I would note that we are using promotional activity more deliberately in the 2026 year and as well as in the past in the 2025 year. So for example, in Q3 2025, we provided specific clinical promotional activity as we were moving to try to migrate as many members who are part of our compounding semaglutide offering. To our other branded Med+ that we offer. And so that was a very calculated choice that we have since kind of resumed back to more normal pricing on our clinic offerings. So see us being out there. And then just to kind of remind on the ARPUs, like overall, the corp less ARPU SKU is about 2x that of the or only SKU. And so as we kind of see the mix shift happening to clinic and also seeing core plus stabilize relative to core, we do anticipate that, that over time will increase ARPU and create for ARPU expansion. Jon Volkmann: Yes. And with our clinical pricing specifically, we feel very confident looking across the landscape that our price to value for our membership is very strong. We have one of the lower entry points to a clinical telehealth program in the space. And when you consider the holistic support system that we provide with that membership, we feel very strong about our price-to-value ratio. William Reuter: Got it. That's very helpful. And then my second question, you guys referenced the B2B initiative. I'm wondering if you could share any data points on your success there, the size of the program and what type of growth you might expect or hope for this year? Tara Comonte: Yes. So on our B2B business, this was an area that we had discussed having a disproportionate impact by bankruptcy just because it has a much longer sales cycle. And we were going through Chapter 11 during what was prime B2B sales cycle season. However, since then, we are very enthused about our pipeline and pleased about the activity. We have taken a much more active effort in our B2B efforts overall. And so this -- like we do see as a really important initiative for us. It's still a small percentage of total revenue. However, B2B subscribers are included in our behavioral and clinic business lines in the subscriber counts. But we are pleased with the momentum here and are happy with the diversification that it provides both on acquisition as well as with employer relationships. Jon Volkmann: Yes. And to speak to a couple of the initiatives on that front, we're really excited about expanding our partnership with UnitedHealth really across multiple lines of business, including their hub, total weight support, UHD store and the pilot for fully insured members and broadly just looking to continue expanding our collaboration with them to meet -- to reach more employers. And then to speak a little bit to the RxFlexFund, which was something that we announced on our last call, I believe. We did that based on the express needs of our clients, and we've seen others fast follow, which we view as evidence of demand for this type of offering. And with that, we offer -- we enable a partial subsidy from employers for GLP-1 costs to reduce the cost burden for members versus paying the full direct-to-consumer medication costs. And one of the key differentiators for that program are that we embedded that plus offering within the RxFlexFund solution for comprehensive care in the program that's easy to add and implement. And as a part of that, as we speak to that price to value, members get access to our GLP-1 success program. as part of the overall offering to ensure they're getting wraparound support versus just contributing money to GLP-1. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Tara Comonte, CEO, for any closing remarks. Tara Comonte: Thanks, everyone. I appreciate you all joining us today. Very much appreciate you also your support and continued interest in the company, particularly at this really important time of transition for WeightWatchers. We have a huge opportunity ahead of us, and we are working very hard to deliver on our mandate of transforming this company to meet it. So it's early days. We know we've got plenty of work ahead but we believe we're very much on the right track, and we have a high level of confidence and conviction in our future. So we look forward to following up with some of you after the call, and thank you again for joining us today. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Ww International, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ww International wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. WW (WW) Q4 2025 Earnings Call Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Thursday, May 7, 2026 at 8:30 a.m. ET Chief Financial Officer — Felicia DellaFortuna Chief Operations Officer — Jon Volkmann Investor Relations — David Helderman David Helderman: Thank you for joining us today for the WeightWatchers First Quarter 2026 Earnings Conference Call. Earlier this morning, we released a shareholder letter and press release with our first quarter 2026 results, which are available on the company's corporate website located at corporate.ww.com. The purpose of this call is to provide investors with some further details regarding the company's financial results as well as to provide a general update on the company's progress. Reconciliations of non-GAAP measures disclosed on this conference call to the most directly comparable GAAP financial measures are also available as part of the shareholder letter and press release. Before we begin, let me remind everyone that this call will contain forward-looking statements. Investors should be aware that any forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here today. These risk factors are explained in detail in the company's latest annual report on Form 10-K, quarterly report on Form 10-Q, the earnings release, the shareholder letter and as updated by the company's other filings with the Securities and Exchange Commission. Please refer to these filings for a more detailed discussion of forward-looking statements and the risks and uncertainties of such statements. All forward-looking statements are made as of today, and except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Joining today's call are Felicia DellaFortuna, Chief Financial Officer; and Jon Volkmann, Chief Operations Officer. Both are members of the interim office of the Chief Executive. Jon Volkmann: Thanks, David, and thanks to all of you for joining. Before we get started, I encourage everyone to read our shareholder letter, which we posted on our corporate website earlier this morning. This letter shares our progress as well as key financial trends. Felicia will also provide more color on our results later in the call. When we last spoke to you in mid-March, we laid out our WeightWatchers strategy to become the preferred destination for weight health in a GLP-1 era by integrating groundbreaking medical advances like GLP-1s with our time-tested behavioral and community programming. We remain confident that this approach can help WeightWatchers create better health outcomes for our members while driving higher lifetime value and return the company to profitable long-term growth. Before we discuss our business progress, we want to briefly acknowledge the recent transitions on the Board. The Board is committed to WeightWatchers transformation and long-term success. And over the past month, the Board has welcomed three highly qualified independent directors who bring valuable expertise in transformation, healthcare and GLP-1 market dynamics. Felicia and I, along with the Board, are fully focused on executing our strategic plan so we can capture the significant opportunity before us. It's an opportunity that continues to grow. Through the first 3 months of 2026, demand for GLP-1 has accelerated with the launch of oral versions. We've also seen employers, payers and governments increasingly looking to drive tangible health benefits, economic outcomes and returns on investments that come with these new medications. Our industry has never changed faster or drawn more interest than today. These medications are an important part of our sector's future, which is why we have expanded our clinical capabilities to meet consumer demand and offer our members the best tools available. But even as GLP-1 adoption grows, and benefits become clearer. A growing body of evidence is also illustrating that many people are not staying at GLP-1s long term. And that absent other interventions, patients are likely to regain weight after discontinuing treatment. Comprehensive care models and support systems like ours that go beyond the prescription are critical to maximizing the potential of GLP-1 going forward. As the global leader in sustainable science-backed weight management for more than 60 years, WeightWatchers is perfectly positioned to meet this need. Our unique portfolio of weight health offerings enables members to choose the right level of support for wherever they are in their weight loss journey with or without medication. The data continues to back our approach. At 12 months, Med+ members who engaged regularly with our GLP-1 success program lost 29.1% more body weight on average than those who did not engage in structured behavioral support. That is a massive competitive advantage, and we're committed to seizing this opportunity by continuing to transform our company for the future. And as our members know well, transformations require time and discipline. We are in the early stages of a multiyear reinvention that will require a sustainable approach. That is why, as we continue to shift our legacy business to address market realities, we are committed to finding consistent incremental wins that facilitate our long-term ambitions. During Q1, we drove many of those wins through our Med+ tier. This higher-value membership integrates premium clinical capabilities with the proven community solutions and behavioral tools that have driven results for WeightWatchers members over the last 6 decades. Clinical subscription revenue and end-of-period Clinical subscribers grew 32% and 46% year-over-year, respectively, despite lapping our former compounded semaglutide offering, which demonstrates our growing strength in this increasingly important vertical. Our Clinical capabilities are making inroads with existing members and prospective new members. During Q1, we saw more than 20,000 existing Behavioral members upgrade to Clinical, which has an ARPU over 4x greater than our Behavioral offering. This mobility within our ecosystem speaks to the benefits of our tiered service approach and demonstrates how our portfolio of products can drive higher lifetime value. At a time when compounded medications are facing increased scrutiny, we continue to expand access to FDA-approved medications, including oral versions, which are growing the total addressable market for GLP-1s and becoming increasingly affordable for our members. This progress in our Clinical business comes as our Behavioral business continues to face headwinds. We are focused on stabilizing our Behavioral business by recalibrating marketing spend across our portfolio, facilitating seamless navigation of members across our ecosystem and continuing to enhance our coaching, community and medically tailed support programs, all of which are available through our Core+ tier. We are encouraged by the return to growth of Core+, which ended Q1 with 537,000 subscribers, representing a 6% year-over-year increase. This higher value offering doubles down in our community, which continues to be at the heart of the WeightWatchers experience. Our virtual workshop experiences are expanding, including sessions led by registered dietitians and physicians and classes tailored to GLP-1 users and members experiencing menopause. Members are responding. In Q1, virtual workshop attendance among Core+ members in the U.S. increased nearly 40% year-over-year, with increases in members participating in multiple meetings per week as well. In addition to driving engagement, these workshops are also converting subscribers to higher-value memberships. As we strategically offer complementary virtual experiences to Core members, we found that those who attend are 3 to 4x more likely to upgrade to Core+, which has an ARPU nearly 2x greater than our Core tier. In Q1, nearly 20% of Core+ sign-ups or upgrades for Core. Core+ also includes our GLP-1 success in menopause programs, 2 medically adjacent offerings tailored to the needs of our members. As the weight health industry embraces medical advances, these programs illustrate how WeightWatchers can combine our tried and true Behavioral methods with new evidence-based approaches that drive better results. The future of our industry will be defined by the intersection of scientific innovation, behavioral programming and human support, and no company is better prepared to operate at that intersection in WeightWatchers. We have an unparalleled track record of helping our members live healthier, happier lives as well as the plan and the team to return this global brand to long-term growth. As we continue to transform WeightWatchers to prepare for what's next, we believe that 2026 will be an important inflection year that unlocks the potential for sustainable value creation. With that, I'll turn it over to Felicia to cover the financials. Felicia DellaFortuna: Thanks, Jon. Our first quarter financial performance demonstrates the solid financial foundation we've built following our successful 2025 reorganization. We are pleased to report that during Q1, we were able to advance short- and long-term business priorities simultaneously. We maintained a near-record adjusted gross margin and drove continued increases in ARPU. At the same time, we made strategic forward-looking investments and built a liquidity position to support our previously announced $37 million of cash utilization to pay down our term loan in Q2. Additionally, we are reaffirming our previously provided 2026 financial guidance for revenue and adjusted EBITDA, and we expect to generate cash in 2026. Starting with Q1 financial details. While end-of-period Behavioral subscribers were 2.5 million at the end of Q1 2026, reflecting a 25% year-over-year decline, we are encouraged with Core+ trends, which represented 537,000 subscribers and grew 6% year-over-year. While Core continues to face secular headwinds and saw incremental pressure in Q1 2026, this was due in part to our strategic decision to prioritize awareness for a Med+ tier, also coinciding with the Wegovy Pill launch. Due in large part to these efforts, end-of-period Clinical subscribers were 197,000, which grew 51% sequentially. Additionally, we are seeing members shift from Core to our Core+ and Med+ tiers, a trend that we expect to continue, demonstrating how our integrated weight health approach can drive higher ARPU and lifetime value. As a result, Q1 ARPU increased 13% year-over-year to $20.59. Clinical ARPU remained over 4x higher than Behavioral ARPU in Q1. Within the Behavioral business, Core+ had an ARPU of nearly 2x higher than that of our Core subscriber. Revenue in Q1 was $168 million, down 10% year-over-year, reflecting the subscriber dynamics between our subscription tiers, which resulted in 32% growth in Clinical subscription revenue and a 17% decline in Behavioral subscription revenue. Foreign exchange provided a $4 million benefit in the quarter, while fiscal Q1 2026 included one less day compared to fiscal Q1 2025. Adjusted gross margin was 73.6%, which remains near record highs despite an accelerating mix shift towards Clinical as we significantly improved the margin profiles within both Behavioral and Clinical through structural actions and operational efficiencies. While Clinical carries a higher cost of service and Behavioral primarily due to clinician staffing, Clinical gross margins have expanded meaningfully since our acquisition of Sequence in 2023. Marketing expense in Q1 2026 was $93 million, reflecting front-loaded investment in Q1 to drive awareness of our Med+ positioning, also coinciding with the Wegovy Pill launch. Adjusted SG&A was 15% of revenue, slightly lower as a percent of revenue than Q4 2025, reflecting the exit from our corporate headquarters lease and continued expense discipline. Adjusted product development expense in Q1, which primarily includes personnel costs for engineering, product design and data teams was 5% of revenue. As is typical for the business, Q1 represents our peak marketing investment period ahead of revenue that is recognized across the remainder of the year. Adjusted EBITDA for Q1 was a loss of $1.8 million, and we expect adjusted EBITDA to improve in the remaining quarters of 2026. Our profitability remains supported by the structural cost actions we have taken in recent years, which, along with the financial restructuring, have allowed us to fund strategic growth initiatives while maintaining a disciplined margin profile. Now shifting to cash on the balance sheet. We ended Q1 with $121 million in cash and cash equivalents compared to $160 million at the end of Q4. The sequential change primarily reflects Q1 2026 adjusted EBITDA, quarterly interest on our term loan of $12 million, capital expenditures of $6 million and the timing of marketing payments. Our liquidity position supports our previously announced debt paydown actions, including our voluntary solicitation, which was fully subscribed to 68.5% of par that we expect to take place in Q2. As a result, in Q2, we expect to utilize $37 million in cash to reduce the aggregate principal amount of our term loan by $42 million. The $37 million payment is made up of $27 million from our annual cash sweep and $10 million as part of the voluntary solicitation. Based on the interest rate in effect for this term loan, as of March 31, 2026, of 10.5%, we expect the debt paydown to reduce our annualized interest expense by approximately $4 million. Now shifting to our 2026 outlook. We are reaffirming our previously provided 2026 guidance for revenue to be $620 million to $635 million and adjusted EBITDA to be $105 million to $115 million. While we expect sequential Clinical subscriber growth in the remaining quarters of the year, we expect sequential net adds to be lower than Q1, reflecting seasonal normalization, lower levels of marketing spend and a more balanced allocation of that spend. We are expecting Clinical subscription revenue to grow to be approximately 25% to 30% of 2026 revenue, up from 16% of 2025 revenue. Within our Behavioral business, we are encouraged with the growth we are seeing within Core+, and we expect to grow Core+ subscribers in 2026. We remain focused on driving efficiencies within gross margin through workflow automation, technology enablement and cost discipline, in particular, as we scale our Clinical business. While we expect modest injected gross margin declines in 2026 versus 2025, we expect to remain above 72%. Now turning to operating expenses. We continue to expect 2026 marketing expense as a percentage of revenue to increase modestly compared to 2025. On product development expenses, we expect to remain at a similar quarterly run rate as Q1 2026 as we continue to execute on our multiyear technology roadmap. On SG&A, we continue to expect modest savings in 2026, primarily driven by the exit from our corporate headquarters lease and ongoing operational discipline. As is typical for the business, Q1 represents our peak cash usage quarter. We expect to generate cash through the remainder of the year, and we'll continue to manage liquidity and capital allocation with a focus on durable cash generation. The main drivers of adjusted EBITDA for our cash generation are interest, CapEx and cash tax. We expect approximately $45 million to $50 million of interest costs, which reflects slightly lower quarterly interest compared to Q1 2026 following the debt repayments from the cash sweep and voluntary solicitation offer mentioned earlier. We expect 2026 quarterly capital expenditures to remain at a similar run rate as Q1 2026, and we expect 2026 cash taxes to be between $5 million and $10 million. As we look to the future, we continue to feel confident in our financial footing and the immense opportunity before us. Our first quarter results demonstrate the increasing share of our growing Clinical and Core+ businesses as a percent of total end-of-period subscribers and revenue, which supports 2026 as an important step in a multiyear transformation. I will now turn it over to the operator to open it up for Q&A. Operator: [Operator Instructions] The first question comes from Nathan Feather with Morgan Stanley. Nathaniel Feather: Given the 1Q performance, can you help us think through the shape of both Behavioral and Clinical subscriber growth through the year, especially as marketing mixes back to a bit more of a balance between segments? Felicia DellaFortuna: Thanks, Nathan. And of course, so as we look out for the year, there are a couple of pieces of information for 2026 that we do think are helpful. We do think with the balance of Core+ and Core in our Behavioral business for the subscriber declines alongside the recalibration of marketing to stay fairly flat relative to what we've provided in Q1 2026. We do expect that mix shift between Core+ and Core to have the continued positive impact that you've seen in our ARPU for Q1. And then with Clinical, we are very excited about the growth that we put up in Q1 of 2026, ending the quarter at 197,000 Clinical subscribers. We do anticipate with this recalibration that there will be sequential growth, however, significantly muted relative to what we saw from Q4 2025 to Q1 2026. In addition, we will be lapping some of the 12-month long-term commit. That was a big initiative for us in Q3 of 2025. With all of that, however, we do anticipate significant revenue growth on our Clinical business, and we do anticipate that ending at around 25% to 30% of our total revenue. Nathaniel Feather: Great. That's helpful. And then I guess just more broadly, we've seen prices, especially cash prices on branded GLP-1 continue to come down, I think especially accelerated by the launch of the new oral medication. Can you talk through how has that impacted the funnel kind of from top of funnel interest all the way down to conversion as you're seeing this greater affordability? And then within 1Q, can you give us any sense of just how important the impact of the oral category has been and how you see that progressing over the course of the year, especially as access to that continues to expand? Jon Volkmann: Yes. Yes, great question. So as we previously highlighted, our clinical platform empowers our obesity clinicians to work directly with patients and identify the treatment path that's right for them. And that's when new medications come to market, particularly at more affordable price points, it helps open up access both at the top of funnel and helps patients not only get on medication, but stay on medication. So when new medications come to market and particularly what we've seen with these orals, it has been a tailwind for our business, and we expect that to continue moving forward. We really view new medications coming to market as an opportunity for us to really shine. And an increasing and complex landscape, consumers are looking for that trusted authority to help them navigate treatment options safely and effectively. And with the orals coming to market and particularly with differentiated clinical profiles that gives us an opportunity to really help consumers navigate these options. We also support members who want to pay with cash and insurance for these FDA-approved medications. And our ability to help these patients get covered has been a competitive advantage of ours in the past, and we expect that to continue moving forward. And then just to close, our real-world data, we demonstrated 19.4% weight loss at 12 months, which is significantly higher than competitors. And so when you look at this combination of clinical quality along with these medications, we really feel like that's the winning approach long term to pair that together with our behavioral support and nutritional guidance. Nathaniel Feather: That's helpful. And then one more, if I may. Given where the term loan is trading, what are your thoughts on additional voluntary paydowns maybe on a more regular basis given the success of what you did? Felicia DellaFortuna: I think for us, it's a constant management of both debt and equity across our profile. And so with the latest voluntary solicitation, we saw where it was trading. We are comfortable in the guidance that we've provided. You've heard that from us reaffirming it as well for 2026, and I'm also comfortable in our overall cash position. So we did see it as an opportunistic moment. And I think as we look out for the business, Q1 2026 and Q1 typically is a cash use quarter. So in looking out for our adjusted EBITDA guidance, we do expect cash accretion for Q2 to Q4. And so I think that's just a factor that we're going to continuously monitor as we balance both investment in the business alongside trying to decrease our debt burden. Operator: The next question comes from Alex Fuhrman with Lucid Capital Markets. Alex Fuhrman: It seems like one of the most surprising things in today's release or at least one of the most impactful is getting back to growth on the Core+ offering. Can you talk a little bit more about what's really driving that mix shift within the Core offering to the point where you're back to growth on Core+, what it is that people are really responding to? Have you needed to add more meeting touch points to drive that? Just curious what's driving that and how long you can sustain that momentum. Felicia DellaFortuna: We are very excited about the Core+ subscriber growth that we were able to put up in Q1 2026. And I would say that there are several factors that have been quite exciting for us that have impacted that growth. We have new virtual experiences that are available. So not necessarily only doing IRL experiences, but having the opportunity to do virtual experiences across the member base. It's also a chance for us to be more focused in the virtual experience. So there's more -- an individual member of WeightWatchers can choose. We are also having the chance to have those workshops and virtual experiences be led by RDs and physicians, which is just helpful in providing more guidance to our members alongside their weight loss journey. We have new coach creators across our ecosystem. And so that has been a fantastic way of getting our message out. And then we are also still very excited about these medically-centric programs like menopause and GLP-1 success that are included in our Core+ SKU. So it is very important when we talk about that 537,000 subscriber count that, that 2x ARPU number is the equivalent of almost 1 million Core subs. And so this is an area that we see the potential and also the differentiation of WeightWatchers starting to come to light. Alex Fuhrman: Okay. That's really helpful. And then just as we think about kind of our models and what the business could look like throughout the rest of the year and into next year, can you just help us, remind us the impact of compounded semaglutide last year? I mean it was a brief period of time that you were offering it, but obviously had a pretty significant impact on the business. Is it fair to assume that you're going to see an acceleration in the year-over-year numbers for Clinical in the back half of the year as we kind of get past that? And just trying to remember the economics of branded versus compounded, should we expect the relationship between Clinical revenue growth and Clinical sub growth to stay more or less the same throughout the rest of the year? Felicia DellaFortuna: Sure. So in the last call, I think we mentioned that the opening headwind for 2026 associated with our compounded semaglutide offering was approximately $20 million. And as a reminder, we stopped compounding in May of 2025 in accordance with the FDA guidelines that did have a fairly large churn event in Q3 of 2025 last year. We were able to retain about 20% of those compounded semaglutide members across our ecosystem. So yes, as you look at our revenue for Clinical, not necessarily the subscriber count, but for our revenue, we will be lapping easing comps in Q3 of 2026 and Q4 of 2026. Operator: The next question comes from Justin Ages with CJS Securities. Justin Ages: Can you give us a bit more color on the shift in brand strategy or marketing and how that's appealing to different demographics and whether you're gaining traction there? Felicia DellaFortuna: Yes, of course. I mean we did spend in Q1 of 2026, and that was definitely a strategic focus of ours. And we do look at it as very productive spend, especially as it was the first opportunity kind of post Chapter 11 for us to focus on larger reach. We had multiple goals as we were thinking about Q1 2026 spend. We were thinking about the modernization of our brand, and you see the brand refresh coming through as it relates to WeightWatchers. And we also wanted to increase general brand awareness of our Clinical business and our Med+ offering, which includes not only access to meds, but also the behavioral science and the community support that go alongside with WeightWatchers. And the Wegovy Pill launch was just a big thing that we also specifically wanted to target towards. So what we did see overall as a result of that is we saw a 10-point increase in our general awareness that WeightWatchers has a GLP-1 offering. There's still room to grow, but that was an exciting stat for us internally to allow for folks to know that we do carry GLP-1s. And we also saw 50% of the members who joined clinic during peak coming from new members to WeightWatchers. And so both of those things, we do expect to continue to have a positive tailwind for us as we look out across the 2026 year. But it is important for us at this point and at this juncture to also show that we have more to offer than just access to meds. And so we will be advertising across the portfolio and not just kind of the general awareness and Med+ offerings that we did in Q1. Justin Ages: All right. That's helpful. And then one more kind of relatedly. As part of the emergence, you guys highlighted a few initiatives, one of them being the menopause program. Can you give us a sense on what the size of that opportunity is, how you're working towards that? Any contribution from that initiative towards overall results? Felicia DellaFortuna: Yes. The menopause offering was our first launch at a medically centric program included in our Core+ SKU. So it is one of the programs that is helping the overall growth of our subscriber base in Q1. And so we are pleased because it has been the first time in years that our Core+ offering has grown and menopause is an important factor of that. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Felicia DellaFortuna, CFO, for any closing remarks. Felicia DellaFortuna: Thank you for joining us today. We value your continued interest in our transformation. There is a significant opportunity here, and we are fully committed to execution of the strategy we believe in. While we remain in the early stages, we're confident we are on the right track, and we look forward to providing updates as we go. Thank you. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. WW (WW) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool